The report published by The Brainy Insights shows that the global modular construction market is expected to grow from $84.6 billion in 2021 to $141.7 billion by 2030, at a CAGR of 5.9 percent during the forecast period 2022-2030.
Modular building solutions are gaining popularity due to their various benefits, such as reducing waste, cost-effectiveness, eco-friendliness, speedy building and flexibility. Modular constructions can be completed 30-50 percent quicker compared to conventional construction.
These buildings are flexible because they are custom-made to fit the construction site according to the requirement of customers or builders. Rapid urbanization has increased the demand for construction activities to bridge the rising demand for the infrastructure of the increasing population.
The increasing demand rise in industrialization and urbanization in developing countries increases the need for modular construction to meet the housing demand of the growing population. The rising investment in building advanced infrastructure to provide the best amenities in a small space also adds impetus to the market's growth. But there is a high risk of project failure, while shifting the unit to the final installation site hinders the market's growth.
There is also increased investment required for modular construction along with long-term returns, which restrain the market's growth. The rising government initiatives to reduce construction waste and pollution at the construction site provide an opportunity for the market's growth. But the outbreak of the COVID-19 pandemic negatively affected the market as lockdown restrictions were imposed, and construction industries were temporarily closed to stop the spread of the disease, challenging the market's growth. The raw material supply chain was also disrupted, challenging the market's growth.
Among the report’s findings:
- In 2021, the permanent segment dominated the market with the largest market share of 65 percent and a market revenue of 54.34 billion.
The product type segment is divided into permanent and relocatable. In 2021, the permanent segment dominated the market with the largest market share of 65 percent and a market revenue of $54.34 billion. The permanent modular construction can be built to stand independently and assembled into an existing structure, which drives the segment's growth.
- In 2021, the healthcare segment accounted for the largest market share, with 19 percent and a market revenue of $15.8 billion.
The application segment is divided into retail and commercial, residential, education, office, healthcare, and hospitality. In 2021, the healthcare segment accounted for the largest share of the market, with 19 percent and a market revenue of $15.8 billion. The segment has been growing owing to the increasing need for improved healthcare infrastructure and better hospital amenities for treatment, surgeries and clinical and dental use.