Modular Construction Market Size, Share & Growth Statistics to 2030

Global Modular Construction Market Size, Share, Trends, Industry Growth by Type (Relocatable, Permanent), by Material (Wood, Steel, Concrete, Others), by Module (Four-sided, Open-sided, Partially open-sided, Mixed modules & floor cassettes, Modules supported by a primary structure, Others), by Application, by Region, and Forecast to 2030 Report ID: RC107351 | Report Format: PDF + Excel | Starting Price: 3650/- USD |

The global modular construction market is rapidly transforming the construction industry with its innovative, time-saving, and sustainable building solutions. Valued at over USD 100 billion in 2024, the market is projected to grow steadily through 2030 with a significant CAGR of over 6%, driven by demand for faster, cost-efficient, and environmentally responsible construction methods. Modular construction involves prefabricating building components in factory settings and assembling them on-site. This approach significantly reduces construction time, minimizes waste, and offers high levels of quality control. It is increasingly adopted across sectors including residential, commercial, healthcare, education, and industrial projects.

Permanent Modular Construction (PMC) is the dominant type in the market. PMC structures are engineered to meet the same standards as traditional buildings and are intended for long-term use. Governments and developers favor PMC for delivering high-quality infrastructure on tight schedules, especially in densely populated urban areas. Steel remains the most widely used material due to its strength, recyclability, and compatibility with modern architectural designs. Regionally, Europe leads the global market, thanks to supportive regulations and technological innovation, while Asia-Pacific is showing the fastest growth, fueled by urbanization and infrastructure development.

Key Market Drivers

One of the primary drivers of modular construction market is the global shortage of skilled labor in the construction sector. Traditional construction methods are increasingly facing delays, cost overruns, and labor-related inefficiencies. Modular construction mitigates these issues by shifting work to controlled factory environments, reducing on-site labor requirements, and enhancing project timelines. Projects using modular techniques can be completed 30% to 50% faster, with potential cost savings of up to 20%. Moreover, the controlled factory process leads to up to 50% less material waste, promoting more efficient resource utilization.

Another critical factor boosting the market is the rising demand for sustainable, affordable, and resilient buildings. Modular building supports green building initiatives by incorporating energy-efficient designs, recyclable materials, and low-emission construction processes. These benefits are especially valuable in regions affected by climate-related disasters or housing shortages. For example, following the 2023 Maui wildfires, modular housing solutions were rapidly deployed to provide emergency shelter, demonstrating the flexibility and social value of modular systems. Additionally, modular “granny pods” are gaining popularity in countries like Australia, offering backyard housing solutions for elderly family members and promoting multigenerational living.

Emerging Market Trends

Technology Integration and Automation

The adoption of digital tools is revolutionizing modular construction. Technologies such as Building Information Modeling (BIM), digital twins, 3D printing, and robotics are enabling more precise and collaborative building processes. BIM facilitates detailed visualization and coordination among stakeholders, reducing errors and construction delays. Digital twins allow real-time monitoring of buildings, enhancing maintenance and lifecycle management. Factory automation improves consistency, speed, and quality in off-site module production.

Sustainability and Green Building Practices

The push for low-carbon construction is increasing the use of eco-friendly materials such as cross-laminated timber (CLT), recycled steel, bamboo composites, and hempcrete. Modular buildings are more energy-efficient due to better insulation and precise assembly, and they offer easier integration of renewable energy systems. Many modular firms are adopting circular construction models to extend the usability and recyclability of materials.

Expansion into New Sectors

Modular construction is no longer limited to residential housing. Commercial buildings, schools, hospitals, hotels, and student housing are rapidly embracing modular methods for their speed and adaptability. In the healthcare sector, modular units are used to construct rapid-response clinics, labs, and isolation centers during crises. High-rise developments and mixed-use complexes are also increasingly using modular components.

Urbanization and Regulatory Support

With rapid urban growth in emerging economies such as India and China, modular construction is becoming a strategic solution to meet the demand for affordable urban housing. Governments are introducing policies and building code updates that recognize and regulate modular construction. For example, Australian authorities in Victoria and Queensland have amended zoning laws to support compact modular housing.

Key Opportunities

There is significant opportunity in using modular construction for disaster response and emergency housing. Companies like ICON and Hapi Homes are delivering modular homes in disaster-affected areas such as California and Hawaii, reducing construction time by half and cutting rebuild costs by over USD 200,000 in some cases. These cost-effective, rapid deployment capabilities make modular solutions ideal for post-disaster recovery and can shape future policy and funding approaches.

In North America and Asia-Pacific, rapid urbanization and housing demand are opening doors for scalable modular housing solutions. Factory-built homes in Colorado, for example, can be erected in 5-7 days and occupied within weeks. Australia has also demonstrated innovation by completing a seven-story modular apartment block in Brisbane in just 11 days. These cases underscore the potential for modular construction in addressing critical housing shortages and delivering institutional infrastructure at scale.

Market Segmentation

By Type:

Relocatable
Permanent (dominant segment)

By Material:

Wood
Steel (dominant segment)
Concrete
Others

By Module:

Four-sided modules
Open-sided modules
Partially open-sided modules
Mixed modules and floor cassettes
Modules supported by a primary structure
Others

By Application:

Residential (leading application segment)
Commercial
Industrial
Healthcare
Educational

By Region:

North America
Europe (dominant region)
Asia-Pacific (fastest-growing)
Latin America
Middle East & Africa

Regional Insights

Europe is the global leader in modular construction market, supported by progressive policies, sustainability goals, and technological innovation. Countries like the UK, Germany, Sweden, and the Netherlands have adopted modular techniques to combat housing shortages and labor constraints. A key development is the EU Construction Products Regulation (CPR), revised in January 2025, which mandates the use of Digital Product Passports. These passports provide standardized, transparent data on the environmental impact, durability, and recyclability of construction components, helping to reduce construction waste by up to 15%.

Furthermore, leading European companies such as Laing O’Rourke, Skanska, and Modulaire Group are pioneering smart modular systems, integrating digital tools and sustainable practices. Europe’s leadership is expected to continue as modular techniques become more entrenched in large-scale infrastructure and urban planning.

Asia-Pacific is experiencing the fastest growth, driven by urban expansion, rising population density, and significant investment in housing and infrastructure. Countries like China, India, and Australia are at the forefront, with local governments supporting modular housing to meet massive demand.

Competitive Landscape

Key companies operating in the global modular construction market include:

Laing O’Rourke
Skanska AB
Modulaire Group (formerly Algeco Scotsman)
Red Sea International Company
Guerdon Modular Buildings
Sekisui House
Lendlease Corporation
Bouygues Construction
Premier Modular Limited
LEUSBERG GmbH & Co KG
Fluor Corporation
Clayton Homes

These players are leveraging strategies such as joint ventures, regional expansions, product innovation, and digital integration to strengthen their market position and gain competitive advantage.

Table of Contents:

1. Preface

1.1. Report Description
1.1.1. Purpose of the Report
1.1.2. Target Audience
1.1.3. USP and Key Offerings
1.2. Research Scope
1.3. Research Methodology
1.3.1. Phase I – Secondary Research
1.3.2. Phase II – Primary Research
1.3.3. Phase III – Expert Panel Review
1.4. Assumptions

2. Executive Summary

2.1. Global Modular Construction Market Portraiture
2.2. Global Modular Construction Market, by Type, 2024 (USD Mn)
2.3. Global Modular Construction Market, by Material, 2024 (USD Mn)
2.4. Global Modular Construction Market, by Module, 2024 (USD Mn)
2.5. Global Modular Construction Market, by Application, 2024 (USD Mn)
2.6. Global Modular Construction Market, by Geography, 2024 (USD Mn)

3. Global Modular Construction Market Analysis

3.1. Modular Construction Market Overview
3.2. Market Inclination Insights
3.3. Market Dynamics
3.3.1. Drivers
3.3.2. Challenges
3.3.3. Opportunities
3.4. Market Trends
3.5. Attractive Investment Proposition
3.6. Competitive Analysis
3.7. Porter’s Five Force Analysis
3.7.1. Bargaining Power of Suppliers
3.7.2. Bargaining Power of Buyers
3.7.3. Threat of New Entrants
3.7.4. Threat of Substitutes
3.7.5. Degree of Competition
3.8. PESTLE Analysis

4. Global Modular Construction Market by Type, 2020 – 2030 (USD Mn)

4.1. Overview
4.2. Relocatable
4.3. Permanent

5. Global Modular Construction Market by Material, 2020 – 2030 (USD Mn)

5.1. Overview
5.2. Wood
5.3. Steel
5.4. Concrete
5.5. Others

6. Global Modular Construction Market by Module, 2020 – 2030 (USD Mn)

6.1. Overview
6.2. Four-sided
6.3. Open-sided
6.4. Partially open-sided
6.5. Mixed modules & floor cassettes
6.6. Modules supported by a primary structure
6.7. Others

7. Global Modular Construction Market by Application, 2020 – 2030 (USD Mn)

7.1. Overview
7.2. Residential
7.3. Commercial
7.4. Industrial
7.5. Healthcare
7.6. Educational

8. North America Modular Construction Market Analysis and Forecast, 2020 – 2030 (USD Mn)

8.1. Overview
8.2. North America Modular Construction Market by Type, (2020-2030 USD Mn)
8.3. North America Modular Construction Market by Material, (2020-2030 USD Mn)
8.4. North America Modular Construction Market by Module, (2020-2030 USD Mn)
8.5. North America Modular Construction Market by Module, (2020-2030 USD Mn)
8.6. North America Modular Construction Market by Country, (2020-2030 USD Mn)
8.6.1. U.S.
8.6.1.1. U.S. Modular Construction Market by Type, (2020-2030 USD Mn)
8.6.1.2. U.S. Modular Construction Market by Material, (2020-2030 USD Mn)
8.6.1.3. U.S. Modular Construction Market by Module, (2020-2030 USD Mn)
8.6.1.4. U.S. Modular Construction Market by Module, (2020-2030 USD Mn)
8.6.2. Canada
8.6.2.1. Canada Modular Construction Market by Type, (2020-2030 USD Mn)
8.6.2.2. Canada Modular Construction Market by Material, (2020-2030 USD Mn)
8.6.2.3. Canada Modular Construction Market by Module, (2020-2030 USD Mn)
8.6.2.4. Canada Modular Construction Market by Module, (2020-2030 USD Mn)
8.6.3. Mexico
8.6.3.1. Mexico Modular Construction Market by Type, (2020-2030 USD Mn)
8.6.3.2. Mexico Modular Construction Market by Material, (2020-2030 USD Mn)
8.6.3.3. Mexico Modular Construction Market by Module, (2020-2030 USD Mn)
8.6.3.4. Mexico Modular Construction Market by Module, (2020-2030 USD Mn)

9. Europe Modular Construction Market Analysis and Forecast, 2020 - 2030 (USD Mn)

9.1. Overview
9.2. Europe Modular Construction Market by Type, (2020-2030 USD Mn)
9.3. Europe Modular Construction Market by Material, (2020-2030 USD Mn)
9.4. Europe Modular Construction Market by Module, (2020-2030 USD Mn)
9.5. Europe Modular Construction Market by Module, (2020-2030 USD Mn)
9.6. Europe Modular Construction Market by Country, (2020-2030 USD Mn)
9.6.1. Germany
9.6.1.1. Germany Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.1.2. Germany Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.1.3. Germany Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.1.4. Germany Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.2. U.K.
9.6.2.1. U.K. Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.2.2. U.K. Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.2.3. U.K. Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.2.4. U.K. Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.3. France
9.6.3.1. France Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.3.2. France Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.3.3. France Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.3.4. France Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.4. Spain
9.6.4.1. Spain Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.4.2. Spain Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.4.3. Spain Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.4.4. Spain Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.5. Italy
9.6.5.1. Italy Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.5.2. Italy Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.5.3. Italy Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.5.4. Italy Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.6. Rest of Europe
9.6.6.1. Rest of Europe Modular Construction Market by Type, (2020-2030 USD Mn)
9.6.6.2. Rest of Europe Modular Construction Market by Material, (2020-2030 USD Mn)
9.6.6.3. Rest of Europe Modular Construction Market by Module, (2020-2030 USD Mn)
9.6.6.4. Rest of Europe Modular Construction Market by Module, (2020-2030 USD Mn)

10. Asia Pacific Modular Construction Market Analysis and Forecast, 2020 - 2030 (USD Mn)

10.1. Overview
10.2. Asia Pacific Modular Construction Market by Type, (2020-2030 USD Mn)
10.3. Asia Pacific Modular Construction Market by Material, (2020-2030 USD Mn)
10.4. Asia Pacific Modular Construction Market by Module, (2020-2030 USD Mn)
10.5. Asia Pacific Modular Construction Market by Module, (2020-2030 USD Mn)
10.6. Asia Pacific Modular Construction Market by Country, (2020-2030 USD Mn)
10.6.1. China
10.6.1.1. China Modular Construction Market by Type, (2020-2030 USD Mn)
10.6.1.2. China Modular Construction Market by Material, (2020-2030 USD Mn)
10.6.1.3. China Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.1.4. China Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.2. Japan
10.6.2.1. Japan Modular Construction Market by Type, (2020-2030 USD Mn)
10.6.2.2. Japan Modular Construction Market by Material, (2020-2030 USD Mn)
10.6.2.3. Japan Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.2.4. Japan Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.3. India
10.6.3.1. India Modular Construction Market by Type, (2020-2030 USD Mn)
10.6.3.2. India Modular Construction Market by Material, (2020-2030 USD Mn)
10.6.3.3. India Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.3.4. India Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.4. South Korea
10.6.4.1. South Korea Modular Construction Market by Type, (2020-2030 USD Mn)
10.6.4.2. South Korea Modular Construction Market by Material, (2020-2030 USD Mn)
10.6.4.3. South Korea Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.4.4. South Korea Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.5. Rest of Asia Pacific
10.6.5.1. Rest of Asia Pacific Modular Construction Market by Type, (2020-2030 USD Mn)
10.6.5.2. Rest of Asia Pacific Modular Construction Market by Material, (2020-2030 USD Mn)
10.6.5.3. Rest of Asia Pacific Modular Construction Market by Module, (2020-2030 USD Mn)
10.6.5.4. Rest of Asia Pacific Modular Construction Market by Module, (2020-2030 USD Mn)

11. Latin America (LATAM) Modular Construction Market Analysis and Forecast, 2020 - 2030 (USD Mn)

11.1. Overview
11.2. Latin America Modular Construction Market by Type, (2020-2030 USD Mn)
11.3. Latin America Modular Construction Market by Material, (2020-2030 USD Mn)
11.4. Latin America Modular Construction Market by Module, (2020-2030 USD Mn)
11.5. Latin America Modular Construction Market by Module, (2020-2030 USD Mn)
11.6. Latin America Modular Construction Market by Country, (2020-2030 USD Mn)
11.6.1. Brazil
11.6.1.1. Brazil Modular Construction Market by Type, (2020-2030 USD Mn)
11.6.1.2. Brazil Modular Construction Market by Material, (2020-2030 USD Mn)
11.6.1.3. Brazil Modular Construction Market by Module, (2020-2030 USD Mn)
11.6.1.4. Brazil Modular Construction Market by Module, (2020-2030 USD Mn)
11.6.2. Argentina
11.6.2.1. Argentina Modular Construction Market by Type, (2020-2030 USD Mn)
11.6.2.2. Argentina Modular Construction Market by Material, (2020-2030 USD Mn)
11.6.2.3. Argentina Modular Construction Market by Module, (2020-2030 USD Mn)
11.6.2.4. Argentina Modular Construction Market by Module, (2020-2030 USD Mn)
11.6.3. Rest of Latin America
11.6.3.1. Rest of Latin America Modular Construction Market by Type, (2020-2030 USD Mn)
11.6.3.2. Rest of Latin America Modular Construction Market by Material, (2020-2030 USD Mn)
11.6.3.3. Rest of Latin America Modular Construction Market by Module, (2020-2030 USD Mn)
11.6.3.4. Rest of Latin America Modular Construction Market by Module, (2020-2030 USD Mn)

12. Middle East and Africa Modular Construction Market Analysis and Forecast, 2020 - 2030 (USD Mn)

12.1. Overview
12.2. MEA Modular Construction Market by Type, (2020-2030 USD Mn)
12.3. MEA Modular Construction Market by Material, (2020-2030 USD Mn)
12.4. MEA Modular Construction Market by Module, (2020-2030 USD Mn)
12.5. MEA Modular Construction Market by Module, (2020-2030 USD Mn)
12.6. Middle East and Africa Modular Construction Market, by Country, (2020-2030 USD Mn)
12.6.1. GCC
12.6.1.1. GCC Modular Construction Market by Type, (2020-2030 USD Mn)
12.6.1.2. GCC Modular Construction Market by Material, (2020-2030 USD Mn)
12.6.1.3. GCC Modular Construction Market by Module, (2020-2030 USD Mn)
12.6.1.4. GCC Modular Construction Market by Module, (2020-2030 USD Mn)
12.6.2. South Africa
12.6.2.1. South Africa Modular Construction Market by Type, (2020-2030 USD Mn)
12.6.2.2. South Africa Modular Construction Market by Material, (2020-2030 USD Mn)
12.6.2.3. South Africa Modular Construction Market by Module, (2020-2030 USD Mn)
12.6.2.4. South Africa Modular Construction Market by Module, (2020-2030 USD Mn)
12.6.3. Rest of MEA
12.6.3.1. Rest of MEA Modular Construction Market by Type, (2020-2030 USD Mn)
12.6.3.2. Rest of MEA Modular Construction Market by Material, (2020-2030 USD Mn)
12.6.3.3. Rest of MEA Modular Construction Market by Module, (2020-2030 USD Mn)
12.6.3.4. Rest of MEA Modular Construction Market by Module, (2020-2030 USD Mn)

13. Competitive Landscape

13.1. Company Market Share Analysis, 2023
13.2. Competitive Dashboard
13.3. Competitive Benchmarking
13.4. Geographic Presence Heatmap Analysis
13.5. Company Evolution Matrix
13.5.1. Star
13.5.2. Pervasive
13.5.3. Emerging Leader
13.5.4. Participant
13.6. Strategic Analysis Heatmap Analysis
13.7. Key Developments and Growth Strategies
13.7.1. Mergers and Acquisitions
13.7.2. New Product Launch
13.7.3. Joint Ventures
13.7.4. Others

14. Company Profiles

14.1. Laing O’Rourke
14.1.1. Business Description
14.1.2. Financial Health and Budget Allocation
14.1.3. Product Positions/Portfolio
14.1.4. Recent Development
14.1.5. SWOT Analysis
14.2. Skanska AB
14.3. Modulaire Group (formerly Algeco Scotsman)
14.4. Red Sea International Company
14.5. Guerdon Modular Buildings
14.6. Sekisui House
14.7. Lendlease Corporation
14.8. Bouygues Construction
14.9. Premier Modular Limited
14.10. LEUSBERG GmbH & Co KG
14.11. Fluor Corporation
14.12. Clayton Homes

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