Modular Construction Market (2025-2032)
The Modular Construction Market is expected to reach $189.1 billion by 2032, at a CAGR of 6.9% from 2025 to 2032.
- Published
- Oct 2024
- Pages
- 210
- Format
- PDF + Excel
- Report ID
- MROTH - 1041137
- Base year
- 2024
- 2032 · FORECAST
- $189.1B
- 2032
- $189.1B
- CAGR 2025–2032
- 6.9%
2024 baseline · 2025–2032 forecast at 6.9% CAGR · hover a bar for the value
Key highlights
The Modular Construction Market is expected to reach $189.1 billion by 2032, at a CAGR of 6.9% from 2025 to 2032.
In 2025, North America is expected to account for the largest share of ~40.0% of the modular construction market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa.
However, the market in Asia-Pacific is slated to register the highest growth rate of ~8.5% during the forecast period.
Report summary
| Particulars | Details |
|---|---|
| Number of Pages | 210 |
| Format | |
| Forecast Period | 2025–2032 |
| Base Year | 2024 |
| CAGR (Value) | 6.9% |
| Market Size (Value) | USD 189.1 Billion by 2032 |
| Segments Covered | By Product · Permanent Modular Construction (PMC) · Relocatable Modular Construction (RMC) · By Method · Closed Modular Construction · Open Modular Construction · By Material · Wood · Steel · Concrete · Other Materials · By Application · Residential Properties · Commercial Spaces · Office Buildings · Hotels · Retail · Logistics/Warehouse · Hospital/Clinics/Medical Facilities · Education & Institutional · Government & Public Sector · Aerospace & Defense · Other Applications |
| Countries Covered | Europe (Germany, U.K., Italy, France, Spain, Russia, Netherlands, and Rest of Europe), Asia-Pacific (Japan, China, India, South Korea, Thailand, Singapore, and Rest of Asia-Pacific), North America (U.S., Canada), Latin America (Brazil, Argentina, Mexico, and Rest of Latin America), and the Middle East & Africa (UAE, Saudi Arabia, South Africa, and Rest of the Middle East & Africa) |
| Key Companies | ATCO Ltd. (Canada), Guerdon, LLC (U.S.), Skanska AB (Sweden), Bouygues Construction (France), KLEUSBERG GmbH & Co KG (Germany), Lendlease Corporation (Australia), Red Sea International (Saudi Arabia), Bechtel Corporation (U.S.), Honomobo (Canada), WillScot Mobile Mini Holdings Corp. (U.S.), SG Blocks, Inc. (U.S.), Speed House Group of Companies (UAE), CIMC Modular Building Systems Holdings Co., Ltd. (China), Wernick Group (Holdings) Ltd. (U.K.), Giant Containers Inc. (Canada), Premier Modular Limited (U.K.), and LAING O'ROURKE (U.K.). |
Report overview
Segments covered: product, method, material, application. Regions: Europe, Asia-Pacific, North America, Latin America, Middle East & Africa.
The growth of this market can be attributed to several factors, including cost-efficient installation, lack of skilled labor, and the need for faster execution of projects. Additionally, the increasing urbanization, the need to address the global affordable housing crisis, and the increasing focus on sustainable building practices are expected to create market growth opportunities. However, the perception that modular construction is limited to commercial projects may restrain the growth of this market. However, manufacturing and transportation restrictions are a major challenge for the players operating in this market.
Additionally, the integration of digital technologies, automation, robotics, and artificial intelligence (AI) is a key trend in the modular construction market.
Market dynamics
4 factors across 3 forcesCost Efficiency in Installation
Lack of Availability of Skilled Labor
Table of contents
12 chapters · 121 sections · 210 pages · click to expandSegmental analysis
| Segment | Largest share (2025) | Fastest growth (2025–2032) |
|---|---|---|
| By Product | — | — |
| By Method | — | — |
| By Material | Steel | — |
| By Application | Residential properties | — |
By Product
- The global modular construction market is broadly segmented into permanent modular construction (PMC) and relocatable modular construction (RMC).
- The permanent modular construction segment is expected to account for the larger share of ~65.0% of the modular construction market.
- The large market share of this segment can be attributed to the growing need for controlled manufacturing conditions in factory settings, growing use of PMC in industrial buildings such as warehouses, manufacturing facilities, and distribution centers, increasing use of PMC for constructing various types of residential buildings, including single-family homes, multi-family housing complexes, and apartment buildings.
- However, the relocatable modular construction segment is projected to witness a higher growth rate during the forecast period of 2025–2032.
- This growth is driven by the growing demand for temporary facilities on construction sites, including offices, break rooms, storage units, and restroom facilities, increasing use of RMC for emergencies to provide temporary shelters and medical clinics, and increasing utilization of RMC for temporary retail spaces, pop-up stores, and promotional booths in shopping centers.
By Method
- The global modular construction market is broadly segmented into closed modular construction and open modular construction.
- The closed modular construction segment is expected to account for the larger share of the modular construction market.
- The large market share of this segment can be attributed to the growing demand for high-quality buildings with minimal variability, the increasing need to lower overall project costs due to reduced material waste and minimized on-site labor requirements, growing use of closed modular construction in the construction of commercial buildings and residential buildings, and increasing need to avoid project schedules and minimizes project downtime due to weather-related delays.
- However, the open modular construction segment is projected to witness a higher growth rate during the forecast period of 2025–2032.
- This growth is driven by the increasing demand for flexibility in design and customization options that allow developers to create dynamic and integrated urban environments, as well as the increasing use of open modular construction in the construction of public spaces and cultural buildings such as parks, plazas, museums, theaters, and recreational facilities.
By Material
- The global modular construction market is broadly segmented into wood, steel, concrete, and other materials.
- The steel segment is expected to account for the largest share of ~43.0% of the modular construction market.
- The large market share of this segment can be attributed to its benefits including strength-to-weight ratio, flexibility in design and construction, and recyclability that makes it ideal for constructing robust and long-lasting modular structures.
- The segment is also projected to witness the highest growth rate during the forecast period of 2025–2032.
- This growth is driven by the increasing use of steel in the construction of commercial buildings, manufacturing facilities, and distribution centers due to its strength, durability, consistent quality, and precision in fabrication that results in high-quality modular components.
By Application
- The global modular construction market is broadly segmented into residential properties, commercial spaces, hospital/clinics/medical facilities, education & institutional, government & public sector, aerospace & defense, and other applications.
- The commercial spaces segment is further segmented into office buildings, hotels, retail, and logistics/warehouse.
- The residential properties segment is expected to account for the largest share of ~56.0% of the modular construction market.
- The large market share of this segment can be attributed to the growing demand for modular construction cost-effective and efficient housing solutions for homeowners, increasing demand for temporary modular shelters to offer safe and secure accommodations in response to natural disasters and other crises, growing demand for urban housing, and increasing need to address housing shortages and affordability challenges.
- The segment is also projected to witness the highest growth rate during the forecast period of 2025–2032.
Geographic analysis
North America
Largest shareIn 2025, North America is expected to account for the largest share of ~40.0% of the modular construction market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America's significant market share can be attributed to several key factors, including the increasing technological advancements to streamline production processes, improve efficiency, and enhance quality control in modular construction projects; shortage of skilled labor; increasing demand for scalable and efficient modular spaces to meet the housing and infrastructure needs of growing urban populations; and growing emphasis on sustainability solutions to reduce construction waste, minimize site disturbance, and optimize energy efficiency in the region.
Asia-Pacific
Fastest growthHowever, the market in Asia-Pacific is slated to register the highest growth rate of ~8.5% during the forecast period. The growth of this regional market is attributed to the region’s rapid urbanization, increasing need for cost-effective and scalable solutions to build affordable housing units and meet the needs of growing populations, and increasing government initiatives for the development of smart cities, affordable housing projects, and infrastructure upgrades.
Competitive landscape
- November 2024
ABB Robotics (a subsidiary of ABB Ltd (Switzerland), collaborated with Porsche Consulting GmbH (Germany) to deliver the project to develop innovative new practices in modular housing manufacturing.
- June 2024
The Berkeley Group plc (U.K.) partnered with Cobuilder International (Bulgaria) to boost the efficiency of offsite construction. Under this partnership, Berkeley Modular will use manufacturer data to construct a range of volumetric modular housing products.
- May 2024
Kodasema OÜ (Estonia) signed a strategic partnership agreement with Presidio Invest (UAE) to explore business opportunities for bringing KODA houses to the Middle East, with a focus on the territories of Saudi Arabia and the United Arab Emirates.
- March 2022
KUKA Assembly & Test GmbH (Germany) collaborated with Wiksfors Technology AB (Sweden) in the modular house construction industry. Under this collaboration, both companies will help facilitate the ‘next generation factories’ that will provide accommodations produced on a very large scale: assembled and constructed offsite.
- August 2021
SG Blocks Inc. (U.S.) partnered with ATCO Structures (Canada) on a national modular fleet rollout in the U.S. Under this partnership, both companies will work alongside sustainable housing solutions providers to deliver modular structures.
- ATCO Ltd. · Canada
- Guerdon, LLC (U.S.)
- Skanska AB · Sweden
- Bouygues Construction · France
- KLEUSBERG GmbH & Co KG · Germany
- Lendlease Corporation · Australia
- Red Sea International · Saudi Arabia
- Bechtel Corporation (U.S.)
- Honomobo · Canada
- WillScot Mobile Mini Holdings Corp. (U.S.)
- SG Blocks, Inc. (U.S.)
- Speed House Group of Companies (UAE)
- CIMC Modular Building Systems Holdings Co., Ltd. · China
- Wernick Group (Holdings) Ltd. (U.K.)
- Giant Containers Inc. · Canada
- Premier Modular Limited (U.K.)
- LAING O'ROURKE (U.K.)
Frequently asked questions
The modular construction market study focuses on market assessment and opportunity analysis through the sales of modular construction across different regions and countries across different market segmentations. This study is also focused on competitive analysis for modular construction based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies.
Cite this report
Meticulous Research. (2024). Modular Construction Market - Global Opportunity Analysis and Industry Forecast (2025-2032) (Report No. MROTH - 1041137). Meticulous Market Research Pvt. Ltd. https://www.meticulousresearch.com/product/modular-construction-market-5820