The Modular Construction Market size was valued at USD 90.64 billion in 2024 and is projected to reach USD 145.56 billion by 2032, growing at a CAGR of 6.1% from 2025 to 2032. The European modular construction market is predicted to increase from USD 20.51 billion in 2025 to USD 30.96 billion by 2032 at a compound annual growth rate (CAGR) of 6.1%. This expansion is being driven by the growing need for affordable housing, commercial space, and infrastructure. Leading nations include the UK and Germany, which plan to construct 300,000 houses a year and use modular solutions for hotels and student accommodation. Construction technology, and the growing use of sustainable building solutions are the main drivers of this increase. Compared to conventional building techniques, modular construction has several benefits, such as quicker completion times, lower costs, and less of an adverse environmental effect. Modular building is becoming a feasible way to effectively meet the expanding urban population and the urgent demand for cheap housing.
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Key Innovations and Investments by Leading Modular Construction Companies
In an effort to provide sustainable solutions for the housing problem, Swedish multinational Skanska AB has made large investments in modular residential projects around the United Kingdom. The business declared a $300 million investment in this field in March 2024. By simplifying building procedures and cutting waste, the UK-based company Laing O’Rourke has led the way in the application of Design for Manufacture and Assembly (DfMA) methodologies. Large-scale projects like hospitals and educational institutions have used their modular strategy. The Modulaire Group is a European company that specializes in modular space solutions. It provides adaptable and environmentally friendly construction choices for a range of industries, including commercial businesses, healthcare, and education. Europe’s Daiwa House Modular Ltd. This firm, which is well-known for its quick deployment of modular structures, specializes in cutting-edge modular techniques that improve construction projects’ quality and efficiency while serving a variety of market areas.
Steel dominated largest share of by material segment in the overall modular construction market in terms of value, in 2023.
Because of its strength, fire resistance, and design flexibility, steel-based modular construction is expected to expand at a compound annual growth rate (CAGR) of 7.2% between 2025 and 2032. Since steel constructions have better strength-to-weight ratios than concrete and wood, they make up over 50% of modular buildings worldwide. Steel modules are perfect for high-rise modular structures since they can also endure harsh weather conditions. The growth of the market has been aided by significant investments made in steel modular infrastructure by nations like China and India. The material is a popular option for green construction projects because of its recyclable nature, which also supports global sustainability goals.
Europe holds a subsequent amount share of modular construction market in terms of value, during the forecast period
Europe’s modular construction market is fueled by stringent green building standards and prefabrication incentives. The UK, Germany, and Scandinavia lead in modular adoption, with Germany investing over USD 20 billion in modular housing projects by 2030. The European Union’s focus on reducing carbon emissions has further boosted the demand for energy-efficient, prefabricated buildings that adhere to strict environmental regulations.
North America is estimated to reach USD 40 Bn in 2030 of modular construction market in terms of value, during the forecast period.
Because of high labor costs, sustainability requirements, and the necessity for quicker building solutions, modular construction is becoming more and more popular in the U.S. and Canada. The need for modular construction in the commercial real estate and healthcare sectors is expected to propel the U.S. industry to USD 40 billion by 2030. Businesses are adopting cutting-edge prefabrication technology to satisfy the rising demand for reasonably priced and energy-efficient dwelling options.
Asia Pacific is estimated to be the largest dominating in the modular construction market in terms of value, during the forecast period.
The modular construction is anticipated to be led by Asia Pacific, with China, India, and Japan accounting for the greatest share. The need for modular building solutions was fueled by China’s more than USD 1.3 trillion in development projects in 2023. The area has become a center for major prefabrication projects due to its fast urbanization and government initiatives supporting modular infrastructure. Japan, a country renowned for its precise engineering, has also embraced modular construction methods to effectively construct high-quality, earthquake-resistant structures.
Market Competitive Landscape
Skanska AB, a global construction and development company, reported revenues of approximately $17 billion in 2023. Its modular construction initiatives contribute to its strong market presence. Skanska integrates digital technologies, such as Building Information Modeling (BIM), into its modular construction processes to enhance precision and efficiency. In March 2024, Skanska announced a $300 million investment in modular residential projects across the UK to address housing shortages with sustainable solutions.
Lendlease Corporation, An international real estate and construction firm reported $10.5 billion in revenue in 2023. The company’s entire income is mostly derived from its modular construction division. In order to improve structural integrity and sustainability, Lendlease was a pioneer in the use of cross-laminated timber (CLT) in modular construction. Lendlease said in April 2024 that a massive modular office complex in Singapore was completed, cutting the building time by 40% when compared to conventional techniques.
SG Blocks, specializes in transforming shipping containers into code-compliant structures. The company reported revenues of $12 million in 2023. SG Blocks focuses on sustainable construction by repurposing shipping containers and utilizing green building materials. In February 2024, SG Blocks secured a contract to develop modular medical facilities to support healthcare infrastructure in underserved areas.
Emerging Trends and Developments in Modular Construction Market
- By facilitating the quick manufacture of intricate building components, the use of 3D printing technology in modular construction is transforming the sector. Additionally, AI-driven design models are being utilized to minimize mistakes and enhance building processes.
- Green modular structures, which have been shown to lower carbon footprints by 30% when compared to traditional construction methods, are becoming a top priority for governments and developers.
- Modular skyscrapers were invented by companies like Broad Sustainable Building (BSB) in China, which cut building time by 40% without sacrificing structural integrity.
- As hospitals and clinics want to expedite the deployment of patient facilities to meet growing healthcare demands, there is an increased need for modular construction in the healthcare industry.
Conclusion
- Due to technology developments, urbanization, and sustainability, modular building is expected to increase significantly.
- The need for sustainable buildings and legislative backing are also driving expansion in North America and Europe.
- The future of modular building is being shaped by innovations like artificial intelligence, 3D printing, and environmentally friendly materials.
- Major corporations are making significant investments in modular solutions, which is propelling market development and industry change
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