Modular Construction Market by Type (Permanent, Relocatable), End-use (Residential, Retail & Commercial, Education, Healthcare, Office, Hospitality), and by Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa), Global Forecast, 2018 to 2028

Relocatable modular constructions are often utilized to provide more temporary lodgings for personnel on the jobsite. Relocatable modular constructions are also employed as makeshift offices, classrooms, and temporary hotels by a variety of end users including industrial firms, local governments, school boards, healthcare clinics, and healthcare providers. Because these locations have a big number of migrant laborers living onsite, Africa and the Middle East have a high need for Relocatable Modular Construction.

Buildings in modular construction are often built using a steel frame, steel, cold form steel wall panels, and hot-rolled steel framework. Steel usage dominates the modular building market in terms of material consumption. It is well-known for its high strength-to-weight ratio. Steel-framed relocatable buildings have various benefits over wood-framed relocatable buildings. These include design flexibility, strength, structural integrity, durability, security, and fire resistance, all of which reduce the need for repairs and maintenance during the life of the building.

Type Segment

Owing to the increased need for industrial, commercial, and permanent constructions. Over the last several years, permanent modular building has emerged as an alternative to traditional building methods. It has evolved as a sustainable construction strategy that prefabricates multistory structures using lean manufacturing techniques. The PMC modules can be modified to fit the current building structure or constructed independently. Idylls in Manhattan, New York, was the first to adopt this concept. The easy availability of finance, rising living standards, and rising income levels throughout the world are driving demand for houses, strengthening the market for Permanent Modular Constructions. Increased investment in residential and commercial infrastructure projects is expected to fuel market expansion even further.

End-use Segment

The market is divided into five segments based on end-user: housing, commercial, healthcare, education, and industrial. The housing sector leads the market with a 53.2 percent market share and is expected to dominate in the coming years due to an increase in residential housing construction activities in Asia Pacific as a result of rapid urbanization, strong economic growth, and a growing population.

The commercial sector was valued at USD 17.58 billion in 2019 and is likely to grow in the next years as a result of rising industrialization throughout the world. The regional markets of China, the United Kingdom, and the United States are likely to produce substantial demand for commercial spaces such as hotels, offices, and showrooms, resulting in a rise in construction activities.

The use of modular construction decreases the amount of closure and disturbance in the current building. Capital-intensive industries, like as healthcare, are increasingly turning to modular construction to shorten construction timelines and cut costs without sacrificing design or building materials quality.

Due to significant expenditures in the infrastructure sector, the Asia Pacific area is expected to post the highest CAGR of 6.7 percent over the anticipated period, and a rising number of new dwelling units fuel demand for modular construction in this area.

Due to strong levels of penetration in Finland, Germany, Sweden, and the United Kingdom, Europe is the second-largest market stakeholder for modular building in 2019. The rising number of migrants is predicted to be the primary driving element, necessitating the construction of permanent and temporary dwelling constructions.

The housing industry has emerged as the market leader in the United Kingdom, and it is expected to develop even more throughout the projection period. Because of its high rate of adoption, the United Kingdom is a market leader. Massive continuous investment in residential building, a renewed emphasis on updating healthcare facilities, and a chronic scarcity of trained personnel are all expected to strengthen the country's market in the coming years. The United Kingdom's government said in its 2017 budget that it will build 300,000 residential dwellings each year for the following five years, which is expected to strengthen the region's residential building sector. The proposal is expected to have a favorable influence on the modular building business.