U.S. Modular Construction Market Size, Share & Trends Analysis Report By Product (Relocatable, Permanent), By Material (Wood, Steel, Concrete), By Application (Residential, Commercial, Industrial), And Segment Forecasts, 2023 - 2030

Report Overview

The U.S. modular construction market size was estimated at USD 10.53 billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2023 to 2030. The U.S. building industry has experienced substantial growth in recent years, driven by various factors, including the growing population, technological advancements, and economic expansion. These factors have benefitted the growth of the prefabricated buildings market in the last decade and are further expected to propel the demand for modular buildings in the coming years. As the U.S. construction industry grows, off-set building activities are also expected to propel over the forecast period.

The off-site building offers high efficiency in terms of cost and time. It results in reduced labor costs and material wastage. The off-site building also increases workers' safety from site-based accidents. Off-site building includes the entire process of building erection at a remote location and comprises various stages such as planning, designing, fabrication, transportation, and assembling the building elements on the site for rapid construction.

Moreover, it involves a wide range of materials, systems & scales, digital software, manufacturing & fabrication methods, and innovations in technological & social integration. According to the Construction Industry Training Board, the off-site building industry accounts for over 10% of the total construction industry.

Modular construction also offers several advantages over conventional building practices as it provides enhanced quality control compared to traditional building practices. The manufacturing processes in a controlled factory environment allow for rigorous quality checks and adherence to standardized procedures. This results in higher-quality building components and reduces the potential for errors or defects during on-site assembly.

Modular construction also allows design flexibility and customization options. Modern prefabricated techniques can accommodate a wide range of architectural styles and building types. The use of computer-aided design (CAD) and building information modeling (BIM) allows for efficient customization and optimization of effective designs to meet specific project requirements. These advantages of modular building methods are expected to drive the market in the urban areas of the U.S.

Many regions in the U.S. are prone to natural disasters such as hurricanes, floods, wildfires, and earthquakes. After such events, there is a need for reconstruction and rebuilding of residential spaces for the population in the affected area. Prefabricated building methods provide a quick remedy for such instances, due to which modular building is preferred over conventional building methods.

Product Insights

Based on product, the modular construction industry in the U.S. was led by permanent construction with a revenue share of 70.6% in 2022. The segment is also forecasted to grow at the fastest CAGR over the coming years. Permanent modular construction (PMC) is an innovative and sustainable building method that facilitates off-site manufacturing of prefabricated modules that can be deployed in single or multi-story buildings. It offers higher quality control than on-site construction.

The permanent modular construction method has emerged as an alternative to traditional building methods in the U.S. over the past decade. An increase in per capita income among the middle-income group in the U.S. and the easy availability of finances are some factors responsible for the prevailing trend of owning a house in the country. This, in turn, is positively influencing the growth of the permanent segment of the prefabricated construction market in the U.S. The prefabricated modules can be integrated with existing structures or can be deployed independently. Permanent modular construction is carried out according to international and local building codes to ensure that required quality standards are met.

Relocatable or portable buildings are partially or completely constructed structures that are assembled in controlled manufacturing facilities using modular construction processes. Relocatable modular construction (RMC) activities in the U.S. are expected to increase in the coming years as temporary housing units for emergency and relief operations have gained popularity in the country over the past decade. Government initiatives and regulations related to sustainability and environmental protection in the U.S. are expected to fuel the growth of the relocatable segment of the modular construction market in the country over the forecast period.

Material Insights

Steel led the U.S. modular construction industry with the highest revenue share of 41.4% in 2022 and is expected to grow significantly over the coming years. In prefabricated building activities in the U.S., structural steel is used as a building material, which is available in different grades and can be welded into different shapes. It is used in the development of H-type beams, columns, angles, I-beams, and T-shaped structures. The material exhibits excellent mechanical and chemical properties such as high strength, durability, ductility, seismic resistance, and fast installation, along with offering ease of fabrication.

Steel is used in residential and non-residential building applications, including permanent and temporary modular buildings. It is affordable and readily available. The intrinsic properties of steel, including its strength, versatility, durability, and recyclability, result in the improved performance of the modular buildings constructed from it throughout their lifespan.

Timber has also emerged as a viable mass-scale alternative to traditional materials for use in modular construction activities in the U.S. over the past decade. This material is widely used in prefabricated building activities due to its high durability, lightweightness, and low toxicity. It is biodegradable and easy to reuse and recycle. Timber modular building uses traditional wood studs. In the past, most modular buildings made from wood were single-story structures; however, advancements in building technologies and engineering methods have made multi-story wood buildings a reality in the U.S.

Modular concrete structures comprise precast concrete beams, columns, foundations, and floor slabs, which are transported and assembled at the job sites with the help of professionals. The voids required for fitting door and window frames in these structures are precut and predesigned in factories. However, precast concrete building activities are comparatively more time-consuming than timber and steel construction activities.

Application Insights

Based on application, the residential application dominated the market with the highest revenue share of 51.1% in 2022. Residential modular construction has become more appealing because of modern digital technologies, materials, and design capabilities, which have started to dispel the notion that modular buildings can be used to build low-quality modular homes. Modular construction can be used to construct attractive buildings that focus on sustainability and aesthetics. It allows rapid building, feasibility in terms of challenging designs, and building unique and customizable homes that fulfill the requirements of customers.

Industries may customize their designs and make use of the newest advancements in fashion and functionality thanks to modular construction. Before the development of modular construction, businesses had to invest numerous man-hours in planning and designing while waiting months or years for the real building to be finished. The planning and construction phases are greatly simplified by modular buildings, which also cuts the time it takes from conception to completion by several months or more. Moreover, industries are often located in remote locations, where there may be a shortage of skilled labor. By using industrial modular building methods, companies can spend less time and money recruiting labor in the area.

Modular building for hospitals and other healthcare applications is a design concept that has been discussed at great length but has yet to witness implementation at a large scale. For bathrooms, headwalls, and even entire hospitals, many healthcare organizations are switching to modular construction. Such a type of construction enables the development of quiet, safe, and hygienic medical, surgical, clinical, and dental facilities. Modular construction also helps in cost and time savings with the development of high-quality buildings.

Key Companies & Market Share Insights

The key players operating in the U.S. modular construction market are adopting various growth strategies to cater to the requirements of end users. The intensity of competitive rivalry among companies in this market is high as it is characterized by the presence of a large number of global and regional players.

Additionally, key players are focusing on energy efficiency and customization to fulfill the specific requirements of customers. For instance, Connecticut Valley Homes designs and develops efficient homes based on the climate, ventilation, and energy requirements of customers. Likewise, Blue Homes offers 40% energy-efficient homes with advanced features, including thermal insulation and eco-friendly water fixtures. Some prominent players in the U.S. modular construction market include:

• Sekisui House Ltd.

• CIMC Modular Building Systems Holdings Co., Ltd.

• Lendlease Corporation

• Guerdon, LLC

• Skanska

• WillScot Mobile Mini Holdings Corp.

• ATCO Ltd

• Fluor Corporation

• JL Construction

• Palomar Modular Buildings.

U.S. Modular Construction Market Report Scope

U.S. Modular Construction Market Report Segmentation

This report forecasts revenue growth at a country level and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the U.S. modular constructionmarket report based on material, product, and application:

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Relocatable

  • Permanent

• Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Steel

  • Wood

  • Concrete

  • Others

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Residential

  • Commercial

  • Industrial

  • Healthcare

  • Educational