Modular Construction Market To Reach $162.42 Billion By 2030

Modular Construction Market Growth & Trends

The global modular construction market size is estimated to reach USD 162.42 billion by 2030, registering to grow at a CAGR of 7.9% from 2025 to 2030 according to a new report by Grand View Research, Inc. This growth can be attributed to growing infrastructural development and building activities in developing countries around the globe. Rapid urbanization and industrialization are expected to increase the number of new projects, primarily in the commercial and industrial building sectors. This is likely to fuel the growth of the modular construction industry across the globe. Increasing technological advancements in the building industry coupled with the advantages provided by modular construction such as reduced building schedule, reduced cost, greater flexibility, reuse, and less material waste are contributing to the product demand in the market.

The relocatable modular construction (RMC) market is expected to witness rapid growth as temporary housing for emergency and relief operations has gained popularity over the past decade. These buildings are made to be repurposed and transported to various building sites. Government initiatives and regulations toward sustainability and a green environment are expected to fuel the market growth over the forecast period.

Using wood in modular construction is advantageous due to its favorable properties as a material. Wood is used in modular construction to create exterior wall panels including additional layers for insulation, vapor barrier, siding, waterproofing, and drywall. Moreover, global concerns regarding sustainability and increasing awareness about wood as a building material among consumers are the factors likely to augment the growth of the market over the forecast period.

Growing commercial sector in Asia Pacific on account of rising penetration of multinational brands backed with favorable trade policies are expected to propel the market growth. Increasing construction of office spaces, shopping malls, lodging spaces and other utility spaces across the region are likely to provide a major boost to the adoption of modular construction.

The manufacturers of modular construction prefer to maintain strategic relationships with raw material suppliers in order to avoid disruptions in raw material supply. In addition, manufacturers do not depend on a single source to procure raw materials to ensure the steady supply of raw materials and avoid volatility in terms of sourcing, thereby limiting the bargaining power of suppliers.

Leading companies are implementing the latest modular construction techniques and solutions to drive innovation in the modular construction sector. For instance, in March 2017, Bureau Veritas, Setec Bâtiment, Agence Coste Architectures, and Bouygues Construction partnered to work on innovative Building Information Modeling (BIM) processes. These processes enable technical inspectors and health & security protection coordinators to assess buildings and structures directly based on the digital model and allows principal contractors to sign off directly on the same digital model.

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Modular Construction Market Report Highlights

• The permanent segment led the modular construction industry and accounted for a revenue share of 64.45% in 2024. 

• The steel segment dominated the market and accounted for a revenue share of 41.3% in 2024.

• The four-sided segment dominated the market and accounted for a revenue share of 37.46% in 2024.

• Residential modular construction dominated the market and accounted for a revenue share of 53.2% in 2024.   

Modular Construction Market Segmentation

Grand View Research has segmented the global modular construction market based on type, application, material, module and region:

Modular Construction Type Outlook (Revenue, USD Million; 2018 - 2030)

• Relocatable

• Permanent

Modular Construction Material Outlook (Revenue, USD Million; 2018 - 2030)

• Wood

• Steel

• Concrete

• Others

Modular Construction Application Outlook (Revenue, USD Million; 2018 - 2030)

• Residential

• Commercial

• Industrial

• Healthcare

• Educational

Modular Construction Module Outlook (Revenue, USD Million; 2018 - 2030)

• Four-sided

• Open-sided

• Partially open-sided

• Mixed modules & floor cassettes

• Modules supported by a primary structure

• Others

Modular Construction Regional Outlook (Revenue, USD Million; 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • Sweden

• Asia Pacific

  • China

  • India

  • Japan

  • Singapore

  • Australia

• Central & South America

  • Brazil

• Middle East & Africa

  • Saudi Arabia

  • UAE

List of Key Players in Modular Construction Market

• Sekisui House Ltd.

• LAING O'ROURKE

• Red Sea International

• Skanska

• Bouygues Construction

• Premier Modular Limited

• LEUSBERG GmbH & Co KG

• DuBox

• Wernick Group

• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)

• Riko Hiše d.o.o

• Lendlease Corporation

• Modulaire Group

• Guerdon, LLC

• Hickory Group