Modular Construction Market Growth Analysis Report 2025-2034: Enhanced Technological Integration, Sustainable Methods, and Flexible Design Options Boost Growth

Dublin, Oct. 03, 2025 (GLOBE NEWSWIRE) -- The "Modular Construction Market Growth Analysis - Market Size, Share, Forecast Trends and Outlook Report (2025-2034)" report has been added to ResearchAndMarkets.com's offering.

The global modular construction market was valued at USD 63.19 Billion in 2024 and is further expected to grow at a CAGR of 12.40% in the forecast period of 2025-2034 to reach a market value of USD 203.38 Billion by 2034. This growth is driven by the increasing demand for affordable housing, healthcare facilities, and commercial infrastructure.

Off-site building activities are becoming more popular due to their cost-effectiveness and reduced construction time. Additionally, urban regions are seeing a surge in modular construction as cities strive to meet the growing population's needs. The continuous investment in these sectors further boosts the market growth, positioning modular construction as a solution for rapid urbanisation.

Another key factor driving the modular construction market is the environmental benefits it offers. As sustainability becomes a priority globally, the modular construction approach significantly reduces waste and energy consumption compared to traditional construction methods. The use of prefabricated components allows for more efficient material usage and lower carbon emissions. Governments and construction companies are increasingly adopting green building practices, contributing to the rise of eco-friendly modular structures. This shift is particularly noticeable in the residential, commercial, and industrial sectors, further expanding the market scope.

The evolving technological advancements also play a crucial role in the expansion of the modular construction market. The integration of Building Information Modelling (BIM) and other cutting-edge technologies enhances the design, planning, and execution of modular construction projects. These technologies enable better precision, faster project timelines, and improved quality control. As the market adopts more innovative construction methods, the affordability and efficiency of modular buildings continue to improve, attracting more developers and end-users. Consequently, this technological evolution is expected to drive sustained growth in the modular fabrication market.

Modular Construction Market Trends

The global modular construction services market is witnessing significant growth driven by the increasing demand for cutting-edge construction methods. Modular construction offers quicker project completion, reduced costs, and enhanced quality management, making it an attractive alternative to traditional methods. The industry's focus on environmental sustainability is also evident, as it reduces material waste and energy consumption. This modern approach offers flexibility, enabling a variety of building types, including homes, office spaces, schools, and hospitals. As modular construction provides an efficient, affordable, and sustainable solution, it is gaining momentum in the construction sector, offering advantages over conventional building methods.

The growing global population and rapid urbanization are major factors boosting the modular construction industry. With rising demand for housing, infrastructure, and commercial spaces, modular construction offers an efficient, sustainable solution to meet these needs. The approach reduces build times compared to traditional methods, especially in crowded urban areas, where space and time constraints are prominent. The adaptability of modular construction allows for the development of affordable, luxury, and commercial housing types. As the world faces housing shortages, modular construction contributes to building resilient, sustainable cities that can accommodate the increasing urban population.

Regional Insights

The global modular construction market is experiencing significant growth, with the Europe modular construction market holding a substantial revenue share. This is driven by investments in both temporary and permanent housing structures, particularly for migrants and addressing labor shortages. Advanced technologies are increasingly being adopted to streamline off-site construction processes, shifting work off-site to reduce on-site labor needs.

Furthermore, government policies and incentives are supporting affordable, sustainable housing development, which further boosts market expansion. These factors collectively highlight Europe's role in leading the global market, focusing on improving housing solutions while tackling societal challenges.

Key Modular Construction Company Insights

The global modular construction market is witnessing significant growth, driven by companies like Skanska, Laing O'Rourke, ATCO Ltd., and Bouygues Construction. Technological advancements such as Building Information Modeling (BIM) and automation are enhancing cost efficiency and sustainability. Urbanization and government support further fuel this trend, making modular construction a viable solution for fast and cost-effective projects. With strategic partnerships and an emphasis on design flexibility, the industry is also well-equipped for disaster recovery and tackling skilled labor shortages, enabling faster project completion.

The modular construction market's expansion is heavily influenced by these companies' ability to adapt to changing demands, including sustainability initiatives and advanced technological solutions. The integration of automation and BIM not only boosts efficiency but also supports urbanization trends and the need for faster, more resilient construction processes. Furthermore, the industry's focus on skilled labor ensures the continued success of modular construction, allowing projects to be completed swiftly without compromising on quality or design flexibility.

Key Modular Construction Companies

Bouygues Construction

Bouygues Construction, based in France, is a leading global player in construction and engineering, specialising in sustainable infrastructure, residential, and commercial projects. Known for its commitment to innovation and sustainable solutions, Bouygues integrates digital tools and modular construction for efficient, environmentally friendly project delivery worldwide.

Balfour Beatty plc

Balfour Beatty plc, headquartered in the UK, is a major infrastructure group delivering projects across construction, engineering, and services. Focused on innovation, the company integrates sustainable practices, technology, and a collaborative approach to offer cost-effective, high-quality projects in sectors such as transport, energy, and urban development.

Larsen & Toubro Ltd

Larsen & Toubro Ltd, based in India, is a global conglomerate with expertise in construction, engineering, and technology services. The company leads in diverse sectors, including infrastructure, defence, and power, with a strong emphasis on innovation, sustainable development, and digitalisation, delivering large-scale projects across the world.

Laing O'Rourke

Laing O'Rourke, a UK-based multinational, is renowned for its expertise in complex construction and engineering projects, focusing on infrastructure, residential, and industrial sectors. Emphasising technological integration and modular construction, the company is dedicated to delivering projects with efficiency, sustainability, and quality while enhancing workforce skills.

Katerra

Katerra, a US-based technology-driven construction firm, focuses on revolutionising the building industry through automation and modular construction. By integrating design, manufacturing, and construction, Katerra aims to reduce costs, improve sustainability, and increase efficiency, delivering high-quality projects in residential, commercial, and hospitality sectors worldwide.

Key Market Insights:

• The Middle East and Africa modular construction market commanded the dominant share in 2024 and is expected to grow at 13.3% CAGR over the forecast period.
• Country-wise, the India modular construction industry is expected to grow at a CAGR of 15.4% during the forecast period.
• By construction, the permanent modular category is expected to exhibit 12.3% CAGR over the forecast period.
• Based on the end use, the commercial segment represented the largest market share in 2024.

Company Profiles

• Bouygues Construction
• Balfour Beatty plc
• Larsen & Toubro Ltd
• Laing O'Rourke
• Katerra
• Sekisui House Ltd.
• Red Sea International
• Skanska
• Premier Modular Limited
• LEUSBERG GmbH & Co KG
• DuBox
• Wernick Group
• CIMC Modular Building Systems Holdings Co., Ltd. (CIMC-MBS)
• Riko Hise d.o.o
• Lendlease Corporation
• Modulaire Group
• Guerdon, LLC
• Hickory Group

Key Attributes:

Global Modular Construction Market Report Segmentation

Type Outlook (Revenue, Billion, 2025-2034)

• Permanent Modular
• Relocatable Modular

Material Outlook (Revenue, Billion, 2025-2034)

• Steel
• Concrete
• Wood
• Plastic

Application Outlook (Revenue, Billion, 2025-2034)

• Residential
• Commercial
• Industrial
• Healthcare
• Educational

Module Outlook (Revenue, Billion, 2025-2034)

• Four-sided
• Open-sided
• Partially open-sided
• Mixed modules & floor cassettes
• Modules supported by a primary structure
• Others

Region Outlook (Revenue, Billion, 2025-2034)

• North America
• United States of America
• Canada
• Europe
• United Kingdom
• Germany
• France
• Italy
• Others
• Asia Pacific
• China
• Japan
• India
• ASEAN
• Australia
• Others
• Latin America
• Brazil
• Argentina
• Mexico
• Others
• Middle East and Africa
• Saudi Arabia
• United Arab Emirates
• Nigeria
• South Africa
• Others

For more information about this report visit https://www.researchandmarkets.com/r/a92sqw

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• Modular Construction Market