Driving Modular Construction Market Growth in 2025: The Role of Rising Demand For Construction Accelerates Growth In The Modular Construction Market

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Modular Construction Market Size Growth Forecast: What to Expect by 2025?
In recent years, there has been significant growth in the market size for modular construction. The market is projected to expand from a size of $101.67 billion in 2024 to $108.6 billion in 2025, indicating a compound annual growth rate (CAGR) of 6.8%. Factors contributing to this growth during the historic period include industrialization, principles of mass production, increased housing demand following the war, efficiencies related to cost and time, heightened awareness around sustainability, and the evolution of transportation infrastructure.

How Will the Modular Construction Market Size Evolve and Grow by 2029?
Anticipated substantial expansion is expected in the modular construction market in the coming years, with predictions reaching $150.79 billion by 2029, registering a compound annual growth rate (CAGR) of 8.6%. The expansion predicted for the forecast period can be largely accredited to factors such as robust and ready-for-disaster solutions, governmental assistance and regulations, progress in healthcare and education sectors, design flexibility, and inadequate workforce. The major trends for the forecast duration revolve around regulatory support, advancements in healthcare and educational infrastructure, resilience, and disaster preparedness, cost predictability, flexibility, and customization.

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What Drivers Are Propelling the Growth of Modular Construction Market Forward?
The escalating demand for construction is set to stimulate the growth of the modular construction market in the future. The construction industry represents a commercial and manufacturing sector that focuses mainly on the construction, repair, renovation, and maintenance of various infrastructures. It's these construction endeavors that are fostering a need for modular construction, a method that enables the more rapid construction of residential and commercial structures. This type of construction allows businesses in the industry to expedite projects by establishing climate-controlled facilities while also decreasing labor costs, thereby notably diminishing work duration and time. For example, the 2022 U.S. Construction Cost Trends report indicated that a surge in residential construction in the U.S. is persistently boosting the demand for materials and labor, heightening competition, and cost pressures. The total spending on construction in the U.S. has escalated by 16% since the start of the pandemic. Consequently, the rise in construction activities will fuel the expansion of the modular construction market.

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Which Emerging Trends Are Transforming the Modular Construction Market in 2025?
In the realm of modular construction, product innovation is emerging as a major trend. To maintain their market standing, leading companies in the modular construction sector are focusing on developing groundbreaking products. For instance, the US-based Black Buffalo 3D Corporation, which specializes in modular construction, unveiled its NEXCON 3D printers in February 2022. The offering incorporates 3D printing technology, which aims to overcome the conventional hurdles in the construction industry through some distinctive features of NEXCON. These additions allow for faster, more cost-effective printing of components or walls, resulting in a stronger and more durable finished product. NEXCON employs a motion-centric modular gantry design that enables the creation of extremely efficient structures. Moreover, the multi-axis gantry system is fine-tuned to generate precise prints for any 3D design that can be created using standard CAD software. It also boasts the capability to print buildings up to three stories high.

What Are the Key Segments in the Modular Construction Market?
The modular construction market covered in this report is segmented -

1) By Type: Permanent, Relocatable
2) By Material: Steel, Wood, Concrete
3) By Module: Four-sided, Open-Sided, Partially Open-Sided, Mixed modules And Floor Cassettes, Modules supported By A primary structure, Other Modules
4) By End-Use Sector: Residential, Office, Education, Retail And Commercial, Hospitality, Healthcare, Other End Users

Subsegments:
1) By Permanent: Modular Buildings, Permanent Structures
2) By Relocatable: Temporary Facilities, Mobile Units

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Who Are the Key Players Shaping the Modular Construction Market's Competitive Landscape?
Major companies operating in the modular construction market are Bouygues Construction SA, Laing O'Rourke, Skanska AB, ATCO Ltd., Balfour Beatty Plc., Taisei Corporation, Supertech Industries LLC, Anderco Pte. Ltd., Giant Containers Inc., Honomobo Corporation, Lendlease Corporation, SG Blocks Inc., Guerdon L.L.C, Modulex PLC, Bechtel Corporation, ACS Group, Fluor Corporation, JL Construction, Julius Berger Nigeria PLC, Kiewit Corporation, Larsen & Toubro Limited, McGRATH RENTCORP, Palomar Modular Buildings, Red Sea Housing Services, SEKISUI CHEMICAL CO. LTD, System House R & C Co. Ltd, WillScot Mobile Mini Holdings Corp, Westchester Modular Homes, Koma Modular

What Geographic Markets Are Powering Growth in the Modular Construction Market?
Asia-Pacific was the largest region in the modular construction market share in 2024. The regions covered in the modular construction market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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