According to a new report published by Allied Market Research, titled, " Modular Construction Market by Type, Material, and End User: Global Opportunity Analysis and Industry Forecast, 2019–2026," the global modular construction market size was valued at $114.6 billion in 2018, and is projected to reach $196.2 billion by 2026, growing at a CAGR of 7.1% from 2019 to 2026. In 2018, by type, the permanent segment accrued the largest share in the market owing to the factors such as inexpensive, and simple to build. The expansion of the residential infrastructure sector especially in the emerging nations such as China and India is driven by surge in demand for modular construction activities.
The manufacturers of modular construction are focusing on business expansion and new projects as a strategy to increase their modular construction market share. For instance, in October 2018, SG Blocks entered in strategic partnership with Harrison, Walker and Harper (HWH), an engineering, contracting, and industrial services firm. Under this alliance, HWH will become an SGB preferred partner to complete site work and installation of single family modular homes. Similarly, in September 2018, SGB and its subsidiary named SG Residentials entered into partnership with Capital Plus Financial (CPF), one of the nation’s largest Community Development Financial Institutions (CDFI) and a subsidiary of Crossroads Systems, Inc. With this parent ship, SGB is aiming to provide affordable modular homes at low-to-moderate-income areas across the country and Puerto Rico.
Furthermore, the growth of industrial and commercial sectors, owing to increase in population and rise in urbanization is projected to propel the demand for modular construction activities in the coming years. By end user, in 2018, the residential segment garnered significant share, owing to the expansion of construction sector in developing regions. In addition, depending on material, the wood segment garnered a significant share in 2018. Region wise, Asia-Pacific and Europe collectively contributed around 72.6% share in the global modular construction market in 2018.
The key players profiled in the modular construction market report include ATCO, Anderco Pte. Ltd., Giant Containers Inc., Honomobo Corporation, Lendlease Corporation, SG Blocks, Inc., Skanska AB, Speed House Group of Companies, Supertech Industries LLC, and Tempohousing.
Key Findings of the Study:
- The report provides an extensive analysis of the current and emerging modular construction market trends and dynamics.
- Depending on type, the permanent segment dominated the market, in terms of revenue in 2018 and re-locatable segment is projected to grow at a CAGR 7.8% during the forecast period.
- By material, the wood segment led the modular construction market in 2018.
- Asia-Pacific is projected to register the highest growth rate in the coming years.
- The key market players within the modular construction market are profiled in this report, and their strategies are analyzed thoroughly, which help understand the competitive outlook of the modular construction industry.
- In-depth modular construction market analysis is conducted by constructing estimations for the key segments between 2018 and 2026.
- The global modular construction market forecast analysis from 2018 to 2026 is included in the report.