Modular Construction Market Report 2026

Modular Construction Market Overview

• Modular Construction market size has reached to $107.83 billion in 2025 • Expected to grow to $161.02 billion in 2030 at a compound annual growth rate (CAGR) of 8.4% • Growth Driver: Rapid Urbanization Driving The Expansion Of The Thermal System Market • Market Trend: Advancing Efficiency Through Standardized Modular Design Innovations • Asia-Pacific was the largest region and fastest growing region.

What Is Covered Under Modular Construction Market?

Modular construction is a process in which buildings are manufactured off-site while adhering to the same building norms and requirements as traditional construction methods. It is utilized in the construction of various buildings since it has numerous advantages such as saving time, lowering labor costs, reducing volume of waste, and boosting productivity by delivering standardized components. The main types of modular construction are permanent and relocatable. Permanent refers to parts of a construction project which are used and remain in position for a long time either retrofitted to existing buildings or designed around modular building techniques. The various materials include steel, wood, and concrete, which are used in module form as four-sided, open-sided, partially open-sided, mixed modules and floor cassettes, modules supported by a primary structure and others. These are used by residential, office, education, retail and commercial, hospitality, healthcare and others.

What Is The Modular Construction Market Growth Forecast?

The modular construction market size is expected to see strong growth in the next few years. It will grow to $161.02 billion in 2030 at a compound annual growth rate (CAGR) of 8.4%. The growth in the forecast period can be attributed to growing adoption of automated modular manufacturing, rising focus on sustainable building materials, increasing demand for modular healthcare and education facilities, expansion of permanent modular housing projects, greater integration of IoT-enabled building systems. Major trends in the forecast period include rising adoption of off-site construction methods, expansion of standardized prefabricated components, growing demand for cost-efficient modular housing, increased utilization of mixed-module structural designs, higher market focus on temporary and mobile modular units.

Global Modular Construction Market Segmentation

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

What Is The Driver Of The Modular Construction Market?

Growing urbanization is expected to boost the growth of the modular construction market going forward. Urbanization refers to the gathering of people into certain geographic locations. The rising urbanization trend creates a conducive environment for the growth of the modular construction market, as its characteristics align with the challenges and requirements of building in densely populated urban areas. For instance, according to a report published by the World Bank, a US-based international organization, in 2022, more than 50% of the world's population reside in urban regions. The number of people living in urban areas is projected to rise to 6 billion by 2045, a 1.5-fold increase. By 2030, the world is predicted to have 1.2 million km2 more of urban built-up area as urban land consumption is expected to continue to expand at a rate that is up to 50% faster than population growth. Therefore, growing urbanization is driving the growth of the modular construction industry.

Key Players In The Global Modular Construction Market

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

Global Modular Construction Market Trends and Insights

Major companies operating in the modular construction market are focusing on developing technological advancements such as standardized design modules to accelerate project timelines, enhance scalability, reduce construction costs, and ensure consistent quality across diverse projects. Standardized design modules refer to pre-engineered and prefabricated building components designed with uniform dimensions and specifications, allowing for easy assembly, scalability, and replication across multiple construction projects. For instance, in November 2023, TenneT, a Netherlands-based energy company, launched a modular construction for the Large Projects program to accelerate the expansion of the electricity grid. This initiative focuses on the construction of 380 kV substations and high-voltage pylons using standard designs and fixed modules. The modular approach streamlines and standardizes the design, planning, and implementation phases, making procurement, plot acquisition, and environmental discussions more efficient. It also reduces repetitive tasks, allowing engineers and workers to focus on more challenging and complex aspects of grid expansion projects. This program is a significant step in enabling faster and more efficient grid expansion, crucial for supporting the energy transition and meeting growing electricity demands.

What Are Latest Mergers And Acquisitions In The Modular Construction Market?

In April 2024, LaPhair Capital Partners, a US-based venture capital company, acquired Kinexx Modular Construction for an undisclosed amount. to enhance homeownership opportunities in urban areas and tackle the housing crisis by acquiring Kinexx Modular Construction, focusing on sustainable building solutions and fostering economic development in underserved communities. Kinexx Modular Construction is a US-based company that specializes in the quick design, manufacturing, and installation of sustainable modular homes, particularly for urban infill projects.

Regional Insights

Asia-Pacific was the largest region in the modular construction market share in 2025. The regions covered in this market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in this market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

What Defines the Modular Construction Market?

The modular construction market includes revenues earned by entities by constructing or engineering prefabricated constructions. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

How is Market Value Defined and Measured?

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified). The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

What Key Data and Analysis Are Included in theModular Construction Market Report 2026?

The modular construction market research report is one of a series of new reports from The Business Research Company that provides market statistics, including industry global market size, regional shares, competitors with the market share, detailed market segments, market trends and opportunities, and any further data you may need to thrive in the modular construction industry. The market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future state of the industry.