Modular and Prefabricated Construction Market

Modular and Prefabricated Construction Market Overview

The global Modular and Prefabricated Construction Market size was valued at USD 330.88 billion in 2024 and is predicted to reach USD 472.21 billion by 2030 with a CAGR of 6.1% from 2025-2030. 

The factors such as the growth of industrialization, rising urbanization, and technological advancements drives the expansion of the market. However, the lack of proper recycling infrastructure hinders the market growth. On the contrary, the integration of renewable energy systems, such as solar panels and energy-efficient HAVC systems creates a future opportunity for the market. Moreover, the top players such as Bouygues Construction, Guerdon, LLC, Skanska AB are taking various initiates such as acquisition and product launch to enhance their market presence and diversify their offerings. 

These strategies focus on driving innovation, boosting sustainability, and promoting the widespread adoption of energy-efficient solutions, supporting the market’s long-term growth and expansion. As the market progresses, the increasing emphasis on sustainability and energy-efficient technologies is set to propel continued growth and broader implementation across sectors.

Expansion of Industrialization Drives the Market Growth 

The growth of industrialization boosts the market expansion due to the requirement for efficient solutions that combine quick project completion with reduced waste and design flexibility. As per the published reports of United Nations Industrial Development Organization (UNIDO), 2023 states that the manufacturing and mining together with other industrial sectors achieved 2.3% growth worldwide. This surge in industrial sector increases the demand for off-site or factory-built construction method that emphasizes productivity enhancement and effective building solution delivery. 

Rising Urbanization Fuels the Expansion of the Market 

The rising urbanization fuels the modular and prefabricated construction market expansion due to the increasing need for efficient and rapid construction methods to accommodate the expanding population in urban areas. 

According to reports published by the World Bank Group, 2023, 56% of the world’s people live in cities and by 2050, the urban population is expected to be more than double, with nearly 7 out 10 people will live in cities. The urban population growth drives increased requirements for sustainable modular solutions to provide housing and infrastructure quickly that in turn boosts market expansion. 

Technological Advancements Boosts the Growth of the Market 

Growth related to the improvement of technologies further enhancing manufacturing processes, increasing design capabilities, and making methods of construction more efficient will continue to drive the pace in the modular and prefabricated construction market. Such developments enable faster delivery and more customization to meet the ever-changing needs within the construction sector. 

For instance, in January 2022, Forta PRO launched a new line of sustainable generic modular apartments (GMA) to revolutionize construction. This initiative utilizes modular technology to improve efficiency, speed, and sustainability while keeping costs within fixed budgets. Ultimately, these advancements drive industry growth by encouraging innovative and flexible construction solutions. 

Lack of Proper Recycling Infrastructure Pose Significant for the Market Expansion 

The lack of proper recycling infrastructure significantly restrains modular and prefabricated construction, as insufficient facilities for recycling materials lead to increased waste and hinder sustainable practices, thereby restricting modular and prefabricated construction market growth.

Integration of Renewable Energy Systems Creates a Future Opportunity for the Market 

The incorporation of renewable energy systems such as solar panels and energy-efficient HVAC systems into modular designs is expected to create significant growth opportunities. This strategy enhances sustainability and attracts eco-conscious buyers that increases demand for environmentally friendly housing solutions.

Market Segmentations and Scope of the Study

The modular and prefabricated construction market report is segmented on the basis of type, material, construction method, application, end users, and region. On the basis of type, the market is divided into permanent and relocatable. On the basis of material, the market is classified into steel, wood, concrete, glass, and others. On the basis of construction method, the market is segmented into modular, prefabricated, and hybrid. On the basis of application, the market is classified into new construction, renovation, and expansion. On the basis of end users, the market is distributed into residential and non-residential. Based on residential, the market is segmented into homes and apartments. On the basis of non-residential, the market is further divided into office, retail, hospital, education, and others. The regional breakdown includes regions such as North America, Europe, Asia-Pacific, and the Rest of the World (RoW).

Geographical Analysis

North America dominates the modular and prefabricated construction market share and is expected to continue its dominance during the forecast period. The is due to the increasing urban population that drives demand for quick efficient construction solutions in the region. High demand for fast and efficient building solutions forces industries toward developing off-site and pre-assembled construction methods to solve building shortages. 

The data from the latest World Bank Group report shows U.S. urban population increased from 274 million in 2020 to 278 million in 2023 that represents a 1% change over three years. This rise in urban development requires innovative construction approaches as the expanding urban population creates urgent demands for new housing. 

North America holds the dominant share of the modular and prefabricated construction industry and is expected to continue its dominance during the forecast period. The is due to the increasing urban population that drives demand for quick efficient construction solutions in the region. High demand for fast and efficient building solutions forces industries toward developing off-site and pre-assembled construction methods to solve building shortages. 

The data from the latest World Bank Group report shows U.S. urban population increased from 274 million in 2020 to 278 million in 2023 that represents a 1% change over three years. This rise in urban development requires innovative construction approaches as the expanding urban population creates urgent demands for new housing. 

On the other hand, Asia Pacific is expected to show a steady rise in the modular and prefabricated construction industry due to the presence of key players, such as Sekisui House, Ltd., Elta Fans Limited, and Larsen and Toubro Limited, further enhances market growth in the region through their adopting strategies such as product launch. These companies contribute to the market innovative building solutions that improve construction efficiency and reduce project timelines. 

For instance, in August 2023, Elta Fans launched a prefabricated solutions service to address the demand for offsite manufacturing. This initiative enhances efficiency and reduces project timelines with customized, high-quality outcomes. Such innovations aim to strengthen the market by addressing industry demands and improving competitiveness.

Also, the rise in infrastructure investment in the region drives the growth of the market as increased funding leads to a greater demand for efficient building solutions. This investment fosters modular adoption in construction projects to hasten completion time and reduce cost. 

As per report of Morgan Stanley, 2025, India's infrastructure investment to steadily increase from 5.3% of GDP in 2024 to 6.5% of GDP by 2029. This increases in infrastructure spending highlight the off-site and pre-assembled construction remain essential for achieving large project goals. 

Competitive Landscape

The modular and prefabricated construction industry comprises of various market players such as Bouygues Construction, Guerdon, LLC, Skanska AB, Cavco Industries, Inc., Kiewit Corporation, Sekisui House, Ltd., Larsen and Toubro Limited, VINCI Corporation, ATCO Ltd., Satellite Shelters, Inc., Fluor Corporation, Palomar Modular Buildings, Modular Genius, Inc., Daiwa House Industry Co., Ltd., Champion Home Builders, Inc., and others. These market players continue to adopt various market development strategies including acquisition and product launch to maintain their dominance in the market.

For instance, in September 2024, ATCO Structures acquired NRB Limited, a leading Canadian modular building manufacturer, for USD 40 million. This strategic move boosts ATCO's modular construction capabilities, expanding its market reach and customer base across Canada. 

Also, in May 2024, Skanska launched excellence in construction leadership program (ECLP) strengthens local partnerships and promotes diversity, directly supporting modular and prefabricated construction by fostering collaboration and accelerating innovation in the supply chain.

Key Benefits

• The report provides quantitative analysis and estimations of the modular and prefabricated construction industry from 2025 to 2030, which assists in identifying the prevailing industry opportunities.

• The study comprises a deep-dive analysis of the current and future modular and prefabricated construction market trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the modular and prefabricated construction industry is provided in the report. 

• Competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model is elaborated on the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders

Modular and Prefabricated Construction Market Key Segments

By Type 

• Permanent

• Relocatable 

By Material

• Steel

• Wood

• Concrete

• Glass

• Others 

By Construction Method

• Modular

• Prefabricated

• Hybrid

By Application

• New Construction

• Renovation

• Expansion

By End Users

• Residential

  • Homes

  • Apartments

• Non-Residential 

  • Office

  • Retail

  • Hospital

  • Education

  • Others

By Region

• North America

  • The U.S.

  • Canada

  • Mexico

• Europe

  • The UK

  • Germany

  • France    

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• RoW

  • Latin America

  • Middle East

  • Africa

Key Players

• Bouygues Construction

• Guerdon, LLC

• Skanska AB

• Cavco Industries, Inc.

• Kiewit Corporation

• Sekisui House, Ltd.

• Larsen and Toubro Limited

• VINCI Corporation

• ATCO Ltd.

• Satellite Shelters, Inc.

• Fluor Corporation

• Palomar Modular Buildings

• Modular Genius, Inc.

• Daiwa House Industry Co., Ltd.

• Champion Home Builders, Inc.

REPORT SCOPE AND SEGMENTATION:

Parameters	Details
Market Size in 2024	USD 330.88 Billion
Revenue Forecast in 2030	USD 472.21 Billion
Growth Rate	CAGR of 6.1% from 2025 to 2030
Analysis Period	2024–2030
Base Year Considered	2024
Forecast Period	2025–2030
Market Size Estimation	Billion (USD)
Growth Factors	The expansion of the industrialization drives the growth of the market. The rising urbanization boosts the market expansion. Technological advancements fuels the growth of the market.
Countries Covered	28
Companies Profiled	15
Market Share	Available for 10 companies
Customization Scope	Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.