Modular Construction Market - Segmented by Construction, Material, End-user Industry, and Geography - Growth, Trends, and Forecast (2018 - 2023)
The global modular construction market is expected to witness CAGR of about 8.16% over the forecast period of 2018-2023. Increasing demand from construction industries in the countries of Asia-Pacific is driving the demand for the modular construction market. However, shortage of skilled labor across the industry is set to stunt the growth of the market during the forecast period.
Time & Cost-Effective Method of Construction
Time and cost are the two parameters associated with construction activity that has long been considered as a constraint for the growth of the industry, in many emerging and matured economies. Overcoming this constraint has been one of the major hurdles for many major construction industries across the globe. Modular construction acts as one of the major solutions for these problems. Modular construction can reduce build time by 30-50% and provide an alternative solution in today's market. The process is cost-effective because of the less labor involved in the on-site activities. Another indirect effect associated with the less onsite activities associated with the method is the significantly less amount of waste generated. For such benefits, modular construction activities are gaining ground in today’s construction market.
Relocatable Modular Construction -A Huge Market Potential
A relocatable building is a partially- or completely-assembled building that complies with applicable codes and state regulations and is constructed in a building manufacturing facility, using a modular construction technique. Relocatable modular buildings are designed to be reused or repurposed multiple times and transported to different sites. Some owners or manufacturers provide lease for such relocatable modular building services, as per the consumer's requirements for office expansion, auditorium space, and medical facilities, in a short-term agreement. Consumers served by relocatable modular buildings include state, provincial, and local governments, non-profit organizations, corporations, school boards, health care providers, retail establishments, as well as individuals, partnerships, and sole proprietorships. School districts, across North America, are the largest owners of relocatable classrooms buildings, owning about 180,000.
Asia-Pacific to Dominate the Market
When it comes to modular construction, Asia-Pacific holds the largest share of the market worldwide and China alone has more than 7,000 indigenous dedicated players. The rapid increase in population in regions of China and India is expected to give a rise in modular construction activity. The key areas of expected growth are social infrastructure, schools, hospitals, government accommodation, water, defense infrastructure, and water resources. In Asia, infrastructure accounted for 37%, residential for 34% and non-residential for 29% share of the construction spending. Singapore has mandated elements of prefabricated, pre-finished, and volumetric construction (PPVC) for all projects on government land. The government backs this with subsidies for companies that participate with the aim of increasing and standardizing modern methods of construction (MMC) in the country. All such factors are increasing the demand for modular construction in the Asia-pacific region.
The major players include -Skanska, Balfour Beatty PLC, ACS Actividades de Construcción y Servicios S.A., and Red Sea Housing Services, amongst others.
Modular Construction Market Report Summary
North America, South America, Asia-Pacific, Europe, and Middle East & Africa
Skanska, Balfour Beatty PLC, ACS Actividades de Construcción y Servicios S.A., Red Sea Housing Services, KEF Infra etc., among others.
Revenue forecast, market share analysis, key players' strategies, and market dynamics
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Analyzing various perspectives of the market with the help of Porter’s five forces analysis
The material type that is expected to dominate the market
The region that is expected to witness the fastest growth during the forecast period
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