Modular & Prefabricated Construction Market Size By Type (Permanent, Relocatable), By Material (Steel, Wood, Concrete), By Application (Single Family Residential, Multi-Family Residential, Office, Hospitality, Retail, Healthcare), Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2020 - 2026
The modular & prefabricated construction market is likely to register tremendous gains over the coming years owing to the rapid rate of industrialization and urbanization, high adoption of modular construction in single family projects, and rising urban population. Prefabrication means manufacturing of construction elements wherein building elements are created far away from the construction site and then assembled on site.
Modular building construction panels are usually produced at a factory, after which the modules are transported and then assembled on site. The two terms prefabrication and modular construction are frequently used interchangeably.
Modular & prefabricated construction market is segmented in terms of type, material, application, and regional landscape.
With respect to material, the modular & prefabricated construction market is classified into concrete, wood, steel, and others. Among these, the others segment will exhibit nearly 5.4% CAGR over the forecast time period. The others segment comprises of materials such as aluminum, polyurethane, glass fiber among many others. These materials will witness substantial growth owing to their utility in permanent modular construction.
In terms of application, the overall modular & prefabricated construction market is bifurcated into healthcare, retail, hospitality, office, multi-family residential, single family residential, and others. Among these, single family residential segment is likely to exhibit more than 6.3% CAGR through the forthcoming timeframe. In fact, adoption of modular construction in single family projects will increase as the cost of technology falls. Single family dwellings do not have strict timeline therefore they prefer both on site as well as modular approach.
The office application segment will witness around 5.6% CAGR overt the projected time period. Modular construction is considered the right option for portable office. They offer several advantages such as easy installation, cost efficiency, and high degree of customization among others. Modular offices are also ideal in expansion and modification purposes. These factors will further drive the segmental growth.
Retail application segment will exhibit more than 5.7% CAGR over the forecast time period. Increasing number of retailers and supermarket chains are looking for modular construction as it encompasses all solutions. Since they provide secure and robust designs, and aesthetic appeal to retail environment, their demand is likely to increase over the coming years.
The others segment is likely to exhibit 4.6% CAGR through the forecast timeframe. This segment further includes utilization of modular techniques in public and industrial infrastructures.
From a regional frame of reference, Asia-Pacific region is projected to witness gains of around 8.0% CAGR over the forecast timeframe. Asia Pacific modular construction industry is rapidly increasing mainly due to rapid industrialization and urbanization rate, which is triggered due to strong population rise in the region. In fact, Asia’s urban population constitutes approximately 45% of the total population. Additionally, increasing consumer spending power in the region and economy boost, will stimulate the demand for housing facilities in the region over the coming years.
Latin America region is projected to witness gains of more than 6.1% CAGR over the forecast timeframe. In Latin America modular construction industry, Brazil will exceed Mexico to become the largest market over the coming years. This is mainly attributed to strong private investment and robust economic growth, which will drive product demand and will have a positive impact on total market size by the end of the analysis timeline.
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