Modular Construction Market in US Size to grow by USD 5641.62 million between 2023-2027
According to a research report “ Modular Construction Market in US” by Application (Residential, Commercial) Type (Permanent, Relocatable) Geography (North America)- Global Forecast to 2027 published by Technavio, the market size is estimated to grow by USD 5641.62 million, at a CAGR of 5.61% during the forecast period. In the construction industry, on-site building methods are often subjected to numerous challenges, including unpredictable weather conditions and intricate construction processes. These factors significantly increase the cost of on-site construction and extend the project timeline. Furthermore, ensuring safety on construction sites is a critical concern, requiring stringent safety measures to prevent accidents. These complications have led to a growing preference for modular construction, which offers numerous advantages, such as reduced construction time, cost savings, and enhanced safety. Consequently, the demand for modular construction is poised to surge in the US market during the forecast period.
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By Application, the Residential segment is projected to dominate the market size in 2024
The permanent modular construction (PMC) segment dominated the US modular construction market in 2022, accounting for the largest market share. This trend is anticipated to persist throughout the forecast period. PMC is revolutionizing the construction industry as an efficient and eco-friendly approach to constructing robust, durable structures. Leveraging lean manufacturing techniques and offsite fabrication, PMC prefabricates single- or multi-story buildings in modular components. These structures can either stand alone or be integrated into existing ones, offering flexibility and sustainability. PMC's predictability, durability, and strength make it an attractive alternative to traditional construction methods.
By Type, Permanent segment is expected to hold the largest market size for the year 2024
The US modular construction market is poised for significant growth due to several key factors. According to the World Bank, the US population is projected to expand at an accelerated rate during the forecast period, with a growth rate of 0.1% in 2021 compared to 2020. This population growth, coupled with increasing urbanization, is driving the demand for new residential units. Furthermore, the construction industry stands to benefit from the advantages of modular construction, including time savings and a quicker return on investment. Modular construction enables industrialized assembly, which can significantly decrease the total time needed to build a structure. This efficiency, along with the ability to construct units off-site and transport them to the building site, makes modular construction an attractive option for developers and builders.
North America is forecasted to hold the largest market size by region in 2024
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The Modular Construction Market in US growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:
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Research Analysis Overview
Modular construction, a method of building structures using standardized modules fabricated off-site and transported to the construction site for assembly, is gaining popularity in the US market due to its numerous benefits. Compliance with administrative agencies' regulations at the state level is ensured as modular construction adheres to stringent quality control measures and building codes. Hotels, single-family homes, construction site offices, educational facilities, commercial buildings, and residential homes are some sectors embracing modular construction. Its advantages include energy consumption reduction, minimal material waste, and faster project completion times. Modular construction's permanence is a misconception. While traditional building methods require on-site fabrication, permanent modular construction involves constructing structures in factory conditions, ensuring durability and resilience against natural disasters such as wildfires, earthquakes, hurricanes, and floods. Building information modeling and computer-aided design facilitate the design process, ensuring precision and accuracy. Modular construction's standardized modules enable urban areas to address housing shortages and accommodate growing populations efficiently. Despite these advantages, challenges remain, including public perception and financing. Nonetheless, modular construction's future looks promising as it continues to revolutionize the construction industry.
Market Research Overview
The modular construction market in the US is experiencing significant growth, particularly in states like Texas, with major players such as BD Modular Solutions and VESTA Modular leading the charge. Dallas, in particular, is seeing a surge in commercial and educational modular construction projects. The modular building industry is expanding its reach into sectors like healthcare markets, where higher quality and faster project schedules are crucial. Companies like Aries Building Systems, based in Vancouver and Seattle, are also making a significant share in the market. The Modular Building Institute reports severe housing shortages in cities, leading to explosive interest in modular construction for multifamily units and factory-built housing. Modular construction offers numerous benefits, including reduced project costs, shorter construction schedules, and the ability to build in urban environments with limited on-site work and skilled labor. The industry is also gaining traction in the hospitality industry, with modular hotels like the AC Marriott in Manhattan and International Marriott in New York City leading the way. However, modular construction also presents challenges, such as assembly and transportation issues, safety and compliance with administrative agencies at the state level, and sustainability concerns related to carbon emissions and resource utilization. Precision manufacturing techniques and standardized modules are helping to address these challenges, while also improving quality control and project completion times in factory conditions. Modular construction is not limited to residential applications, with commercial spaces, infrastructure projects, and even permanent modular construction for hospitals, schools, and offices gaining popularity. The market also includes relocatable modular construction for construction site offices, airports, and other temporary structures. Despite these advantages, the modular construction industry faces challenges such as assembly and transportation issues, safety concerns, and the lack of experts with specialized knowledge. Urban environments, luxury developments, affordable housing, and infrastructure projects all present unique challenges for modular construction work. The built environment is constantly evolving, and modular construction is an essential part of the solution for meeting the demands of a growing population and the need for sustainable, efficient construction operations. With the continued advancements in technology, such as building information modeling and computer-aided design, modular construction is poised to become an even more significant player in the construction industry. However, natural disasters like wildfires, earthquakes, hurricanes, and floods pose risks to modular construction projects, requiring careful consideration of design and construction methods to ensure safety and compliance. Modular concrete structures, timber, and steel are all being used to address these challenges, with permanent modular construction offering a viable alternative to traditional building methods. In conclusion, the modular construction market in the US is experiencing significant growth, driven by the need for efficient, cost-effective, and sustainable construction solutions. With the continued advancements in technology and the increasing demand for modular construction in various sectors, the industry is poised to become an even more significant player in the construction landscape. However, challenges related to assembly and transportation issues, safety and compliance, and the lack of experts with specialized knowledge must be addressed to ensure the continued growth and success of the modular construction industry.
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