Modular & Prefabricated Construction Market Analysis

Modular & Prefabricated Construction Market Analysis

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Based on product type, the permanent construction segment dominated the market with a share of 54% in 2023 and is expected to reach around USD 138.6 billion by 2032. The permanent modular construction (PMC) method is an innovative and sustainable construction technology that allows for the off-site manufacture of prefabricated modules that are then deployed in single or multi-story buildings. Furthermore, these modules can be incorporated into an existing structure or designed to stand alone.

Based on material, the steel segment held approximately 28% of the market share in 2023 and is expected to reach around USD 138.6 billion by 2032. Prefabricated steel buildings are made from pre-engineered steel and are fabricated in a controlled environment in the factory before being transported to the client's site for assembly. These building structures are quick & affordable, also are weatherproof as the components are designed in a factory setting. They are also ideal for commercial & industrial uses and have a pleasing appearance. Features such as easy deconstruction and reuse at another location will drive the product demand by 2032.

Europe region dominated 42% share of the modular & prefabricated construction market in 2023 and is expected to grow at a robust CAGR of 6% during 2024 to 2032. The key driving force is expected to be the increasing number of migrants, necessitating the construction of temporary and permanent dwelling buildings. Furthermore, factors such as various expenditures and the use of modern technologies are propelling the modular construction market in Europe.

Country-level Analysis

In terms of country, the U.S dominated the North America modular & prefabricated construction market with a share of 38.6 billion in 2023. This is due to the rising number of building and revenue. Several international corporations are investing in modern modular building technologies such as Building Information Modeling (BIM), Artificial Intelligence (AI), the Internet of Things (IoT), 3D printing, and real-time data analytics to save money. Furthermore, the U.S. government and businesses are heavily investing in the modular building sector to provide multifamily residential constructions; hence, driving market growth.

Germany led the Europe modular & prefabricated construction market, accounting for a share of about 24% in 2023. The primary factor driving development is expected to be the increasing number of migrants, necessitating the construction of temporary & permanent housing buildings. Furthermore, factors such as different expenses and the use of modern technologies are propelling the modular construction market in Germany.