Global Modular Construction Growth Opportunities

Global Modular Construction Growth Opportunities

End-to-end Services and Digital Technology to Boost Modular Construction’s Future Growth Potential

RELEASE DATE
11-Nov-2022
REGION
Global
Research Code: PDF0-01-00-00-00
SKU: EN01351-GL-MT_27081
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Description

Modular construction (MC) is associated with prefabricated or off-site constructed building units, such as walls, floors, rooms, and frames, which are assembled at construction sites. MC involves the production of building units in factories under stipulated requirements, including material standards, manufacturing processes and conditions, and product testing. Its on-site installation involves stringent methods that must comply with construction codes and standards. MC differs from conventional construction in that walls, flooring, and other building fittings are built on-site.

By construction type, the MC market is segmented into permanent MC and relocatable MC. MC material is categorized into wood and non-wood. By end user, the market is segmented into commercial, institutional, public and infrastructure, industrial, and residential. The study focuses on MC that includes module types such as room, roof, wall, and window. It excludes prefabricated products such as kit sets, structures, scaffolding, frames, and formwork.

The COVID-19 pandemic created a shift to and increased awareness of the use of modular buildings and construction. The healthcare industry is likely to remain a key client for the market. Furthermore, the pandemic has influenced occupants’ indoor air safety requirements, and the post-pandemic era calls for more efficient construction methods in response to socioeconomic trends such as labor shortage, sustainability, and customer demand. This will require intense collaboration between MC market participants and industry participants in the construction value chain as well as cross-industry participants.

The global MC market is forecast to grow at a compound annual growth rate (CAGR) of 5.5% between 2022 and 2028. Key factors driving MC adoption are time and cost savings in construction, environmental sustainability, strong demand for housing and institutional facilities, and the construction of industrial and economic zones. The general global recovery from the COVID-19 pandemic will drive economic growth in multiple markets, which will boost construction activities and, in turn, create opportunities for MC participants. The MC markets in North America and Europe are more advanced than the markets in Asia-Pacific (APAC) and the Rest of World (RoW). Awareness and adoption of MC are higher in North America and Europe; nonetheless, APAC and RoW are important growth regions. Residential and commercial are key end users in the global MC market. MC sales to commercial end users is attributed to the growth of certain sectors, such as hospitality, retail, and restaurants. In 2022, wood constituted 16.3% of the global MC market. By 2028, its revenue share is expected to reduce to 16.1%.

Six growth opportunities are identified in the global MC market, and they focus on end-to-end services, sustainability practices, innovative business models, partnerships, technology convergence, and customers' industry focus.

Author: Melvin Leong

RESEARCH: INFOGRAPHIC

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Table of Contents

Why is it Increasingly Difficult to Grow?

The Strategic Imperative 8™

The Impact of the Top 3 Strategic Imperatives on the Modular Construction (MC) Industry

Growth Opportunities Fuel the Growth Pipeline Engine™

Scope of Analysis

Segmentation by Construction Type and Material

Segmentation by End User

Segmentation by Region

Key Competitors

Key Competitors (continued)

Key Competitors (continued)

Growth Metrics

Value Chain Stakeholders

Growth Drivers

Growth Restraints

Forecast Assumptions

Revenue Forecast

Revenue Forecast Analysis

Revenue Forecast by Region

Revenue Forecast Analysis by Region

Revenue Forecast by Construction Type

Revenue Forecast Analysis by Construction Type

Revenue Forecast by End User

Revenue Forecast Analysis by End User

Material Trends and Forecast Analysis

Competitive Environment

Competitive Environment (continued)

Supplier Capability Matrix

Supplier Capability Matrix (continued)

Supplier Capability Matrix (continued)

Supplier Capability Matrix (continued)

Growth Metrics

Revenue Forecast

Revenue Forecast by Region

Revenue Forecast by Construction Type

Revenue Forecast by End User

Revenue Forecast Analysis

Revenue Forecast Analysis (continued)

Material Trends and Forecast Analysis

Growth Metrics

Revenue Forecast

Revenue Forecast by Region

Revenue Forecast by Construction Type

Revenue Forecast by End User

Revenue Forecast Analysis

Forecast Analysis (continued)

Material Trends and Forecast Analysis

Growth Metrics

Revenue Forecast

Revenue Forecast by Region

Revenue Forecast by Construction Type

Revenue Forecast by End User

Revenue Forecast Analysis

Revenue Forecast Analysis (continued)

Material Trends and Forecast Analysis

Growth Metrics

Revenue Forecast

Revenue Forecast by Region

Revenue Forecast by Construction Type

Revenue Forecast by End User

Revenue Forecast Analysis

Revenue Forecast Analysis (continued)

Material Trends and Forecast Analysis

Growth Opportunity Ecosystem

Growth Opportunity 1: End-to-end Services to Improve MC Reliability

Growth Opportunity 1: End-to-end Services to Improve MC Reliability (continued)

Growth Opportunity 2: Sustainability Practices to Promote MC Use

Growth Opportunity 2: Sustainability Practices to Promote MC Use (continued)

Growth Opportunity 3: Innovative Business Models to Bring Value to MC Customers

Growth Opportunity 3: Innovative Business Models to Bring Value to MC Customers (continued)

Growth Opportunity 4: Partnerships to Boost MC Outreach

Growth Opportunity 4: Partnerships to Boost MC Outreach (continued)

Growth Opportunity 5: Technology Convergence to Advance MC

Growth Opportunity 5: Technology Convergence to Advance MC (continued)

Growth Opportunity 6: Customer’s Industry Focus for Optimum MC Penetration

Growth Opportunity 6: Customer’s Industry Focus for Optimum MC Penetration (continued)

Your Next Steps

Why Frost, Why Now?

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

Legal Disclaimer

Modular construction (MC) is associated with prefabricated or off-site constructed building units, such as walls, floors, rooms, and frames, which are assembled at construction sites. MC involves the production of building units in factories under stipulated requirements, including material standards, manufacturing processes and conditions, and product testing. Its on-site installation involves stringent methods that must comply with construction codes and standards. MC differs from conventional construction in that walls, flooring, and other building fittings are built on-site. By construction type, the MC market is segmented into permanent MC and relocatable MC. MC material is categorized into wood and non-wood. By end user, the market is segmented into commercial, institutional, public and infrastructure, industrial, and residential. The study focuses on MC that includes module types such as room, roof, wall, and window. It excludes prefabricated products such as kit sets, structures, scaffolding, frames, and formwork. The COVID-19 pandemic created a shift to and increased awareness of the use of modular buildings and construction. The healthcare industry is likely to remain a key client for the market. Furthermore, the pandemic has influenced occupants’ indoor air safety requirements, and the post-pandemic era calls for more efficient construction methods in response to socioeconomic trends such as labor shortage, sustainability, and customer demand. This will require intense collaboration between MC market participants and industry participants in the construction value chain as well as cross-industry participants. The global MC market is forecast to grow at a compound annual growth rate (CAGR) of 5.5% between 2022 and 2028. Key factors driving MC adoption are time and cost savings in construction, environmental sustainability, strong demand for housing and institutional facilities, and the construction of industrial and economic zones. The general global recovery from the COVID-19 pandemic will drive economic growth in multiple markets, which will boost construction activities and, in turn, create opportunities for MC participants. The MC markets in North America and Europe are more advanced than the markets in Asia-Pacific (APAC) and the Rest of World (RoW). Awareness and adoption of MC are higher in North America and Europe; nonetheless, APAC and RoW are important growth regions. Residential and commercial are key end users in the global MC market. MC sales to commercial end users is attributed to the growth of certain sectors, such as hospitality, retail, and restaurants. In 2022, wood constituted 16.3% of the global MC market. By 2028, its revenue share is expected to reduce to 16.1%. Six growth opportunities are identified in the global MC market, and they focus on end-to-end services, sustainability practices, innovative business models, partnerships, technology convergence, and customers' industry focus. Author: Melvin Leong
More Information
Author Melvin Leong
Industries Environment
No Index No
Is Prebook No
Podcast No
WIP Number PDF0-01-00-00-00