NEW YORK, July 23, 2024 /PRNewswire/ -- The modular
construction market size in US is estimated to grow by USD 5.64 billion from 2023-2027, according to
Technavio. The market is estimated to grow at a CAGR of 5.61%
during the forecast period. On-site constraints is driving market
growth, with a trend towards increasing awareness of custom-built
facilities with minimum budgets. However, volatile input cost
poses a challenge. Key market players include Abtech Inc.,
ATCO Ltd., Bechtel Corp., Black Diamond Group Ltd., Building Pro,
Commercial Structures Corp., Fluor Corp., GUERDON LLC, JL
Construction, Kwikspace Pty Ltd., Lendlease Corp. Ltd., McGRATH
RENTCORP, Modular Genius, Nadler Modular, Pac Van Inc., Satellite
Shelters Inc., Skanska AB, Specialty Modular, STARRCO, and
Westchester Modular Homes.
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Modular Construction
Market Scope In US
|
Report
Coverage
|
Details
|
Base year
|
2022
|
Historic
period
|
2017 - 2021
|
Forecast
period
|
2023-2027
|
Growth momentum &
CAGR
|
Accelerate at a CAGR of
5.61%
|
Market growth
2023-2027
|
USD 5641.62
million
|
Market
structure
|
Fragmented
|
YoY growth 2022-2023
(%)
|
5.51
|
Regional
analysis
|
US
|
Performing market
contribution
|
North America at
100%
|
Key
countries
|
US and North
America
|
Key companies
profiled
|
Abtech Inc., ATCO Ltd.,
Bechtel Corp., Black Diamond Group Ltd., Building Pro, Commercial
Structures Corp., Fluor Corp., GUERDON LLC, JL Construction,
Kwikspace Pty Ltd., Lendlease Corp. Ltd., McGRATH RENTCORP, Modular
Genius, Nadler Modular, Pac Van Inc., Satellite Shelters Inc.,
Skanska AB, Specialty Modular, STARRCO, and Westchester Modular
Homes
|
Market Driver
Modular construction is gaining popularity in the US due to its
cost-effective solution for constructing residential complexes.
Notable projects, such as the Homeless Housing in Hilda L.Soil,
Los Angeles, which provided
553,000 housing units in April 2021,
are proof of its effectiveness. This construction method offers
flexibility to contractors and is environmentally friendly, as
major components can be reused and relocated without requiring new
resources. The increasing recognition of modular construction's
benefits for custom facility construction is anticipated to fuel
market growth in the US during the forecast period.
Modular construction is a growing trend in the US building
industry, offering several advantages over traditional methods.
This approach involves creating standardized modules in factory
conditions, resulting in shorter project completion times, improved
quality control, and reduced material waste and energy consumption.
Modular construction is being adopted for various types of
buildings, including residential homes, commercial spaces,
educational facilities, and healthcare centers. Sustainability,
workplace safety, and precision manufacturing techniques are key
focus areas. The benefits extend to resource utilization, reduced
carbon emissions, and addressing transportation and assembly
issues. Modular construction is being used for housing projects,
infrastructure development, and luxury developments in urban
environments. However, challenges include a lack of expertise and
specialized knowledge in the industry, requiring a focus on design,
logistics, and on-site assembly. State-level administrative
agencies play a crucial role in ensuring compliance with safety
regulations and facilitating the adoption of modular construction
work in different construction segments.
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Market Challenges
- The modular construction market in the US is influenced by the
cost of raw materials, which can fluctuate due to various factors
such as inflation, supply and demand, and availability. Key
providers in this industry enter into long-term contracts with
suppliers to mitigate the impact of price volatility in materials
like stainless steel, iron, steel, and concrete. However, this
volatility directly affects vendors' contracts and overall
fabrication costs. For instance, benchmark steel prices decreased
by approximately 17% in March 2022
compared to 2021, but have since risen to over USD650 in December. Such price instability may
hinder the growth of the modular construction market in the US
during the forecast period.
- The Modular Construction market in the US is experiencing
growth in various sectors, including healthcare and urban areas.
Cities facing severe housing shortages are turning to modular
building solutions for quicker and more cost-effective
construction. Players like Aries Building Systems, VESTA Modular,
and BD Modular Solutions have a significant share in this market.
Seattle and Vancouver are key markets for modular
construction, with cities in Dallas,
Texas, also adopting this trend. Modular construction uses
computer-aided design and building information modeling for
off-site building. Challenges include healthcare markets' unique
requirements and natural disasters like hurricanes, floods,
wildfires, and earthquakes. Permanent modular construction and
relocatable modular construction are popular options. Steel,
timber, and modular concrete structures are used in both
residential and commercial applications. The Modular Building
Institute provides education and advocacy for this industry. Cash
purchase price and free cash flow are essential factors for modular
construction projects. Design Space, with its branches and
employees, is a key player in the modular construction
industry.
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Segment Overview
This modular construction market in US report extensively covers
market segmentation by
- Application
- 1.1 Residential
- 1.2 Commercial
- Type
- 2.1 Permanent
- 2.2 Relocatable
- Geography
1.1 Residential- The US modular construction market
is poised for growth due to population expansion and increasing
urbanization. According to the World Bank, the US population grew
by 0.1% in 2021, fueling demand for new residential units. The
benefits of modular construction, such as time savings and quicker
returns on investment, are driving its adoption. Industrialized
assembly and concurrent site preparation enable significant time
reductions. Modular construction is ideal for manufacturing turnkey
homes that comply with local, state, and federal building codes in
rural and suburban areas. The need for affordable housing and
thermal insulation, as well as faster house construction durations,
are key market growth drivers. Additionally, natural disasters like
hurricanes, which destroyed numerous residential buildings in 2021,
have increased the demand for new construction.
For more information on market segmentation with geographical
analysis including forecast (2023-2027) and historic data
(2017-2021) - Download a Sample Report
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reports
The Spanish construction market is driven by infrastructure
development and residential projects. Globally, the modular
cleanroom market is expanding rapidly fueled by advancements in
pharmaceutical and semiconductor industries. Meanwhile, the dry
construction market is also on the rise, with a global value
expected to exceed $300 billion by
2026, as demand for efficient and sustainable building solutions
continues to grow.
Research Analysis
Modular construction, also known as off-site building, is a
modern approach to traditional permanent construction. It involves
manufacturing standardized modules in a factory under controlled
conditions, using computer-aided design and building information
modeling. These modules are then transported to the construction
site and assembled, significantly reducing project completion
times. Urban areas are increasingly turning to modular construction
due to its efficiency and ability to withstand natural disasters
such as hurricanes, floods, wildfires, and earthquakes. Modular
construction offers permanent solutions, with the same durability
and quality as traditional permanent construction. The use of
modular construction extends beyond urban areas and residential
homes. It is also being adopted for commercial buildings,
educational facilities, airports, construction site offices, and
even single-family homes. State level administrative agencies and
compliance bodies are recognizing the benefits of modular
construction and implementing regulations to encourage its use.
Compared to traditional building methods, modular construction
offers several advantages, including improved quality control,
reduced material waste, and lower energy consumption. The factory
conditions allow for precise manufacturing and rigorous quality
checks, ensuring a consistent final product. Additionally, the use
of standardized modules allows for easier compliance with
regulations and codes.
Market Research Overview
Modular construction, also known as off-site building, is a
modern approach to traditional construction where standardized
modules are manufactured in factories using computer-aided design
and building information modeling. This method is gaining
popularity in urban areas due to its efficiency and ability to
reduce project completion times, especially in the face of natural
disasters such as hurricanes, floods, wildfires, and earthquakes.
Modular construction can be permanent or relocatable, with
materials ranging from steel, timber, to modular concrete
structures. Applications include residential homes, commercial
buildings, educational facilities, and healthcare centers, among
others. The use of precision manufacturing techniques and resource
utilization leads to improved sustainability, workplace safety, and
reduced material waste and energy consumption. However, challenges
include transportation issues, assembly, and a lack of experts with
specialized knowledge and skills in modular construction work. The
built environment is evolving, with construction projects in
various segments, including housing, infrastructure, and commercial
spaces, adopting this innovative approach. In the US, states like
Massachusetts and Pennsylvania have programs promoting
industrialized buildings, including manufactured buildings and
multifamily units. The industry output is diverse, with
applications ranging from affordable housing and luxury
developments to modular hotels, such as those built for
international brands like Marriott. Despite the benefits,
challenges remain, including compliance with safety regulations and
addressing concerns related to carbon emissions.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
-
- Type
-
- Geography
-
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
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trends and provides actionable insights to help businesses identify
market opportunities and develop effective strategies to optimize
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and potential markets and assess their competitive positions within
changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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