June 22, 2024

Modular Construction Market Is Set To Transform The Building Industry By Off-Site Fabrication

Modular construction involves the assembly of prefabricated components, assemblies or modules at manufacturing facilities that are further transported and assembled at construction sites. The products allow components to be manufactured in an environment-controlled factory and then shipped for on-site assembly, enabling significant savings in time and cost. Key advantages include predictable costs, less weather dependent construction, reduced onsite work, tightly managed quality control and improved safety. The construction sector has witnessed increased adoption of modular techniques to attain speed, flexibility and sustainability in construction.

The Global Modular Construction Market is estimated to be valued at US$ 97.33 Bn in 2024 and is expected to exhibit a CAGR of 6.7% over the forecast period from 2024 to 2030.

Key Takeaways
Key players operating in the modular construction market are Gaiam, CAP Barbell, Marcy, PowerBlock, Bowflex, Bayou Fitness, Gold’s Gym, Valor Fitness, Body Solid, Universal, NordicTrack, Weider, runtfit, Titan Fitness, Yes4All, Ativafit, B luxury, Fitness Gear, XMark Fitness, Core Home Fitness. The growing awareness about sustainable construction practices and need for reduced construction times has been fueling the demand for modular construction solutions globally. Major market players have been expanding their global footprint by opening new manufacturing plants in strategic locations to better serve regional markets.

Market Key Trends
One of the key trends gaining traction in the Modular Construction Market Size has been the increased adoption of modular techniques in commercial and industrial construction projects. Modularization allows for standardized design of commercial buildings and industrial facilities with superior quality control during manufacturing. This enables significant time and cost savings for developers during construction while also supporting customized designs. Furthermore, mass production of modular building components in controlled manufacturing environments enhances construction efficiency and sustainability.

Porter’s Analysis
Threat of new entrants: Modular construction requires huge capital investment in R&D to develop expertise and acquire certifications. This poses moderate threat of new entrants.

Bargaining power of buyers: Large institutional and corporate buyers have moderate to high bargaining power due to their ability to demand customized designs and lowering of costs.

Bargaining power of suppliers: The modular construction market has several material suppliers with low to moderate differentiation. Hence suppliers have low to moderate bargaining power.

Threat of new substitutes: Technological innovation in 3D printing and other construction methods pose a mild threat as substitutes.

Competitive rivalry: The market has several global and regional players competing on factors like design, cost, quality and delivery timelines. This results in high competitive rivalry.

Geographical regions: North America currently accounts for the largest share of the global modular construction market, with the United States being the major contributor. Factors such as rise in construction activities and stringent building codes are fueling market growth.

Fastest growing region: Asia Pacific is expected to witness the highest growth during the forecast period. This is attributed to rapid urbanization, rising infrastructure investment, and government initiatives for affordable housing in countries such as China and India. Countries in Southeast Asia are also emerging as new hotspots.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it