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Modular Construction - Global Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | Urbanization and Off-Site Demand Drive Value to USD 129.81 Billion

globenewswire.com
BBY The article mentions Best Buy as a company that could be impacted by the growth in modular construction, particularly in the residential and commercial sectors. However, no specific details about Best Buy's performance or strategy related to modular construction are provided. LEN Lennar is mentioned as a potential beneficiary of the modular construction market growth due to its role in residential construction. The article highlights the increasing demand for housing and the efficiency of modular solutions, which aligns with homebuilders' strategies. PHM PulteGroup, as a major homebuilder, is positioned to benefit from the expansion of the modular construction market. The article's focus on urbanization and housing shortages suggests increased demand for prefabricated housing solutions, which companies like PulteGroup can leverage. KBR KBR is mentioned in the context of its involvement in the construction and engineering sectors, which are directly related to modular construction. The article's emphasis on government incentives and infrastructure projects suggests potential opportunities for companies like KBR. FLR Fluor Corporation is identified as a key player in the modular construction market. The article highlights the company's role in large-scale projects and its potential to benefit from the increasing demand for off-site construction solutions driven by urbanization and government initiatives. BGC The article mentions BGC Partners in the context of the broader construction and real estate market. While the growth of modular construction could indirectly affect BGC's business, there is no direct mention of the company's specific involvement or performance related to this trend. WSC WillScot is directly mentioned as a company in the modular construction space. The article's emphasis on the growth of the modular market, particularly for temporary and permanent structures in various sectors, indicates a positive outlook for WillScot's business operations and revenue.

Modular Construction - Global Market Size, Share, Trends, and Growth Forecasts, 2026-2031 | Urbanization and Off-Site Demand Drive Value to USD 129.81 Billion Dublin, Oct. 30, 2026 (GLOBE NEWSWIRE) -- "Modular Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

Modular Construction Market to Reach USD 129.81 Billion by 2031 as Urbanization and Off-Site Building Demand Accelerate

The global modular construction market is projected to grow from USD 91.25 billion in 2025 to USD 96.77 billion in 2026, reaching USD 129.81 billion by 2031. The market is forecast to expand at a CAGR of 6.05% during 2026-2031, supported by rapid urbanization, housing shortages, government incentives, labor constraints, and demand for faster project delivery.

Urbanization and Housing Demand Support Market Growth

Asia-Pacific remains central to modular construction market growth as expanding cities place pressure on conventional building capacity. China's urbanization rate reached 65% in 2024 and is targeted to rise to 70% by 2030, potentially adding 300 million urban residents. Shenzhen, Beijing, and Shanghai require prefab systems in 30% of public projects, strengthening demand for industrialized construction.

India is also advancing large-scale housing delivery through Pradhan Mantri Awas Yojana, which approved 1.12 crore urban homes, with 88.62 lakh completed by 2025. Vietnam expects its urban population to reach 40% by 2030 and is piloting industrialized construction in Hanoi and Ho Chi Minh City. In the United Kingdom, a housing shortfall of 4.3 million homes has encouraged a target of 15,000 modular units annually, although factory capacity continues to limit output.

Government Incentives Strengthen Modular Construction Adoption

Government mandates, subsidies, and updated building standards are improving the economics of modular projects. California's Factory-Built Housing program reduced permitting cycles from 18 months to 6 months in participating areas that received USD 12 million in state technical assistance during 2024.

In the United States, proposed federal legislation includes USD 30 billion in grants and USD 3 billion in tax credits to accelerate adoption. Europe's revised Energy Performance of Buildings Directive requires all new buildings to achieve zero-emission status by 2030, increasing interest in factory-produced components and high-performance building envelopes. Saudi Arabia's Vision 2030 program, which targets 300,000 housing units annually, also prioritizes modular delivery for its speed and scheduling reliability.

Additional factors shaping demand include:

High Initial Investment Remains a Market Constraint

Factory development and module transportation require substantial capital. A mid-scale facility capable of producing 500-1,000 housing units annually may require USD 15-25 million for land, cranes, automated welding equipment, and climate-controlled production bays. Specialized trailers and escort vehicles can add several million dollars for operators serving multi-state markets.

Facilities generally need to maintain utilization rates of 60-70% to reach breakeven. High borrowing costs and limited project financing in emerging markets can therefore restrict new entrants, favoring well-capitalized and vertically integrated modular construction companies.

Steel and Permanent Modular Construction Lead Key Segments

Steel accounted for 83.87% of modular construction market share in 2025, supported by its strength-to-weight performance and compatibility with automated factory equipment. High-strength grades such as ASTM A992 enable longer structural spans while remaining within transportation weight limits. Automated welding also reduces labor requirements and improves joint consistency, reinforcing steel's use in industrial and multi-story developments.

Wood - particularly cross-laminated timber - is gaining momentum as a low-carbon option in Europe and North America. Cross-laminated timber stores approximately 0.8 tons of CO? per cubic meter and can comply with fire-safety requirements for buildings up to 18 stories. Concrete modules remain more limited because their weight increases logistics costs, while plastic composites are finding applications in disaster relief due to corrosion resistance and airlift capability.

Permanent modular construction represented 67.18% of the market in 2025. Demand is rising across airports, schools, hospitals, and data centers, where long-life assets and pre-tested mechanical and electrical systems can shorten commissioning schedules. Relocatable modular construction is expected to grow at a 7.35% CAGR, driven by mining, temporary healthcare, and disaster relief applications that require rapid deployment and reuse.

Regional Modular Construction Market Outlook

Asia-Pacific generated 47.16% of global revenue in 2025 and is forecast to grow at 7.21% through 2031. Urban development programs in China and India, combined with prefab mandates in Singapore and Malaysia, are directing investment toward off-site production. Japanese companies are also exporting factory expertise to Australia and the United States, strengthening international supply chains.

North American growth is supported by labor shortages, state-level incentives, and major infrastructure projects. However, regulatory differences between states continue to raise compliance costs and complicate cross-border module transportation. In Europe, decarbonization requirements, timber adoption, and skilled-labor shortages are accelerating the transition toward factory-built systems. Saudi Arabia and Brazil also offer significant growth potential, although financing limitations and insufficient local manufacturing capacity remain key barriers.

Key Topics Covered:

1 Introduction

1.1 Study Assumptions and Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Rapid Urbanisation-Driven Housing Gap

4.2.2 Supportive Government Incentives and Mandates

4.2.3 Faster Project Timelines and Lifecycle Cost Savings

4.2.4 Labour-Shortage Mitigation Via Off-Site Fabrication

4.2.5 ESG-Linked Financing and Carbon-Pricing Tailwinds

4.3 Market Restraints

4.3.1 High Upfront Factory and Module-Handling CAPEX

4.3.2 Architectural and Aesthetic Design Constraints

4.3.3 Fragmented Global Building Codes and Permits

4.4 Value Chain Analysis

4.5 Porter's Five Forces

4.5.1 Bargaining Power of Suppliers

4.5.2 Bargaining Power of Buyers

4.5.3 Threat of New Entrants

4.5.4 Threat of Substitutes

4.5.5 Degree of Competition

5 Market Size and Growth Forecasts (Value)

5.1 By Material

5.1.1 Steel

5.1.2 Concrete

5.1.3 Wood

5.1.4 Plastic

5.2 By Construction Type

5.2.1 Permanent Modular

5.2.2 Relocatable Modular

5.3 By Service Stage

5.3.1 New Construction

5.3.2 After-sales Maintenance and Refurbishment

5.4 By End-user Sector

5.4.1 Industrial/Institutional

5.4.2 Residential

5.4.3 Commercial

5.5 By Geography

5.5.1 Asia-Pacific

5.5.1.1 China

5.5.1.2 India

5.5.1.3 Japan

5.5.1.4 South Korea

5.5.1.5 ASEAN Countries

5.5.1.6 Rest of Asia-Pacific

5.5.2 North America

5.5.2.1 United States

5.5.2.2 Canada

5.5.2.3 Mexico

5.5.3 Europe

5.5.3.1 Germany

5.5.3.2 United Kingdom

5.5.3.3 Italy

5.5.3.4 France

5.5.3.5 NORDIC Countries

5.5.3.6 Rest of Europe

5.5.4 South America

5.5.4.1 Brazil

5.5.4.2 Argentina

5.5.4.3 Rest of South America

5.5.5 Middle-East and Africa

5.5.5.1 Saudi Arabia

5.5.5.2 South Africa

5.5.5.3 Rest of Middle-East and Africa

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share/Ranking Analysis

6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products and Services, and Recent Developments)}

6.4.1 ACS Group

6.4.2 Algeco UK Limited (Modulaire Group)

6.4.3 Alta-Fab Structures Ltd.

6.4.4 ATCO Ltd.

6.4.5 Balfour Beatty

6.4.6 Bechtel Corporation

6.4.7 Bouygues Construction

6.4.8 CIMC Modular Building

6.4.9 DAIWA HOUSE INDUSTRY CO., LTD.

6.4.10 Fluor Corporation

6.4.11 Guerdon, LLC.

6.4.12 Laing O'Rourke

6.4.13 Larsen & Toubro Limited

6.4.14 Lendlease Corporation

6.4.15 Modular System Sp. z o.o.

6.4.16 NRB Modular Solutions

6.4.17 Red Sea International

6.4.18 Sekisui House Ltd

6.4.19 Skanska

6.4.20 Stack Modular

6.4.21 Wernick Group

6.4.22 WillScot

6.4.23 Zekelman Industries

7 Market Opportunities and Future Outlook

7.1 Green and Sustainable Construction Demand

7.2 White-space and Unmet-Need Assessment

For more information about this report visit https://www.researchandmarkets.com/r/258vdv

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