Modular Construction Market to Grow Toward USD 219,197.1 million by 2035

In 2025, the global modular construction market is anticipated to grow at a CAGR of 6.9% from USD 112,475.4 million in 2025 to USD 219,197.1 million by 2035. Thanks to developments in 3D printing, AI-driven design, and digital twin technology, modular construction is seeing a resurgence. This is because it is becoming more accurate and scalable, making it an unquestionable solution for affordable housing, shelters for disasters, green building projects, and increased dignity for people worldwide.

One of the key drivers of growth in the modular construction industry is the increasing demand for affordable housing and infrastructure solutions. Modular construction offers a cost-effective and efficient way to construct high-quality buildings in a short period. Hence, making it an ideal solution for affordable housing projects and infrastructure development.

The modular construction industry still faces several restraints despite promising growth prospects. One of the primary restraints is the perception that modular construction is not as durable or high-quality as traditional construction methods. This perception often results in skepticism among potential clients, making it difficult for modular construction companies to gain market share.

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The modular construction industry also presents several opportunities for growth and development. With the growing demand for sustainable and eco-friendly construction solutions, modular construction has emerged as an ideal solution due to its minimal impact on the environment. Additionally, advancements in technology have made modular construction cost-effective, and easy to implement.

The latest trends in the modular construction industry include the adoption of digital tools and automation to increase efficiency and reduce costs. This trend is driven by the need to streamline the building process and reduce the reliance on manual labor.

Key Takeaways from the Modular Construction Market:

With a predicted market share of 35% by 2035, the modular construction sector in the United States is forecasted to increase significantly over the projection period.
Germany is predicted to hold a 20% market share in the worldwide modular construction industry by 2035.
By 2035, China is estimated to have a 25% market share in the global modular construction industry.
With an anticipated market share of 10% by 2035, Japan’s modular construction industry is expected to increase moderately during the forecast period.
Relocatable modular construction dominates the modular building sector, with a predicted market share of 60% in 2025.
Steel modular construction is expected to have a notable market share of 45% in 2025.

Plethora of Opportunities for New and the Previously Dominating Players in the Industry

The modular construction industry is becoming increasingly competitive as many players enter the market and existing companies look to expand their operations.

To stay at the top, key players in the industry are making huge investments in research and development to enhance their product offerings and increase efficiency. Additionally, companies are expanding their global reach through mergers and acquisitions and strategic partnerships. For instance,

In 2021, Skanska AB acquired a 50% stake in UK modular builder Ideal Modular Homes.

The modular construction industry still faces several challenges despite the promising growth prospects. One of the key challenges is the perception that modular construction is not as durable or high-quality as traditional construction methods. Additionally, the lack of skilled workers and the limited number of modular factories pose logistical challenges.

Key Players in the Modular Construction Industry