The Latest Modular Construction Industry Statistics Explained
The global modular construction market size was estimated at USD 67.4 billion in 2019.
The statistic indicates that in 2019, the global modular construction market was valued at approximately USD 67.4 billion. This figure represents the total revenue generated within the modular construction industry worldwide during that year. Modular construction involves the use of prefabricated components that are assembled off-site and then transported to the final construction site for installation. The estimated market size highlights the substantial economic activity and investment in modular construction globally, reflecting a growing trend in the construction industry towards more efficient and sustainable building practices.
It is anticipated the market will grow at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027.
The statistic indicates that it is expected for the market to experience a steady and consistent growth over the period from 2020 to 2027, with a compound annual growth rate (CAGR) of 5.9%. This means that on average, the market size will increase by 5.9% each year over the specified time frame. The CAGR takes into account the compounding effect of growth, reflecting the year-over-year percentage increase that captures the overall growth trajectory more accurately than simple averages. Therefore, if this projection holds true, we can anticipate a gradual yet significant expansion of the market from 2020 to 2027.
As of 2020, the Asia Pacific holds the largest market share (40.8%) of the global modular construction market.
The statistic indicates that as of 2020, the Asia Pacific region had the largest market share, accounting for 40.8% of the global modular construction market. This suggests that modular construction, a method that involves constructing building components off-site and assembling them on-site, is particularly popular and widely adopted in the Asia Pacific region. This could be due to various factors such as rapid urbanization, a growing population, and an increasing focus on sustainable and cost-effective building practices in countries within the region. The strong market share held by the Asia Pacific region highlights its significant influence and leadership in the global construction industry, particularly in the area of modular construction.
Prefabricated buildings take 30% to 50% less time to complete when compared to traditional construction.
The statistic indicates that prefabricated buildings require a significantly shorter amount of time to be completed in comparison to traditional construction methods. Specifically, prefabricated buildings can be erected in 30% to 50% less time, emphasizing the efficiency and speed associated with this construction approach. This higher efficiency in construction time is likely due to the off-site fabrication of building components in controlled environments, reducing weather-related delays, optimizing project scheduling, and streamlining the assembly process on-site. Ultimately, the statistic highlights the time-saving advantages of utilizing prefabricated buildings as a construction solution, offering potential benefits such as quicker project completion, reduced labor costs, and improved overall project management.
Modular construction could reduce construction time by 20 to 50%.
The statistic “Modular construction could reduce construction time by 20 to 50%” implies that adopting a modular construction approach, where building components are fabricated off-site in a controlled environment and then assembled on-site, has the potential to significantly speed up the construction process compared to traditional methods. The range of 20 to 50% suggests that the extent of time savings can vary depending on various factors such as project complexity, scale, and efficiency of the modular construction process. This statistic highlights the efficiency and time-saving benefits that modular construction can offer, making it an attractive option for projects aiming to expedite construction timelines while maintaining quality standards.
As per 2018 report, in the U.S., commercial application segment dominated the modular construction market with over 60% market share.
The statistic indicates that in the U.S. modular construction market as of 2018, the commercial application segment held the majority share, accounting for over 60% of the total market. This suggests that within the modular construction industry, a significant portion of the construction projects in the commercial sector utilized modular construction techniques. This trend reflects the growing adoption of modular construction methods in commercial projects, potentially driven by factors such as cost-efficiency, faster construction timelines, and sustainability benefits. The dominance of the commercial application segment highlights the importance of modular construction in meeting the needs of the commercial sector and underscores its potential impact on the overall construction industry in the U.S.
The demand for modular construction for office spaces is expected to grow at a CAGR of 6.1% from 2020 to 2027.
This statistic indicates that the demand for modular construction in the office space sector is projected to increase at a Compound Annual Growth Rate (CAGR) of 6.1% from the year 2020 to 2027. This means that on average, the demand for modular construction for office spaces is anticipated to grow by 6.1% each year during this period. This growth rate suggests a significant and steady increase in the adoption of modular construction methods for office spaces, reflecting a shift towards more efficient, cost-effective, and sustainable building solutions within the real estate industry.
Among non-residential segment, healthcare facilities are growing at a strong CAGR of 6.9% from 2020 to 2027.
The statistic indicates that within the non-residential segment, healthcare facilities are experiencing significant growth, with a compound annual growth rate (CAGR) of 6.9% between the years 2020 and 2027. This suggests that the healthcare sector is expanding at a faster pace compared to other non-residential sectors during this period. The strong CAGR of 6.9% points to sustained growth and increasing demand for healthcare facilities, likely driven by factors such as population growth, advancements in medical technology, and changing healthcare needs. This growth trend is promising for the healthcare industry and signifies potential opportunities for investment, development, and strategic planning within the healthcare real estate market.
In 2019, the North American market size for modular construction was USD 24.7 billion.
The statistic “In 2019, the North American market size for modular construction was USD 24.7 billion” represents the total value of the modular construction industry within North America during that year. This figure indicates the total revenue generated by companies involved in producing modular building components and assembly services. The market size reflects the demand for modular construction projects across residential, commercial, and industrial sectors in North America, highlighting the growing trend towards off-site construction methods. This statistic helps stakeholders, policymakers, and industry experts understand the scale and economic significance of the modular construction sector in the region.
Modular construction accounts for 3% of all new commercial construction in North America.
The statistic states that modular construction makes up 3% of all new commercial construction projects in North America. This suggests that modular construction, which involves building components off-site in a factory-controlled setting before assembling them on-site, is a relatively small but growing segment of the commercial construction industry in the region. The fact that modular construction accounts for 3% of new projects indicates a level of adoption and acceptance within the industry, indicating a shift towards more innovative and efficient construction methods. This statistic highlights the potential for further growth and integration of modular construction techniques in the North American commercial construction sector.
In the U.S., modular housing is growing at an annual rate of 15%.
The statistic “In the U.S., modular housing is growing at an annual rate of 15%” indicates that the modular housing industry in the United States is experiencing significant expansion. With a growth rate of 15% per year, this suggests a substantial increase in the number of modular homes being constructed and sold. This growth could be driven by various factors such as advancements in modular construction technology, increased awareness of the benefits of modular housing (such as cost-efficiency and time savings), and changing consumer preferences for more versatile and sustainable housing options. The statistic highlights a strong positive trend in the modular housing sector, indicating a growing market demand and potential opportunities for investors, developers, and other stakeholders in the industry.
As of 2020, Laing O’Rourke (UK) and Red Sea International Company (Saudi Arabia) are leading the modular construction market.
The statement indicates that as of the year 2020, Laing O’Rourke from the United Kingdom and Red Sea International Company from Saudi Arabia are prominent companies at the forefront of the modular construction market. This suggests that these two companies have demonstrated significant prowess and success in utilizing modular construction techniques to deliver projects efficiently and effectively. Their leadership in the modular construction market may be attributed to various factors such as the scale of their operations, technological advancements in their construction methods, innovative approaches to project delivery, and potentially their market share. Overall, the statistic highlights the strong presence and influence of these companies in the modular construction sector as of 2020.
In 2019, China was the largest market for modular construction in Asia Pacific.
The statistic “In 2019, China was the largest market for modular construction in Asia Pacific” indicates that in that specific year, China had the highest level of adoption and investment in modular construction compared to other countries in the Asia Pacific region. Modular construction refers to a method of building in which components or modules are prefabricated off-site and then assembled on-site. This statistic highlights China’s leadership in embracing innovative construction techniques that offer benefits such as cost savings, faster construction timelines, and improved quality control. It also suggests a growing trend towards modular construction in the region, with China leading the way in this evolving industry.
Modular construction reduces energy consumption during the building process by around 67%.
The statistic that modular construction reduces energy consumption during the building process by around 67% indicates a significant sustainability benefit associated with using modular construction techniques compared to traditional construction methods. This reduction in energy consumption can be attributed to various factors, such as increased efficiency in manufacturing processes, reduced waste generation, and enhanced insulation properties of modular structures. By leveraging off-site construction and assembly, modular construction minimizes on-site energy usage, resulting in decreased environmental impact and improved resource efficiency throughout the building process. This statistic underscores the potential of modular construction to contribute positively towards achieving energy efficiency goals and sustainable building practices.
The world’s tallest modular hotel, which stands at 360 feet, was constructed in New York City in 2020.
The statistic highlights the construction of the world’s tallest modular hotel in New York City in 2020, towering at an impressive height of 360 feet. This modular building showcases an innovative approach to construction, utilizing prefabricated modules that are assembled on-site to create a tall and structurally sound hotel. The use of modular construction techniques in this project not only enabled the swift completion of the building but also demonstrated the potential for greater efficiency and sustainability in the construction industry. The height of the modular hotel serves as a remarkable achievement in modern construction practices, showcasing the advancement and adaptability of construction methods to meet the growing demands of urban development.
Commercial is the most profitable end-user segment in modular construction with a share of over 64% in 2017.
The statistic indicates that in 2017, the commercial sector was the most profitable end-user segment within the modular construction industry, accounting for over 64% of the total market share. This suggests that commercial projects, such as office buildings, retail spaces, and hotels, were the primary driver of revenue and profitability in the modular construction sector during that time period. The high market share of the commercial segment signals a strong demand for modular construction solutions in meeting the needs of commercial developers and clients seeking efficient and cost-effective building solutions. This statistic underscores the significant impact of commercial projects on the overall performance and success of the modular construction industry in 2017.
A McKinsey report suggests that modular construction can result in cost savings of up to 20%.
The statistic from the McKinsey report indicates that adopting modular construction techniques can lead to cost savings of up to 20% compared to traditional construction methods. Modular construction involves fabricating building components off-site in a controlled environment and then assembling them on the construction site, which can reduce labor costs, minimize material waste, and streamline project timelines. The potential 20% cost savings highlight the efficiency and financial benefits of embracing modular construction practices, making it an attractive option for companies looking to optimize their construction projects.
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