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Last edited 03 Sep 2020
Global modular construction market
The constantly rising cost of conventional building material such as cement and bricks coupled with increasing population all over the globe has boosted the demand for modularised structures, especially in the commercial sector.
In the developed countries such as the U.S, hotel owners and designers have found it efficient and cost saving to use the newest forms of modular construction for their projects. Structural units such as modular pump houses, gymnasiums, toilets, offices and medical buildings are some most common examples of commercial building modules. According to Esticast Research and Consulting, an increase in the high-rise office buildings in cities where on-site construction is difficult, has contributed to market growth. This segment is expected to grow with the highest CAGR of 6% during the forecast period holding nearly 4/5th of the global market.
The U.S is one of the most developed countries in the world. Changing lifestyles, increasing population and high cost of residential flats has driven the demand for modularised homes in the region. Moreover, an move towards green buildings, sustainability and cost effectiveness has also contributed to the growth of the regional modular construction market.
However, countries of Asia-Pacific region such as China, Japan and India are some of the fastest growing economies of the world. A strong growth in the urbanised population and rapid growth of industrialisation along with cost efficiencies, has generated a high demand for modularised commercial and residential buildings in the region. India is expected to witness the fastest growth in terms of modular construction growing at a CAGR of 9.5% during the forecast period.
Permanent modularised buildings are those structures which are designed and constructed off-site and then transported and assembled at the final required site. These structures cannot then be relocated. Permanent modular construction has emerged as the best alternative to conventional construction. The potential environmentally-friendly nature of these units and their cost effectiveness has attracted customers towards this technology from all over the globe, especially Europe and North America. This segment holds more than 60% of the global market and is expected to grow with the same trend in the future.
Key findings of global modular construction market analysis are:
- The commercial segment is expected to grow with the highest CAGR of 6% during the forecast period holding nearly 4/5th of the global market size.
- The permanent modular construction segment holds more than 60% of the global market and is expected to grow with the same trend in the upcoming future.
- The re-locatable modular construction segment is expected to grow with a CAGR of 5.9% during the forecast period.
- High cost effectiveness and sustainability have emerged as the major driving factors for the growth of modular construction market.
Frisomat, Qualimetal, Albaddad International, Touax, Kiewit, Terra Universal, Veldeman Structure Solutions, Taisei Corporation, Labconco, Chc Lab, Bigneat Containment Technology, ACS, Balfour Beatty and Bouygues Construction are some major market players in the global modular construction market.
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