Modular Construction Materials Market Size and Trends by Material, Modular Construction Type, End-User and Region

Modular Construction Materials Market size was valued at USD 111.70 Billion in 2023 and is expected to grow at a CAGR of 5.9% from 2024 to 2030 to reach USD 166.85 Billion
Modular Construction Materials Market Overview
Steel, Wood, Concrete/Cement and Plastic are the four common construction materials associated with modular buildings or modular construction modules. These materials are utilized to create the elements that come together to form a building. The price of the materials is different depending upon other factors such as their availability. The market is majorly driven by the growing construction industry due to the growing population with the high demand for buildings. The Modular Construction Materials Market report includes a detailed analysis of market size, share, dynamics and competitive landscape which are provided at global, regional and global levels, which makes it an investor’s guide.To know about the Research Methodology :- Request Free Sample Report
Modular Construction Materials Market Dynamics
Construction is the largest industry in the world and makes up about 13 percent of the global GDP. It is also one of the slowest-growing industries. The new construction technologies in the industry are expected to speed up the rate of change during the forecast period. The modular construction market has grown rapidly in the past few years. The global modular construction market was worth about USD 111.70 billion in 2023 and is expected to reach nearly USD 166.85 billion by 2030. Hence, modular construction materials are high in demand and the demand is expected to increase in the future.

According to the study, hotels and motels are the fastest grown industry for modular construction materials. The demand for modular construction materials is increasing because developers, architects and general contractors are finding that modular construction helps to keep costs low, reduces waste and shortens the construction timeline. Modular structures are treated as relocatable buildings, which are also refurbished to meet new needs. Case Studies show that modular construction offers significant savings compared to traditional construction due to weather not being a problem in delaying the schedule of the project and the ability to work on the structure offsite while the site is being prepared. The increasing investments in infrastructure development are expected to offer lucrative growth opportunities for the Modular Construction Materials key players.

The increasing prices due to the shortage of construction materials are the major restraining factor for the Modular Construction Materials Market growth. As per the data released by the Associated General Contractors of America in June 2022, the prices for the construction materials used in non-residential projects were up by around 17 percent since 2021. Steel is a material that’s expensive and scarce. The lack of reliability in modular construction in earthquake-prone regions is expected to hamper the demand for modular construction materials.

As per the research, for every project modular construction won’t work, but there are an increasing number of applications for this technology and the techniques that accompany it. Modular construction projects can be assembled in a fraction of the time that it takes for traditional projects of the same scope and size regardless of the materials used. These are expected to grow in popularity in the future as a way for companies to provide affordable housing options. These are expected to drive the global Modular Construction Materials Industry during the forecast period.
Modular Construction Materials Market Regional Insights
The North American Modular Construction Materials Market held the largest share of the global market mainly because of the increasing shares of modular construction in new construction projects. In the past few years, the region has experienced immense growth in the modular construction market, which resulted in high demand for modular construction materials. Despite the hike in prices of raw materials and interest rates, the construction output has increased due to rapid expansion in the residential housing sector. The budget of North America includes tens of billions of dollars for federal construction and infrastructure programs, supplementing big gains provided in the infrastructure investment. During the forecast period, the regional market is also expected to grow at a high rate due to an increase in demand for housing and an increase in the use of sustainable building techniques.

During the forecast period, the Asia Pacific Modular Construction Materials Market is expected to hold the major share of the global market. The factors that are driving the regional market are the growing population, increasing urbanization, growing industries and high investments by key players in the construction sector. As per India’s budget 2023, the government will majorly focus on the infrastructure development activities such as construction, which in turn will enable building materials segments such as cement, wood and others to post robust performance moving forward.

The European Modular Construction Materials Market is growing majorly because of the rising need for affordable housing units and government initiatives to promote green buildings. The high expenditure on infrastructure in countries like France and Germany is increasing the demand for modular construction materials. The growing popularity of modular construction in the region is majorly increasing the demand for modular construction materials.
Modular Construction Materials Market Segment Analysis
Based on Material: The segment is divided into Steel, Concrete/Cement, Wood and Plastic. The steel segment held the largest Modular Construction Materials Market share in 2023 and is expected to continue this trend during the forecast period. The steel is very strong and rigid and in modular construction is majorly used to provide durability to more interesting shapes such as rounded features or arches. Steel-framed buildings are a popular modular construction option. These are the reasons it is highly demanded in the construction industry. During the forecast period, the Wood segment is expected to grow at a high CAGR. In modular construction, wood is the most commonly used material because it’s easy to work with. They are majorly used for the framework elements such as Roof and floor trusses, Wall framing, Plywood, etc.

Based on Modular Construction Type: The segment is divided into Permanent and Temporary. In 2023, the Permanent segment held the largest share of the global market and is expected to grow at a high rate during the forecast period. This is attributed to the high demand for modular construction materials for permanent modular houses due to these houses being easy to build and inexpensive. The Temporary segment is also expected to grow at a high rate during the forecast period due to the flexibility of relocation offered by temporary buildings.

Based on End-User: The segment is divided into Residential Buildings, Commercial Buildings and Industrial Buildings. Commercial Buildings hold the major share of the market. Modular materials buildings are majorly used for commercial buildings such as hotels and motels, health facilities, colleges, etc.
Modular Construction Materials Market Competitive Landscape
This section of the report is a clear representation of the Modular Construction Materials key competitors by price, financial position, growth strategies and regional presence. It also includes details on recent developments by key players with development strategies such as joint ventures, mergers, acquisitions, etc. This in-depth analysis new entrants, investors, researchers, entrepreneurs, followers and market players.

As the modular construction materials market is growing, it is attracting new entrants. China Baowu Steel Group Corp., Ltd is one of the world's largest steel manufacturers by volume and acquired state-owned enterprise Sinosteel in 2022. In 2021, the Nucor company majority share in California Steel Industries and it also acquired the insulated metal panel business from Cornerstone Building Products.

The ACC Limited Company in India was taken over by Holcim Group in 2004 and the company operated as a subsidiary of Lafarge Holcim. To focus on core markets, Holcim Group exited from the Indian market after 17 years of operation in 2022, which was later acquired by Adani Group for USD 10.5 billion.
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Modular Construction Materials Market


Report Coverage
Details


Base Year:
2023
Forecast Period:
2024-2030


Historical Data:
2018 to 2023
Market Size in 2023:
US $ 111.70 Bn.


Forecast Period 2024 to 2030 CAGR:
5.9%
Market Size in 2030:
US $ 166.85 Bn.


 Segments Covered:
by Material
Steel
Concrete/Cement
Wood
Plastic


by Modular Construction Type
Permanent
Temporary


by End-User
Residential Buildings
Commercial Buildings
Industrial Buildings



Modular Construction Materials Market by Region
North America (United States, Canada and Mexico)
Europe (UK, France, Germany, Italy, Spain, Sweden, Austria and Rest of Europe)
Asia Pacific (China, South Korea, Japan, India, Australia, Indonesia, Malaysia, Vietnam, Taiwan, Bangladesh, Pakistan and Rest of APAC)
Middle East and Africa (South Africa, GCC, Egypt, Nigeria and Rest of ME&A)
South America (Brazil, Argentina Rest of South America)
Modular Construction Materials Key Players
Steel

1. ArcelorMittal
2. Nippon Steel & Sumitomo Metal Corporation (NSSMC)
3. A-1 Alloys
4.Tata Steel Limited
5.China Baowu Steel Group Corp., Ltd
6. Nucor

Concrete/Cement

1. Cemex
2. Vulcan Materials Co.
3. Holcim
4. HeidelbergCement
5.UltraTech RMC
6.JK Cement

Wood

1.WOODCHUCK USA
2.Excel Dowel & Wood Products LLC
3. Richwood Industries
4.Jaywood Pallet Mfg. Co.

Plastic

1. LyondellBasell
2. BASF
3.Dow Chemical Company
4. SABIC

Frequently Asked Questions

1] What is the expected CAGR of the Global Modular Construction Materials Market during the forecast period?
Ans. During the forecast period, the Global Modular Construction Materials Market is expected to grow at a CAGR of 5.9 percent.

2] What was the Modular Construction Materials Market size in 2023?
Ans. USD 111.70 Bn was the Modular Construction Materials Market size in 2023.

3] What is the expected Modular Construction Materials Market size by 2030?
Ans. USD 166.85 Bn is the expected Modular Construction Materials Market size by 2030.

4] What are the Modular Construction Materials Market segments?
Ans. The market is divided by Material, Modular Construction Type and End-User.

5] Which region’s Modular Construction Materials Market share is expected to increase at a high rate during the forecast period?
Ans. The Modular Construction Materials Market share of Asia Pacific is expected to increase at a high rate during the forecast period.