The report titled "Modular Construction Market by Type, Module (Four-Sided Modules, Open Modules, Partially Open Modules, Mixed Modules, Floor Cassettes, and Modules Supported by a Primary Structure), Material, End-Use Sector, Region - Global Forecast to 2027," published by MarketsAndMarkets, estimates that the size of this segment will grow from $91.0 billion in 2022 to $120.4 billion by 2027, at a CAGR of 5.7% from 2022 to 2027.

The growth of this market is attributed to increased concern for workplace safety, the need for a lower environmental impact, and government support initiatives. Population growth and rapid urbanization provide opportunities for the growth of the modular construction market.

However, factors such as lack of awareness and transportation cost volatility can hinder market growth.

Some of the prominent key players include:

• Laing O’Rourke (UK)
• Atco Ltd. (Canada)
• Skanska AB (Sweden)
• Kleusberg GmbH (Germany)
• Katerra (USA)

Drivers: Improving Workplace Safety and Creating Sustainability

The construction industry's mortality rate has remained constant. Safety continues to be a key challenge in the construction industry. The benefits offered by modular construction can help address these issues. Building off-site reduces the risks of accidents and associated liabilities for workers.

The use of modular construction for building and developing structures like buildings, bridges, and stadiums has enhanced workplace safety. For example, during on-site bridge construction, workers are exposed to high-speed traffic for an extended period, along with other on-site construction hazards, increasing the likelihood of accidents.

The modular construction process minimizes these threats. Additionally, this modern construction technique reduces the need for workers on scaffolds or in narrow spaces, reducing the risk of falls and avoiding work in close proximity.

Permanent modular construction is estimated to be a leader in the modular construction market.

Permanent modular buildings, by type, are reported to have the largest market share in the modular construction market.

Permanent modular construction saves time and labor required for construction, significantly reducing construction costs. It also offers high-quality control compared to on-site construction. These reasons drive the demand for this construction technique.

Europe remains the largest market for the modular construction market

The Europe region is projected to lead the modular construction market in terms of value and volume between 2022 and 2027.

The construction sector, one of the largest and most valuable manufacturing sectors in the region, is highly fragmented and consists of a considerable number of large, medium, and small construction companies.

Players in the construction industry have adopted various technologies as a strategy to support the increasing demand and competition.

In Europe, high levels of cost inflation, labor shortages, and some delays are driving the construction industry toward modern construction methods and directly impacting the increased demand for modular construction.