Sector - skills
Global Modular Construction Market to rise
A shifting awareness of the use of modular buildings and the response to new socioeconomic trends has unlocked growth opportunities in the Modular Construction market, according to Frost & Sullivan’s recent analysis: Global Modular Construction (MC) Growth Opportunities.
The research suggests that there has been a shift in awareness toward the use of modular buildings because of the COVID-19 pandemic.
In response to socioeconomic trends such as the labour shortage, sustainability, and customer demand, MC aims to address the post-pandemic era’s call for more efficient construction methods, with prefabricated or off-site constructed building units, such as walls, floors, rooms, and frames, seeing more demand. As a result, the global MC market is expected to grow at a compound annual growth rate (CAGR) of 5.5% to $142.06bn by 2028, up from $103.09bn in 2022.
“Customers’ surging preference for modular buildings in the post-pandemic era has encouraged MC market participants to broaden their manufacturing and assembly design capabilities,” said Melvin Leong, Homes & Buildings Senior Director at Frost & Sullivan. “The move will increase the use of digital solutions to speed up modular building design and approval processes and focus on sustainable manufacturing practices.”
Leong added: “The next two to three years will see the use of MC to build healthcare facilities and schools in rural areas and temporary housing for displaced populations. Therefore, market participants must work with engineers and architects to improve modular building design in response to changing demand for indoor air quality and sustainability.”
To tap into the growth prospects of the expanding MC sector, market participants should:
- Develop end-to-end capabilities in MC product design, customization, manufacturing, installation, and maintenance.
- Establish partnerships with companies from other industries, enhancing internal processes (for example, design, production, and assembly) that will add value to customers.
- Collaborate with government agencies to improve MC regulations to create uniform standards.
- Develop green MC products that promote sustainability and energy efficiency during the building life cycle.
Global Modular Construction Growth Opportunities is the latest addition to Frost & Sullivan’s Environment & Sustainability research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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