Modular Construction Market Size, Share, Growth, Trends, and Global Industry Analysis: By Material Type (Steel, Concrete, Wood, and Plastic), By Modules (4-Sided, Partially Open-Sided, Fully Open-Sided, and Others), By Construction (Permanent, Re-locatable), By End Users (Residential, Commercial, Industrial, Institutional/ Educational, Healthcare, and Others) and Region Forecast 2020-2031

Modular Construction Market size was valued at US$ 108,300.0 million in 2024 and  is projected to reach US$ 163,919.8 million by 2031 at a CAGR of 5.6% from 2025-2031. Moreover, the U.S. Modular Construction Market is projected to grow significantly, reaching an estimated value of US$ 26,566.8 million by 2031. The market includes the building and construction industry sector in which buildings are prefabricated off-site in regulated factory conditions and assembled on-site. It follows the use of standard, modular units to speed the construction process and to provide benefits such as quicker project completion, lower costs, and better quality control.

The market is spurred by fast urbanization, growing infrastructure needs, and the shortage of labor, requiring quicker, cost-effective building solutions. Prefabrication accelerates construction by 50%, slashing labor costs and delays. Sustainability issues drive modular practices, down to 90% waste reduction and increased energy efficiency. Governments encourage uptake through green incentive schemes and tax relief. Innovation, such as BIM, automation, and AI enhances accuracy and scalability. Smart cities, disaster-proof buildings, and healthcare needs for rapid hospital deployment enhance growth further. Investments in products such as cross-laminated timber (CLT) and 3D printing brighten the industry's future.

Facts & Figures

• According to the United Nations, by 2050, nearly 68% of the global population is expected to live in cities, up from 55% in 2018.
• On average, modular construction is 30-40% faster than traditional building methods, helping governments and developers meet tight deadlines and cost constraints.
• In the U.S., initiatives like the Biden administration’s Infrastructure Investment and Jobs Act (IIJA), which allocates over $1.2 trillion towards improving public infrastructure, including housing, transportation, and healthcare facilities, have opened new avenues for modular construction. Similarly, in the U.K., the government has committed to modern methods of construction (MMC), including modular techniques, to meet its target of building 300,000 homes annually.

Key Developments

• In February 2025, Wernick Hire ventured further into services by opening a standalone Modular Hire department. This move entailed a vast investment in a new fleet and the setting up of a bespoke factory in the West Midlands. The venture sought to maximize client experience through faster delivery, increased availability, and personalized support for modular building schemes in diverse sectors like education, healthcare, logistics, and power generation.
• In January 2025, AMANA Group's DuBox has rolled out WorkBox, a modular offering that will cater to the commercial space needs. WorkBox is conceived as a standardised product that delivers high-quality, scalable office space that can be delivered and open for business in seven months. WorkBox is one of DuBox's Productization initiative, where standardisation is the key that aims to advance delivery timelines and keep costs under control while delivering consistent quality.
• In November 2024, Premier Modular highlights the importance of modular construction to accelerate the UK's infrastructure projects. The Labour Party's 10-year plan seeks to improve road and rail networks through eliminating bureaucratic hurdles. Modular solutions provide quick, flexible, and quality on-site facilities, facilitating smooth progression of projects and the welfare of workers. A good example is Premier Modular's work on HS2 Phase One, delivering more than 15,000sqm of buildings, offices, and welfare facilities, designed specifically to meet the needs of the workforce.
• In July 2024, Fluor Corporation entered into an agreement with RoPower Nuclear for Phase 2 front-end engineering and design (FEED) services in RoPower Nuclear's small modular reactor (SMR) plant in Doicesti, Romania. The project will be a significant milestone for Romania's renewable energy campaign, utilizing SMR technology of NuScale Power to generate carbon-free electricity.

Modular Construction Market Segmentation

Based on the material type

• Steel
• Concrete
• Wood
• Plastic
• Other materials

Concrete is the most widely used material in the modular construction industry, with a market share of 17.2% in 2024 at a CAGR of 5.4% by 2031. It is fire-resistant, resilient, and very strong, making it ideal for the construction of high-rise structures, hospital structures, and infrastructure construction because urban expansion leads to expansion in population that necessitates long-lasting structures. Strict building regulations also enhance the usage of weather-tight and fire-resistant materials of construction, accelerating even more adoption. Precast modular units also are providing better sound resistance for homes and offices, with advances in 3D printing and precast technology making possible quicker, cheaper manufacturing.

 Based on the module type

• Four-sided module
• Open-sided module
• Floor cassettes
• Module pads

Based on module type, four-side modules accounted for a market share of 45.4% in the market and is expected to progress at a CAGR of 6.2% during the forecast period 2025-2031. Four-sided modules are widely used because they offer complete structural integrity, making them ideal for high-speed, high-quality residential, healthcare, and commercial building construction. Modules reduce site labor, waste, and project completion time. Urbanization and housing demand drive adoption, as completely enclosed modules ensure consistency and quality control. Improved prefabrication technology, including steel and concrete four-sided modules, increases efficiency.

Based on the construction type

• Permanent Modular Construction (PMC)
• Relocatable Modular Construction (RMC)

Permanent Modular Construction (PMC) is a rapidly emerging industry that offers durable, high-quality, and efficient housing options for residential, commercial, and institutional projects. PMC structures are designed to be durable, using innovative prefabrication methods that speed up production without compromising stability. Developers like PMC, and governments alike, because it can bypass labor shortages, reduce construction time, and satisfy rigorous sustainability standards. Energy-efficient building, reduced waste of materials, and sustainable building practices make it very sought after. PMC is optimally utilized in industries such as housing, hospitality, healthcare, and education where flexibility and customization are critical. With the current urbanization and necessity of low-cost infrastructure, PMC can take center stage in constructing new age cities and sustainable growth.

Based on the end user

• Residential
• Commercial
• Institutional/Educational
• Healthcare
• Others

In 2024, the residential segment is anticipated to grow at a CAGR of 6.2% from 2025 to 2031 with a share of 31.6%. Residential market is being influenced by rising housing demand, urbanization, and affordability. Modular construction offers faster build times, cost efficiency, and lesser labor dependence, hence making them desirable to developers and dwellers alike. Growing trends for sustainability favor modular processes due to reduced wastage and energy-efficient buildings. Government incentives for cheap housing schemes and green building scores also motivate their adoption. Prefabrication innovations like 3D printing and smart home integration enhance their popularity. Also, the increased demand for multi-family living spaces and customized living spaces fosters expansion, rendering modular building a viable solution to the expanding residential market.