Modular construction is a procedure in which a building is established off-site, under controlled plant conditions, using the same materials, and designed to the same codes and standards as conventionally built facilities in about half the time. According to BlueQuark Research & Consulting, the Global Modular Construction market is expected to witness a considerable growth rate during the forecast period. The demand for modular construction is driven by the continuing growth of urbanization in developing nations, such as China and India. The laws and regulations of several countries on green and environmentally friendly construction systems with lower emissions will also boost the further expansion of the modular construction market. However, the market's development is anticipated to be hindered by the scarcity of professional workers in modular the production and installation of modular construction. Furthermore, the challenges associated with the transportation of modules will further hamper the global market growth.

Modular construction is when buildings are made up of individual sections ("modules"), constructed in an off-site controlled production facility, and assembled at the final building site. This procedure results in a higher-quality building, delivered in a shorter time, with more probable costs and fewer environmental impacts like minimizing material use and waste. The US Labor Department Bureau of Labor Statistic states that an off-site construction approach is safer for workers, which assumes that rates for fatal injuries were considerably lower in overall modular construction manufacturing than in traditional on-site construction. On average, the modular building takes almost 50% less time than the conventional construction method, resulting in a quick return on investment. Shorter build time means remarkable cost savings.

Once finished with the construction, the maintenance value of modular buildings is relatively meager as it does not demand much heating, repairing, or surface repairs. Modular building structures are air-tight, ensuring energy efficiency. If affordability and the controlled price are of primary concern in a project, modular construction can be used to achieve it. To address the extreme shortage of affordable housing in London, the city announced in 2017 that it would assign USD 32 million to construct a minimum of 1,059 cheap modular apartments by 2021. Furthermore, thousands of modular homes are being built across the UK as cities gear up to manage the housing shortage. Eight of the top ten housebuilders are now turning out to modular construction.

Asia-Pacific, home to two-thirds of the global people, is experiencing rapid urbanization and increasing demand for infrastructure development, including institutes, bridges, offices, roads, power plants, etc. Permanent modular construction is likely to surge more due to the growing need for affordable and time-saving housing solutions and high-quality control than on-site installation. Furthermore, permanent modular construction is widely employed in residential, office, and administrative sectors, K-12 education, healthcare, higher education student housing, retail and hospitality, and publicly-funded facilities. With the growing concerns about climate change, there is tremendous pressure across sectors to minimize the impact on the environment, mostly by industries that utilize huge amounts of natural resources like construction, which is responsible for 40% of all energy-related carbon dioxide emissions achieved by modular infrastructure.

To manage homelessness in the City, Toronto has announced USD 47.5 million plan to construct 250 modular housing to help those living in the shelter system. Horizon North, which was newly involved in constructing similar facilities in Vancouver, is the company set to design and build the units. The first phase of the project will be worth USD 20.9 million. Of that, USD 8.25 million in grants and loans is offered by the Canada Mortgage and Housing Corporation. The second phase of the pilot will observe an additional 140 units built by the end of April 2021.

The Modular Construction market is fragmented based on Type, Material, and End-use. The end-user segment is further consolidated as Residential, Commercial, and Others (Industrial, Institutional, etc.). Between permanent and movable building types, permanent modular types controlled the modular construction market.

Modular-based housing can be constructed more rapidly than permanent housing. Hence, the modules are pre-fabricated in a factory and delivered to the location. They can be assembled at a minimal cost and in a shorter time than traditional housing construction models. In addition to these benefits, modular housing offers instantaneous relief for hundreds of people living without a home. Modular buildings can be constructed utilizing modular parts for residential construction, including walls, frames, doors, ceilings, windows, or several partially fabricated modular building units. The approval of modular buildings in residential construction increases due to their high aesthetics and high build quality. The introduction of new materials into the manufacturing of modular construction units has narrowed down the gap between traditional and modular construction method.

Contrary to the prevalent belief due to low awareness among the population, most modular units can be customized by detailed specifications to meet the requirements of many businesses and residential buildings. Though currently, traditional construction methods report for a large share of residential construction, the modular building methods are predicted to continue to capture the market in the forecasted period. When there is an immediate demand for residential houses for a sect of underprivileged people, modular building models are highly preferred to manage challenges related to time and costs. Also, in case of uncertain natural calamities that damage many residential properties, the implementation of modular buildings can effectively meet both limited timeframes and cost savings.

In recent times, the residential construction sector has been severely affected in several regions across the globe by the outbreak of the COVID-19 pandemic. Most residential construction companies are forecasting revenue losses in the coming months due to the decreasing spending confidence among the population. It is awaited that the ongoing pandemic is likely to harm the residential construction industry for at minimum one more quarter, after which a slow recovery is anticipated. However, it is expected to take a long time for the residential construction sector to return to the past levels. Between the residential and non-residential construction industries, more impact of the COVID-19 pandemic can be observed in the residential sector. This impact is expected to continue to hinder investments in the industry.

The global Modular Construction Market is fragmented into Asia-Pacific, North America, South America, Europe, and Middle East & Africa based on geography. The market share for modular construction is predicted to be prominent in the Asia Pacific region due to the increasing number of new housing units and planned infrastructure investments.

With the continuing Covid-19 pandemic in the United States, the GDP growth rate for the first quarter of 2020 was 4.8%, compared to 2.1% in the fourth quarter of 2019. The modular construction industry in the US is catching up. Compared to the US, the interest in modular construction is elevated in the European region. High-profile tech start-ups in the nation like Katerra have increased huge revenues from the SoftBank Vision Fund and have helped increase awareness of modular construction. New York City is resulting into a home for some of the ambitious modular hotels globally. For instance, 26-storey AC Marriott in Manhattan will be opened in 2020. This trend is the rise of modular construction-based hotels will likely increase awareness among the population.

The growing automation in the construction sector in the country is also driving the contractors to choose modular or pre-fabricated construction methods since it saves the time involved. Presently, about 5-10% of homes in the country are based on modular construction. Thus, modular construction has an enormous scope to penetrate the country. It is anticipated that the advantages of modular construction methods would support this growth. In the United States, several start-ups promote modular construction methods and have succeeded. Some of the main start-ups in the country consist of Plant Prefab and Blokable, among others. Modular construction, considered economical and time-saving, is likely to penetrate significantly in the United States, especially in residential applications during the forecasted period. The market for modular construction in the US is anticipated to grow both in construction units and revenue.

The market for global modular construction is segmented, and the major key players in the market include Skanska AB, Bouygues Construction, Balfour Beatty Plc, Lendlease Corporation, Red Sea Housing, and Kleusberg GmbH, Atco, and Vinci, among others.

In Jul 2020, Balfour Beatty announced that it had been awarded a GBP 197 million contract to build Phase Two of the Lewisham Gateway regeneration scheme on account of Lewisham Gateway Developments, a subsidiary of Muse Developments.

In May 2020, Balfour Beatty was conditionally selected to deliver the Oak Hill Parkway infrastructure project on account of the Texas Department of Transportation in a joint venture with Fluor Corporation.

In April 2020, Balfour Beatty Plc transformed Glasgow's Scottish Events Campus into NHS Lousia Jordan Hospital on behalf of the Scottish Government. Construction works included building sterile temporary wards, installing and commissioning life-saving oxygen and gas systems, and laying 23,000m² of vinyl flooring.

Our Global Modular Construction market report provides deep insight into the current and future state of the Modular Construction market across various regions. Also, the study comprehensively analyzes the Modular Construction market by segments based on type (Permanent and Relocatable), material (Wood, Steel, Concrete, and Others (Natural Slate, Plastic, etc.)), and end-use sector (Residential, Commercial, and Others (Institutional, Industrial, etc.)), and by Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints, along with the impact of Covid-19 on market growth, in detail. The study covers & includes emerging market trends, market developments, market opportunities, modular construction market size, market analysis, market dynamics, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of prominent companies, including their market share and projects.