Multifamily Modular and Prefabricated Housing Construction Market Size, Share, Growth, and Industry Analysis, By Type (Permanent, Relocatable), By Application (Commercial, Residential) and Regional Insights and Forecast to 2032

Updated On: 10 June 2024

MULTIFAMILY MODULAR AND PREFABRICATED HOUSING CONSTRUCTION MARKET REPORT OVERVIEW

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The global multifamily modular and prefabricated housing construction market size expanded rapidly in 2022 and will grow substantially by 2029, at prodigious CAGR during the forecast period.

Multifamily modular and prefabricated housing construction market consists of homes and structures by utilizing same kind of materials which represent the advanced site facility after combining the modules.

Comparing modular buildings to traditional buildings, the former are more economical and productive. This may be as a result of the utilization of high-performance components in modular development for both residential and commercial structures.

The factor which create lucrative opportunities for market growth are increase a building's resilience, effectiveness, and adaptability in order to meet the long-term needs and architectural specifications of high-performance structures. The growth of advertising is attributed to a number of factors, including lower development costs and faster building schedules; these factors also include an increase in demand for new construction due to rising urbanisation and an increase in the people living in cities. However, the requirement for skilled workers in developing countries is impeding the demand for remote construction. Moreover, partnerships with e-commerce platforms help in the smoothing of the sale process which in turn provides convenient channels for clicking to check the construction of modular housing leading companies to have significant prospects to support expansion due to rising funding for philanthropic endeavors.

COVID-19 Impact: Market Growth Restrained by Pandemic due to Supply Chain Disruptions

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to market’s growth and demand returning to pre-pandemic levels.

The manufacturing and supply chain disruptions hurt construction market. Thus, the decline of the several industries has made the multifamily modular and prefabricated housing construction market difficult in 2020. Housing recovered the fastest in the post-pandemic scenario. Thus, it significantly contributes to the recovery of the economy and the entire construction industry. When the pandemic broke out, the sudden drop in passenger traffic negatively affected the demand for aircraft. Thus, the commercial aviation industry is expected to recover slowly. As travel demand is not expected to return to pre-COVID-19 levels until 2024, it is estimated that it will take a year for business to recover across all industries, affecting the market dynamics of the composite testing market in North America and Europe. There has been significant economic harm from COVID-19. Lockdowns around the country have put an end to construction and affected this labor-intensive industry, since migrant laborers quitting their colonies at construction sites are seriously impeding global construction activity. The Indian construction industry saw around 52% of worker absenteeism during the COVID-19 pandemic, according to ILO research. Furthermore, manufacturers' stock prices and trading volumes have suffered as a result of the global stock market's volatility. The need for modular building has decreased as a result of the notable drop in new residential and non-residential developments. Additionally, investors and financial organizations typically support residential and commercial development projects.  The abrupt pandemic breakout has severely disrupted the ecology that controls the inflow and outflow of capital, which has led to dismal investment returns.

LATEST TRENDS

"Growing Acceptance Of Sustainable Building Methods And The Rise In Building Activity In Developing Countries Will Drive Market Growth"

A latest trend in the global multifamily modular and prefabricated housing construction market is the rapid rate throughout the course of the projection period due to factors such urbanization, rapid industrialization, and the desire for expensive yet advanced buildings. The growing acceptance of sustainable building methods and the rise in building activity in developing countries are further advantages for the sector. Increasing government regulations and policies are also expected to provide more inputs for the expansion of the multifamily modular and prefabricated housing construction market growth.

MULTIFAMILY MODULAR AND PREFABRICATED HOUSING CONSTRUCTION MARKET SEGMENTATION

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By Type

Based on type the global market can be categorized into Permanent, Relocatable.

• Permanent: With the quickest rate of growth, permanent construction has the most market share. The permanent construction module can be quickly and affordably delivered as a turn-key solution, or it can be retrofitted to the current building.

• Relocatable: The need for movable modular building is anticipated to increase gradually as the necessity of temporary housing for relief and emergency operations has grown in recent years. These structures are made specifically to be moved to different project locations and utilized again.

By Application

Based on application the global market can be categorized into Commercial, Residential.

• Commercial: The commercial section encompasses businesses, offices, restaurants, resorts, and other non-residential properties requiring faucet repair services for public restrooms, kitchens, and different centers. Emphasizing sturdiness, capability, and compliance with building codes, industrial customers are trying to find dependable and efficient answers to maintain their operations and patron pleasure.

• Residential: This section includes houses, residences, and other residential residences with a focal point on consolation, aesthetics, and water efficiency, residential clients force giant demand for modular and prefabricated housing construction repair offerings, mainly in city and suburban areas.

DRIVING FACTORS

"Increasing Need For Affordable Housing Will Boost The Market Growth"

One of the key driving factors in the global multifamily modular and prefabricated housing construction growth because of the growing need for affordable housing. The ability of households or people to afford housing comfortably and without financial strain is known as housing affordability, and it is a major issue, particularly in urban regions where housing costs are greater. Multifamily modular and prefabricated houses are feasible ways to meet the need for affordable housing because of their efficiency and cost-effectiveness which suits the consumer’s pocket. The market for prefabricated and multifamily modular home building is expanding due in large part to the growing need for inexpensive housing solutions. Modular and factory-built houses provide several benefits, including lower building costs and consume less time, less material waste, assembly-line quality control, less impact on the surrounding community, and construction safety.

"Growing Effects Of Prefabricated And Environmental Concerns Expanding Market Growth"

Another factor propelling the multifamily modular and prefabricated housing construction market is advantages of modular construction with rising population in urban areas. Modular and factory-built housing provide many benefits, including reduced costs and time, less material waste, assembly-line quality control, lessening the impact on the surrounding area of the site, and construction safety. Building a house with modular components could be less expensive, more effective, and completed more quickly. Moreover, it can be observed that the benefits of modular and prefabricated construction will cause MNC’s to concentrate more on constructing modular homes, resulting in higher revenue for the market's growth in housing construction over the forecast period. In addition, factors such as including the need for less environmental impact, increased concern for safety in work zones, and supportive government initiatives also promote market growth. Due to rapid urbanisation and population growth, which generate a large number of new construction projects, the market for modular construction may grow.

RESTRAINING FACTORS

"Transportation And Assembly Issues With Modular Construction Impede Market Growth"

From the factory, which is located off-site, prefabricated parts or modules are delivered or carried to the construction site, where there is a chance of damage occurring during the journey. These modules or portions of the construction have a high transit cost since they must be moved in big quantities, and the cost varies according to the distance of the transit. Additionally, when it comes to modular construction, manufacturers should take precision into account. The floor, walls, columns, and beams must all be perfectly aligned and linked in a standing configuration.

MULTIFAMILY MODULAR AND PREFABRICATED HOUSING CONSTRUCTION MARKET REGIONAL INSIGHTS

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"North America Dominating the Market due to Presence of a Large Consumer Base"

The market is primarily segregated into Europe, Latin America, Asia Pacific, North America, and Middle East & Africa.

Due to the rise in demand for residential construction, North America had the largest revenue multifamily modular and prefabricated housing construction market share at a noteworthy compound annual growth rate and is predicted to sustain market expansion. In addition, there is a rise in single- and multi-unit housing as well as activity associated to construction. The sector of modular building is expanding rapidly because to factors such as growing urbanization, space-related problems, and population growth. It is anticipated that this will increase demand for the residential sector and, with it, the demand for affordable housing. Additionally, it is anticipated that the region's industry will develop due to an increase in demand for container infrastructure in residential improvement and repair. Furthermore, the United States of America is the third most populous country on the list, and its population is still growing. This scenario is anticipated to drive up market demand for affordable, compact infrastructure. The North American home market is driven by rising consumer spending as a result of rising household net worth, declining unemployment, rising consumer confidence, and improvements in general economic conditions.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

The multifamily modular and prefabricated housing construction market is significantly influenced by key industry players that play a pivotal role in driving market dynamics and shaping consumer preferences. These key players possess extensive retail networks and online platforms, providing consumers with easy access to a wide variety of options. Their strong global presence and brand recognition have contributed to increased consumer trust and loyalty, driving product adoption. Moreover, these industry giants continually invest in research and development, introducing innovative designs, materials, and smart features, catering to evolving consumer needs and preferences. The collective efforts of these major players significantly impact the competitive landscape and future trajectory of the market.

List of Market Players Profiled

• Guerdon Modular Buildings (U.S.)
• ATCO (Canada)
• Laing O'Rourke (U.K.)
• Red Sea International Company (Saudi Arabia)
• Vinci Construction Grands Projects (U.K.)
• Bouygues Construction (France)
• Skanska AB (Sweden)
• Kleusberg GmbH & Co. KG (U.K.)
• Algeco (U.S.)
• Katerra (U.K.)

INDUSTRIAL DEVELOPMENT

July 2021: Procomm Site Service Ltd., a European producer of transportable modular housing, was purchased by Modulaire Group, a worldwide supplier of modular spaces and business areas. The Modulaire Group will be able to fortify its position in the European market with this acquisition.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

The research report delves into market segmentation, utilizing both qualitative and quantitative research methods to provide a thorough analysis. It also evaluates the impact of financial and strategic perspectives on the market. Furthermore, the report presents national and regional assessments, considering the dominant forces of supply and demand that influence market growth. The competitive landscape is meticulously detailed, including market shares of significant competitors. The report incorporates novel research methodologies and player strategies tailored for the anticipated timeframe. Overall, it offers valuable and comprehensive insights into the market dynamics in a formal and easily understandable manner.