North America Modular Construction Market
North America Modular Construction Market By Type (Permanent, Relocatable), By Module, By Material (Concrete, Steel, Wood), By End-use Industry (Residential, Retail & Commercial, Healthcare, Education, Hospitality, Office) - Global Forecast to 2030
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The modular construction market in North America is projected to reach USD 40.7 billion by 2030, from USD 30.7 billion in 2025, at a CAGR of 5.82% during the same period. The modular construction market in the region is experiencing rapid growth as developers, manufacturers, and public agencies accelerate the shift toward faster, cost-efficient, and industrialized building solutions.
KEY TAKEAWAYS
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By CountryThe US accounted for the largest share of the market in 2024.
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By TypeBy type, the permanent modular construction segment accounted for the largest market share in 2024; it is projected to grow at a CAGR of 5.82%, in terms of value.
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By MaterialBy material, the wood segment accounted for the largest market share; it is projected to grow at a CAGR of 5.35%, in terms of value.
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By End-use IndustryBy end-use industry, the residential segment accounted for the largest market share; it is projected to grow at a CAGR of 4.66%, in terms of value.
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Competitive Landscape-Key playersGuerdon Modular Buildings (US), FullStack Modular (US), Z Modular (US), and Harbinger Production Inc. (US) were identified as the star players in the market, as they have focused on innovation, have broad industry coverage, and have strong operational & financial strength.
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Competitive Landscape-StartupsWheelhaus (US), American Modular Systems, Inc. (US), Allied Modular Building Systems, Inc. (US), DeLuxe Building Systems, Inc. (US), and Modern Building Systems, Inc. (US), among others, have distinguished themselves among startups and SMEs due to their strong product portfolio and business strategy.
The increasing demand in the modular construction market in North America is attributed to growing labor shortages, rising construction costs, accelerated project timelines, and the need for sustainable, energy-efficient building solutions
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
In the modular construction market of North America, changing end-user requirements are shifting expectations and increasing the need for building solutions that are both faster and more efficiently constructed. Families, students, and hotel guests now expect to have their locations available much sooner than before, with the same quality of build and the same type of air quality created during the construction process, as a result of using prefabricated components manufactured in controlled environments. As a result, developers are compressing timeframes, creating identical projects, and ensuring these projects align with ESG compliance. This has placed additional demands on developers and builders to minimize disruption during construction, provide safe working environments for workers, and reduce total lifecycle costs associated with construction. Together, these new realities are disrupting traditional project delivery methods and prompting clients to adopt modular systems, which can provide them with speed, predictability, and improved performance.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
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Increased demand for rapid housing
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Chronic shortages of skilled labor
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Fragmented state-wise building codes
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High upfront factory investment
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Modular-ready development pipelines
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Healthcare micro-clinics and outpatient centers
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Volumetric module size limits
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Maintaining cost competitiveness
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Increased demand for rapid housing
The modular construction market in North America is driven by the increased need for rapid housing, as cities in the US and Canada face unmet demand for affordable and workforce housing. The increase in urban migration, the growth of build-to-rent portfolios, and increased pressure from municipalities to deliver housing units more quickly have led builders to pursue modular construction methods, which can reduce project schedule duration by as much as 40–50%. Modular construction enables the development of large housing projects, such as multifamily housing, senior living facilities, and student housing, with predictable costs, reduced on-site labor, and a greater volume of units at once. The increased ability to produce housing units more quickly aligns with government objectives for completing housing and the private sector's need to generate revenue quickly. As such, modular construction is essential to closing the current housing gap in North America.
Restraint: Fragmented state-wise building codes
A major restraint to growth and development in the modular construction market in North America lies in the lack of a unified building code throughout the region. Therefore, modular manufacturing relies heavily on economies of scale. All modular manufacturers will be required to adjust their grades and certifications for each new market. Due to the diverse nature of building codes in the US, multi-state developers face increased pre-construction cycles, higher costs for engineering services, and duplication in regulatory compliance efforts. These causes also limit the ability of manufacturers to operate within the same cost structure as other countries, which operate with more uniformity within their respective building code structures across all regions.
Opportunity: Modular-ready development pipelines
The modular construction market in North America is being positively impacted by a significant growth opportunity, driven by modular-ready development pipelines, as a larger number of large asset holders adopt scalable and repeatable building programs. There are numerous sectors, such as Student Housing, Build-To-Rent, Senior Living, and midscale hospitality, that are beginning to adopt standardized floor plans for their buildings, which will fit well into the Module Development Process. The movement toward modularization will enable developers to have a pre-approved set of design templates, creating a more efficient and less time-consuming process for entitlement approval and reducing variability between multiple projects. The modular-ready pipeline approach will allow the owner to utilize the factory more effectively across several locations, providing the owner with better cost predictability and the ability to accelerate the development of the portfolio over time. Ultimately, the modular-ready pipeline approach will provide a more streamlined process for constructing a project, utilizing a uniform, replicable, and “production” model, rather than a project-by-project process.
Challenge: Volumetric module size limits
The volume of a modular unit must not exceed the maximum lengths, widths, and heights that are permitted by law. If a manufacturer has designed a module to be larger than what is permitted by the transportation laws of a given state, they will need to incur additional costs associated with an oversized transport permit (and in some instances use an escort vehicle) and/or respect the applicable route restrictions for travelling with oversized loads. These restrictions can often dictate the size and configuration of modules (as opposed to the module's intended design). Therefore, the constraints on the size of a modular unit can result in increased logistical costs for multi-family and hospitality projects, and make it more difficult to extract efficiencies through the use of larger room assemblies. The impact of these constraints on the finished product will result in a significant reduction in factory throughput, transportation scheduling, and overall cost-competitiveness due to the associated costs of producing and transporting a modular unit that exceeds the applicable weight/size/volume limits.
NORTH AMERICA MODULAR CONSTRUCTION MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
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Delivered volumetric modules for FLATZ and FUZE multifamily communities, using standardized steel-framed units manufactured off-site to accelerate delivery and maintain uniform building performance across multiple sites | Faster schedule, consistent quality, repeatable building typologies, reduced onsite labor dependency, and better cost predictability for multi-site housing portfolios |
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Executed large multifamily and hospitality projects such as Eviva, Cubix, Domain, Home2 Suites, and The Union Flats using high-volume modular production to streamline complex mid-rise developments | Significant time savings, reduced construction disruption, improved factory QA/QC, predictable project sequencing, and scalable delivery for multi-unit developments |
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Implemented modular and panelized solutions for multifamily projects and showcased factory capabilities through Tejon Ranch facility, enabling efficient production of sustainable, architecturally flexible housing units | Lower waste, sustainable materials, flexible design integration, faster permitting with standardized components, and improved project efficiency through hybrid modular–panelized workflows |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The modular construction ecosystem in North America operates through an integrated value chain that connects material suppliers, modular manufacturers, and diverse end-use sectors. It begins with providers of structural steel, engineered wood, and building components that supply the core inputs required for the production of volumetric and panelized modules. These materials are processed in advanced modular factories that utilize standardized, assembly-line processes to create repeatable, high-precision building units. The completed modules are then deployed across various sectors, including education, hospitality, residential, and public sectors, enabling faster delivery, improved cost control, and streamlined scalability across multiple building applications.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
North America Modular Construction Market, By Type
In the modular construction market in North America, Permanent Modular Construction (PMC) holds the largest market share, primarily due to its capability to produce high-quality, durable building systems, including those used for commercial, educational, and healthcare facilities, by adhering to applicable building standards. PMC can provide shortened construction periods, reduced reliance on labor, and less disruption at the jobsite, all of which are becoming increasingly significant due to the increased demand for efficient and sustainable building alternatives within North America. With its flexibility in design and long-term cost savings, PMC has gained popularity among developers and contractors alike. Furthermore, PMC is widely supported by the successful implementation of government and urban development projects, contributing to its overall leading position within North America.
North America Modular Construction Market, By Material
In the modular construction market in North America, wood accounts for the largest market share due to its versatility, cost-effectiveness, and sustainable attributes. Modular buildings made from wood typically experience quicker construction times and are easier to transport than those made from other materials. Wood also lends itself very well to residential, commercial, and institutional construction applications due to its adaptability. Wood is a renewable resource that adds less carbon to the atmosphere than other materials, aligning with the growing focus on environmentally friendly construction methods in North America. Engineered wood products have also advanced in terms of strength and withstand weathering better than most types of building materials, making them the go-to material for modular builders. The availability of wood in North America, combined with its ability to perform well across a variety of climates, solidifies its position as the most prominent material used in the market.
North America Modular Construction Market, By End-use Industry
In the modular construction market in North America, the residential sector accounts for the largest share, driven by increased demand for housing, urban sprawl, and the growing need for affordable/high-quality homes. As modular construction provides owners and builders with the opportunity to complete projects in a shorter timeframe with less reliance on manual labor, while also saving money, it has become an appealing construction method for both residential developers and homeowners. The ability that modular construction provides for designers to innovate, utilizing design flexibility, energy efficiency, and sustainable building methods, aligns with a growing number of consumers' preferences for environmentally conscious housing. Government programs focused on rapid residential building and earthquake-safe housing development will only continue to promote the use of modular home building solutions in the residential sector, solidifying the residential sector's dominant position within the modular construction market in North America.
REGION
The US is projected to be the largest market in the modular construction market in North America during the forecast period
The modular construction market in North America is led by the US, which accounts for approximately two-thirds of North American sales and continues to grow each year due to significant increases in demand from all three segments: residential, commercial, and institutional. Accelerated migration to urban areas, an increase in the number of available housing units, and rising construction costs are driving the increased use of modular construction methods, which provide shorter schedules, reduced labor use, and greater economies of scale. In addition, the US Government is encouraging the growth of the modular construction industry through policies and programs that promote green building and energy efficiency in construction by providing incentives for the use of off-site construction products and processes. The use of technology such as prefabricated manufacturing, 3D models, and automated assembly provides greater quality, higher design flexibility, and better performance than traditional structural methods. A large-scale application of modular construction in healthcare, education, and multifamily housing reinforces the position of the US as a leader in the modular construction market in North America.
NORTH AMERICA MODULAR CONSTRUCTION MARKET: COMPANY EVALUATION MATRIX
In the modular construction market matrix in North America, Guerdon Modular Buildings (Star) holds the leading position with a significant market share and a varied collection of project successes associated with the multifamily, hospitality, and workforce housing sectors, among others. Their unique scale, well-developed volumetric solutions, and consistent success in providing modular buildings put them firmly in the forefront of the North American module building market. The rapidly growing Method Homes (Emerging Leader) is benefiting from an innovative production methodology supported by collaborations between the public and private sectors and a building pipeline of affordable and mid-rise modular housing. In comparison to Guerdon's leading position in the market due to its capabilities, geographic footprint, and varied project types, Factory_OS is emerging as a strong contender to join the leaders' quadrant as demand grows for efficient and cost-effective modular solutions throughout North America.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- Guerdon Modular Buildings (US)
- Method Homes (US)
- FullStack Modular (US)
- Z Modular (US)
- Harbinger Production Inc.
- Boxabl, Inc. (US)
- Blokable, LLC (US)
- Plant Prefab, Inc. (US)
- Connect Homes (US)
- Wheelhaus (US)
- American Modular Systems, Inc. (US)
- Allied Modular Building Systems, Inc. (US)
- DeLuxe Building Systems, Inc. (US)
- Modern Building Systems, Inc. (US)
- Guerdon Modular Buildings (US)
- Method Homes (US)
- FullStack Modular (US)
- Z Modular (US)
- Factory OS (US)
- Boxabl, Inc. (US)
- Blokable, LLC (US)
- Plant Prefab, Inc. (US)
- Connect Homes (US)
- Wheelhaus (US)
- American Modular Systems, Inc. (US)
- Allied Modular Building Systems, Inc. (US)
- DeLuxe Building Systems, Inc. (US)
- Modern Building Systems, Inc. (US)
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2024 (Value) | USD 29.0 Billion |
| Market Size in 2030 (Value) | USD 40.7 Billion |
| Growth Rate | CAGR of 5.82% from 2025 to 2030 |
| Years Considered | 2021–2030 |
| Base Year | 2024 |
| Forecast Period | 2025–2030 |
| Units Considered | Value (USD Million/Billion), Volume (Thousand Sqaure Feet) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends |
| Segments Covered |
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| Countries Covered | US, Canada, Mexico |
WHAT IS IN IT FOR YOU: NORTH AMERICA MODULAR CONSTRUCTION MARKET REPORT CONTENT GUIDE
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
|---|---|---|
| Detailed study on Modular Construction Market in Asia Pacific | Study conducted on China, Japan, Australia & New Zealand, India, South Korea, and Rest of Asia Pacific | Identified market opportunities in the region |
| Detailed study on Modular Construction Market in Europe | Study conducted on Germany, France, UK, Italy, Russia, Spain, Austria, Poland, and Rest of Europe | Identified market opportunities in the region |
RECENT DEVELOPMENTS
- August 2025 : Guerdon secured a significant contract with Mutual Housing California to deliver approximately 570 zero-energy affordable housing units across six projects, marking a major expansion in its modular construction operations and reinforcing its capabilities in large-scale, sustainable residential development.
- December 2024 : FullStack Modular expanded to the West Coast by opening a 130,000-square-foot manufacturing facility in Carson, California. The new plant aimed to accelerate modular construction projects, enhance production capacity, and strengthen the company’s presence in residential and commercial markets while supporting faster, sustainable building solutions.
- March?2024 : Guerdon expanded its operations by announcing plans to open a new modular construction factory in Colorado, its first manufacturing facility in the state, to address surging demand for modular housing, targeting an annual production capacity of 665 housing units.
Table of Contents
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Methodology
The study involved four major activities for estimating the current global size of the North America Modular Construction Market. Exhaustive secondary research was conducted to gather information on the market, the peer market, and the parent market. The next step was to validate these findings, assumptions, and sizes with the industry experts across the value chain of modular construction through primary research. Both the top-down and bottom-up approaches were employed to estimate the overall size of the North America Modular Construction Market. After that, market breakdown and data triangulation procedures were used to determine the size of different segments and sub-segments of the market.
Secondary Research
In the secondary research process, various secondary sources such as Hoovers, Factiva, Bloomberg BusinessWeek, and Dun & Bradstreet were referred to, to identify and collect information for this study on the North America Modular Construction Market. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, regulatory bodies, trade directories, and databases.
Primary Research
Various primary sources from both the supply and demand sides of the North America Modular Construction Market were interviewed to obtain qualitative and quantitative information. The primary sources from the supply-side included industry experts, such as Chief Executive Officers (CEOs), vice presidents, marketing directors, sales professionals, and related key executives from various leading companies and organizations operating in the modular construction industry. The breakdown of the profiles of primary respondents is as follows:
Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the global size of the North America Modular Construction Market. These approaches were also used extensively to estimate the size of various dependent segments of the market. The research methodology used to estimate the market size included the following details:
- The key players were identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of value, were determined through primary and secondary research processes.
- All percentage shares, split, and breakdowns were determined using secondary sources and verified through primary sources.
- All possible parameters that affect the markets covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analysed to obtain the final quantitative and qualitative data.
- The research includes the study of reports, reviews, and newsletters of key industry players, along with extensive interviews with key officials, such as directors and marketing executives.
Data Triangulation
After arriving at the overall market size from the estimation process explained above, the total market was split into several segments and sub-segments. The data triangulation and market breakdown procedures were employed, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for all segments and sub-segments of the North America Modular Construction Market. The data was triangulated by studying various factors and trends from both the demand- and supply-side. In addition, the market size was validated by using both the top-down and bottom-up approaches. Then, it was verified through primary interviews. Hence, for every data segment, there are three sources—top-down approach, bottom-up approach, and expert interviews. The data were assumed to be correct when the values arrived at from the three sources matched.
Market Definition
The North America Modular Construction Market refers to the industry sector encompassing the design, fabrication, and assembly of building components in controlled factory environments for subsequent installation at construction sites. This approach to construction involves the prefabrication of standardized modules or components, which are then transported and assembled on-site to create structures ranging from residential homes and commercial buildings to industrial facilities and infrastructure projects.
Key Stakeholders
- Raw material suppliers
- Modular construction manufacturers
- Government & regulatory bodies
- Research organizations
- Associations and industry bodies
- Contractors, architects, and engineers
- End users
- Traders and distributors
Report Objectives
- To estimate and forecast the North America Modular Construction Market, in terms of value and volume.
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the market growth.
- To define, describe, and forecast the market size, based on type, material, end-use industry, and region.
- To forecast the market size along with segments and submarkets, in key regions: North America, Europe, Asia Pacific (APAC), Middle East & Africa (MEA), and South America along with their key countries.
- To strategically analyze micromarkets, with respect to individual growth trends, prospects, and their contribution to the total market.
- To analyze growth opportunities in the market for stakeholders and provide details on the competitive landscape for market leaders.
- To strategically profile key players and comprehensively analyze their market shares and core competencies.
- To analyze competitive developments, such as merger & acquisition, expansion & investment, agreement, and new product development in the North America Modular Construction Market.
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- Product matrix, which offers a detailed comparison of the product portfolio of companies
Regional Analysis
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Company Information
- Detailed analysis and profiling of additional market players (up to five)
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Growth opportunities and latent adjacency in North America Modular Construction Market