Permanent Modular Construction Market

The report "Permanent Modular Construction Market by Material (Wood, Steel, Concrete), End-Use Industry (Residential, Office, Hospitality), Region - (North America, Europe, Asia Pacific, Middle East & Africa, South America) – Global Forecast to 2030" is projected to grow from USD 85.51 billion in 2025 and to reach USD 111.75 billion by 2030, at a Compound Annual Growth Rate (CAGR) of 5.50% during the forecast period.

Browse 140 market data Tables and 30 Figures spread through 160 Pages and in-depth TOC on "Permanent Modular Construction Market by Material (Wood, Steel, Concrete), End-Use Industry (Residential, Office, Hospitality), Region - (North America, Europe, Asia Pacific, Middle East & Africa, South America) – Global Forecast to 2030"
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The permanent modular construction business is on the rise due to the need for time-saving and cost-effective construction, labor shortages, and housing shortages & targets. Furthermore, the population increase and urbanization, along with government incentives, are helping to drive the market.

By material, the steel segment is expected to be the fastest-growing segment

The steel segment is expected to grow at the highest CAGR during the forecast period. The permanent modular construction market is currently expanding due to the use of steel, which is highly structural, designable, and applicable to multi-story buildings and large-span buildings. Steel modules offer a greater load-bearing capacity and longer spans compared to wood, making them suitable for residential towers, offices, hospitals, and commercial projects where structural performance and durability are crucial. Steel is also preferred over other materials due to its fire resistance and adherence to strict building codes, particularly in high-density cities and constructions involving high-rise buildings. Several nations require non-combustible structural materials on some buildings and occupancies, which is increasing the uptake of steel in permanent modular construction. Moreover, steel can be combined with precision off-site production, allowing strict tolerances, reproducible designs, and quicker on-site production. Its ability to be recycled and its capacity to align with the aims of the circular economy enhance its expansion, as developers and governments are increasingly focusing on long-life, sustainable construction solutions.

By end-use industry, the office segment accounted for the second-largest share of the market

The office segment is the second-largest end-use industry and is growing in permanent modular construction due to strong demand for faster project delivery, cost certainty, and flexible workspace development. Corporations and developers are under pressure to deliver office space to the market within a short timeframe. Modular construction enables parallel manufacturing both off-site and on-site, which saves a significant amount of time in the construction schedule. The redesign of the post-pandemic work environment has contributed to the growing need for a flexible office space design, and permanent modular buildings can be easily customized, repurposed, expanded, and redesigned. The increasing shortages of labor and the inflation of construction costs further urge developers to have factory-built solutions, which enhance productivity and decrease the risks on-site. The growth is also supported by sustainability and ESG considerations, as modular offices produce less waste, have a smaller embodied carbon footprint, and are more energy-efficient. Additionally, modular buildings can now meet the standards of permanent construction and high architectural standards, qualifying them for use as Grade-A office developments, which is increasing their adoption in the office end-use sector.

Europe accounted for the second-largest share in the permanent modular construction market

Europe accounted for the second-largest market share and is expanding rapidly in the permanent modular construction sector, driven by favorable policy support, sustainability policies, and acute housing and infrastructure demand. The governments of the UK, Germany, the Nordics, and the Netherlands are encouraging off-site and industrialized building to address housing shortages, the public sector's capacity constraints, and project delivery delays. The strict environmental and carbon reduction targets in EU climate policy favor modular construction, as factory manufacturing minimizes waste, enhances energy efficiency, and reduces embodied carbon, particularly for modular constructions made from timber. The adoption of mass timber and revised building codes in Europe has also contributed to the accelerated development of permanent modular housing and government buildings. The rising labor costs and the shortage of skilled labor in the European construction market are driving developers to factory-built solutions, which can be more productive and whose costs are more predictable. Moreover, the high level of prefabrication, established supply chains, and established modular players in the area are also facilitating the quickest market scaling, making Europe one of the most rapidly growing regions for permanent modular construction.

The permanent modular construction market comprises major players such as ATCO Ltd. (Canada), Laing O’Rourke  (UK), Fluor Corporation (US), Lendlease Corporation (Australia), and Modulaire Group (UK), among others. Contracts, collaborations, acquisitions, expansions, and product launches are among the key strategies adopted by these major players to strengthen their positions in the permanent modular construction market.

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