Market Research Future (MRFR) asserts that the modular construction market 2020 can reach a size of USD 154.8 Million by 2023-end. MRFR also expects the market to procure a growth rate of 5.95% between 2015 and 2023 (assessment period). We will provide covid-19 impact analysis with the report, offering an in-depth review following the coronavirus disease outbreak.
The COVID-19 impact analysis by MRFR suggests that the pandemic has triggered a short-term and long-term impact on the construction industry. While countries are struggling to find a COVID-19 breakthrough to contain the spread of the novel coronavirus, a number of construction sites have been closed off with construction projects now on hold. Also, various hard-hit regions have suspended almost all the construction activities, and the projects that are continuing can observe delays on account of the collapsing supply chains that have affected the supply of raw materials. Contingency schemes along with government backing are being offered to ensure a smooth run for various aspects of the construction industry, which includes the modular construction market.
Going forward, the COVID-19 outbreak has managed to boost the value of AI and IoT, for building modular buildings across the globe. Modular buildings are being designed in such a way so that IoT devices can be easily integrated, which produce massive amounts of data and can use that data to optimize the modular building. This has worked in favor of the services as well as business models in the lockdown period, which is particularly beneficial for the ageing population; especially post SARS-CoV-2.
Primary Inducers and Main Restraints
In May 2020, P McVey Mobile Buildings supplied close to 40 modular buildings to various hospitals in Enniskillen (Ireland) during the COVID-19 crisis. The facilities provided by the company include temporary buildings for storage, sleeping, toilets and showers as well as additional offices. The COVID-19 impact has been so profound that facilities for health service staff has become inadequate, which drives the need for new modular infrastructure. In light of such a situation, various companies are looking for opportunities that can benefit people in need and the market as well.
The growth of the modular construction market is also stimulated by the widespread demand for low-priced housing combined with the rising investments in the development of commercial and healthcare infrastructure. The global market can also be bolstered by the renewed appetite of the building and construction industry for better efficiency, workplace safety and productivity and the need to reduce the cost as well as time while building structures.
Material, construction, product and application are the main segments based on which the market study has been performed in the report.
The materials listed are concrete, steel, plastic, wood, and others. The market is dominated by the concrete segment, having seized the largest share of 33.70% in 2016, and value of USD 35.1 Million. The segment can also expand at the highest expansion rate of 7.19% over the coming years. The demand for concrete is quite high as it offers excellent stability and strength to modular buildings and is therefore, a common material generally used in modular construction.
Construction-wise market review comprises re-locatable modular concrete and commercial permanent modular.
The products assessed in the market study are roofs & floors, walls, columns & beams and more. Since roof and floors are one of the most essential aspects of modular construction, the segment clinched the top spot in 2016 with a share of 41.00% and held a valuation of USD 42.6 Million. It is also projected to obtain the fastest CAGR of 6.69% between 2015 and 2023.
The applications of modular construction include residential, industrial and commercial. Residential was in the lead with the highest share of 47.00% in the year 2016, and was valued at USD 48.9 Million. It is the fastest expanding segment in the global market, thanks to the expanding worldwide population as well as urbanization.
APAC or Asia Pacific, North America, the Middle East and Africa or MEA and Europe are the top markets for modular construction considered in the analysis by MRFR.
APAC is at the top of its game, having claimed the largest share of 46.30% and holding a value of USD 48.2 million in 2016. The rapid surge in industrialization, rising number of urbanized people and the increasing financial status are some of the prime growth boosters in the regional market. China ranks among the top markets in the region, backed by the government backed policies that aim to exempt sales tax for ordinary housing and reduce the down payment on second house loans. The growth in sustainable and eco-friendly construction along with strong government support also foster the growth of the market in the region.
In 2016, the second most profitable market belonged to North America, with a share of 27.6% and value of USD 28.7 million. The modular construction market here is vastly fortified by the increasing prevalence of green building construction and high spending on commercial real estate. The U.S. happens to be the highest gaining market in the region, as a result of the exceptional growth of the construction industry and the rapid advancements in residential and commercial structures.
As one of the strongest contenders in the global market, Europe is all set to earn a growth rate of 4.90% in the approaching years. Frequent modification of existing buildings, mounting concerns with regard to the environment and the surging interest in affordable and energy saving construction are some of the main factors backing the regional market growth.
Notable competitors in the worldwide market for modular construction are L&T (India), ACS Group (Spain), Komatsu Ltd (Japan), Kiewit Corporation (U.S.), Skanska AB (Sweden), Taisei Corporation (Japan), System House R & C Co. Ltd (Japan), Balfour Beatty Plc. (U.K.), Bouygues Construction (France), Red Sea Housing Services (Saudi Arabia), to name a few.
With the reopening of the construction sites along with the Urban Splash modular factory, Urban Splash has successfully supplied close to ten modular homes in Birmingham in a matter of four days.
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