Summary

The global modular construction market, which represented approximately 5% of total construction output as of the analysis, has been poised for growth with a projection to reach $157.15 billion by 2023. The Asia Pacific region dominates this market, driven by substantial construction activity and infrastructure investments in countries like China, India, and Australia. Europe, particularly through high market penetration in Germany, Finland, Sweden, and the UK, also plays a significant role. The market reflects an upward trend due to the demand for eco-friendly and cost-effective housing solutions and is further invigorated by the push for new residential developments, with the UK government targeting the construction of 300,000 homes annually. Despite these promising figures, the UK market has showcased underperformance in adopting modular construction techniques, with only 7.5% of homes built using these methods between 2017 and 2018, lagging behind European counterparts such as Germany (20%) and Sweden (84%). The need for innovative solutions like Modern Methods of Construction (MMC) is underscored by the UK's housing crisis, which faces challenges such as skilled labor shortages, amplified by Brexit and an aging workforce in the construction sector..British Market Trends in Modular Construction: Addressing Shortages and Shifting Demands As the United Kingdom confronts the challenges of skilled labor shortages and pressing housing needs, the modular construction market finds itself in a pivotal position. The ageing workforce compounded with the ramifications of Brexit has intensified the demand for more efficient construction methodologies. Traditional labor-intensive practices are no longer a feasible option, which is why Modern Construction Methods (MCM) such as modular construction are gaining traction. A closer look at the figures reveals a burgeoning market with prefabricated modular buildings and mobile housing witnessing growth of around 6% in 2017 alone. This upward trend is further supported by the British government's ambitious plans to introduce between 285,000 and 315,000 residential homes annually to satiate market demands. Such initiatives are projected to favorably impact the modular construction domain, with an anticipated annual growth rate falling between 3-5% over the next few years. The residential sector particularly is projected to soar, with expectations set on an average annual growth rate of between 6-8% from 2019 through 2025. These statistics underscore the potential for modular construction to meet the demands for eco-friendly and financially viable housing solutions. The market is driven by an increasing awareness and desire for sustainable infrastructural alternatives, bolstered by the historically low-interest rates that make investments in such property developments more attractive. Despite its promising prospects, modular construction in the UK does face hurdles. Prejudices rooted in concerns about durability and disaster resilience loom large, potentially constraining demand within the housing sector. Influencing these perceptions and highlighting the advancements in modular technology will be critical for realizing the market's full potential. In sum, while modular construction in the UK is poised for substantial growth, overcoming industry misconceptions remains crucial. As the market responds to the endemic labor and housing shortages, embracing modern construction methods may prove essential for the sustainable development of infrastructure in the post-Brexit era..### The Vanguard Innovators: Leading Companies Shaping the Modular Construction Industry In the evolving landscape of modular construction, a number of key players are setting the standards for innovation, sustainability, and efficiency. These players are not only producing state-of-the-art prefabricated modules but are also helping to dismantle the prejudices associated with modular construction by delivering high-quality, durable, and disaster-resistant buildings. Each company is contributing to the burgeoning growth within this sector by responding to the pressing demands of environmental concerns, labor shortages, and urbanization, especially in residential and commercial applications. **Grand View Research** has been instrumental in providing in-depth market analysis and forecasts, helping businesses and investors understand the potential trajectories and growth opportunities within the modular construction industry. As an authoritative research company, Grand View Research offers valuable insights into the progression and innovation trends of the market. **Construction Robotics** enters the spotlight as a beacon of modernity through their development of the SAM100, a robotic bricklaying system that represents the forefront of automation in construction. Their technology promises to increase efficiency on building sites and reduce the physical strain on human workers. **Larsen Partners** makes its mark through exploratory studies focusing on the value of 3D printing in construction, projecting a future where such technologies play a central role in industry operations. They track the pulse of innovation, pushing toward a horizon where construction is faster, more precise, and less wasteful. With the **UK's Ministry of Housing, Communities & Local Government** showcasing governmental support for next-gen construction methods, the institutional frameworks in place promise to spur the adoption of modular constructs and alleviates bottlenecks such as land shortages for building. **PBCtoday** is recognized for its advocacy for Modern Methods of Construction (MMC) like modular building, bringing light to creative solutions for the UK's persistent housing crisis. This platform not only informs industry professionals of new techniques and regulations but also drives the conversation for more effective residential solutions. Finally, **Forbes**, **The Economist**, **Deloitte**, and **Euromonitor**, while not directly involved in the production of modular constructions, play a crucial role by providing analytics, financial insights, and strategic advice that impact the market dynamics. These entities enable market players to navigate complex economic landscapes and optimize their strategic positioning in response to changing market conditions. As the modular construction industry continues to innovate and grow, it is these players among others that are paving the way, championing new methodologies, influencing governmental policies, and driving demand for smarter, greener, and more efficient building
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Summary and extracts

1 Market overview

1.1 Definition and presentation

The market for modular construction refers to the construction of prefabricated buildings, including containers (or modules) directly designed in the factory and assembled at the construction site. Assembly makes it possible to create buildings capable of meeting specific or permanent needs: site boxes, offices but also new forms of housing such as container homes. The modules or containers are generally made of steel, equipped with plumbing, heating and electrical currents. The interior finishes are specified when leaving the production workshop. In this study, we will use the names modular construction and prefabricated construction interchangeably to mean the same thing.

Long thought mainly for the construction industry - for the site personnel in particular - and a temporary deployment, modular construction has over time become an important part of the a credible alternative to the construction of individual housing and offices. The modular construction market is divided into the activities of sale and to rental. Often, the modular construction allows you to to meet economic needs to install buildings on a temporary basis, when a building is under reconstruction or in rehabilitation, but also when a need for extension of offices or workshops appears in the tertiary sector.

The modular construction is, therefore, present in the construction sector in the public sector (emergency accommodation, sports changing rooms, school premises, etc.) and in the sector private tertiary sector (offices, shops and kiosks, events, health, etc.).

List of charts

  • New build dwellings completed by quarter
  • Valeur marchande de la construction modulaire
  • Commerce de bâtiments préfabriqués
  • Destinations principales de bâtiments préfabriqués
  • Pays d'origines principaux de bâtiments préfabriqués
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Latest news

Building : Bouygues Construction commits to reusing materials - 31/10/2023
  • According to ADEME, reused materials account for only 1% of construction waste.
  • Reuse should contribute to a 3% reduction in CO2 emissions from Bouygues' construction activities in France by 2030.
  • Its subsidiary Cyneo is a facilitator of the reused materials sector and a marketplace for recycled products
  • Cyneo is a community of deconstructors, project owners, materials manufacturers and reconditioners
  • The Valobat network, one of the eco-organizations in the new sector for the collection and recycling of building products and materials, is one of Cyneo's six major partners
  • Cyneo has a number of partners: Premys, a Colas subsidiary specializing in deconstruction, SMA BTP, which assists with insurance, and BTP Consultants for technical control.

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

Balfour Beatty
Komatsu Ltd
ACS Group
Skanska AB
Red Sea Housing
Bouygues Construction

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the modular construction market | UK

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