The modular construction market in United States

The market for modular construction, also known as prefabricated construction, refers to the construction of prefabricated buildings or containers (modules) directly designed and produced in the factory and then assembled on the construction site. Assembly makes it possible to create buildings capable of meeting occasional or permanent needs: site billets, offices, but also new forms of housing such as container houses. The modules or containers are usually made of steel, concrete or wood, equipped with plumbing, heating and electrical power. The interior finishes are specified at the exit of the production workshop and are more or less worked on according to the purpose of the building to be constructed.

Long thought mainly for the construction industry - for site staff in particular - modular construction has over the years become an important and credible alternative to the construction of single-family homes and offices.

Often, the modular construction enables the meeting of short-term needs to install buildings on a temporary basis when a building is under reconstruction or in rehabilitation, but also when an expansion in the need of offices or workshops appears in the tertiary sector.

Modular construction is therefore present in the construction sector in the state sector (emergency accommodation, sports facilities, school premises, etc.) and in the private tertiary sector (offices, shops and kiosks, events, health, etc.). The use of prefabricated construction in the residential sector has seen an important growth in the last years.

The global market is booming, expected to grow at a CAGR of 6.5% until 2025. This growth is driven by the perceived benefits of modular construction, including reduced waste, speedy building, cost-effectiveness, eco-friendliness, and flexibility. Moreover, FBI reports that modular building projects are 30% to 50% faster than traditional construction.

In the US, market growth is expected to be strong in light of greater economic growth. Naturally, construction is related to the health of the economy.

The COVID-19 pandemic brought about an abrupt but intense demand for modular construction, particularly towards structures like field hospitals, hospital wings, makeshift morgues, testing centres, clinics and laboratories.

Players in the market include Laing O'Rourke, Katerra, Skanska AB, Red Sea Housing, Dubox, and Sekisui House Ltd.

The latest trends include the emergence of startups which puts pressure on pricing and existing players. Moreover, technology plays an integral part for fast, efficient, and precise modelling.