Summary

The modular construction market, valued at $72.1 billion in 2020, is projected to reach $114.8 billion by 2027, growing at a CAGR of 6.9%. Key trends within the sector include a shift towards eco-friendly and cost-effective housing solutions that cater to a demand for reduced construction waste, improve efficiency, and provide flexibility. The COVID-19 pandemic spurred the demand for modular solutions for healthcare applications such as field hospitals and testing centers. In the US, the value of modular construction projects has shown significant growth, doubling in size over five years to $8.9 billion in 2019 with a notable CAGR of 15%. Housing shortages and low interest rates contribute to the sector's expansion alongside a growing preference for sustainability and the adoption of modular techniques in industrial purposes, healthcare, and education. Despite the industry's fragmentation and the presence of both small and large players focused on R&D and innovation, the US market reveals a competitive landscape with key players such as ACS Group, Skanska AB, Komatsu Ltd, LandT, and Balfour Beatty Plc. The US exhibits a reliance on prefabricated building imports, particularly from neighboring Canada and China. With homeownership in the US closely tied to age and income, with a noticeable increase in ownership rates after the age of 35, the market for residential modular constructions seems particularly primed for growth..**Examining the Surge in Modular Construction: Key Trends in the US Market** The US market over the past years has seen a remarkable upswing in modular construction, a method marked by pre-fabrication and swift assembly, promising to reshape the landscape of building practices. The surge can be partially attributed to the burgeoning needs of a rapidly urbanizing society, coupled with the sector's ability to address critical issues like labor costs, environmental impact, and time efficiency. A closer examination of the market reveals that modular construction, initially confined to satisfy quick, temporary needs has now emerged as a contending alternative for permanent residential and office structures. It's evident in the market's significant annual growth rate, which stands between 5% to 7%. This evolution in construction methodologies is propelling an industry that was valued at around $70 to $75 billion as of 2020, with projections pointing to a value surpassing $110 billion within the next four years. The United States itself has been a strong contributor to this growth. The country witnessed the value of modular building construction projects almost doubling over a span of five years, closing in on $9 billion by 2019. The rate of growth in modular construction across the US has been quite robust, nearly hitting the 15% mark, indicative of a positive outlook within the industry. When it comes to housing, there's an intriguing phenomenon at play—despite a healthy number of new homes built—between 5 to 6 million in the past decade, the market is faced with an apparent shortage, with a demand for an additional 3 to 4 million homes. This gap between supply and demand is further deepened by the creation of between 9 and 10 million new households over the same period. On the economic front, market dynamics are buoyed by favorable mortgage rates that hover around the 3% to 4% range, creating a conducive environment for real estate investment and consumption. Moreover, the mortgage balance has soared to approximately $9 trillion, yet delinquency rates are remarkably low, a mere 0.9%, suggesting a financially healthy homeowner ecosystem. Overall, the US modular construction market is marked by a vibrant and growing landscape, with residential construction leading the charge. The sector is responding with agility to the dual demands of economic practicality and environmental stewardship, signaling a robust and promising future within the realm of construction and development. .### Key Players in the Modular Construction Arena As the modular construction market grows and evolves, a number of notable companies have emerged as key players, forging paths through innovative approaches and vast experiences. These firms have made a name for themselves by specializing in residential modular construction, capitalizing on the efficiency, flexibility, and eco-friendliness that this method provides. #### Cavco Industries Based in Phoenix, Arizona, Cavco Industries has become a titan in the modular housing sector. With over a thousand employees and a rich history dating back to 1965, Cavco offers a diverse portfolio of manufactured homes, modular homes, park model RVs, commercial buildings, and vacation cabins, illustrating their adaptability and breadth. #### Commodore Corporation One of the older entities in this segment, Commodore Corporation's roots stretch back to 1952. With a workforce ranging between 500 to 999 employees, they manufacture a wide range of modular homes from their base in Danville, Virginia, demonstrating a sustained commitment to quality and customer satisfaction. #### Palm Harbor Homes Hailing from Addison, Texas, and with a workforce of 200-499, Palm Harbor Homes has been on the scene since 1976. They specialize in crafting high-quality, customizable modular and manufactured homes, showcasing innovation and craftsmanship in their design and construction processes. #### Jacobsen Homes Founded in 1977 and operating out of Safety Harbor, Florida, Jacobsen Homes employs between 200-499 people. They focus on creating luxurious yet affordable manufactured homes, cementing their reputation for excellence in the Florida market. #### Apex Homes Inc. With their inception in 1990, Apex Homes Inc., situated in Middleburg, Pennsylvania, has grown steadily, employing 200-499 workers. Their versatility is seen through a comprehensive catalog that includes single- and multi-family homes, condominiums, townhouses, duplexes, hotels, and more. #### Sunshine Homes This Red Bay, Alabama-based company, housing 200-499 employees, has been brightening the modular home industry since 1971. Sunshine Homes prides itself on offering modern designs with a variety of floor plans to choose from, catering to individual tastes and preferences. #### Riverview Operating from New London, North Carolina, Riverview has carved its niche with a dedicated workforce of 200-499 employees. While its foundation date remains unknown, their commitment to quality modular home construction is apparent. #### Franklin Homes A seasoned player from Russellville, with a modest team of 50-99 employees, Franklin Homes

the modular construction market - United States

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Last update : 10/05/2021

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Summary and extracts

1 Market overview

1.1 Definition and presentation

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.

2 Demand Analysis

3 Market structure

4 Analysis of the offer

5 Regulations

6 Positioning of the players

List of charts

Main prefabricated building trade flows worldwide
Le marché mondial de la construction modulaire
Valeur des projets de construction modulaire
Commerce extérieur de bâtiments préfabriqués
Principales destinations des exportations de bâtiments préfabriqués
Principaux pays d'origines des importations de bâtiments préfabriqués
Nombre de foyers par taille des foyers
Taux de propriétaires par âge
Part des acheteurs de logements par revenu du ménage
Prix de vente moyen d'une maison individuelle
Taux d'une hypothèque conventionnelle sur 30 ans
Créations de prêts hypothécaires
Principales entreprises de construction modulaire spécialisées dans l'application résidentielle, en termes de revenus
Unités de logement achevées
Principaux impacts positifs résultant de l'utilisation de la construction modulaire
Principaux obstacles à la diffusion de la construction modulaire (CM)
Types de bâtiments de construction modulaire les plus probables dans les 3 prochaines années
Principaux facteurs qui influencent le choix d'une entreprise de construction modulaire
Principaux facteurs qui influencent l'emploi d'un expert/experte en préfabrication (construction modulaire)
Structures les plus fréquentes réalisées en construction modulaire pour les architectes et les ingénieurs, par type
Structures les plus fréquemment réalisées en construction modulaire pour les entrepreneurs généraux et les gestionnaires de construction, par type
Structures les plus fréquemment réalisées en construction modulaire par les entrepreneurs spécialisés, par type
Impact de la construction modulaire sur le respect du calendrier, par degré d'impact sur le temps gagné
Impact de la construction modulaire sur le budget du projet, par degré d'économie budgétaire
Principales sources d'information sur les entreprises de construction modulaire
Part des projets de construction modulaire qui utilisent des types spécifiques de construction modulaire, par type de méthode
Part des projets de construction modulaire qui utilisent des types spécifiques de construction modulaire, par type de méthode

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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 Plc.

Komatsu Ltd

Skanska AB

Red Sea Housing

Bouygues Construction

Cavco Industries

Commodoe Corporation

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