Asia Pacific Modular Construction Market Size, Share & Industry Analysis, By Type (Permanent (PMC) and Relocatable), By Material (Concrete, Steel, and Wood), By Application (Commercial, Healthcare, Education & Institutional, Hospitality, and Others (Residential and Religious buildings)), Country Forecast 2023-2030

The Asia Pacific modular construction market size is projected to grow at a CAGR of 6.8% during the forecast period. The Asia Pacific market is projected to grow from USD 38.30 billion in 2023 to USD 60.74 billion by 2030.

Modular construction is a building method in which a structure is built off-site in sections. These sections or modules are transported to the site and assembled to form a complete building. These modules are typically prefabricated in a factory, where the building components are constructed in a controlled environment and under strict quality control measures. The modular construction industry has been experiencing significant growth in the Asia Pacific region over the past few years. This trend is expected to continue in the coming years due to several factors.

Furthermore, another factor contributing to the growth of modular construction in the Asia Pacific is the region's focus on sustainability. Modular construction is seen as a more environmentally friendly option than traditional construction methods, as it generates less waste and can be designed to be energy-efficient. In addition, technological and manufacturing advances have made this type of construction more efficient and cost-effective than existing technology. This has helped increase modular construction's popularity across the Asia Pacific region.

LATEST TRENDS

Growing Urbanization in The Region is Propelling the Growth of Market

One of the key drivers of Asia Pacific market’s growth are the rapid urbanization. As more people move into cities, the demand for affordable, high-quality housing has increased. Modular construction is a cost-effective and efficient way to meet this demand, as it can be completed quickly and with less waste than traditional construction methods.

For Instance, in January 2023, a report published by United Nations-Habitat showed that 55% of the total global urban population, nearly 2.2 billion, lives in Asia Pacific. The urban population of the Asia Pacific Region is expected to grow by 1.2 billion people, nearly 50% of the current Asian urban population. 

DRIVING FACTORS

Increasing Infrastructure Projects for Serving Huge Population in Asia Pacific Region is Driving Market Growth

The Asia Pacific region has a large population and a growing middle class, which has led to increased demand for commercial and industrial buildings. The market growth can be used to build these structures rapidly and efficiently, which is particularly important in fast-growing economies with high demand for commercial and industrial space. Furthermore, the growing initiation of infrastructure projects such as transportation infrastructure, residential building, and railway construction is increasing the demand for the prefabricated construction industry in the region.

RESTRAINING FACTORS

Lack of reliability on Prefabricated Construction in Earthquake Prone Region to Restrain Market Growth

Some countries in the Asia Pacific region, such as Japan, South Korea, China, and Southeast Asian countries such as Indonesia, Vietnam, Thailand, and Cambodia, are highly earthquake-prone countries in which the parameters for the construction of buildings have changed. Modular construction can be designed and built to be earthquake-resistant; however, it can be less strong than traditional construction in some cases. This is because modular buildings are typically made up of individual modules that are connected on-site. These connections can be points of weakness during an earthquake if they are not properly designed and constructed. Additionally, the modules can be less resistant to earthquakes if not designed and manufactured to meet seismic requirements. For example, if the modules are not made from strong enough materials or are not properly reinforced, they may not withstand the shaking and ground motion caused by an earthquake. These factors may restrain the market growth in the region.

KEY INDUSTRY PLAYERS

In the global competitive marketplace, recognized and emerging players in the market have observed a drop in demand owing to a downfall in production and construction activities. Prominent construction key players widened their product portfolio in the construction sector to revive the market by expanding strategies to fill the supply-demand gap. Additionally, pandemic openings in the market have endorsed small players’ subsequent presence while expanding the Asia Pacific modular construction market share in the forecast period.

LIST OF KEY COMPANIES PROFILED:

• Laing O'Rourke


• Red Sea International


• ATCO Ltd.


• Skanska,


• Modulaire Group


• KLEUSBERG


• Bechtel Corporation


• Fluor Corporation


• China State Construction


• CIMC Modular Building Systems

KEY INDUSTRY DEVELOPMENTS:

• July 2022 –Japanese architectural firm VUILD completed the test of their digitally prefabricated Nesting house. This is a modular wooden house built with high-end digital 3D modelling software.


• June 2022 – Godrej & Boys India Ltd. A machinery and infrastructure service provider in India had partnered with Tvasta Manufacturing Solution, which alums of IIT Madras found. Godrej & Boys Company can use the 3D constructed modular prefabricated sections on their construction site through this partnership.

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