Modular Construction Market Positioned to Reach US$ 155.2 Billion by 2033 | Astute Analytica

Dynamic global demand is shifting from niche pilots to mainstream adoption, driven by government-backed housing initiatives and technological leaps in steel modularity. Manufacturers are scaling production to meet urgent residential needs despite lingering logistical hurdles

Chicago, Dec. 02, 2025 (GLOBE NEWSWIRE) — The global modular construction market was valued at US$ 90.3 billion in 2024 and is expected to reach US$ 155.2 billion by 2033, growing at a CAGR of 6.2% between 2025 and 2033.

Severe workforce deficits are currently reshaping the modular construction market landscape globally. The US construction industry recorded a critical shortage of 500,000 workers entering 2024. Simultaneously, the UK sector requires 250,000 additional personnel by 2028 to maintain current output levels. These gaps force a shift toward factory-based labor. VBC’s California factory now operates effectively with a single shift to produce housing. Furthermore, Laing O’Rourke’s directly employed workforce reached 4,500 people in 2024 to support their internal manufacturing delivery model.

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Operational efficiency has improved dramatically through these offsite strategies. Laing O’Rourke opened a new training facility in November 2024 specifically to certify assembly specialists. Real-world applications demonstrate the impact of these skilled teams. For instance, the Sooke School District in Canada added capacity for 190 students in a single phase by September 2024. Additionally, modular factories reduced the need for onsite personnel at the Hinkley Point C project, where rebar installation time was cut by 75%.

Key Findings in Modular Construction Market

Sovereign Capital Injections are Accelerating North American Infrastructure Projects

Government stimulus is aggressively fueling growth within the modular construction market. The Canadian government launched the Canada Housing Infrastructure Fund with US$ 6 billion in funding in April 2024. Additionally, a US$ 50 million Homebuilding Technology and Innovation Fund was announced in 2024 to specifically scale up prefabricated housing. These investments mark a transition from passive support to active financial intervention. Canada also announced a US$ 13 billion CAD plan in 2025 to build affordable homes on federal lands.

The United Kingdom is mirroring this financial commitment to offsite methods in the regional modular construction market. The UK government allocated an extra GBP 300 million in February 2025 to the Affordable Homes Programme. Consequently, the programme’s total funding was adjusted to GBP 8.03 billion following 2024 and 2025 top-ups. Homes England now manages GBP 20 billion in public funds with a 2025 mandate to drive Modern Methods of Construction adoption. Furthermore, Canada’s Apartment Construction Loan Program received a US$ 500 million top-up in 2024 for projects utilizing innovative techniques.

Mandatory Housing Targets Create Immediate Demand For Prefabricated Units

Political mandates are creating a guaranteed pipeline for the modular construction market. The UK government set a mandatory target of 1.5 million new homes over the five-year parliamentary term starting 2024. To meet similar demands, the Canadian government identified federal lands to build 4,000 new modular homes across six cities in its 2025 plan. Additionally, a new Quebec-Canada agreement in 2025 funded the rapid construction of 500 highly prefabricated units.

Private and public entities are mobilizing to hit these aggressive numbers. Sekisui House reaffirmed its target to supply 10,000 homes annually in overseas markets by 2025. Similarly, the UK’s GBP 300 million top-up in February 2025 is projected to deliver exactly 2,800 extra affordable homes. Laing O’Rourke’s Hinkley Point C project will eventually power 6 million homes using critical modular infrastructure. On a smaller scale, VBC’s Oakland project completed in 2024 delivered 44 apartment units. Specific models like the Bala LE bungalow now offer 1,660 square feet of living space.

Factory Capacity Expansions are Increasing Global Production Output Velocity

Manufacturing capabilities are scaling rapidly to meet modular construction market orders. VBC’s Tracy, California factory now boasts a production capacity of 25,000 square feet of housing per week. Their Berwick, Pennsylvania facility adds a capacity of 10,000 square feet per week. Internationally, VBC’s Polish factory can manufacture 930 square meters of housing weekly. Laing O’Rourke’s Bristol factory produces steel reinforcement cages that cut manufacturing time by 20% compared to traditional methods.

The diversity of manufacturing technologies available in 2025 is substantial. The Modular Building Institute identified 255 modular manufacturing companies operating in North America in its 2024 report. Innovation is further accelerating output rates. Mighty Buildings’ 3D printing technology can now print a 33 square meter studio unit in under 24 hours. In Asia, Sekisui House’s modular factory in Thailand has achieved an annual production capacity of 1,000 houses. These figures indicate a robust industrial base ready for high-volume delivery.

Compressed Project Schedules are Reducing Financial Carry Costs Significantly

Speed remains the primary competitive advantage of the modular construction market. Modular home construction timelines in 2024 averaged 16 to 31 weeks compared to over 9 months for stick-built options. Commercial projects benefit immensely from this acceleration. The OHANA Lodges project in Germany completed 150 rooms in just 15 months from concept to completion in 2024. Furthermore, the Sooke School District prefab project went from breaking ground in January 2024 to student occupancy in September 2024.

Rapid assembly techniques in the modular construction market allow for distinct logistical benefits. On-site assembly of modular homes typically takes only 4 weeks for setting modules. Modular school projects in the UK can now be delivered in 12 to 16 weeks during summer holidays. Specialized engineering further compresses schedules. Laing O’Rourke’s modular approach reduced onsite installation time by 75% at major infrastructure sites. Emerging technologies like 3D printed modular panels by Mighty Buildings reduce development times by a factor of 3X.

Unit Economics And Pricing Models Offer Predictable Cost Certainty

Stakeholders are finding viable economic models within the modular construction market. The base cost for modular homes in the US in 2024 ranged from US$ 80 to US$ 160 per square foot. Total turnkey costs for standard units averaged between US$ 120,000 and US$ 270,000 in 2024. In Canada, modular homes in Ontario offer a base price of US$ 150 to US$ 250 CAD per square foot in 2025. Site-specific expenses typically range from US$ 5,000 to US$ 30,000.

Commercial valuations demonstrate the sector’s substantial economic footprint. Modular construction projects in the commercial sector reached a total value of US$ 14.6 billion in North America in 2023. Logistics costs remain a calculated variable. Delivery fees for modular units in the US average between US$ 5,000 and US$ 15,000. Customization adds between US$ 10 and US$ 150 per square foot to the base price. Consequently, developers can budget with higher precision compared to traditional volatility.

Leading Manufacturers Report Record Profits And Strong Order Books

Financial results from 2024 and 2025 validate the modular construction market business model. Laing O’Rourke reported a Group Revenue of GBP 4.0 billion for the year ending March 31, 2024. The company achieved a pre-tax profit of GBP 18.1 million in FY24. Subsequently, their pre-tax profit grew to GBP 41.5 million in the year ending March 2025. Their Australian Hub generated US$ 3.3 billion AUD in revenue for FY25 alone.

The forward outlook for these major players is exceptionally strong. Laing O’Rourke’s order book reached a record GBP 11.9 billion in the 2025 reporting period. The firm generated net cash of GBP 278.5 million in FY24. Pre-exceptional Earnings Before Interest and Tax reached GBP 111.3 million in FY25. Similarly, Sekisui House reported net sales exceeding Yen 4 trillion in their FY2024 financial results. These metrics prove that manufacturing-led construction is delivering sustainable shareholder value.

Venture Capital Flows Indicate High Confidence In Offsite Technologies

Investment capital is flowing steadily into the modular construction market ecosystem. The US modular sector has attracted US$ 2.23 billion in total investment over the last decade. Mighty Buildings raised US$ 52 million in late 2023 and received a US$ 5 million grant in January 2024. Cumulative funding for Mighty Buildings reached US$ 150 million by 2024. By October 2025, modular construction startups had raised US$ 35.4 million in equity funding year-to-date.

Strategic acquisitions are also strengthening the supply chain. Webcor acquired a 10% stake in modular firm R2 Building in November 2024. Canada’s Regional Homebuilding Innovation Initiative allocated US$ 50 million over two years starting 2024 for supply chain innovation. Multifamily housing remains the largest commercial segment, accounting for 20% of the market share. Sekisui House delivered 2,800 homes in the UK affordable sector via new funding.

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Sustainability Metrics Show Drastic Reductions In Carbon And Waste

Environmental performance is a key differentiator for the modular construction market. Modular construction reduces the weight of waste materials by up to 83.2% compared to traditional methods. A single modular project prevented 1,380 lbs of waste per home from entering landfills versus 5,500 lbs for conventional builds. Industry-wide, construction generates 57 million tons of landfill waste annually, which modular adoption actively reduces. Offsite construction results in 75% less wood and drywall waste sent to landfills.

Carbon footprints are significantly lower in pre-manufactured projects. Modular construction reduces embodied carbon emissions by approximately 36% compared to reinforced concrete. Laing O’Rourke’s Bristol factory operations contribute to a 43% reduction in CO2 emissions. Furthermore, modular builds reduce energy consumption during the building phase by an average of 67%. Engineering feats highlight these benefits. Laing O’Rourke delivered a 245-tonne steel dome in a single lift. VBC’s Oakland project utilized 5 stories of sustainable modular wood construction.

Modular Construction Market Major Players:

• Algeco
• ATCO
• Bouygues Construction
• Guerdon Modular Buildings
• Katerra
• KLEUSBERG GmbH & Co. KG
• Laing O’Rourke
• Lendlease Corporation
• Red Sea International Company
• Skanska AB
• VINCI Construction Grands Projets
• Other Prominent Players

Key Market Segmentation:

By Construction Type

• Permanent Modular Construction (PMC)
• Relocatable Modular Construction

By Material

• Steel
• Wood
• Concrete (Precast Concrete)
• Plastic
• Others

By Module Type (or Structure System):

• Four-sided Modules (Volumetric)
• Open-sided Modules
• Partially Open-sided Modules
• Mixed Modules & Floor Cassettes
• Modules Supported by a Primary Structure

By End-User Sector/Application

• Residential
  • Single-Family Housing
  • Multi-Family Housing (apartments, condominiums)
  • Affordable/Low-Income Housing
  • Student Housing
• Commercial
  • Offices
  • Retail Spaces
  • Hospitality (hotels, motels)
  • Restaurants and Cafeterias
• Industrial
  • Warehouses and Distribution Centers
  • Power & Energy Facilities
  • Manufacturing Plants
• Institutional
  • Schools & Colleges
  • Healthcare (clinics, hospitals)
  • Government Buildings
  • Defense & Military
• Infrastructure/Utilities
  • Public Restrooms
  • Toll Booths
  • Utility Control Rooms
  • Modular Bridges & Tunnels

By Service Stage

• New Construction
• After-sales Maintenance and Refurbishment (Renovation)

By Region

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• South America

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