Frost & Sullivan: Rising demand for efficient construction methods
Shifting perceptions of modular building use and emerging trends
Frost & Sullivan, a global consulting firm, has released its report "Global Modular Construction (MC) Growth Opportunities."
According to the report, the shift in perceptions about the use of modular buildings brought on by COVID-19 has driven growth in the global modular construction market. Modular construction aims to address the post-pandemic demand for more efficient building methods in response to socioeconomic trends such as labor shortages, sustainability, and customer demand.
Frost & Sullivan forecasts that the global modular construction market will grow from $103.09 billion in 2022 to $142.06 billion in 2028, a compound annual growth rate (CAGR) of approximately 5.5%.
Melvin Leong, Director of Frost & Sullivan's Home & Building industry practice, said, "As customer preference for modular buildings has surged in the post-pandemic era, companies in the modular construction market have come to focus on strengthening their module manufacturing and assembly design capabilities." He added, "Their efforts will center on leveraging digital solutions to accelerate the design and approval processes for modular buildings, as well as on sustainable manufacturing practices."
Over the next two to three years, modular construction is expected to be used to build rural healthcare facilities, schools, and temporary housing for refugees. Accordingly, companies in the field will need to collaborate with engineers and architects to improve modular construction designs so that they meet requirements for indoor air quality and sustainability.
To make the most of the growth opportunities arising from the expansion of the modular construction market, companies should consider the following strategies: △developing end-to-end capabilities in the design, customization, manufacturing, installation, and maintenance of modular construction products; △building partnerships with companies in other industries in order to strengthen internal processes (e.g., design, production, assembly) and deliver added value to customers; △collaborating with government agencies to improve regulations governing modular construction and establish unified standards; and △developing eco-friendly modular construction products that maintain sustainability and energy efficiency throughout a building's life cycle.
Meanwhile, Frost & Sullivan is a global market research and consulting firm covering key industries such as automotive, ICT, healthcare, and energy, and has supported clients' business growth for more than 60 years. With some 2,200 consulting professionals operating across 47 offices in 29 countries worldwide, the firm draws on ongoing research and analysis of 12 industries and key technologies to provide growth strategy and benchmarking services, as well as to track economic trends and identify promising technologies, megatrends, and new business models—helping government agencies, companies, and investors avoid missing growth opportunities.