Curated News
By: NewsRamp Editorial Staff
June 17, 2026
Modular Construction Market to Hit $302B by 2035, FMI Reports
TLDR
- Invest in modular construction to gain a competitive edge with faster project delivery and lower costs.
- Modular construction uses factory-built components to reduce timelines, waste, and labor dependency.
- Modular construction provides affordable housing and sustainable buildings, improving communities and the environment.
- China leads global growth in modular construction at 7.7% CAGR, driven by urbanization and housing initiatives.
Impact - Why it Matters
This news matters because the construction industry faces critical challenges: housing shortages, labor deficits, and environmental pressures. Modular and prefabricated construction offers a faster, cheaper, and greener alternative that can address these issues at scale. For investors, the projected $128 billion opportunity signals a lucrative sector shift. For policymakers and developers, adopting these methods could accelerate infrastructure projects and meet sustainability targets. For the general public, it means more affordable housing and reduced construction disruption in urban areas.
Summary
The global Modular & Prefabricated Construction Market is set to surge from USD 173.5 billion in 2025 to USD 302.0 billion by 2035, growing at a CAGR of 5.7%, according to Future Market Insights (FMI). This expansion is driven by rapid urbanization, affordable housing demand, labor shortages, and a shift toward sustainable off-site building solutions. Key segments include permanent structures (61.3% share), steel as the dominant material (47.8%), and multi-family residential as the leading application (33.6%). China is the fastest-growing country at 7.7% CAGR, followed by India at 7.1%. The industry offers an absolute dollar opportunity of over USD 128 billion over the next decade.
The market is being transformed by technologies like BIM, digital twin, robotics, and AI-assisted planning, which enhance efficiency and design flexibility. Permanent modular structures are preferred for their durability and compliance with modern regulations, while steel's recyclability and strength make it ideal for off-site manufacturing. Multi-family residential projects benefit from faster completion and cost savings, fueling adoption in urban housing initiatives. Key players such as Skanska, ACS Group, and Sekisui House are investing in automation and hybrid systems to strengthen their positions.
Regional highlights include China's urbanization programs, India's infrastructure push, and Germany's green construction initiatives. Despite risks like transport logistics and high initial investments, opportunities abound in affordable housing, disaster recovery, and smart city development. FMI's comprehensive report provides detailed analysis to help stakeholders identify growth prospects in this rapidly evolving industry. For customized insights, visit the customization page.
Source Statement
This curated news summary relied on content disributed by 24-7 Press Release. Read the original source here, Modular Construction Market to Hit $302B by 2035, FMI Reports
