The global modular market will grow at a compound annual growth rate (CAGR) of 5.5%, adding nearly US$40 billion to its value in five years.

Modular construction has been radically transformed by the maturing of digital tools. (Photo: AdobeStock)

That鈥檚 according to research company Frost & Sullivan, which predicted that the market would increase in value to US$142 billion by 2028, up from US$103 billion in 2022.

Labour shortages, the drive towards net zero and customer demand will all spur growth in the sector, according to Frost & Sullivan鈥檚 analysis.

Advising modular construction companies on how to tap into the growth, the consultancy recommended developing end-to-end capabilities in product design, customisation, manufacturing, installation, and maintenance.

It also urged construction companies and manufacturers to establish partnerships with companies from other industries to enhance their design, production, and assembly capabilities and add value customers. It also suggested working with government agencies to improve modular construction regulations to create uniform standards in the sector.

Melvin Leong, homes & buildings senior director at Frost & Sullivan, said, 鈥淐ustomers鈥� surging preference for modular buildings in the post-pandemic era has encouraged modular construction market participants to broaden their manufacturing and assembly design capabilities. The move will increase the use of digital solutions to speed up modular building design and approval processes and focus on sustainable manufacturing practices.

鈥淭he next two to three years will see the use of MC to build healthcare facilities and schools in rural areas and temporary housing for displaced populations. Therefore, market participants must work with engineers and architects to improve modular building design in response to changing demand for indoor air quality and sustainability.鈥�