Modular construction market seen reaching $234.7 billion by 2031

By AI, Created 1:26 PM UTC, May 28, 2026, /AGP/ – A new Allied Market Research report projects the global modular construction market will grow from $131.1 billion in 2021 to $234.7 billion by 2031, driven by a 6.1% compound annual growth rate. The report breaks down the market by type, material, end user and region, highlighting faster growth in relocatable modules, concrete materials, industrial uses and Asia-Pacific.

Why it matters: - The modular construction market is projected to add more than $100 billion in value by 2031, signaling continued demand for faster and more flexible building methods. - Investors, developers and manufacturers can use the segment data to identify the strongest growth pockets across products, materials and regions. - The report is designed to help market players, new entrants, investors and stakeholders shape future strategy and strengthen market position.

What happened: - Allied Market Research said the global modular construction market generated $131.1 billion in 2021 and is estimated to reach $234.7 billion by 2031. - The forecast implies a 6.1% CAGR from 2022 to 2031. - The report covers changing market trends, top segments, key investment pockets, value chains, regional landscape and competitive conditions. - The report also provides segmentation analysis by type, material, end user and region.

The details: - The COVID-19 pandemic hurt the market because construction activity fell and the manufacturing tourism industry weakened. - Construction and service activity has gradually resumed, helping modular construction companies restart at full-scale capacity. - The market recovered by the end of 2021. - By type, the permanent segment held more than two-thirds of the market in 2021 and is expected to keep its lead through 2031. - The relocatable segment is projected to grow the fastest, with a 7.0% CAGR during the forecast period. - By material, steel held more than two-fifths of the market in 2021 and is expected to remain a major revenue driver in 2031. - The concrete segment is projected to post the fastest CAGR at 10.6% through 2031. - The study also covers wood and other materials. - By end user, residential uses accounted for more than half of the market in 2021 and are expected to remain the largest segment in 2031. - The industrial segment is forecast to grow the fastest, at 13.7% through 2031. - The research also analyzes the commercial segment. - By region, North America was the largest market in 2021, with more than two-fifths of global revenue, and is expected to lead during the forecast period. - Asia-Pacific is projected to post the highest regional CAGR at 7.4% from 2022 to 2031. - The study also includes LAMEA and Europe. - Leading companies named in the report include Skanska AB, Supertech Industries, Tempohousing, Giant Containers Inc., SG Blocks, Inc., Honomobo Corporation, Bechtel Corporation, ATCO Ltd., Lendlease Corporation and Speed House Group of Companies. - The report says these companies have used expansion, new product launches, partnerships and other strategies to grow market share.

Between the lines: - The biggest growth rates are concentrated in niches rather than the largest existing segments, which suggests the market is broadening beyond core residential and permanent applications. - North America still leads today, but Asia-Pacific’s faster growth points to a shift in future demand toward developing and infrastructure-intensive markets. - The report’s emphasis on steel, concrete and industrial end use suggests modular construction is moving deeper into heavier-duty and nonresidential projects.

What’s next: - Allied Market Research says the market’s next phase will be shaped by segment-specific demand, regional growth and competitive positioning. - The report is intended to guide future investment and expansion decisions across the modular construction supply chain. - More information is available through the report sample request page.

The bottom line: - Modular construction remains on a steady growth path, with the fastest upside likely in relocatable systems, concrete materials, industrial applications and Asia-Pacific.