Skender and BuiltWorlds Release “2019 Modular Construction Update” Research Report
The past year was a big one in the world of modular construction. With the industry continuing to hone the new processes and technologies behind offsite construction, early adopters are beginning to reap the rewards. We’ve been hearing about the potential benefits of streamlining project delivery with offsite production for years–shorter project schedules, relief for budgets, improved conditions for workers, more control over the quality of the product and the schedule–but now we’re actually seeing it in action. Real world examples of modular projects are not only becoming taller and more impressive, they are also becoming more common. What does that mean for the construction and development industry? It could mean that the bar for efficient project delivery is finally being raised.
The global market for modular construction was valued at roughly $111 billion in 2018, according to a report by Zion Market Research. By 2025, that share is projected to increase to $175 billion, and growth has skyrocketed in the past year alone. In a recent survey of BuiltWorlds members, 79% of respondents indicated that they anticipate modular construction’s market share to increase at a faster rate over the next 5 years than it has over the past 5 years, with 21% expecting growth at a constant rate. No respondents anticipate a slow-down of new modular starts; it has become clear that the industry is ready for modularization.