Modular Construction Market Revenue to Cross US$ 7.7 billion by 2035

Published: January 2024


According to a recently published report by Roots Analysis, the increased focus by drug developers and manufacturers to reduce costs, minimize delays, and expedite time-to-market, by utilizing the available infrastructure, while operating in accordance with the standard GMP guidelines, is driving market growth

Modular Construction Industry Overview

The global modular construction market is anticipated to grow at a CAGR of 9.89% from 2023-2035, reaching USD 7.7 billion by 2035

Modular construction is a process wherein factory-produced, pre-engineered building units, which are constructed offsite under controlled plant conditions, are assembled on site to construct the final structure. It is worth mentioning that such buildings use the same material and are designed according to the same codes and standards established for conventionally built structures. These fundamental building units are called modules. Integrated assemblies are joined together to create facilities of a significant size, housing multiple functions and equipment. In recent years, with the advent of generic copies of billion-dollar blockbuster drugs, drug manufacturers have started showing evident interest in modular facilities and using modularity in design approaches. The increased demand for multi-product, multi-purpose, smaller batch-size facilities has also prompted equipment manufacturers to revisit their product offerings.

Browse 155+ figures and 180+ market data tables spread across 385+ pages and detailed Table of Content on “Modular Construction Market, by Size of Facility, Type of Industry Served, Type of Modular Construct, Type of Construction Component, Purpose of Facility, Scale of Operation, Type of Product, Type of Facility, Type of Modular Construction, Type of Material Used and Key Geographical Regions: Industry Trends and Global Forecasts, 2023-2035” here: https://www.rootsanalysis.com/reports/modular-manufacturing-market/178.html

Market Drivers

Various factors contribute to the market growth of modular construction market. Modular construction minimizes waste, energy consumption, and environmental disturbance compared to traditional methods. This aligns with the industry's sustainability goals and regulatory requirements. Further supportive policies, incentives, and funding for sustainable and efficient construction methods are driving the adoption of modular facilities in the pharma and biotech sector. This creates a conducive environment for market growth and innovation. Additionally, increasing global population and urbanization are necessitating rapid and flexible construction solutions. In this regard, modular construction offers the advantage of shorter project timelines, addressing the demand for timely infrastructure development in urban areas.

Market Restraints

One of the primary restraints associated with this industry is shortage of construction materials. The industry's dependence on high-quality materials could be jeopardized by shortages or disruptions in the supply chain, thereby affecting the availability and cost of materials for modular construction. Moreover, fluctuations in material costs, transportation expenses, and labor rates have the potential to drive up overall project costs, potentially undermining the cost-effectiveness of modular construction in the pharma and biotech sector. Additionally, a lack of comprehensive understanding of the advantages and technical prerequisites of modular construction among stakeholders, such as designers, regulators, and investors, could hinder its widespread adoption in the industry.

Growth Factors

Despite the challenges, several growth factors continue to drive the modular construction market forward. Modular construction offers benefits, such as quality control, accelerated project delivery, and reduced on-site labor, aligning with the industry's need for efficient, compliant, and adaptable facilities. Further, the expansion of the pharma and biotech industry in emerging markets drives the demand for flexible, rapidly deployable infrastructure, making modular construction an attractive solution for meeting evolving production and regulatory needs. The ability of modular construction to minimize project schedules, mitigate cost overruns, and enable concurrent site and off-site work enhances its appeal for pharma and biotech facilities, supporting efficient capacity expansion and technology adoption.

Modular Construction Market Segments

Based on size of facility, the modular construction market is segmented into small, mid-sized, large and very large

  • The very large companies in modular construction market capture the largest revenue share of 39% in 2023.
  • The small companies are anticipated to show the highest market growth potential during the forecast period of 11.48% annually.

Based on the type of industry served, the modular construction market is segmented into pharmaceutical and biotechnology

  • The pharmaceutical segment led the modular construction market, capturing the largest revenue share of close to 60% in 2023.
  • The biotechnology segment is anticipated to show the highest market growth potential during the forecast period of 10.97% annually.

Based on the type of modular construct, the modular construction market is segmented into hybrid skid modular constructs, skid-mounted modular constructs, plug-and-play modular constructs, truckable modular constructs and other modular constructs

  • The hybrid skid modular construct segment led the Modular Construction market, capturing the largest revenue share of 33% in 2023.
  • In fact, hybrid skid modular construct is anticipated to show the highest market growth potential during the forecast period of 10.58% annually.

Based on the type of construction component, the modular construction market is segmented into process equipment, base building, mechanical, electrical and plumbing system, process commodities and other construction components

  • The base building segment led the modular construction market, capturing the largest revenue share of close to 35% in 2023.
  • The process equipment segment is anticipated to show the highest market growth potential during the forecast period of 12.02% annually.

Based on purpose of facility, the modular construction market is segmented into manufacturing facilities, aseptic filling facilities, research and development facilities and other facilities

  • The manufacturing facilities segment led the modular construction market, capturing the largest revenue share of close to 61% in 2023.
  • The R&D segment is anticipated to show the highest market growth potential during the forecast period of 12.32% annually.

Based on scale of operation, the modular construction market is segmented into clinical and commercial scale of operation

  • The clinical operations segment led the modular construction market, capturing the largest revenue share of close to 57% in 2023.
  • The commercial operations segment is anticipated to show the highest market growth potential during the forecast period of 10.9% annually.

Based on type of product, the modular construction market is segmented into cell and gene therapies, vaccines, biosimilars, monoclonal antibodies, advanced pharmaceuticals, sterile products, viral vectors and other products

  • The cell and gene therapies segment led the modular construction market, capturing the largest revenue share of 21% in 2023.
  • The sterile products segment is anticipated to show the highest market growth potential during the forecast period of 10.97% annually.

Based on type of expansion, the modular construction market is segmented into new facilities, facility expansions and planned expansions

  • The new facilities segment led the modular construction market, capturing the largest revenue share of 52% in 2023.
  • The facility expansions segment is anticipated to show the highest market growth potential during the forecast period of 10.82% annually.

Based on type of modular construction, the modular construction market is segmented into relocatable modular construction and permanent modular construction

  • The relocatable segment led the modular construction market, capturing the largest revenue share of 56% in 2023.
  • In fact, relocatable segment is anticipated to show the highest market growth potential during the forecast period of 10.52% annually.

Based on type of material used, the modular construction market is segmented into steel, wood and concrete

  • The steel segment led the modular construction market, capturing the largest revenue share of 68% in 2023.
  • The wood segment is anticipated to show the highest market growth potential during the forecast period of 12.8% annually.

Based on the regional insights, the Modular Construction market is segmented into North America, Europe, Asia, Middle East and North Africa and Rest of the World

  • North America dominated the market and accounted for the largest revenue share of over 45% in 2023.
  • In rest of the world region the modular construction market is anticipated to demonstrate lucrative growth during the forecast period.

Key Companies Profiled

The modular construction market report also includes detailed profiles of key players (listed below) that offer Modular Construction services:

  • Cytiva
  • G-Con Manufacturing
  • Germfree
  • IPM Technologies
  • KeyPlants
  • ModuleCo Pharma
  • NNE
  • Pharmadule

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About Roots Analysis

Roots Analysis is a global leader in the pharma / biotech market research. Having worked with over 750 clients worldwide, including Fortune 500 companies, start-ups, academia, venture capitalists and strategic investors for more than a decade, we offer a highly analytical / data-driven perspective to a network of over 450,000 senior industry stakeholders looking for credible market insights. All reports provided by us are structured in a way that enables the reader to develop a thorough perspective on the given subject. Apart from writing reports on identified areas, we provide bespoke research / consulting services dedicated to serve our clients in the best possible way.

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