According to the Market Statsville Group (MSG), the global architectural modular system market size is expected to grow from USD 88.4 billion in 2022 to USD 164.3 billion by 2033, at a CAGR of 5.8% from 2023 to 2033.

Modular architecture offers flexible design options and lower expenses. Modular systems include, for instance, solar panels, wind turbines, and structures. The benefits of uniformity and customization are combined in the modular design. At general, modular architecture entails manufacturing standardized parts of a structure in a factory off-site before putting them together on-site. These phrases include a wide range of methods and setups, from simple components connected and interfaced to 3-D volumetric units with complete fixtures. Several elements indicate that modular architecture may have newfound enduring potential. It is currently the subject of a new wave of interest and investment. The modular architectural concept has been fundamentally altered by the development of digital technologies, which have facilitated module design and improved delivery logistics, among other things. Consumer opinions of prefab homes are starting to shift, especially when new, more interesting material options enhance the houses' aesthetic appeal.

Due to their numerous advantages, such as decreased waste, accelerated construction, financial effectiveness, eco-friendliness, and flexibility, modular building solutions are becoming increasingly popular among housing giants. Further, this architectural module is constructed to match each customer's needs, and modular buildings are incredibly adaptable. Infrastructure projects have been prompted by rapid urbanization in an effort to close the growing supply chain and demand imbalance. The demand for lower environmental consequences, growing concern for work-zone safety, and encouraging government actions are all factors contributing to the growth of this industry. The market for modular architectural systems can be expanded due to population increase and fast urbanization, which result in numerous new construction projects.

COVID-19 Impact on the Global Architectural Modular System Market

COVID-19 has significantly harmed the economy. Construction was put on hold, and the global countrywide lockdown has affected the labor-intensive sector. This is because stranded migrant workers at construction sites are impeding global growth prospects, and construction activities have been stopped. As per the International Labor Organization report, the construction industry in India experiences a labor absenteeism rate of close to 52%, which lowers overall building activity nationwide. The outbreak of the COVID-19 epidemic caused anxiety and volatility in markets worldwide. The need for modular buildings has decreased due to the large fall in new residential and non-residential developments.

The modular design also provides uninterrupted expansion for those working in healthcare facilities. On-site construction often disrupts hospital routines, so building modules off-site and transporting them later is convenient for all involved. Uninterrupted expansion of health facility activities is especially important during a pandemic. Another corona-related advantage of modular construction is the mobility of the modules. These modules can be pre-built for hospitals, shipped to where they are needed most, and then sent to another location or stored when needed.

 Global Architectural Modular System Market Dynamics

Drivers: Need for Time-Saving and Cost-Effective Architecture

The cost and time advantages of a modular design are two of the many advantages of this design. While money and schedule remain top of mind for people's priorities, efficiency, style, and convenience play a large part in all major building decisions. Customers are constantly amazed by the modern look, variety of customization options, and special constructions possible with modular architecture. The industry is evolving to become more innovative, respected, researched, and competitive.

Of course, there are options for bespoke design decisions, but modular builds mostly adhere to standardized designs. Customers receive sophisticated, tested designs without an architect, whether a healthcare facility, educational institution, or residential project. For residential projects, key players have in-house design consultants to ensure they create what customers need from their specific designs and costs. However, planning costs are typically significantly lower than standard construction projects. Further, a modular architecture typically employs engineers and builders, whereas on-site construction projects typically employ multiple subcontractors. There are no gaps or overlapping deadlines as the modular structure is done on an external production line.

Restraints: Risk of Transportation & Assembly Issues Associated with Modular Construction

Modules are assembled in factories miles from the construction site and must either be delivered directly to the construction site or delivered at a nearby location and then assembled. Shippers and assemblers must exercise extreme caution with any module, as accidents in transit may require major repair or replacement of the entire module. This can delay the entire installation sequence. After handing over the project at the destined location, staging and set went fairly smoothly, and the interior drywall barely cracked when the module was lifted into place. Transportation and assembly companies must seriously try tracking roads and plan the logistics for transporting modules.

Opportunities: Government Initiatives for Promoting Green Infrastructures

The industry is driven by advancing government initiatives to cut down on construction waste and promote green buildings. In several projects on government property, for instance, the government of Singapore has mandated the use of PPVC (prefabricated, pre-finished, volumetric construction) parts. In addition, the government gives businesses subsidies that help standardize contemporary construction techniques. For instance, The Indian Pradhan Mantri Awas Yojana (PMAY) has received praise for its potential to have a major economic multiplier effect, notably by opening up a channel for job creation. Even more beneficial economic spillover effects would result from refocusing the program on green construction. The PMAY and Eco-Niwas Samhita, a green housing program, can significantly increase the country's green residential development market.

Scope of the Global Architectural Modular System Market

The study categorizes the architectural modular system market based on type, system type, and end-use at the regional and global levels.

By Type Outlook (Sales, USD Billion, 2019-2033)

• Permanent
• Relocatable    

By System Type Outlook (Sales, USD Billion, 2019-2033)

• Lighting Rails
• Components for Partitions
• HVAC Systems
• Monitoring System
• Others

By End-Use Outlook (Sales, USD Billion, 2019-2033)

• Residential
• Commercial & Industrial

By Region Outlook (Sales, USD Billion, 2019-2033)

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • Italy
  • France
  • UK
  • Spain
  • Poland
  • Russia
  • The Netherlands
  • Norway
  • Czech Republic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Indonesia
  • Malaysia
  • Thailand
  • Singapore
  • Australia & New Zealand
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Colombia
  • Rest of South America
• The Middle East & Africa
  • Saudi Arabia
  • UAE
  • South Africa
  • Northern Africa
  • Rest of MEA

Commercial & Industrial segment accounts for the highest CAGR during the forecast period by End-Use

Based on end-use, the market is bifurcated into residential, commercial and industrial. The commercial segment accounts for the highest CAGR during the forecast period. The rise of start-ups in emerging markets is driving the growth of the commercial sector, which has the largest market share. Further, in the growing industrial sector, for instance - healthcare providers are looking to prefabricated homes as a viable option due to features such as cost efficiency, high quality, and time efficiency. They use prefabricated parts for bathrooms, end walls, and throughout the hospital. Cost and time efficiency reductions due to ease of installation will likely increase the demand for modular units in the commercial & industrial sectors.

Asia Pacific is projected to account for the largest market share, by Region

Based on the regions, the global architectural modular system market has been segmented across North America, Asia-Pacific, Europe, South America, and the Middle East & Africa. The Asia Pacific will dominate the global architectural modular system market in 2022. This is due to increased construction activity demand from the residential and commercial sectors. In addition, aggressive government initiatives to promote green housing have increased the demand for modular buildings. For instance, in India, Foreign Direct Investment (FDI) in IT, telecom, healthcare, and automotive sectors are the main drivers of increasing demand for commercial space. Moreover,  commercial modular construction is becoming a top priority among Indian builders and investors for green building solutions.

Key Market Players in the Global Architectural Modular System Market

The global modular architecture system market is highly competitive, and major industry players are adopting strategies such as partnerships, acquisitions, product development, agreements, and expansions to strengthen their market position. Most market companies focus on expanding their operations across geographies, expanding capabilities, and building strong partnerships.

Major players in the global architectural modular system market are:

• Guerdon Modular Buildings
• Laing O'Rourke
• ATCO
• Red Sea International Company
• Bouygues Construction
• VINCI Construction Grands Projets
• Skanska AB
• Algeco
• KLEUSBERG GmbH & Co. KG
• Lendlease Corporation

Recent Developments

• In January 2022, Anguleris acquired Modlar Inc. Modlar Inc., architectural inspiration and discovery platform for the architectural design community. The acquisition brings together the existing Hei of construction technology brands, including BIMsmith, one of He's leading product research platforms and BIM resources for construction professionals, and Swatchbox, a building materials sample fulfillment platform for the construction industry. Adds Modlar to Anguleris Portfolio.
• In September 2020, ROOM announced the expansion of its product portfolio with a range of new modular architectural solutions designed to meet the critical demand for adaptability and flexibility in the office. Meeting Rooms, Open Meeting Rooms, and Focus Rooms are modular solutions dedicated to focused work and collaboration, both face-to-face and virtual, offering smarter, more sustainable, and flexible alternatives to fixed structures and traditional office designs.

Key Issues Addressed

• What is the market size by various segmentation of the architectural modular system by region and its respective countries?
• What are the customer buying behavior, key takeaways, and Porter's 5 forces of the architectural modular system market?
• What are the key opportunities and trends for manufacturers involved in the architectural modular system supply chain?
• What are the fundamental dynamics (drivers, restraints, opportunities, and challenges) of the market?
• What and how regulations, schemes, patents, and policies are impacting the growth of the market?
• What are the upcoming technological solutions influencing market trends? How will existing companies adapt to the new change in technology?
• The market player positioning, top winning strategies by years, company product developments, and launches will be?
• How has COVID-19 impacted the demand and sales of architectural modular system in the global market? Also, the expected BPS drop or rise count of the market and market predicted recovery period.
• Detailed analysis of the competitors and their latest launch, and what are the prominent start-ups introduced in the target market? Also, detailed company profiling of 25+ leading and prominent companies in the market.