United States Modular Construction Market

United States Modular Construction Market Size and Share:

The United States modular construction market size was valued at USD 25.6 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 49.6 Billion by 2033, exhibiting a CAGR of 7.6% from 2025-2033. The U.S. modular construction market is driven by increasing demand for cost-effective and time-efficient building solutions across residential, commercial, and institutional sectors. This approach offers notable sustainability advantages, including reduced material waste and enhanced adaptability for diverse projects. Additionally, technological advancements, such as Building Information Modeling (BIM), are accelerating adoption, particularly in urban and industrial development projects, where efficiency and precision are paramount.

The U.S. modular construction market is gaining traction due to its ability to address rising construction costs and labor shortages. Developers are increasingly turning to modular solutions to complete projects faster without compromising quality. For instance, in November 2024, Greystar, a prominent U.S.-based real estate company, unveiled Findlay, its first multifamily project utilizing modular structural components produced at its Pennsylvania factory. Situated in Coraopolis, the development comprises 312 units across six buildings, featuring one-, two-, and three-bedroom apartments. This project highlights an innovative, cost-effective approach to residential development, demonstrating the growing potential of modular construction. Moreover, urban areas, in particular, are embracing this method to tackle housing shortages, as modular construction enables the rapid delivery of residential units. Sectors like healthcare, education, and retail are also driving demand, with modular buildings offering flexibility and meeting rigorous safety standards.

Environmental concerns play major factor in boosting modular construction. This approach minimizes material waste and aligns with the growing push for sustainable building practices. Developers are adopting modular methods to meet green building goals whereas government fundings further supporting the initiative in order to save time and costs. For instance, in July 2024, the U.S. Environmental Protection Agency announced USD 160 million in grants for 38 recipients nationwide. These funds will support efforts to track and reduce climate pollution from the manufacturing of construction materials and products, with a focus on promoting green building practices and advancing sustainability in the construction industry. The integration of advanced tools is making modular projects more efficient and customizable, attracting a broader range of industries.

United States Modular Construction Market Trends: 

Growing Adoption in Urban Housing

The increasing demand for affordable housing in urban areas is driving the adoption of modular construction. Cities across the United States are leveraging this method to address housing shortages, as it enables the rapid development of multi-family units and single-family homes. For instance, in April 2024, LaPhair Capital Partners acquired Kinexx Modular Construction, a Chicago based real estate builders and construction company, to drive innovation in U.S. urban areas. This strategic acquisition aligns with LaPhair's goal to address housing affordability and economic challenges in underserved communities. The partnership will focus on expanding sustainable construction solutions and increasing homeownership opportunities across the Midwest and Southwest regions. Moreover, the appeal of modular construction in populated areas lies in its capacity to reduce, on site disturbances and comply with stringent construction regulations while offering the ability to tailor designs at a lower expense, a feature emphasizing the attention of developers concentrating on urban renewal and eco-friendly living options.

Integration of Advanced Technologies

The U.S. modular construction market is embracing advanced technologies like BIM and 3D printing to enhance project efficiency and accuracy. BIM facilitates seamless design collaboration, reducing errors and speeding up the construction timeline. For instance, in November 2024, Trane Technologies and Autodesk, a U.S. based multinational software company, announced a strategic collaboration to optimize commercial building design for sustainability. By integrating Trane’s TRACE software with Autodesk Revit, the partnership aims to simplify HVAC system design, improve efficiency, and support AI-assisted design. This collaboration, initially focusing on high-BIM adoption regions like the U.S. and Canada, enhances workflow efficiency and accelerates sustainable building practices. Meanwhile, 3D printing is being used to create custom components, enabling innovative architectural designs and material efficiency. These technologies are making modular construction more appealing to developers seeking precision and cost-effective solutions, particularly for large-scale projects in commercial and institutional sectors.

Focus on Sustainability

Sustainability is becoming a defining trend in modular construction, driven by stricter environmental regulations and consumer demand for green building practices. Modular approaches help in cutting down wastage and energy use during construction with the aim of promoting eco development. Many developers are now integrating energy solutions and recycled materials into their modular projects to boost their environmental impact. For instance, in November 2024, Module-T Prefabrik, a Turkish infrastructure company, is expanding into the U.S. market. The company offers modular solutions, including office containers, sanitary containers, and dormitory containers, focusing on efficient labor accommodation complexes. Their approach prioritizes speed, sustainability, and reduced environmental impact, ensuring faster project completion with minimal disruption and pollution.

United States Modular Construction Industry Segmentation: 

IMARC Group provides an analysis of the key trends in each segment of the United States modular construction market, along with forecasts at the country and regional levels from 2025-2033. The market has been categorized based on type, module type, material, end use, and region. 

Analysis by Type:

• Permanent
• Relocatable
   

Permanent modular construction involves the creation of structures designed to remain in a fixed location for their entire lifespan. These buildings are constructed with durable materials to meet or exceed traditional construction standards, making them ideal for residential, commercial, and institutional use. Permanent modular buildings are known for their construction timelines and cost effectiveness without compromising quality. This method is becoming popular for projects such, as schools and healthcare facilities that require long term functionality and strong structural integrity. 

Relocatable modular construction focuses on structures that can be moved or repurposed as needed. Designed for flexibility and mobility, these buildings are commonly used in applications like temporary classrooms, disaster relief shelters, or construction site offices. They are built to withstand repeated transportation and reassembly while maintaining structural reliability. Relocatable modules are cost-effective and time-efficient, providing a practical solution for businesses or organizations needing adaptable space in changing locations or situations.

Analysis by Module Type:

• Four Sided
• Open Sided
• Partially Open Sided
• Mixed Modules and Floor Cassettes
• Modules Supported by a Primary Structure
• Others
   

Four-sided modules are fully enclosed structures with walls, floors, and ceilings, making them a versatile option in modular construction. These modules are widely used for residential and commercial applications where complete units, such as rooms or small apartments, can be pre-fabricated and assembled on-site. Their closed design offers excellent structural integrity and simplifies the construction process. Four-sided modules are particularly beneficial in high-rise projects, as they can be stacked efficiently while maintaining safety and durability.

Open-sided modules are designed without one or more walls, allowing for larger interior spaces or seamless integration with other modules. This type is commonly used in commercial spaces, retail units, and healthcare facilities where open layouts are essential. The absence of certain walls provides design flexibility and adaptability, making them ideal for projects requiring spacious interiors or non-standard configurations. Open-sided modules also simplify the inclusion of windows, doors, and additional features during assembly.

Partially open-sided modules balance the structural stability of four-sided modules with the flexibility of open-sided ones. By incorporating selective open walls, these modules allow for creative layouts while maintaining structural integrity. This type is particularly useful in projects like educational facilities, hospitality spaces, or mixed-use developments where a blend of enclosed and open spaces is required. Partially open-sided modules also facilitate better integration of utilities and services, enhancing overall project efficiency.

Mixed modules and floor cassettes combine various modular elements to create more complex and functional buildings. Floor cassettes are pre-fabricated sections that serve as structural bases, while mixed modules can include both open and enclosed designs. This approach is ideal for multi-story buildings or projects requiring diverse layouts, such as offices or schools. The flexibility of mixed modules and floor cassettes allows for customization and scalability, offering cost-effective solutions for large-scale developments.

Modules supported by a primary structure rely on an external frame or skeleton for stability, allowing for lighter and more flexible designs. These modules are commonly used in high-rise buildings, bridges, or other projects requiring additional support. By transferring the structural load to the primary frame, these modules reduce material usage and simplify construction. This type is particularly advantageous in urban settings, where maximizing space and minimizing construction time are critical.

Analysis by Material:

• Steel
• Concrete
• Wood
• Plastic
• Others
   

Steel is a cornerstone material in the U.S. modular construction market, valued for its strength, durability, and adaptability. Its high tensile properties make it ideal for large-scale projects like commercial buildings and industrial facilities. Steel modular units are resistant to extreme weather and provide long-term structural integrity, which is essential for urban and high-rise constructions. Additionally, steel is recyclable, aligning with growing environmental standards. Its precision in prefabrication also ensures seamless assembly on-site, reducing construction time and costs.

Concrete is widely used in modular construction due to its exceptional strength and versatility. It is particularly favored for applications requiring fire resistance and soundproofing, such as multi-family housing, schools, and healthcare facilities. Precast concrete modules offer superior load-bearing capacity and are highly customizable to meet specific design needs. The material’s durability ensures long-lasting performance in both residential and commercial projects. Concrete’s ability to be produced locally also helps reduce transportation costs, making it a practical choice for many developers.

Wood is a popular choice in modular construction, especially for residential and smaller-scale projects. Known for its natural aesthetic and sustainability, wood is lightweight yet structurally sound, making it easy to transport and assemble. Engineered wood products, such as cross-laminated timber (CLT), enhance strength and stability while maintaining an eco-friendly profile. This material is also favored for its energy-efficient properties, offering good insulation in a variety of climates. Wood-based modular units often appeal to developers seeking cost-effective and visually appealing solutions.

Plastic is gaining traction in modular construction for its lightweight, durable, and weather-resistant properties. Often used in conjunction with other materials, plastic is ideal for specific components like wall panels, roofing, and insulation. Its resistance to moisture and corrosion makes it suitable for modular units in challenging environments. Additionally, plastic offers design flexibility, enabling the creation of innovative shapes and finishes. With the growing focus on sustainability, recycled plastics are also being integrated into modular projects to reduce environmental impact.

Analysis by End Use:

• Residential
• Commercial
• Education
• Retail
• Hospitality
• Healthcare
• Others
   

Modular construction is transforming the residential sector in the United States, offering an efficient way to address housing shortages and meet growing demand for affordable and luxury homes. This method is popular for single-family homes and multi-family units, as it significantly reduces construction timelines and costs. Urban areas, in particular, are seeing increased adoption due to limited space and high real estate prices. With the ability to customize designs and ensure high-quality finishes, modular construction is becoming a preferred choice for modern residential developments.

In the commercial sector, modular construction is being used to streamline projects such as office buildings, mixed-use developments, and industrial facilities. Its ability to cut down on-site time while maintaining strict quality standards makes it ideal for developers seeking faster project completion. The flexibility of modular solutions allows for tailored designs that suit specific business needs, whether it’s a corporate office or a manufacturing plant. The method’s cost efficiency and minimal environmental impact further boost its appeal in this market.

The education sector is increasingly leveraging modular construction for schools, universities, and training centers. This approach offers a rapid solution for expanding facilities or building entirely new campuses. Modular classrooms and administrative buildings are especially popular due to their cost-effectiveness and ability to meet modern learning requirements. With an emphasis on creating safe and energy-efficient spaces, modular construction is helping educational institutions keep pace with growing student populations and the need for upgraded facilities.

Retailers are adopting modular construction to quickly establish storefronts, shopping centers, and pop-up locations. This method enables faster rollouts, particularly for chains aiming to expand across multiple locations. Modular construction also allows for customized layouts that reflect brand identity while optimizing space utilization. In addition to speed, this approach ensures durability and flexibility, making it an attractive option for retailers in both urban and suburban markets.

The hospitality industry is turning to modular construction for hotels, resorts, and extended-stay accommodations. This method shortens project timelines, helping operators open new locations faster and generate revenue sooner. Modular units are pre-built to exacting standards, ensuring consistent quality and reducing on-site disruptions. From boutique hotels to large-scale resorts, the ability to deliver customizable and sustainable structures is driving demand for modular construction in this sector.

Modular construction is gaining momentum in healthcare, where speed and precision are critical. Hospitals, clinics, and urgent care facilities benefit from modular designs that can be assembled quickly without compromising quality. This approach is particularly useful for adding temporary or permanent structures in response to growing patient needs. With a focus on hygiene, safety, and advanced technology integration, modular construction is helping healthcare providers expand and modernize their facilities efficiently. 

Regional Analysis:

• Northeast
• Midwest
• South
• West
   

In the Northeast, modular construction is gaining traction in bustling cities like New York and Boston, where space is tight, and time is money. Developers are turning to modular methods to quickly meet the demand for housing and commercial buildings while minimizing disruptions in busy urban areas. The region’s cold winters make this approach even more appealing, allowing much of the work to happen off-site. Strict building regulations also play a role, as modular construction offers precision that aligns well with local codes.

The Midwest is becoming a stronghold for modular construction, fueled by the need for housing, industrial facilities, and public infrastructure. With a shortage of skilled labor in many rural areas, modular solutions are filling the gap by offering quicker assembly and reduced on-site work. Affordable land and growing industries like agriculture and manufacturing make this approach especially practical. States like Michigan and Illinois are also seeing modular construction expand into schools, healthcare facilities, and logistics centers.

In the South, modular construction is booming as cities expand rapidly, particularly in states like Texas and Florida. The region’s vulnerability to hurricanes has led to an emphasis on building codes, and modular construction is known for its strength and compliance. Developers are using it to meet the soaring demand for affordable housing and commercial spaces. With its fast assembly process, modular construction has become a go-to option for retail stores, hotels, and large-scale residential projects across the region.

The West, especially California and Washington, is embracing modular construction as a solution to skyrocketing housing costs and chronic shortages. Urban areas are adopting this method to quickly add housing units while keeping projects affordable. Sustainability is a big focus here, and modular construction’s efficiency aligns with the region’s eco-friendly values. Public infrastructure and commercial developments are also tapping into modular techniques, with advanced technologies like 3D printing and BIM streamlining the process even further.

Competitive Landscape:

The United States modular construction market is highly competitive, with several established players and emerging companies driving innovation. Key players include firms specializing in both residential and commercial modular solutions, offering diverse products such as modular offices, homes, and infrastructure components. Companies are differentiating themselves through superior product quality, customization options, and faster project timelines. For instance, in November 2024, Safe & Green Holdings Corp., a U.S. based modular solutions company, saw notable progress for a nine-month period of 2024, with a USD 886,000 increase in gross profit and a USD 4 million reduction in operating expenses. These achievements highlight the company's focus on efficient, disciplined growth. The completion of key government projects and new SG DevCorp commitments emphasize Safe & Green's growing role in modular construction and sustainable infrastructure solutions. Additionally, increased demand for affordable housing and sustainable construction solutions is intensifying market competition, leading to greater focus on cost-effectiveness, speed, and environmental impact in modular construction projects.

The report provides a comprehensive analysis of the competitive landscape in the United States modular construction market with detailed profiles of all major companies.

Latest News and Developments: 

• In December 2023, ABJA Ohana LLC secured an exclusive distribution agreement with TLC Modular Construction LLC, a global leader in factory-built housing. The partnership will establish TLC Modular USA Inc. to develop, market, and distribute high-quality homes and apartment buildings in the U.S. With a manufacturing facility in Vietnam, TLC Modular USA aims to address the demand for affordable, sustainable housing across the country.

United States Modular Construction Market Report Scope:

Key Benefits for Stakeholders: 

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the United States modular construction market from 2019-2033. 
• The research study provides the latest information on the market drivers, challenges, and opportunities in the United States modular construction market. 
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the United States modular construction industry and its attractiveness. 
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.