Modular Homes Market By Product (Cape Cod, Cabin & Chalet, Ranch, and Two-Storey Homes), Size (Up to 999sq ft., 1000-2000sq ft., and More than 2000sq ft.), Type (Permanent, and Relocatable), and Region - Market Perspective, Market Intelligence, Comprehensive Analysis, Historical Data, and Forecast for 2023 - 2032
Market Perspective
The global Modular Homes Market has experienced significant growth in recent years and is expected to continue its growth trajectory over the forecast period. As of 2022, the market was valued at approximately USD 83.16 billion and is projected to grow to USD 151.33 billion by 2032, representing a compound annual growth rate of roughly 6.17% between 2023 and 2032.
Modular and prefabricated homes are manufactured in a factory space, either entirely or partially, depending on the size and design of the home. The market's expansion is primarily driven by its cost-effectiveness, customization options, and the development of high-end materials for better-quality homes. Modular homes can be manufactured in a shorter time than conventional on-site buildings. However, the market is highly competitive, with established key players offering a wide variety of products and services to consumers.
Companies are providing consumers with a range of customizations to choose from before finalizing their purchase. This has created ample opportunities for the market's expansion. Sustainable modular home solutions, which utilize recycled and sustainable materials, are among the most recent developments in the market and are expected to drive growth in the market throughout the forecast period.
North America and Europe are among the prominent regions in the modular homes market. These regions have developed economies and higher disposable incomes than other regions. Limited availability of land is another factor that has contributed to the market's growth in Europe.
Key Insights
- Based on the product, the ranch segment held the largest market share
- Based on the size, the up to 999sq ft. segment dominated the market
- On the basis of region, Europe accounted for the largest market share
Optimum Solutions of Modular Homes is Observing a Shift
Modular and prefabricated homes are designed with a futuristic perspective, providing consumers with maximum space allocation in a compact area, as well as smart features and innovative solutions. One of the key developments in the market is the introduction of relocatable modular homes, which offer product innovation and flexibility. These homes are manufactured in factory spaces and transported to the desired location, giving consumers the freedom to design their homes according to their preferences. As a result, there has been a significant shift from traditional construction methods to modular home solutions.
Cost Effectiveness and Modern Solutions to Drive the Market
Modular homes offer a cost-effective alternative to traditional homes due to the materials utilized in the building process. While transportation costs may be similar, the cost of construction and installation of a modular home is generally lower than that of a traditional on-site home. This trend is particularly noticeable in North America, where the average cost of constructing on-site homes is significantly higher than that of modular homes. Consumers are increasingly drawn to the new style of living offered by modular homes, as the market continues to grow and provide a wider range of products and services to meet consumer demand.
Preconceived Notions of Durability and Quality Assurance will restrain the market
Consumers, particularly those with lower incomes, may be skeptical about the durability and quality of materials used in modular homes. As a result, the trend of owning prefabricated homes may not be appealing to all consumers in the market. Additionally, the modular home market may be limited by the additional costs of land and related services, which could potentially hinder its expansion.
Recent Development
December 2022: Modulaire Group acquired Mobile Mini UK. Modulaire Group is amongst the Asia Pacific and Europe’s top modular services companies while Mobile Mini UK is amongst the top supplier of materials necessary for innovative construction purposes. The acquisition focused on further strengthening Modulaire Group’s business in the U.K.
September 2021: Wernick Group acquired AVDanzer, a manufacturer and lessor of modular homes based in Manchester. The acquisition will further add fleets to Wernick Group’s portfolio along with talent
Segmentation Analysis
Based on product segment, the market is further categorized into Cape Cod, Cabin/Chalet, Ranch, and Two Storey homes. Ranch homes dominated the market in 2022, accounting for over 54% of revenues. Ranch homes are a single-story design, making them ideal for single-family living. They offer the best combination of design, utility, and cost for consumers. However, Ranch homes are typically located in suburban areas of North America and Europe, where space is readily available. The preferred size of a Ranch home is typically between 1000 and 2000 square feet, which is the most popular size for consumers.
Two-story homes are expected to experience rapid growth in the forecast period, following the Ranch home. This is due to the increasing adoption of modular and prefabricated homes within city limits, where the costs associated with traditional building methods are much higher. As a result, there is a growing demand for two-story modular homes in North America and Europe.
Based on size segment, the market is further categorized into Up to 999sq ft., 1000-2000sq ft., and More than 2000sq ft. Up to 999sq ft. dominated the size segment by accounting for more than 40% of revenues globally. The growth of the modular homes market can be attributed to the increasing need for affordable housing, especially in metro cities where space is limited. This housing category is particularly suitable for consumers residing in urban or rural areas. The market's innovative developments have resulted in the availability of smart space furniture, maximizing floor space even in small homes.
Europe to Continue Leading Global Modular Homes Market
Europe held the largest regional share accounting for more than 38% of global revenues. Several factors have resulted in the growth of the modular homes market in the region. Limited availability of land is one of the most crucial factors for consumers shifting toward the adoption of modular or prefabricated homes in Europe. Apart from geographical factors, uncertain weather conditions due to constantly changing seasons also have augmented the market. Expensive labor costs are observed to be another factor driving the demand for modular homes. The average cost of labor in Europe is high as compared to other regions. This is a result of the scarcity of professionals available in the construction industry.
Nordic countries such as Norway, Sweden, and Denmark are the prominent countries shifting towards the adoption of prefabricated homes. The trend is observed to incline towards sustainable building solutions in Europe which have further propelled the market. Extensive competition in the region has encouraged the key players to innovate further sustainable solutions and other services to attract a consumer base. To attract more investments, companies have started offering environment-friendly materials that are easy to dispose of or can be recycled. Thus, reducing the costs incurred.
North America to Observe Fastest Growth
North America has observed immense growth in the global modular homes market in recent years and is estimated to be the region that will grow at the fastest CAGR in the years to come. The presence of over 250 modular manufacturers in the region along with increasing demand from consumers for ready-made homes is accelerating the market growth in North America. The U.S. and Canada are among the prominent players in the region with the U.S. dominating the regional market.
According to National Low Income Housing Coalition (NLIHC), there has been a shortage of affordable homes for citizens in North America. The ratio declared was just over 37 homes available for rent for 100 families opting for renting. This shortage is anticipated to further bolster the demand for modular homes. Prefabricated or modular homes require less construction time as compared to concrete buildings. Few modular homes are also relocatable which further adds value to the demand. The cost-effectiveness of these homes, as well as fewer contributions to waste fill lands, are a few other factors resulting in the growth of the modular homes market.
Competitive Landscape
- ALGECO
- Bouygues Construction
- CLAYTON
- FLEETWOOD AUSTRALIA
- KLEUSBERG GmbH & Co. KG
- Lendlease Corporation
- Modulaire Group
- Modular Space Corporation
- NRB Modular Solutions Inc.
- TOPHAT
- Wernick Group of Companies
The global modular homes market is segmented as follows:
By Product
- Cape Cod
- Cabin/Chalet
- Ranch
- Two-Storey Homes
By Form
- Up to 999sq ft.
- 1000-2000sq ft.
- More than 2000sq ft.
By Type
- Permanent
- Relocatable
By Region
- North America
- The U.S.
- Canada
- Mexico
- Europe
- France
- The UK
- Spain
- Germany
- Italy
- Nordic countries
- Denmark
- Finland
- Iceland
- Sweden
- Norway
- Benelux Reunion
- Belgium
- The Netherlands
- Luxembourg
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- New Zealand
- Australia
- South Korea
- Southeast Asia
- Indonesia
- Thailand
- Malaysia
- Singapore
- Rest of Southeast Asia
- Rest of Asia Pacific
- The Middle East & Africa
- Saudi Arabia
- UAE
- Egypt
- Kuwait
- South Africa
- Rest of the Middle East & Africa
- Latin America
- Brazil
- Argentina
- Rest of Latin America
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Modular Homes Market By Product
- March-2023
- 148
- Global
- machinery-equipment
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