Panelized Modular Building Systems Market By Type (Wall Panels, Floor Panels, Roof Panels, Staircase Panels); By Material (Wood, Concrete, Steel, Hybrid); By Construction Type (Permanent Modular Construction, Relocatable Modular Construction); By End-User (Homeowners, Builders & Contractors, Developers, Government Agencies); By Geography, Segment revenue estimation, Forecast, 2024-2032.

The panelized modular building systems market was worth USD 55.2 billion in 2023 and will be worth USD 97.5 billion by 2030, growing at a CAGR of 8% during the forecast period.

 

The Panelized Modular Building Systems market is driven by the increasing demand for affordable, energy-efficient housing and the need for faster construction methods. Since the current world’s urbanization estimates are likely to reach 68% in 2050; therefore, modular construction is a solution because it cuts down the construction period by half compared to conventional construction. For instance, there is a rise in modular homes, especially in the U.S. and Europe, because they can be produced in factories and then shipped to the site in segments to cut labor and construction material. The new trends include incorporating sustainable raw materials and energy-conserving technologies into the panelized systems, thus satisfying the green buildings’ requirements. Also, governments are adopting modular construction as one of the ways of solving the housing deficit, thus propelling the market.

 

One big potential for growth in the Panelized Modular Building Systems market includes an increase in the construction of sustainable, low-cost houses, especially in the regions with a housing deficit. According to business forecasts, the global demand for new housing units will exceed 2 billion by 2030, so modular construction is significantly faster and more cost-effective than traditional construction. For instance, panelized systems may reduce construction time by a third or even 40%, depending on the panelization degree and material waste by up to 27%. The latest trends include the use of such features as eco-friendly materials and green energy sources, like solar panels, in the construction of modular structures to suit green building projects. North American and European governments are increasingly providing incentives and pushing for regulatory changes to adopt modular construction as a solution to housing shortages, which is a driving force in the development of this market.

 

 

Market Segmentation

By Type:

• Wall Panels

• Floor Panels

• Roof Panels

• Staircase Panels

 

By Material:

• Wood

• Concrete

• Steel

• Hybrid

 

By Construction Type:

• Permanent Modular Construction

• Relocatable Modular Construction

 

By End-User:

• Homeowners

• Builders & Contractors

• Developers

• Government Agencies

 

By Region

North America

• US

• Mexico

• Canada

• Rest of North America

 

Europe

• Switzerland

• Russia

• France

• Germany

• U.K

• Finland

• Turkey

• Netherlands

• Belgium

• Spain

• Italy

• Rest of Europe

 

Asia Pacific

• India

• China

• South Korea

• Japan

• Singapore

• Thailand

• Indonesia

• Malaysia

• Philippines

• Australia

• Rest of Asia-Pacific

 

LAMEA

• Brazil

• Argentina

• Uruguay

• Saudi Arabia

• Rest of LAMEA

 

Segment Analysis for Panelized Modular Building System Market

By Type:

Leading Segment: Wall Panels

Wall panels dominate the market, contributing over 40% of the market share due to their extensive use in both residential and commercial constructions. Wall panels are crucial for structural integrity and energy efficiency, making them popular among builders and contractors. The adoption of prefabricated insulated wall panels in the United States has grown significantly due to stricter energy regulations.

Fastest-Growing Segment: Roof Panels

Roof panels are growing at a CAGR of 9.2% which is driven by increasing demand for lightweight & durable materials in modular construction. These panels provide superior thermal insulation & water resistance which makes them ideal for harsh weather conditions. Countries like China & India are rapidly adopting roof panels in affordable housing projects, fueling their growth.

 

By Material:

Leading Segment: Steel

Steel accounts for approximately 35% of the market share due to its high strength, durability & recyclability. Steel panels are widely used in commercial & industrial applications, particularly in North America & Europe, where sustainability and long-term performance are key considerations. Companies like Tata Steel & BlueScope are innovating steel panels with advanced corrosion resistance and aesthetic finishes.

Fastest-Growing Segment: Hybrid

Hybrid panels, combining materials like steel, wood & concrete, are witnessing the highest growth with a CAGR of 10.1%. These panels offer the advantages of multiple materials, such as strength, flexibility & cost-effectiveness, making them popular for custom modular constructions. Governments in Europe are promoting hybrid panels in green building initiatives, boosting their adoption.

 

By Construction Type:

Leading Segment: Permanent Modular Construction

Permanent modular construction holds a market share of over 55% due to its increasing adoption in large-scale residential & commercial projects. It provides long-lasting & sustainable building solutions, with lower lifecycle costs compared to traditional construction. For example, permanent modular schools and healthcare facilities are becoming common in developed countries like the U.S. and Germany.

Fastest-Growing Segment: Relocatable Modular Construction

Relocatable modular construction is growing at a CAGR of 9.8%, driven by the need for temporary structures in disaster relief, military camps, and remote industrial projects. Relocatable modular units were widely deployed during the COVID-19 pandemic for temporary healthcare & quarantine facilities, showcasing their flexibility & rapid deployment capabilities.

 

By End-User:

Leading Segment: Builders & Contractors

Builders and contractors dominate the market with a 40% share, as they are the primary adopters of modular building systems for large-scale construction projects. These stakeholders prefer panelized systems for their time and cost efficiency. For example, in the U.S., modular systems are increasingly utilized in urban housing projects to meet rising demand.

Fastest-Growing Segment: Government Agencies

Government agencies are growing at a CAGR of 10.5%, fueled by their adoption of modular building systems for affordable housing, educational facilities & public infrastructure projects. Governments in Asia Pacific & Africa are leading this growth by investing in modular solutions to address housing shortages. For instance, India's Smart Cities Mission promotes modular constructions for urban development.

 

By Region:

Leading Region: North America

North America leads the market with a 38% share, driven by high demand for sustainable construction practices and advanced modular technologies. The U.S. is the primary contributor, with increasing adoption of panelized systems in residential, healthcare, and educational projects. For example, companies like Katerra and Entekra have been instrumental in promoting panelized modular solutions across the region.

Fastest-Growing Region: Asia Pacific

Asia Pacific is the fastest-growing region, with a CAGR of 11.2%, driven by rapid urbanization and government-led affordable housing programs. Countries like China & India are leading the adoption of panelized systems to meet the demands of large-scale construction projects. For example, the Pradhan Mantri Awas Yojana in India has spurred the adoption of modular construction for mass housing.

 

Key Players

• Laing O’Rourke

• Red Sea International

• Katerra

• Sekisui House

• Skanska AB

• Bouygues Construction

• Algeco Scotsman

• Modular Space Corporation

• Lendlease Corporation

• Champion Home Builders

• Pleasant Valley Homes

 

Panelized Modular Building Systems Market Report Coverage

Report Attribute	Details
Forecast Period	2023 – 2030
Market Size Value in 2023	USD 55.2 billion
Revenue Forecast in 2030	USD 97.5 billion
Overall Growth Rate	CAGR of 8%
Base Year for Estimation	2022
Historical Data	2017 – 2021
Unit	USD Billion, CAGR (2023 – 2030)
Segmentation	By Type, By Material, By Construction Type, By End-User, By Region
By Type	Wall Panels, Floor Panels, Roof Panels, Staircase Panels
By Material	Wood, Concrete, Steel, Hybrid
By Construction Type	Permanent, Relocatable
By End-User	Residential, Commercial, Industrial
By Region	North America, Europe, Asia-Pacific, LAMEA
Country Scope	US, Canada, Mexico, UK, Germany, France, China, Japan, India, South Korea, Australia, etc.
Pricing and Purchase Options	Avail customized purchase options to meet your exact research needs.