The US modular construction sector is forecast to grow by $5.6bn between 2023 and 2027, partly driven by BIM and CAD contributing to improved innovation, efficiency and sustainability, according to a new study.
The report by Technavio said North America held the largest share of the global modular construction market in 2022, and the region is expected to experience exponential growth.
Demand is being driven by advances in modular construction, which have led to higher build quality, rigorous design standards and extensive customisation options. Structures are now manufactured in controlled environments, ensuring superior quality and adherence to safety standards.
BIM and CAD driving innovation
Technological advancements, such as Building Information Modelling (BIM) and computer-aided design (CAD), are driving innovation in the modular construction industry, the report said. These tools enable builders to visualise and optimise modular designs, streamline manufacturing processes and enhance project management capabilities.
Indeed, the analysis found sustainability is a key advantage of modular construction. By using offsite manufacturing processes and optimising material usage, modular construction also minimises waste and environmental impact compared with traditional construction methods.
Additionally, modular buildings often incorporate sustainable building materials and technologies, further reducing their carbon footprint.
The durability of modular construction is another significant factor driving its popularity in the housing, healthcare and industrial sectors. Modular buildings are constructed with high-quality materials such as steel, timber and modular concrete structures, ensuring resilience and resistance to natural disasters such as hurricanes, floods, wildfires and earthquakes.
This durability makes modular construction an attractive option for permanent and relocatable buildings alike. Government initiatives and support for modular construction are further propelling market growth, with policymakers recognising its potential to address housing shortages, improve infrastructure, and promote economic expansion. In addition to financial incentives, government agencies are implementing regulations and standards to ensure the safety, quality, and compliance of modular buildings with international and local building codes.
Challenges remain, but growth on the horizon
Despite these advancements, challenges remain, including skilled labour shortages, material wastage and regulatory hurdles.
However, with ongoing investments in research and development, advancements in manufacturing processes and a growing market share, the US modular construction market is poised for continued growth and expansion in the coming years.
