ASIA-PACIFIC MODULAR CONSTRUCTION MARKET FORECAST 2023-2032

The Asia-Pacific modular construction market growth analysis includes the evaluation of Japan, Australia & New Zealand, Indonesia, India, South Korea, Thailand, China, Vietnam, and Rest of Asia-Pacific. China remains a key player in the Asia-Pacific region, with robust construction activities fueled by economic growth. According to government reports, the Chinese construction sector expanded by 6.1% in 2020-2021, launching ambitious plans to relocate 250 million people to megacities over the next decade. 

Furthermore, China’s residential property sector is witnessing remarkable growth in sales and investments. However, the urban housing sector’s growth is slowing, with 22% of housing stock empty as of late 2019, contributing to a predicted construction decline and tax increase. Modular construction demand is expected to flourish despite these challenges, influenced by these diverse factors.

Japan’s construction sector, propelled by increased investments and household spending, is poised for moderate expansion over the next five years, despite a temporary slowdown due to the 2020 Olympic and Paralympic Games. Increasing tourism, city redevelopment, and government investment in reconstruction after natural disasters are projected to boost commercial construction, driving demand for modular construction methods in the densely populated, geographically unique nation.

The Asia-Pacific modular construction market segmentation includes the assessment by application, construction, and material. The market by material covers plastic, concrete, steel, and wood.

With its numerous forms and grades, structural steel is a fundamental component in the modular construction market, used extensively in building materials. Its diverse forms include H-shaped, I-shaped, and T-shaped beams, columns, and angles. These structures benefit from steel’s superior mechanical and chemical properties, such as high strength, tensile endurance, ductility, ease of fabrication, seismic resistance, and fast erection speed. Despite its weaker tensile strength, it is an effective reinforcing agent in concrete structures.

Both residential and commercial construction projects employ steel in various applications, from large permanent to temporary modular structures. Steel’s affordability, accessibility, strength, adaptability, durability, and recyclability contribute to its superior performance throughout a modular building’s life cycle.

Steel manufacturers increasingly deliver innovative building solutions that support energy-efficient and carbon-neutral construction. Commercial or industrial spaces, particularly those with large open areas, often utilize pre-engineered steel structural systems. Also, steel frames are lighter than traditional wall materials, facilitating easier lifting and moving of building structures, causing a lesser environmental disturbance and reducing costs.

Leading players in the Asia-Pacific modular construction market include Larsen & Toubro Limited, System House R&C Co Ltd, etc.

Larsen & Toubro Limited, a multinational conglomerate headquartered in Maharashtra, India, is a major player in various industries such as construction, technology, engineering, and manufacturing. L&T’s broad portfolio extends to diverse sectors, including hydrocarbon, infrastructure, power, process industries, and defense. L&T is a vital supplier to core sectors like aerospace, defense, petrochemical, oil and gas, thermal and nuclear power, fertilizer, refinery, and chemical, offering comprehensive turnkey solutions for gas and coal-based thermal power plants. The company’s manufacturing capabilities also encompass industrial valves, switchboards, equipment for welding and cutting, switchgear components, and electronic energy meter protection systems. Beyond its vast reach in India, L&T operates in numerous international markets, including Qatar, the UAE, Saudi Arabia, and Bangladesh. 

L&T’s precast concrete structures cater to airports, IT and institutional spaces, health & leisure facilities, and factories.