Modular & Prefab Construction Surge
Evanne Evans, 18 Jul 2025
The construction industry is undergoing a modular renaissance, with off-site fabrication rapidly transforming the design and assembly of buildings. Once viewed as a niche method, modular and prefabricated systems are now at the forefront of delivering speed and cost efficiency.
According to industry reports, the global modular construction market reached approximately US$104 billion in 2024 and is projected to grow to between US$140 and 160 billion by 2030, with compound annual growth rates (CAGRs) ranging between 6% and 8%. This represents a significant leap from the $91 billion figure in 2022, underscoring the sector’s rapid growth.
One driving force behind this shift is the demand for speedy and scalable solutions, particularly in disaster recovery. In Maui's post-fire rebuilding efforts, 450 modular units are under construction to house displaced families, boosted by a $185 million state investment.
Similarly, the Federal Emergency Management Agency (FEMA) recently issued a Request for Information, signaling serious interest in modular deployment for emergency response.
Modular homes are also gaining traction in mainstream markets. In Australia, the federal budget has earmarked AUD$54 million to promote prefab homes as a solution to the worsening housing crisis, with industry leaders cautioning that planning and regulatory delays could slow progress.
Overall, modular construction offers numerous advantages with faster build times, enhanced quality control, minimized on-site waste, and greater sustainability. Factory-built sections such as bathroom pods and wall panels are produced in controlled environments, reducing weather-related delays and streamlining logistics.
As global pressures for affordable housing, climate resilience, and keeping pace with infrastructure growth intensify, modular and prefabricated construction are stepping into the spotlight. With substantial investment, supportive policy signals, and proven performance, it’s clear that the prefab revolution is swiftly building momentum.
