Top 10 Countries Leading Modular Building Production in 2025

Modular construction, a transformative approach to building, involves prefabricating building components off-site in controlled factory environments before assembling them on-site. This method is gaining global traction due to its efficiency, sustainability, and ability to meet housing and infrastructure needs. In 2025, the global modular construction market is valued at approximately $111.07 billion and is projected to grow at a compound annual growth rate (CAGR) of 7.9% to reach $162.42 billion by 2030. This article examines the top 10 countries leading modular building production in 2025, highlighting their market contributions, innovations, and key drivers.

What is driving the growth of modular construction?

Modular construction is revolutionizing the construction industry by offering faster project timelines, cost efficiencies and reduced environmental impact. The global push for affordable housing, rapid urbanization and sustainable building practices is driving its adoption. Key factors include:

• Speed and efficiency: Modular construction reduces project timelines by 30-50% compared to traditional methods because off-site fabrication occurs simultaneously with site preparation.
• Sustainability: Factory-controlled production minimizes material waste and energy consumption, aligning with global green building initiatives.
• Labor Shortages: Off-site construction alleviates skilled labor shortages by streamlining processes and requiring fewer on-site workers.
• Government support: Countries such as the UK and China are implementing policies to promote modular construction for housing and infrastructure.

Below, we rank the top 10 countries based on their modular construction market share, production capacity, and innovation in 2025, supported by data and insights.

Top 10 countries in modular building production

1. China Market

China leads the global modular construction market, driven by rapid urbanization and government-sponsored infrastructure projects. In 2025, China’s modular construction segment is valued at approximately $27.9 billion, with the highest projected CAGR of 8.06% through 2030. The country’s massive population and housing needs, coupled with innovations such as the Broad Group’s 10-story Living Building, which was assembled in 28 hours, demonstrate the country’s advanced capabilities. Companies such as CIMC Modular Building Systems Holdings Co., Ltd. are pioneering solutions such as the CloudConnect MEP system, which reduces construction costs by up to 30%.

2. The United States

The U.S. modular construction market is valued at $11.23 billion in 2025, with a projected CAGR of 7.8% through 2030. The hospitality, education, and healthcare sectors are driving demand, and companies such as Sunbelt Modular Inc. are expanding through acquisitions such as BRITCO Structures. The U.S. is benefiting from technological advances such as Building Information Modeling (BIM) and a focus on permanent modular construction (PMC), which has a 70.6% market share.

3. GERMANY

Germany is a European leader, with its modular construction market contributing significantly to the region’s $43.95 billion market share in 2024. The country emphasizes sustainability, using eco-concrete and advanced manufacturing for affordable housing. Companies such as Maxmodul and Technomodul use innovative technologies for fast, high-quality construction. Germany’s stringent building codes and green initiatives make it a hub for modular innovation.

4. United Kingdom

The UK modular construction sector is being driven by a government target to build 300,000 new homes per year by 2025. The market is valued at around $10 billion by 2025, with a focus on affordable housing and student accommodation. Companies such as Laing O’Rourke and Premier Modular Limited are key players, integrating digital twin technologies and BIM.

5. JAPAN

Japan’s modular construction market is thriving due to the need for earthquake-resistant buildings and quick disaster recovery solutions. Valued at $8.5 billion by 2025, the market is benefiting from companies like Sekisui House Ltd. that focus on sustainable materials and high-tech modular designs. Japan’s emphasis on innovation aligns with its urban growth and environmental goals.

6. INDIA

India’s modular construction market is growing rapidly, driven by urbanization and government initiatives for smart cities. The market, which will be part of the Asia Pacific’s $25 billion market in 2024, is expected to reach $45 billion by 2035. Companies such as Larsen & Toubro Limited are expanding modular applications in residential and commercial sectors, supported by favorable regulations.

7. CANADA

Canada’s modular construction industry, valued at CAD 33-35 billion annually, is focused on multi-family housing, healthcare and education. ATCO Ltd.’s acquisition of NRB Limited in 2024 strengthens its market position. The Canadian market is benefiting from a shift towards multi-family housing in urban centers such as Vancouver and Toronto.

8. Sweden

Sweden, part of Europe’s leading modular market, is focused on sustainability and energy efficiency. The country’s market, valued at $5.2 billion by 2025, is being driven by projects such as Unity Malmö, a 450-unit student housing complex. Companies such as Skanska AB are leading the way with innovative, environmentally friendly modular solutions.

9. Finland

Finland’s modular construction sector, valued at $3.8 billion in 2025, focuses on sustainable wood-based modules using cross-laminated timber (CLT). The country’s green building policies and high adoption rates contribute to its strong market presence in Northern Europe.

10. Australia

Australia’s modular construction market, valued at USD 4.5 billion in 2025, is driven by demand for affordable housing and infrastructure. Companies like Lendlease Corporation utilize modular techniques for commercial and residential projects, supported by technological advancements like 3D printing.

Market Data and Insights

The following table summarizes the estimated modular construction market size and key drivers for the top 10 countries in 2025.

Source: Compiled from various industry reports.

Key trends shaping modular construction in 2025

Technological Advancements

• Building Information Modeling (BIM): Widely used in the United Kingdom, Germany, and the United States, BIM improves project visualization and efficiency.
• 3D Printing: Australia and Japan integrate 3D printing for faster module production.
• IoT and smart modules: Companies such as NxtGen Modulares Bauen in Germany are developing IoT-enabled modular solutions for pharmaceutical manufacturing.

Sustainability Focus

• Environmentally friendly materials: Wood, especially CLT, dominates in Finland and Sweden and has a 59.2% market share worldwide due to its sustainability.
• Circular construction: Modular designs allow for reuse and repurposing, reducing waste and promoting circularity.

Sector-specific applications

• Residential: Housing shortages in the UK, India and China are driving modular adoption for affordable housing.
• Healthcare and Education: Canada and the U.S. use modular construction for rapidly deployable hospitals and schools.
• Commercial: The United Kingdom and Germany are leaders in modular office and retail space.

Challenges facing modular construction

Despite its growth, modular construction faces challenges:

• Logistical barriers: Transporting large modules, especially in rural areas, increases costs.
• Regulatory hurdles: Germany’s strict building codes, while promoting sustainability, can delay projects.
• Skilled labor shortage: The UK and Japan report a shortage of workers trained in modular techniques.

Regional Insights

Asia Pacific

The Asia-Pacific region, led by China, India, and Japan, holds a 45.32% share of the global market in 2024, driven by urbanization and infrastructure investments. Government subsidies and high steel and cement production in China support its dominance.

EUROPE

Europe is led by Germany, the UK, Sweden and Finland with a 42% market share. The region’s focus on sustainability and energy efficiency is driving modular adoption.

North America

North America, particularly the U.S. and Canada, accounts for 14.4% of the global market. Technological advancements and urban growth are driving the demand.

Key players in modular construction

The global market is consolidating, with key players driving innovation:

• Sekisui House Ltd. (Japan): Focuses on sustainable modular housing.
• Laing O’Rourke (UK): Integrates robotics and BIM.
• Skanska AB (Sweden): Leader in environmentally friendly solutions.
• ATCO Ltd. (Canada): Expands through acquisitions such as NRB Limited.
• CIMC-MBS (China): Innovating with cost-saving MEP systems.

Future Outlook

The modular construction market is poised for robust growth through 2030, driven by urbanization, sustainability goals and technological advances. China is likely to maintain its leadership, while Europe and North America will continue to innovate in green building practices. Emerging markets such as India and Australia are expected to see accelerated growth due to infrastructure needs.

Modular Construction Growth Projections (2025–2030)

Source: Industry reports.