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The global room cell module market size was valued at USD 30.93 billion in 2019 and is projected to reach USD 46.17 billion by 2027, exhibiting a CAGR of 5.2% during the forecast period.
The construction of room cell module offers consistency in construction, as it significantly reduces onsite labor requirements, thus resulting in substantial cost savings. This module construction has minimal impact on the business and keeps it running smoothly as more than 80% of the construction is performed offsite. Being a greener construction technique, this process generates less waste in comparison with the on-site construction, resulting in low disturbance at site. Technological implications such as big data, artificial intelligence, building information modeling (BIM), etc, provides an overall ecosystem and nature of work to engineers for building management, architecture, quantity surveying, and structural engineering, thus enhancing the demand of the market worldwide.
COVID-19 to Obstruct the Ongoing & Upcoming Construction Opportunities
Wuhan (a city in China), has been a traditional supply chain base for the fabrication and construction sector. Considering the emergence of COVID-19 from Wuhan it has severely affected the export and import facilities globally, as 20% of the global trade of manufacturing intermediate fabrication products originated from China till March 2020. The sudden spread of the COVID-19 pandemic has increased the market ambiguity, leading to the shutdown of material production and ongoing construction projects across the world. UN Department of Economic and Social Affairs (DESA) stated that the COVID-19 has disrupted the international trade and global supply chain processes. However, after COVID-19 impact, unsettled international trade has adversely affected the market, especially in the U.K., Germany, China, India, etc. On a global level, the United States (machinery, precision instruments and automotive), the European Union (chemicals, automotive and machinery), the Republic of Korea (machinery equipment), Vietnam (communication equipment), Taiwan-Province of China (office machinery and communication equipment) and Japan (machinery and automotive) are the key economies that have observed severe impact on the aforesaid sectors due to COVID-19 pandemic. According to The Timber Trade Federation (TTF), the importers, distributors, and merchants in the United Kingdom have suspended their business activities. In addition, the U.K. timber importers have pushed back orders owing to supply chain disruption, thus limiting the wood and timber trading in European countries.
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Adoption of Innovative Approaches and Techniques to Spur the Market
Nowadays, pre-fabricated and room cell module construction is preferred in a variety of high-end residential and non-residential construction. Currently, this market is gaining more popularity in Europe, and APAC regions, owing to rising implementation of lean manufacturing, standardized project management, gaining traction in the construction industry. Evolvement of building information modelling (BIM) service has eased the room module construction activity. This is owing to the ability to feed digital design files directly into the machines for project management and conducting construction operations. For instance, Kateera, a Silicon Valley designed firm using a BIM solution for constructing large scale prefab buildings. Owing to the aforesaid reasons, the adoption of innovative techniques is considered to be an ideal trend in this business. In order to pioneer in the green technology, the major manufacturers are opting for implementation of PV modules and thin films over the room cell modules, gratifying the module market.
Enhanced Productivity with Reduced Construction Time to Propel Market
The governments and private sectors are making large investments in the construction of new residential & commercial buildings and public infrastructure, supporting the growth of the room unit construction industry. For instance, in 2017, the International Code Council (ICC) and the Modular Building Institute (MBI) join hands to accelerate the modular & off-site construction in Europe.Reduction in room modular structure cost and budget is one of the key productivity metrics for increasing the client’s reliability over the room cell module construction technique. Materials used are wood, timber, steel, and concrete, that offer dominant solution for the room structures to build a protective shell resisting the wind and water effectively. Henceforth, the consumption of cost-effective and highly durable material for building these structures leads to project quality and cost improvement, becoming a key driver for the market.
Adoption of Model-Driven Prefabrication & Green Building Module is Projected to Drive the Market
The usage of Building Information Modeling (BIM) by industry professionals is boosting the level of integration of the model-driven prefabrication process over the forecast period. Implementation of the prefabrication modules helps to meet the green building goals and is projected to grow vividly in the coming decade. In the current scenario, factors including, reduced material waste, reduced operational energy, safer working environment, and reduced disruption to surrounding community and building site claims for the sustainability benefits, thus driving the module market in the forecasted period.
Government Regulations for Module Transportation Hampers the Market
Transportation plays a major role in transporting the building modules to the actual site, as the size, width, and height restrict the transportation facility of these modules. Additionally, road transport and logistics limit the size of the preassembled building to 15 – 16.5 meters in length, 3.5 – 4 meters in width, and lifting capacity between 10 – 30 tons, thus encumbers the market growth. Moreover, the transportation of modules is governed by a complicated web of interstate and international regulations, leading to several issues in delivery time. Furthermore, sometimes the designing of modules do not comply with state and local building code that eventually restricts the transportation, resulting in obstruction for market growth.
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Steel Holds Major Market Share and Highest CAGR of the Market
The steel frame holds the largest Room Cell Module market share and is the fastest-growing segment, as it is highly procured material by the module construction manufacturers due to its high tensile strength with good ductility, affordable, and light in weight. Cross-laminated timber (CLT) is anticipated to have progressive growth rate over the forecasted timeline as it is highly preferred structural and prefabricated material used for building material with excellent soundproofing, fire safety, and air tightness properties, allowing to be used in cantilevered structures.
Wood being a heavy material and prone to fire limits its usage with stable demand in the market. Concrete is expected to depict moderate growth as it is a heavy material used only for building a strong floor base. The other segment is projected to witness stagnant growth due to its fragile composition.
China to Witness Highest CAGR Owing to Largest Steel Production Country Worldwide
China is one the largest steel producer across the world, with an increase of 92,267 thousand tons of steel production in April 2020. Rapid urbanization and a rising population have led to augmenting the room module construction across the country.
Non-Residential Application is Expected to be the Fastest-Growing Segment
Non-residential application is expected to portray the highest CAGR during the forecast period, due to the rising number of hotels and other start-ups in the developing economies. The healthcare sector comparatively has the highest demand for this module construction, owing to the current scenario led by the pandemic COVID-19. Taking into the consideration of maintaining social distance, the demand for such re-locatable modules is rising in the healthcare sector. Residential applications are projected to depict moderate growth, as the demand for re-locatable room cell module is expected to be steady in the forecasted period.
Asia Pacific Room Cell Module Market Size, 2019 (USD Billion)
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Asia Pacific is projected to be the fastest-growing region in the room cell module market over the forecasted timeline. Growth of the market is owed to the robust economic progress of the countries namely India, China, and Japan with the cumulative development of the market in Asia Pacific. Moreover, augmenting investments in non-residential sector uplifts the urbanization, thus initiates the eco-friendly room module manufacturing across the region. According to the UK Department for International Development survey, India witnessed 108% growth of start-up investments in 2018, where the total funding was USD 4.2 Billion from USD 2.0 Billion in 2017.
North America is expected to portray progressive growth in the market, as the government is investing in developing the infrastructure of the U.S. which includes several proposals without harming the environmental balance. As a result, the room module manufacturers are witnessing tremendous opportunities as these units are used in developing hospitals, hotels, residential buildings, etc.
Moreover, Germany is estimated to dominate the European market as there is drastic growth in investments of infrastructural megaprojects while considering the environmental impact. Similarly, the growing funds for non-residential and residential construction are offering beneficial opportunities for room unit manufacturers by enhancing their market footprint and product portfolio.
Similarly, the Middle East and Africa have the highest upcoming infrastructural development owing to the Saudi Vision 2030 with rising adoption of cost-effective room modules construction. Wherein, Latin America is expected to witness stagnant growth as a result of minimal room cell module market investments.
VONOVIA Collaborates with Max Bögl Bauservice GmbH & Co.KG to Strengthen Market Position and Growth
The major module manufacturers are focusing on partnerships that will benefit them to cater to their large customer base with reliable service, as well as uphold the market position. For instance, VONOVIA collaborated with Max Bögl Bauservice GmbH & Co.KG to construct a modular residential building named as ‘Amschwarzen Steg’ in Bayreuth, Germany.Besides, companies are focusing on enhancing their manufacturing processes and sites, filter the module prices to meet the rising need for room modules. With the need for maintaining the market position, key market player tends towards purchasing storage and production places, and invest in research and development to cater their customer’s requirement globally. Kaufmann Bausysteme GmbH bought production and storage halls for wooden units in Kalwang, owing to the increased orders of room module construction.
Theroom cell module market report provides an in-depth analysis of the market dynamics and competitive landscape. It provides various key insights including recent industry developments in this market, such as mergers & acquisitions, macro, and microeconomic factors, SWOT analysis, and company profiles.
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Value (USD billion)
By Material (Cross-country Level Analysis)
Fortune Business Insights says that the global room cell module market size was USD 30.93billion in 2019 and is projected to reach USD 46.17billion by 2027.
In 2019, the Asia Pacific market value stood at USD 9.57billion.
Growing at a CAGR of 5.2%, the market will exhibit steady growth in the forecast period (2020-2027).
The steel frame sub-segment is expected to be the leading segment in this market during the forecast period.
Enhanced productivity with reduced construction time and adoption of model-driven prefabrication & green building modules are major factors driving the growth of the market.
Katerra, Kaufmann Bausysteme GmbH & Max Bögl Bauservice GmbH & Co. KG are major players of the global market.
Asia Pacific dominated the market share in 2019.
Government regulations for module transportation is expected to hamper the adoption of the global market.
Non-Residential application is expected to drive the adoption of these modules with mounting investments.
The adoption of innovative approaches and techniques is the current market trend.
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