Modular Construction Market In Healthcare Sector Analysis North America, Europe, Asia, Rest of World (ROW) - US, China, Japan, Germany, Canada, India, UK, Australia, France, South Korea - Size and Forecast 2024-2028

Modular Construction Market In Healthcare Sector Size 2024-2028 

The modular construction market in healthcare sector size is forecast to increase by USD 10.86 billion at a CAGR of 16.4% between 2023 and 2028. In the healthcare sector, modular construction, also known as off-site or prefabricated building, is gaining significant traction due to its capabilities in delivering customizable facilities. The increase in demand for healthcare services and customizable healthcare construction solutions is driving market growth, as modular construction allows for greater flexibility in design and layout. However, challenges persist, including concerns over standardization and weather-related issues. These challenges can be addressed through advancements in technology and collaboration between stakeholders. Modular facilities offer numerous benefits for the healthcare industry, particularly in the areas of therapeutics, biosimilars, and vaccines production. As the industry continues to evolve, modular construction will play an increasingly important role in meeting the unique needs of healthcare providers.

What will be the Size of the Market During the Forecast Period?

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The healthcare sector is witnessing a significant shift towards modular construction, with prefabricated buildings becoming an increasingly popular choice for constructing various facilities. This construction method offers several advantages, including efficient production, operational maintenance, and flexibility in design and scalability. One of the primary drivers for the growth of the modular construction market in healthcare is the technological advances in the industry. These advances enable the production of high-quality, customized modules off-site, reducing the need for extensive on-site work and minimizing weather-related concerns.

However, the market is not without its challenges. Regulations play a crucial role in shaping the modular construction landscape, with stringent guidelines in place to ensure the safety and quality of healthcare facilities. Inflation and raw material prices can also impact the profitability of modular construction projects. supply chain disruptions are another challenge that the market faces. Logistics and transportation of modules can be complex, and any delays or issues can significantly impact the project timeline and budget. The millennial population's growing demand for personalized healthcare services is also driving the adoption of modular construction in the sector. Modular facilities offer the flexibility to design and build customized therapeutic spaces, biosimilars manufacturing units, and temporary vaccines production facilities.

Furthermore, the use of modular construction in the healthcare sector is not limited to permanent structures. Temporary modular buildings are increasingly being used for various applications, such as emergency response facilities, quarantine centers, and field hospitals. In conclusion, the modular construction market in the healthcare sector presents several opportunities and challenges. While the advantages of this construction method are clear, the industry must address the challenges of regulations, supply chain disruptions, and inflation to fully realize its potential. With continued technological advances and a growing demand for personalized healthcare services, modular construction is poised to play a significant role in shaping the future of healthcare infrastructure.

Market Segmentation

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Type
  • Permanent modular construction
  • Temporary modular construction
• Application
  • Civil use
  • Military use
• Geography
  • North America
    • US
  • Europe
    • Germany
  • Asia
    • China
    • Japan
  • Rest of World (ROW)

By Type Insights

The permanent modular construction segment is estimated to witness significant growth during the forecast period. Permanent modular construction is revolutionizing the healthcare sector in the modular construction market by offering a more efficient solution compared to conventional masonry and blockwork methods. These systems utilize prefabricated panels and interlocking components that can be easily assembled on-site, making them suitable for both below and above-ground wall applications. The permanence of these structures eliminates the need for dismantling after construction, as concrete is poured directly into the formwork, resulting in a permanent structure and substantial time savings. The lightweight and adaptable design of permanent modular construction enables swift installation and construction processes. This approach not only expedites the building process but also decreases transportation, labor, and equipment expenses.

Further, healthcare stakeholders benefit from this flexibility and scalability, as they can quickly respond to changing healthcare needs by constructing temporary modular buildings or expanding existing facilities. Quality standards are maintained through the controlled production processes in the factory, ensuring consistency and accuracy. This modern construction method aligns with the demands of the healthcare industry for cost-effective, timely, and high-quality solutions.

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The permanent modular construction segment accounted for USD 3.43 billion in 2018 and showed a gradual increase during the forecast period.

Regional Insights

North America is estimated to contribute 32% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The healthcare sector in North America is witnessing a notable expansion in the adoption of modular construction. This trend is fueled by the demand for swift, affordable, and minimally disruptive building solutions. In Canada, the healthcare sector's modular construction market is gaining momentum, as evidenced by the project at Brockville General Hospital. Prior geopolitical conditions necessitated that patients seeking MRI scans travel long distances to Kingston or Smiths Falls. To alleviate this issue, a proposed off-site construction solution was adopted in early 2024. By constructing the MRI suite in a controlled environment and transporting it to the hospital, the project was completed more efficiently and economically compared to traditional methods.

Further, the technological advances in modular construction have streamlined the supply chain and logistics, making it an increasingly attractive option for operational maintenance and sales monitoring in the healthcare sector. Millennials, who are now the largest demographic in the workforce, also favor modular construction due to its sustainability and eco-friendly production processes.

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Market Driver

Increase in demand for customizable healthcare construction is the key driver of the market. The healthcare sector's modular construction market is experiencing significant growth due to the flexibility and efficiency offered by modular buildings for medical facilities. These structures can accommodate various essential healthcare units, including inpatient rooms, long-term care facilities, ICUs, operating rooms, outpatient clinics, and specialized services such as dialysis units, diagnostic imaging, and rehabilitation centers. The collaboration between companies and healthcare providers during the design and construction phases is a key advantage of modular healthcare construction. This partnership ensures that the delivered modular units are equipped with essential infrastructure, such as heating, ventilation, air conditioning systems, oxygen and suction lines, medical gas lines, wiring, and other utilities.

However, the modular construction market in the healthcare sector faces challenges such as supply chain disruptions, regulations, inflation, and fluctuating raw material prices. To mitigate these challenges, companies and healthcare providers are exploring plant-based alternatives, online platforms, and sustainable packaging solutions. Additionally, the increasing popularity of functional foods and the trend toward sustainability in the healthcare industry are also influencing the modular construction market. In conclusion, the modular construction market in the US healthcare sector is witnessing growth due to its ability to provide customizable and efficient medical facilities. The close partnership between companies and healthcare providers during the design and construction phases ensures that the delivered units are equipped with necessary infrastructure.

Market Trends

Rise in usage of modular construction in healthcare sector post covid-19 pandemic is the upcoming trend in the market. The modular construction market in the healthcare sector has experienced notable growth in the US, driven by the advantages it offers over traditional construction methods. Modular construction, or off-site fabrication, entails producing building components in a controlled factory setting and subsequently assembling them on-site. This approach encompasses prefabricated units, precast slabs, and other structural elements, all manufactured in modules for on-site assembly. The healthcare industry in the US has increasingly embraced modular construction to address infrastructure needs, particularly in light of the COVID-19 pandemic. Critical shortages in hospital capacity, medical personnel, essential medicines such as therapeutics, biosimilars, and vaccines have been exposed during this time.

Modular construction offers a solution by providing a faster and more efficient alternative to traditional construction methods. Additionally, its weather-resistant nature ensures minimal disruptions during construction, enabling healthcare facilities to continue their operations with minimal interruption. In summary, the modular construction market in the US healthcare sector has gained traction due to its numerous benefits, including faster construction times, improved quality, and weather resistance. The ongoing pandemic has the importance of adaptable and efficient healthcare infrastructure, making modular construction an attractive option for healthcare providers.

Market Challenge

Construction issues related to standardization in healthcare sector is a key challenge affecting the market growth. The healthcare sector's modular construction market in the United States is confronting critical challenges, primarily focusing on safety regulations and compliance. In May 2024, a devastating fire incident took place at a children's hospital in East Delhi, Rajkot, resulting in the loss of 34 lives, including seven newborns. Although the investigation into the cause of the fire is ongoing, there are serious concerns regarding the illegal refilling of gas cylinders within the hospital premises. Safety measures and enforcement are paramount in the healthcare sector, especially with the increasing adoption of advanced technologies such as Blockchain and the Internet of Things (IoT) in modular construction.

These technologies offer enhanced security and transparency, ensuring the organic, vegan, bio-based, canned/ready-to-eat, and clean label products in healthcare facilities meet the highest safety standards. Moreover, the use of sustainable and eco-friendly materials in modular construction aligns with the growing trend towards sustainability and health consciousness in the US. As the demand for modular construction in the healthcare sector continues to increase, it is crucial to prioritize safety, compliance, and the use of innovative technologies to create a safe and efficient healthcare infrastructure. In conclusion, the modular construction market in the US healthcare sector is undergoing significant changes, driven by the need for advanced safety measures, compliance, and the integration of innovative technologies like Blockchain and IoT.

Exclusive Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Black Diamond Group Ltd: The company offers medical modular buildings for lease and sale through its subsidiary BOXX Modular.

The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• BMarko Structures LLC
• Commercial Structures Corp.
• Cotaplan
• Elite Systems GB Ltd.
• EPACK Polymers Pvt Ltd.
• Fero International Inc
• MCC Group London
• Midlands Portable Buildings
• Modulaire Group
• Modular Genius
• Modulus Housing
• MTX Contracts Ltd.
• POL R Enterprises Inc.
• Premier Modular Group
• Pressmach Infrastructure Pvt Ltd.
• Ramtech Building Systems Inc.
• Red Sea International Co.
• Rheinmetall AG
• Triumph Modular Inc.
• Vanguard Healthcare Solutions
• Wilmot Modular Structures Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Research Analyst Overview

The modular construction market in the healthcare sector is experiencing significant growth due to various factors. Technological advances have enabled efficient production methods, allowing for the quick assembly of prefabricated buildings and off-site construction of healthcare facilities. This is particularly important in the healthcare industry, where construction timelines must be carefully managed to minimize disruptions to operations. Supply chain logistics are also a critical consideration in the healthcare sector, with regulations and inflation impacting raw material prices and production processes. To mitigate supply chain disruptions, many healthcare stakeholders are turning to modular facility providers for their construction needs. Millennials, who are increasingly demanding personalized and convenient healthcare solutions, are also driving demand for modular facilities.

Further, these buildings offer design flexibility and scalability, making it easier to create customized healthcare solutions that meet the unique needs of different patient populations. Sustainability is another key trend in the modular construction market, with a growing focus on plant-based alternatives, sustainable packaging, and functional foods. Modular facilities are well-suited to meet these demands, with the ability to incorporate organic, vegan, bio-based, and clean label options into their design. The use of advanced technologies, such as blockchain and the Internet of Things, is also transforming the modular construction market. These technologies enable real-time sales monitoring, operational maintenance, and quality standards, ensuring that healthcare facilities remain up-to-date and compliant with industry regulations.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2024 and 2028
• Precise estimation of the size of the market  and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming market growth and trends and changes in consumer behaviour
• Growth of the market across North America, Europe, Asia, and Rest of World (ROW)
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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