News + Ideas

Sourced from Building, Design & Construction, March/April 2025

In its “2024 Permanent Modular Construction Report”, the Modular Building Institute estimated modular’s market share of new multifamily and commercial starts was 6.64% in 2023, based on data provided by 49 of the 255 modular manufacturers in North America. While that share compared impressively with 2.14% in 2025, it nonetheless exposed how factory-built construction and modularity still struggle to flow into the building mainstream.

Yet, some market watchers remain hopeful. McKinsey, for one, has projected global modular construction to climb to $1.1 trillion in value by 2040., from $180 billion in 2022. Why? One obvious reason is keeping up with demand: coming off two solid years, spending on nonresidential construction is expected to increase in 2025 and 2026.

The benefits of building in factories are being enhanced by advances in robotics. And there are enough projects out there to provide on-the-fence developers and contractors with benchmarks: The hotel chain citizenM has built 13 hotels using modular construction. In early December 2024, the developer Greystar RealEstate Partners opened a six-building modular apartment complex with 312 units in Coraopolis, Pa., whose components were manufactured at Greystar’s factory in Knox, Pa. That factory has six more complexes in its pipeline.

New York-based HWKN Architecture collaborated with developer Landmarken and fabricator Goldbeck on a 98,404 SF office in Bochum, Germany, that fosters human interaction and balance. The advantages of prefabrication, states HWKN, included welded cross-sections that are up to 40% lighter than conventional options, and thinner multi-story car park slabs.

Amanda Goldsmith, with the Project Manager MGAC, notes that modular construction is increasingly recognized for its efficiency and reliability compared to traditional building methods, “Mainly because it offers greater predictability in cost, schedule, and quality. Prefabricated components are produced off-site with rigorous quality control, reducing delays and defects, which makes this approach particularly valuable in the multifamily and hospitality sectors, where strict design and brand standards must be met. The efficient manufacturing and assembly process speeds up project timelines, offering a quicker path to market and a highly effective solution for addressing housing needs or rapidly rebuilding in areas impacted by natural disasters. At MGAC, we leverage our experience to streamline the modular construction process, ensuring that prefabricated components are integrated smoothly to maximize the value of this innovative approach.”