Modular Construction at a Glance: Market, Opportunities, and Key Success Factors

October 16, 2025

Modular construction is rapidly emerging as a groundbreaking approach to address the pressing challenges faced by the real estate and construction industries. Rising construction costs, labor shortages, and a lack of available housing can be mitigated through this method by leveraging shorter construction timelines, greater planning reliability, and enhanced sustainability.

The industrial pre-fabrication of building components in factory settings enables weather-independent, standardized production at a consistently high level of quality. This accelerates project realization, significantly improving the ability to respond to urgent needs in residential, educational, or healthcare construction. Digital tools such as Building Information Modeling (BIM), combined with advancements in auto-mation and robotics, further increase efficiency, reduce error rates, and lower on-site emissions.

A key success factor lies in precise pre-planning. Decisions regarding the construction system must be made in the earliest phases of a project, requiring close, interdisciplinary collaboration among all stakeholders. Material selection also plays a critical role in economic viability: Wood products, for example, stand out for their CO₂ storage capabilities but often come with higher costs compared to steel or concrete-based construction methods. Steel modules, on the other hand, frequently offer a more cost-effective and readily available alternative.