Middle East and Africa Modular Construction Market Size Expands at Steady CAGR of 7.9%
Rapid urbanization, a growing need for affordable housing, government initiatives to promote sustainable building methods, a desire for faster project delivery, and demand for energy-efficient structures are expected to contribute to the growth of the Middle East and Africa Modular Construction Market during the forecast period between 2023 and 2029.
BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the Middle East and Africa modular construction market size at USD 6.32 billion in 2022. During the forecast period between 2023 and 2029, BlueWeave expects the Middle East and Africa modular construction market size to grow at a CAGR of 7.9% reaching a value of USD 10.76 billion by 2029. The Middle East and Africa modular construction market is driven by several key factors. Firstly, rapid urbanization and population growth in the region are creating a demand for fast and cost-effective construction solutions. Secondly, the need for infrastructure development, including housing, healthcare facilities, and education institutions, is propelling the adoption of modular construction methods. The region's focus on sustainability and energy efficiency is also encouraging the use of eco-friendly modular building materials. Lastly, the ability of modular construction to mitigate labor shortages and reduce construction timelines is attracting both public and private sector investments, further boosting market growth.
Modular Construction – Overview
Modular construction is a construction method that involves building structures using prefabricated modules or components manufactured off-site and then assembled on-site. These modules can be anything from entire rooms to building sections. This approach offers numerous advantages, including faster project completion, reduced costs, improved quality control, and increased sustainability. Modular construction is versatile and applicable to various building types, from residential homes to commercial and industrial facilities. Its efficiency and flexibility make it a popular choice in the construction industry, as it allows for quicker and more cost-effective building solutions while maintaining high quality standards.
Sample Request @ https://www.blueweaveconsulting.com/report/middle-east-and-africa-modular-construction-market/report-sample
Prolonging Israel-Hamas War Affecting Market Growth
The raging war between Israel and Hamas, a Palestine-based militant and nationalist organization, sends shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war. The prolonging war in West Asia and escalating the Middle East will affect industries across verticals and regions.
Effects of the Israel-Hamas war on the Middle East and Africa modular construction market are primarily driven by uncertainties and instability in the Middle East region. The conflict creates an atmosphere of uncertainty that makes companies and policyholders wary. The Israel-Hamas conflict significantly impacts the construction industry in the Middle East and Africa, causing a multitude of challenges and uncertainties. The raging war in the region lead to increased risks for businesses in the construction market. They face elevated costs due to the higher probability of damage to properties, infrastructure, and assets. Additionally, the escalated geopolitical tensions can lead to changes in regulations and policies, affecting construction markets and investments. The environment of heightened risk often results in rising costs for businesses and individuals.
Impact of COVID-19 on Middle East and Africa Modular Construction Market
COVID-19 pandemic significantly impacted the Middle East and Africa modular construction market. Lockdowns, supply chain disruptions, and labor shortages slowed project timelines and increased costs. However, the industry also saw increased interest in modular construction due to its ability to reduce on-site labor and promote social distancing. This led to a surge in demand for healthcare facilities, quarantine centers, and affordable housing units, driving some growth in the market. Overall, the pandemic underscored the resilience and adaptability of modular construction in responding to crisis situations, but also highlighted the need for improved logistical planning and supply chain resilience in the region.
Middle East and Africa Modular Construction Market - By End User
By end user, Middle East and Africa modular construction market is divided into Residential, Hospitality, Healthcare, Education, Retail & Commercial, and Office segments. The residential segment is the largest contributor, reflecting the region's growing demand for efficient and cost-effective housing solutions. The hospitality segment is also significant, driven by the expansion of tourism and the need for rapid construction in the hospitality industry. Healthcare and Education segments are gaining prominence due to the increasing focus on healthcare facilities and educational infrastructure development. Meanwhile, the retail and commercial, as well as the office segments, are showing steady growth, indicating the versatility of modular construction across various industries within the Middle East and Africa.
Competitive Landscape
Middle East and Africa modular construction market is fiercely competitive. Major companies in the market include Katerra, Red Sea International, KEF Infra, Algeco Group, Aden Group, Afripanel, MEFAB, Gulf Prefab Houses Factory LLC, Premier Modular Limited, Al Falaah DG, and Elan Group. These companies use various strategies, including increasing investments in their R&D activities, mergers, and acquisitions, joint ventures, collaborations, licensing agreements, and new product and service releases to further strengthen their position in Middle East and Africa modular construction market.
Contact Us:
BlueWeave Consulting & Research Pvt. Ltd
+1 866 658 6826 | +1 425 320 4776 | +44 1865 60 0662
