MBI Reports $20.5 Billion U.S. Permanent Modular Market, Forecasts 6.5% Annual Growth Through 2030

The U.S. permanent modular construction market reached $20.5 billion in 2025, representing approximately 5.1% of construction activity in key market segments, and is projected to grow at a compound annual rate of 6.5% through 2030, according to new industry reports released today by the Modular Building Institute (MBI).

Developed in partnership with FMI Consulting, MBI’s 2026 Modular Construction Industry Reports include the 2026 United States Permanent Modular Construction Industry Report and the 2026 Canadian Permanent Modular Construction Industry Report. MBI also independently produced its 2026 North American Relocatable Buildings Industry Report. Together, the reports examine market performance, regional trends, growth opportunities, adoption barriers and the factors driving greater use of modular construction.

The U.S. report finds that multifamily housing remains the industry’s largest segment, while office and data center construction has emerged as a significant opportunity. The U.S. West leads the country in market size, supported by housing affordability pressures and disaster recovery needs.

“These reports show that modular construction is gaining ground because it addresses the problems owners and communities need solved now: housing shortages, limited labor, rising costs and schedules that cannot keep slipping,” said Tom Hardiman, CAE, executive director of the Modular Building Institute. “The opportunity is not simply to build faster. It is to deliver greater certainty, quality and capacity across the markets that need it most.”

The reports highlight several findings with broad implications for developers, public agencies, investors and construction leaders:

• Factory production can reduce project timelines by 20% to 50%, while improving quality control, reducing onsite disruption and helping owners reach occupancy sooner.
• Canada’s modular construction market now accounts for approximately 5.5% of the country’s overall construction market and is projected to outpace traditional construction growth by a full percentage point. Multifamily residential represents nearly half of Canada’s projected modular market and has the highest forecast growth rate, at 7.3%.
• North America’s relocatable buildings sector has moved beyond the idea of “temporary space.” Education and construction remain its anchor markets, but healthcare, disaster response, workforce housing, retail and industrial uses are growing. The market is also evolving toward a broader “space-as-a-service” model built around leasing, reuse, relocation, refurbishment, resale and value-added services.

The reports also identify obstacles that continue to limit wider adoption, including financing gaps, permitting and regulatory inconsistency, uneven project pipelines, design coordination challenges and a lack of modular experience among some project teams. At the same time, long-term demand remains supported by population growth, aging public infrastructure, school capacity constraints, healthcare needs, labor shortages, housing affordability and climate-related disaster response.

MBI’s annual industry reports have become a key reference for investment firms, banks, media organizations, researchers, consultants, students and construction professionals seeking reliable information about the size, direction and potential of the modular building industry. The 2026 collection includes five-year outlooks, region-specific analysis, stakeholder insights and best practices for successful project delivery.

The reports are available now through MBI’s Industry Analysis page. MBI members may download the collection at no charge; nonmembers may purchase the three-report digital bundle. Journalists may request a review copy, data briefing, or interview with MBI leadership through the media contact below:

Media Contact:
John McMullen, PCM
Marketing Director
mcmullen@modular.org
(434) 296-3288 x159