Report Overview

The growing adoption of modular construction by major industry verticals driven by a heightened focus on efficient labor management in the construction sector and addressing a surging demand for housing driven by growing population across expanding urban areas is expected to drive Israel Modular Construction Market during the forecast period between 2025 and 2031.

Israel Modular Construction Market – Industry Trends & Forecast Report, 2031

Israel Modular Construction Market size was estimated to be worth USD 1,569.47 million in 2024. During the forecast period between 2025 and 2031, Israel Modular Construction Market size is projected to grow at a CAGR of 5.24%, reaching a value of USD 2,258.94 million by 2031. The Modular Construction Market in Israel is experiencing rapid growth. Key growth drivers of the market include a heightened focus on the management of severe labor shortage, rapid urbanization, and the need for affordable housing are increasing demand for efficient building solutions. Modular construction offers benefits like reduced project timelines, cost savings, and enhanced quality control through factory-built components. Sustainability concerns also favor modular methods, as they minimize waste and energy consumption.

Modular Construction – Overview

Modular construction involves building structures off-site in controlled factory environments and then transporting them to the site for assembly. The modular construction method offers faster construction, cost savings, and sustainability benefits by reducing waste and site disturbances. Modules are built to the same standards as traditional structures, providing flexibility and quality.

Israel Modular Construction Market

Growth Drivers

Increasing Demand for Housing Units in Rapidly Expanding Urban Areas

A surging demand for housing units is significantly boosting the growth of Israel Modular Construction Market. Traditional construction faces delays and increased costs due to an escalating costs of construction materials and labor costs. Modular construction mitigates these issues by shifting much of the work to controlled factory environments, where labor can be more efficiently utilized. This method allows for simultaneous on-site and off-site work, reducing project timelines and labor costs. Therefore, modular construction is becoming an increasingly attractive solution for developers and builders facing labor challenges.

Challenges

Disruptions in Supply Chain and Labor Availability

Supply chain disruptions and short of labor could pose a significant challenge to the growth of Israel Modular Construction Market. Issues such as labor and raw material shortages, transportation hurdles, and global shipping delays impact project timelines and inflating costs. These disruptions can lead to extended schedules and increased expenses, affecting the overall efficiency and cost-effectiveness of modular construction projects. Addressing these supply chain challenges is crucial for the industry to maintain its growth and deliver projects on time and within budget.

Impact of Escalating Geopolitical Tensions on Israel Modular Construction Market

Intensifying geopolitical tensions among countries across the country and the Middle East, could adversely affect the growth of Israel Modular Construction Market by disrupting the availability of foreign workers, global supply chains, increasing material costs, and causing project delays. Trade disputes, sanctions, and increasing tariffs affect the availability and pricing of essential construction materials like steel and lumber. These disruptions lead to higher project costs and extended timelines, challenging the efficiency and cost-effectiveness of modular construction projects. Companies must navigate these complexities to maintain growth and deliver projects on time and within budget.

Israel Modular Construction Market

Segmental Coverage

Israel Modular Construction Market – By Type

Israel Modular Construction Market by type is divided into Residential, Commercial, Industrial, Healthcare, Education, and Hospitality segments. Residential is the largest segment in Israel Modular Construction Market by type. The residential segment includes single-family homes and multi-family homes, which are in high demand, due to the rapid urbanization and the need for affordable housing solutions. Modular construction offers cost savings, faster construction times, and flexibility, making it an attractive option for residential projects. The residential segment benefits from reduced labor costs and minimized site disturbances, driving significant growth in the area.

Israel Modular Construction Market – By Material

Based on material, Israel Modular Construction Market is divided into Wood, Steel, and Concrete segments. Steel is the largest material segment in Israel Modular Construction Market. The material is favored for its exceptional mechanical and chemical properties, including high strength, durability, ductility, and seismic resistance. Its ease of fabrication and rapid installation make it a preferred choice in modular construction. Steel’s recyclability aligns with sustainable building practices, and its lighter weight compared to other materials facilitates efficient transportation and assembly, reducing on-site disruptions and costs. These attributes make steel a dominant material in Israel Modular Construction Market.

Israel Modular Construction Market – By Application

On the basis of application, Israel Modular Construction Market is bifurcated into Relocatable and Permanent segments. The permanent modular construction segment accounts for a larger share of Israel Modular Construction Market by application, due to the increasing per capita income among the middle-income group and the easy availability of finances, leading to a prevailing trend of homeownership. Consequently, the permanent segment has experienced significant growth, positively influencing Israel Modular Construction Market.

Israel Modular Construction Market – By End User

Israel Modular Construction Market by end user is divided into Developers, Builders, Homeowners, Institutions, and Government Agencies segments. The developers segment is the largest end user in Israel Modular Construction Market. Developers are increasingly adopting modular construction due to its cost-effectiveness, speed, and flexibility. The developers segment benefits from reduced construction timelines and lower labor costs, making modular construction an attractive option for large-scale projects. Developers also leverage modular construction to meet sustainability goals and address labor shortages, driving significant growth in this segment.

Competitive Landscape

Major companies operating in Israel Modular Construction Market include Tidhar, Veev, Laing O'Rourke, ATCO Ltd, Fluor Corporation, and Kwikspace. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Scope of the Report

Attributes	Details
Years Considered	Historical Data – 2019–2031
	Base Year – 2024
	Estimated Year – 2025
	Forecast Period – 2025–2031
Facts Covered	Revenue in USD Million
Market Coverage	Israel
Product/ Service Segmentation	Type, Material, Application, End User
Key Players	Tidhar, Veev, Laing O'Rourke, ATCO Ltd, Fluor Corporation, Kwikspace

 

By Type     

• Residential

• Commercial

• Industrial

• Healthcare

• Education

• Hospitality

By Material

• Wood

• Steel

• Concrete

By Application

• Relocatable

• Permanent

By End User

• Developers

• Builders

• Homeowners

• Institutions

• Government Agencies

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Israel Modular Construction Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Increasing Number of Reconstruction Projects
         2. Rapid Urbanization
         3. Growing Sustainability Concerns
      2. Restraints
         1.  High Initial Costs
      3. Opportunities
         1. Growing Adoption of Technological Advancements
         2. Demand for Modular Construction in Various Sectors
      4. Challenges
         1. Supply Chain Disruptions
         2. Limited Awareness about Benefits of Modular Construction
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. Israel Modular Construction Market: Marketing Strategies
5. Israel Modular Construction Market: Pricing Analysis
6. Israel Modular Construction Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type     
         1. Residential
         2. Commercial
         3. Industrial
         4. Healthcare
         5. Education
         6. Hospitality
      2. By Material
         1. Wood
         2. Steel
         3. Concrete
      3. By Application
         1. Relocatable
         2. Permanent
      4. By End User
         1. Developers
         2. Builders
         3. Homeowners
         4. Institutions
         5. Government Agencies
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. Israel Modular Construction Market Share Analysis, 2024
      1. 1. Competitive Benchmarking, By Operating Parameters
   3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
8. Impact of Escalating Geopolitical Tensions on Israel Modular Construction Market
9. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
   1. Tidher
   2. Veev
   3. Laing O’Rourke
   4. ATCO Ltd
   5. Fluor Corporation
   6. Kwikspace
   7. Other Prominent Players
10. Key Strategic Recommendations
11. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

 

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

 

List of Figures

 

Figure 1       Israel Modular Construction Segmentation                       

Figure 2       Israel Modular Construction Market Value Chain Analysis            

Figure 3       Company Market Share Analysis, 2024                  

Figure 4       Israel Modular Construction Market Size, By Value (USD Billion), 2019–2031                    

Figure 5       Israel Modular Construction Market Share, By Type, By Value, 2019–2031                        

Figure 6       Israel Modular Construction Market Share, By Material, By Value, 2019–2031                                                

Figure 7       Israel Modular Construction Market Share, By End User, By Value, 2019–2031

Figure 8       Israel Modular Construction Market Share, By Application, By Value, 2019–2031

Figure 9       Israel Modular Construction Market Share, By Type, By Value, 2019–2031

 

List of Tables

Table 1         Israel Modular Construction Market Size, By Value (USD Billion), 2019–2031

Table 2         Israel Modular Construction Market Share, By Type, By Value, 2019–2031                        

Table 3         Israel Modular Construction Market Share, By Material, By Value, 2019–2031                                                

Table 4         Israel Modular Construction Market Share, By End User, By Value, 2019–2031

Table 5         Israel Modular Construction Market Share, By Application, By Value, 2019–2031

Table 6         Israel Modular Construction Market Share, By Type, By Value, 2019–2031

Table 7         Tidher Company Overview

Table 8         Tidher Financial Overview

Table 9         Veev Company Overview

Table 10       Veev Financial Overview

Table 11       Laing O’Rourke Company Overview

Table 12       Laing O’Rourke Financial Overview

Table 13       ATCO Ltd Company Overview

Table 14       ATCO Ltd Financial Overview

Table 15       Fluor Corporation Company Overview

Table 16       Fluor Corporation Financial Overview

Table 17       Kwikspace Company Overview

Table 18       Kwikspace Financial Overview