Saudi Arabia Modular Construction Market: Vision 2030 Projects & Off-Site Construction Demand

According to IMARC Group's latest research publication, Saudi Arabia modular construction market size reached USD 877.1 Million in 2025. The market is projected to reach USD 1,381.6 Million by 2034, exhibiting a growth rate of 5.18% during 2026-2034.

How AI is Reshaping the Future of Saudi Arabia Modular Construction Market

• BIM-AI Integration for Design Optimization: AI algorithms combined with Building Information Modeling create optimized module designs instantly, detecting structural conflicts before manufacturing begins and reducing costly rework by up to 40% in factory production lines.
• Robotic Assembly and Automation: AI-powered robotic systems are transforming factory floors across the Kingdom, automating rebar cage assembly and modular component production with precision manufacturing that cuts labor costs while maintaining consistent quality standards.
• Predictive Quality Control Systems: Machine learning monitors production lines in real-time, identifying defects instantly during manufacturing and enabling automated adjustments that ensure higher-grade module output while minimizing waste in controlled factory environments.
• Smart Logistics and Supply Chain Optimization: AI-driven analytics predict material requirements and optimize transportation routes for module delivery, improving just-in-time manufacturing coordination and reducing delays in projects like NEOM and The Line.
• Digital Twin Technology for Project Management: AI-powered digital replicas simulate entire modular construction workflows virtually, allowing teams to test assembly sequences and identify bottlenecks before actual deployment, accelerating project timelines by 30-50%.

How Vision 2030 is Revolutionizing Saudi Arabia Modular Construction Industry

Vision 2030 is fundamentally transforming modular construction through unprecedented mega-project commitments and ambitious housing targets that demand rapid, scalable building solutions. NEOM alone has awarded multi-billion contracts for modular apartment delivery, with Swedish firm SIBS securing deals for over 3,474 apartments across 57 buildings totaling approximately 100,000 square meters. The Line project plans to deploy modular construction for over one-third of its built environment within its 500-meter-tall structures. Gulf Development International announced a 1.4 million square meter modular assembly plant in NEOM with capacity for 12,500 units annually, representing one of the world's largest volumetric modular facilities. China Harbour Engineering Company inaugurated a 200,000 square meter modular production facility in Riyadh supporting the Sedra housing project by Roshn. The Ministry of Municipal and Rural Affairs and Housing actively promotes modular methods to address the projected housing deficit exceeding 1.5 million units, while government tenders increasingly mandate modular fabrication and BIM integration. NEOM and Samsung C&T formed a construction-robotics joint venture worth SAR 1.3 billion targeting 40% cost savings through automated manufacturing.

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Saudi Arabia Modular Construction Market Trends & Drivers:

The market is experiencing explosive growth driven by giga-project execution demands that require unprecedented construction speed and scale. NEOM's construction programs are deploying large-scale modular camps to house tens of thousands of workers in compressed timeframes, while Red Sea Global's Shebara Island installed futuristic overwater pod-style villas demonstrating how precision-manufactured modules reduce marine-site disturbance. Qiddiya and AMAALA entertainment hubs are adopting modular hotels, clinics, and transport nodes to meet aggressive delivery schedules. Oxagon, the $33 billion floating industrial city, extensively uses modular building, 3D printing, and zero-emission heavy machinery across its 48 square kilometer development accommodating 90,000 residents. New Murabba's 19 square kilometer mixed-use development in Riyadh, targeting $47 billion GDP contribution and 334,000 jobs, is leveraging modular construction to accelerate its massive infrastructure deployment. Industry data shows modular techniques compress end-to-end timelines by 20-50% and trim costs by approximately 20% when executed at scale with integrated design-for-manufacture approaches.

Factory-based production advantages are reshaping construction economics and sustainability outcomes across the Kingdom's challenging desert environment. Controlled manufacturing environments allow year-round production independent of weather conditions, eliminating common delays that plague traditional on-site methods. Advanced automation and digital technologies enable 85% of construction activity to move off-site, dramatically reducing deliveries, on-site durations, and disturbance to neighbors and sensitive environments. Material waste reduction through precise calculations in factory settings supports Vision 2030's environmental objectives, with some projects achieving up to 45% carbon emission reductions compared to conventional building methods. Red Sea International and AMANA Group's DuBox division report delivering over 130,000 square meters of modular construction in Saudi Arabia since 2012, demonstrating proven local production capacity. The prefabricated buildings market reached approximately USD 1.82 billion in 2024 and continues expanding rapidly, driven by housing demand, giga-project activity, and sustainable construction mandates under the Saudi Green Initiative.

Technology adoption and localization initiatives are accelerating market maturation through government incentives and international partnerships. The IKTVA (In-Kingdom Total Value Add) program incentivizes domestic modular manufacturing, encouraging local content development and production capacity expansion aligned with economic diversification goals. Cross-border partnerships between international engineering firms and Saudi manufacturers are establishing turnkey solutions for housing, healthcare, and logistics infrastructure with advanced automation. Government building codes now integrate modular construction standards, ensuring safety and durability compliance while regulatory frameworks evolve to streamline approval processes. Digital tools including 4D and 5D BIM, digital twins, and factory simulation technologies enable greater precision and coordination connecting design data with manufacturing processes. The Ministry's active promotion of modular methods for affordable housing, combined with subsidized financing and favorable loan terms, is creating sustained demand. Major contractors including BEC Arabia, Alfanar Projects, and Kabbani Construction Group are incorporating modular construction and BIM principles to optimize execution across mega-project portfolios exceeding billions in value.

Saudi Arabia Modular Construction Market Industry Segmentation:

The report has segmented the market into the following categories:

Type Insights:

• Permanent
• Relocatable

Module Type Insights:

• Four Sided
• Open Sided
• Partially Open Sided
• Mixed Modules and Floor Cassettes
• Modules Supported by a Primary Structure
• Others

Material Insights:

• Steel
• Concrete
• Wood
• Plastic
• Others

End Use Insights:

• Residential
• Commercial
• Education
• Retail
• Hospitality
• Healthcare
• Others

Regional Insights:

• Northern and Central Region
• Western Region
• Eastern Region
• Southern Region

Competitive Landscape:

The competitive landscape of the industry has also been examined along with the profiles of the key players.

Recent News and Developments in Saudi Arabia Modular Construction Market

• January 2025: China Harbour Engineering Company (CHEC) inaugurated a 200,000 square meter modular production facility in Riyadh to support the Sedra housing project by Roshn, employing robotics and digital technologies for sustainable and affordable housing solutions under Vision 2030.
• February 2025: NEOM and DataVolt Ltd. announced a USD 5 billion net-zero AI factory in Oxagon, operational by 2028, showcasing integration of advanced manufacturing with modular construction methodologies for large-scale industrial developments.
• June 2025: Swedish firm SIBS AB secured multi-billion contracts to deliver 2,174 apartments across 35 buildings within NEOM using turnkey modular technology, highlighting strong international confidence in Saudi Arabia's modular construction sector.
• July 2025: New Murabba Company signed an agreement with Korea-based Heerim Architects & Planners to collaborate on innovative architectural overlays for its 19 square kilometer mixed-use development, focusing on modular-compatible smart city features.
• December 2024: NEOM and Samsung C&T Corporation formed a SAR 1.3 billion construction-robotics joint venture to automate rebar cage assembly, targeting 40% cost savings and increased factory throughput across modular construction projects.

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