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Introduction
Modular construction is no longer a fringe solution in Canada. In 2025, it’s a force—reshaping how we build, where we build, and who gets to live or work in those spaces. The Modular Building Institute’s (MBI) 2025 Canadian Modular Construction Industry Report, developed with FMI Consulting, offers a rare, data-rich look at this fast-evolving sector. If you’re a general contractor, this isn’t just another industry update. It’s a roadmap to the next five years.
Market Overview
Let’s start with the numbers. In 2024, the Canadian modular construction market hit $5.1 billion CAD. That’s 7.5% of the entire Canadian construction market—a slice that’s growing faster than you might expect. According to the MBI report, modular construction in Canada is forecast to grow at a compound annual growth rate (CAGR) of 5% through 2029, reaching approximately $6.4 billion CAD. This isn’t just incremental growth. It’s a sign that modular is outpacing traditional construction, driven by demand for speed, cost efficiency, and flexibility. Why does this matter for contractors? Because the data is proprietary, fresh, and actionable. The MBI’s annual reports are the gold standard for industry intelligence—used by banks, investors, and policymakers. Now, you can use it to get ahead.
Regional Analysis
Canada isn’t a monolith. The modular market splits into two distinct regions: East and West. Eastern Canada (New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island, Quebec) led the way in 2024, with $2.8 billion in modular construction volume and a projected 5.2% CAGR through 2029. What’s driving this? High-density housing needs, public investment in education, and relentless urbanization—especially in Ontario and Quebec.
Western Canada (Alberta, British Columbia, Manitoba, Saskatchewan, Northwest Territories) isn’t far behind, with $2.3 billion in 2024 and a 4.9% CAGR forecast. While smaller in volume, the West has seen a slightly faster historic growth rate, thanks to demand for lodging, remote housing, and industrial-supportive infrastructure. Think resource towns, mining camps, and energy projects—places where speed and flexibility are non-negotiable.
Here’s the twist: while Eastern Canada leads in total volume, Western Canada’s growth rate since 2020 has been higher. By 2029, both regions are expected to grow at nearly the same pace. For contractors, this means opportunity isn’t just in Toronto or Montreal. It’s in Fort McMurray, Prince George, and beyond.
Segment Insights
Let’s zoom in. Nearly half of Canada’s modular market is projected to be in the multifamily sector by 2029. Why? Urban migration, a housing affordability crisis, and the need for rapid, scalable solutions. The multifamily segment boasts the highest projected CAGR at 7.4%. If you’re not already looking at modular for apartments, condos, or workforce housing, you’re missing the biggest wave.
Other hot segments? Lodging (think hotels, motels, and remote worker accommodations) and education (schools, campus expansions). Public investment is a major driver here, especially in Eastern Canada. In the West, industrial and resource-driven projects are fueling demand for modular solutions that can be deployed quickly and moved as needed.
Opportunities and Challenges
So, what does all this mean for general contractors? First, the opportunities are real—and growing. Urban centers in Ontario and Quebec are hungry for multifamily modular builds. Western Canada’s resource sector needs flexible, relocatable solutions. Even rural and remote communities are turning to modular for healthcare, education, and housing.
But there are challenges. Labor shortages persist, making offsite construction and factory-built modules even more attractive. Standardization is key—contractors who can deliver repeatable, high-quality modules will win. Advocacy matters too: as the industry grows, so does the need for clear policy, better awareness, and investment in factory capacity.
Conclusion
The outlook? Bright—and competitive. Modular construction is no longer a niche. It’s a mainstream, data-driven solution to Canada’s most pressing construction challenges. For general contractors, the next five years are a chance to lead, innovate, and capture new markets. Want to learn more or explore modular solutions for your next project? Reach out to Billdr. We’re here to help you build smarter, faster, and better.
Citations
Modular Building Institute, 2025 Canadian Modular Construction Industry Report. FMI Consulting. Full report: https://mbimodularbuildinginstitute.growthzoneapp.com/ap/CloudFile/Download/PNyZKjnp
