Europe Modular Construction Market
Europe Modular Construction Market, By Type (Permanent, Relocatable); By Material (Steel, Wood, Concrete); By Module (Four-sided, Open-sided, Partially Open-sided, Mixed Modules & Floor Cassettes, Modules Supported by a Primary Structure, Others); By End Use (Residential, Office, Education, Retail & Commercial, Hospitality, Healthcare, Others); By Region (Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, Rest of Europe), Trend Analysis, Competitive Landscape & Forecast, 2019–2030
- Published Date: December 2024
- Report ID: BWC24935
- Available Format: PDF
- Page: 247
Report Overview
Expanded urban areas with significant population and a growing demand for sustainable construction are expected to drive Europe Modular Construction Market during the forecast period between 2024 and 2030.
Europe Modular Construction Market – Industry Trends & Forecast Report, 2030
Europe Modular Construction Market size was estimated at USD 18.3 billion in 2023. During the forecast period between 2024 and 2030, Europe Modular Construction Market size is projected to grow at a CAGR of 5.4% reaching a value of USD 26.9 billion by 2030. Prominent drivers of the market include the rising demand for affordable housing, commercial spaces, and infrastructure projects. Modular construction, which involves assembling pre-fabricated building modules manufactured off-site, offers benefits such as reduced timelines, improved quality, cost efficiency, and sustainability. Countries like the United Kingdom, aiming to build 300,000 homes annually by 2025, and Germany, with increasing adoption in student housing and hotels, are leading this trend. High market penetration is also evident in Sweden and Finland, driven by the need for temporary and permanent housing due to rising migration. Technological advancements, investments, and growing awareness of its economic advantages further support market expansion, with strategic acquisitions like Algeco Group’s 2020 purchase of Wexus Group AS enhancing regional capabilities in Norway, Sweden, and Estonia.
Modular Construction – Overview
Modular construction is a building method where structures are constructed using pre-fabricated sections, or modules, which are manufactured off-site in controlled factory environments. These modules are then transported to the construction site and assembled to form a complete structure. This approach offers benefits such as reduced construction timelines, improved quality control, cost efficiency, and minimized material waste, making it a sustainable and efficient alternative to traditional construction methods.
Europe Modular Construction Market
Growth Drivers
Growing Demand for Sustainable Construction
The increasing emphasis on sustainability in construction is driving Europe Modular Construction Market. With buildings accounting for over 30% of the EU's environmental footprint, 42% of energy consumption, and 35% of greenhouse gas emissions, modular construction presents a viable solution to reduce environmental impact. This method minimizes waste, enhances energy efficiency, and supports biodiversity by integrating sustainable building materials and green design features. Renovating existing structures and utilizing eco-friendly materials aligning with Europe’s efforts to achieve a greener construction sector, supported by policies like the European Commission's New European Bauhaus initiative and the European Affordable Housing Plan. As demand for affordable, sustainable housing grows, modular construction plays a pivotal role in Europe’s transition to an environmentally resilient and resource-efficient built environment.
Challenges
High Initial Investment
The high initial investment required for modular construction poses a significant challenge to market growth in Europe. While this method offers long-term cost savings through reduced labor and construction timelines, the upfront costs for manufacturing modules, specialized equipment, and factory setup can deter adoption, particularly for small-scale developers and projects. Additionally, limited access to financing for modular projects and the perceived risks associated with newer construction technologies further constrain market expansion. Overcoming these cost barriers through government incentives, subsidies, and increased awareness of long-term benefits is crucial to unlocking the full potential of the modular construction market in Europe.
Impact of Escalating Geopolitical Tensions on Europe Modular Construction Market
Escalating geopolitical tensions among countries and spreading across regions could have a significant impact on the growth of Europe Modular Construction Market. Increased political uncertainty and trade disruptions may lead to challenges in the supply chain, causing delays in the delivery of materials and components essential for modular construction projects. Additionally, rising energy prices and labor shortages due to geopolitical factors can increase construction costs, limiting the affordability of modular buildings. However, governments' push for energy-efficient, sustainable housing solutions may also stimulate demand, presenting a mixed impact on the market’s growth trajectory.
Europe Modular Construction Market
Segmental Coverage
Europe Modular Construction Market – By Type
Based on type, Europe Modular Construction Market is bifurcated into Permanent and Relocatable segments. The permanent segment holds a higher share in Europe Modular Construction Market by type. Permanent modular homes, constructed from wood, steel, and concrete, are gaining popularity due to their affordability, convenience, and ease of assembly. These homes are cost-effective, versatile, and available in various designs and styles. Additionally, the use of shipping containers by many builders and competitors is further driving market growth.
Europe Modular Construction Market – By Material
By material, Europe Modular Construction Market is divided into Steel, Wood, and Concrete segments. The steel segment holds the highest share in Europe Modular Construction Market by material and is expected to maintain its dominance during the forecast period. It is primarily due to its strength, durability, and versatility. Its ability to support rapid assembly and ensure structural integrity makes it the preferred material for modular construction. Steel's use in pre-fabricated units allows for cost-effective and efficient construction, reducing time and labor costs. Additionally, advancements in steel manufacturing, such as improved fabrication techniques and increased adaptability, have further enhanced its appeal. As the demand for sustainable, quick-build housing and commercial solutions grows, steel's dominance in the modular construction market is expected to continue, supported by its consistent quality, recyclability, and suitability for diverse architectural designs.
Europe Modular Construction Market – By Module
On the basis of module, Europe Modular Construction Market is divided into Four-sided, Open-sided, Partially Open-sided, Mixed Modules & Floor Cassettes, Modules Supported by a Primary Structure, and other segments.
Europe Modular Construction Market – By End Use
Europe Modular Construction Market based on end use is divided into Residential, Office, Education, Retail & Commercial, Hospitality, Healthcare, and other segments. The retail & commercial segment holds the largest share of Europe Modular Construction Market by end use. Modular construction is widely used for commercial buildings, adhering to the International Building Code (IBC) or similar state regulations. In Europe, modular office buildings are commonly used as extensions or temporary spaces during renovations. The hotel construction pipeline in Europe also reflects the market's strength, with 1,814 projects and 295,719 rooms as of Q3 2021. Additionally, the COVID-19 pandemic increased demand for storage spaces and distribution hubs due to the rise in e-commerce and home delivery services. These factors are expected to further drive the growth of modular construction in the commercial sector.
Europe Modular Construction Market – By Country
The in-depth research report on Europe Modular Construction Market covers the market in the region’s major countries including Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, and Rest of Europe. Germany holds the highest share in Europe Modular Construction Market and is expected to maintain its dominance during the forecast period. As the largest economy in Europe and the fifth-largest globally, Germany boasts a thriving construction sector, with significant growth in prefabricated buildings, especially within the residential market. Prefabricated housing now makes up over 20% of Germany's residential construction, driven by the growing demand for faster, cost-efficient building solutions. The country's construction activities are further fueled by the rising number of building permits and government plans to construct 1.5 million new apartments in response to increasing immigration. This strong growth, combined with a rising demand for turnkey solutions, positions modular construction as a key player in Germany's evolving construction landscape. Consequently, the demand for modular buildings is expected to continue growing, solidifying Germany’s leadership in the Europe Modular Construction Market.
Competitive Landscape
Major players operating in Europe Modular Construction Market include Skanska, Bouygues Construction, Vinci, Strabag SE, Modulaire Group, Daiwa House Modular Europe Ltd, DFH Haus GmbH, Elements Europe, Karmod Prefabricated Technologies, and Laing O'Rourke. 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 – 2019–2030 |
Base Year – 2023 |
|
Estimated Year – 2024 |
|
Forecast Period – 2024–2030 |
|
Facts Covered |
Revenue in USD Billion |
Market Coverage |
Germany, United Kingdom, Italy, France, Spain, Belgium, Russia, The Netherlands, Rest of Europe |
Product/ Service Segmentation |
Type, Material, Module, End Use, Country |
Key Players |
Skanska, Bouygues Construction, Vinci, Strabag SE, Modulaire Group, Daiwa House Modular Europe Ltd., DFH Haus GmbH, Elements Europe, Karmod Prefabricated Technologies, Laing O'Rourke |
By Type
-
Permanent
-
Relocatable
By Material
-
Steel
-
Wood
-
Concrete
By Module
-
Four-sided
-
Open-sided
-
Partially open-sided
-
Mixed modules & floor cassettes
-
Modules supported by a primary structure
-
Others
By End-Use
-
Residential
-
Office
-
Education
-
Retail & Commercial
-
Hospitality
-
Healthcare
-
Others
By Country
-
Germany
-
United Kingdom
-
Italy
-
France
-
Spain
-
Belgium
-
Russia
-
The Netherlands
-
Rest of Europe
- Research Framework
- Research Objective
- Product Overview
- Market Segmentation
- Executive Summary
- Europe Modular Construction Market Insights
- Industry Value Chain Analysis
- DROC Analysis
- Growth Drivers
- Rapid urbanization and population growth
- Growing demand for sustainable construction
- Restraints
- Initial investment costs
- Lack of standardization
- Opportunities
- Technological advancements
- Growing adoption in non-residential sectors
- Challenges
- Skilled labor shortage
- Supply chain disruptions
- Growth Drivers
- Technological Advancements/Recent Developments
- Regulatory Framework
- Porter’s Five Forces Analysis
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
- Threat of New Entrants
- Threat of Substitutes
- Intensity of Rivalry
- Europe Modular Construction Market: Marketing Strategies
- Europe Modular Construction Market Overview
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- Permanent
- Relocatable
- By Material
- Steel
- Wood
- Concrete
- By Module
- Four-sided
- Open-sided
- Partially open-sided
- Mixed modules & floor cassettes
- Modules supported by a primary structure
- Others
- By End-Use
- Residential
- Office
- Education
- Retail & Commercial
- Hospitality
- Healthcare
- Others
- By Country
- Germany
- United Kingdom
- Italy
- France
- Spain
- Belgium
- Russia
- The Netherlands
- Rest of Europe
- By Type
- Market Size & Forecast, 2019–2030
- Germany Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- United Kingdom Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Italy Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- France Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Spain Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Belgium Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Russia Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- The Netherlands Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Rest of Europe Modular Construction Market
- Market Size & Forecast, 2019–2030
- By Value (USD Billion)
- Market Share & Forecast
- By Type
- By Material
- By Module
- By End Use
- Market Size & Forecast, 2019–2030
- Competitive Landscape
- List of Key Players and Their Offerings
- Europe Modular Construction Company Market Share Analysis, 2023
- Competitive Benchmarking, By Operating Parameters
- Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
- Impact of Escalating Geopolitical Tensions on Europe Modular Construction Market
- Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
- Skanska
- Bouygues Construction
- Vinci
- Strabag SE
- Modulaire Group
- Daiwa House Modular Europe Ltd
- DFH Haus GmbH
- Elements Europe
- Karmod Prefabricated Technologies
- Laing O'Rourke
- Other Prominent Players
- Key Strategic Recommendations
- Research Methodology
- Qualitative Research
- Primary & Secondary Research
- Quantitative Research
- Market Breakdown & Data Triangulation
- Secondary Research
- Primary Research
- Breakdown of Primary Research Respondents, By Country
- Assumptions & Limitations
- Qualitative Research
*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 Europe Modular Construction Segmentation
Figure 2 Europe Modular Construction Market Value Chain Analysis
Figure 3 Company Market Share Analysis, 2023
Figure 4 Europe Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 5 Europe Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 6 Europe Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 7 Europe Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 8 Europe Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 9 Europe Modular Construction Market Share, By Country, By Value, 2019–2030
Figure 10 Germany Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 11 Germany Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 12 Germany Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 13 Germany Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 14 Germany Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 15 United Kingdom Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 16 United Kingdom Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 17 United Kingdom Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 18 United Kingdom Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 19 United Kingdom Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 20 Italy Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 21 Italy Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 22 Italy Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 23 Italy Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 24 Italy Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 25 France Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 26 France Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 27 France Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 28 France Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 29 France Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 30 Spain Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 31 Spain Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 32 Spain Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 33 Spain Modular Construction Market Share, By Module , By Value, 2019–2030
Figure 34 Spain Modular Construction Market Share, By End Use , By Value, 2019–2030
Figure 35 Belgium Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 36 Belgium Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 37 Belgium Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 38 Belgium Modular Construction Market Share, By Module , By Value, 2019–2030
Figure 39 Belgium Modular Construction Market Share, By End Use , By Value, 2019–2030
Figure 40 Russia Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 41 Russia Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 42 Russia Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 43 Russia Modular Construction Market Share, By Module , By Value, 2019–2030
Figure 44 Russia Modular Construction Market Share, By End Use , By Value, 2019–2030
Figure 45 The Netherlands Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 46 The Netherlands Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 47 The Netherlands Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 48 The Netherlands Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 49 The Netherlands Modular Construction Market Share, By End Use, By Value, 2019–2030
Figure 50 Rest of Europe Modular Construction Market Size, By Value (USD Billion), 2019–2030
Figure 51 Rest of Europe Modular Construction Market Share, By Type, By Value, 2019–2030
Figure 52 Rest of Europe Modular Construction Market Share, By Material, By Value, 2019–2030
Figure 53 Rest of Europe Modular Construction Market Share, By Module, By Value, 2019–2030
Figure 54 Rest of Europe Modular Construction Market Share, By End Use, By Value, 2019–2030
List of Tables
Table 1 Europe Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 2 Europe Modular Construction Market Size, By Type, By Value, 2019–2030
Table 3 Europe Modular Construction Market Size, By Material, By Value, 2019–2030
Table 4 Europe Modular Construction Market Size, By Module, By Value, 2019–2030
Table 5 Europe Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 6 Europe Modular Construction Market Size, By Country, By Value, 2019–2030
Table 7 Germany Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 8 Germany Modular Construction Market Size, By Type, By Value, 2019–2030
Table 9 Germany Modular Construction Market Size, By Material, By Value, 2019–2030
Table 10 Germany Modular Construction Market Size, By Module, By Value, 2019–2030
Table 11 Germany Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 12 United Kingdom Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 13 United Kingdom Modular Construction Market Size, By Type, By Value, 2019–2030
Table 14 United Kingdom Modular Construction Market Size, By Material, By Value, 2019–2030
Table 15 United Kingdom Modular Construction Market Size, By Module, By Value, 2019–2030
Table 16 United Kingdom Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 17 Italy Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 18 Italy Modular Construction Market Size, By Type, By Value, 2019–2030
Table 19 Italy Modular Construction Market Size, By Material, By Value, 2019–2030
Table 20 Italy Modular Construction Market Size, By Module, By Value, 2019–2030
Table 21 Italy Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 22 France Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 23 France Modular Construction Market Size, By Type, By Value, 2019–2030
Table 24 France Modular Construction Market Size, By Material, By Value, 2019–2030
Table 25 France Modular Construction Market Size, By Module, By Value, 2019–2030
Table 26 France Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 27 Spain Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 28 Spain Modular Construction Market Size, By Type, By Value, 2019–2030
Table 29 Spain Modular Construction Market Size, By Material, By Value, 2019–2030
Table 30 Spain Modular Construction Market Size, By Module , By Value, 2019–2030
Table 31 Spain Modular Construction Market Size, By End Use , By Value, 2019–2030
Table 32 Belgium Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 33 Belgium Modular Construction Market Size, By Type, By Value, 2019–2030
Table 34 Belgium Modular Construction Market Size, By Material, By Value, 2019–2030
Table 35 Belgium Modular Construction Market Size, By Module , By Value, 2019–2030
Table 36 Belgium Modular Construction Market Size, By End Use , By Value, 2019–2030
Table 37 Russia Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 38 Russia Modular Construction Market Size, By Type, By Value, 2019–2030
Table 39 Russia Modular Construction Market Size, By Material, By Value, 2019–2030
Table 40 Russia Modular Construction Market Size, By Module , By Value, 2019–2030
Table 41 Russia Modular Construction Market Size, By End Use , By Value, 2019–2030
Table 42 The Netherlands Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 43 The Netherlands Modular Construction Market Size, By Type, By Value, 2019–2030
Table 44 The Netherlands Modular Construction Market Size, By Material, By Value, 2019–2030
Table 45 The Netherlands Modular Construction Market Size, By Module, By Value, 2019–2030
Table 46 The Netherlands Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 47 Rest of Europe Modular Construction Market Size, By Value (USD Billion), 2019–2030
Table 48 Rest of Europe Modular Construction Market Size, By Type, By Value, 2019–2030
Table 49 Rest of Europe Modular Construction Market Size, By Material, By Value, 2019–2030
Table 50 Rest of Europe Modular Construction Market Size, By Module, By Value, 2019–2030
Table 51 Rest of Europe Modular Construction Market Size, By End Use, By Value, 2019–2030
Table 52 Skanska Company Overview
Table 53 Skanska Financial Overview
Table 54 Bouygues Construction Company Overview
Table 55 Bouygues Construction Financial Overview
Table 56 Vinci Company Overview
Table 57 Vinci Financial Overview
Table 58 Strabag SE Company Overview
Table 59 Strabag SE Financial Overview
Table 60 Modulaire Group Company Overview
Table 61 Modulaire Group Financial Overview
Table 62 Daiwa House Modular Europe Ltd. Company Overview
Table 63 Daiwa House Modular Europe Ltd. Financial Overview
Table 64 DFH Haus GmbH Company Overview
Table 65 DFH Haus GmbH Financial Overview
Table 66 Elements Europe Company Overview
Table 67 Elements Europe Financial Overview
Table 68 Karmod Prefabricated Technologies Company Overview
Table 69 Karmod Prefabricated Technologies Financial Overview
Table 70 Laing O'Rourke Company Overview
Table 71 Laing O'Rourke Financial Overview
Market Segmentation
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