Report Overview

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

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

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. Europe Modular Construction Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Growth Drivers
         1. Rapid urbanization and population growth
         2. Growing demand for sustainable construction
      2. Restraints
         1. Initial investment costs
         2. Lack of standardization
      3. Opportunities
         1. Technological advancements
         2. Growing adoption in non-residential sectors
      4. Challenges
         1. Skilled labor shortage
         2. Supply chain disruptions
   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. Europe Modular Construction Market: Marketing Strategies
5. Europe Modular Construction Market Overview
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
         1. Permanent
         2. Relocatable
      2. By Material
         1. Steel
         2. Wood
         3. Concrete
      3. By Module
         1. Four-sided
         2. Open-sided
         3. Partially open-sided
         4. Mixed modules & floor cassettes
         5. Modules supported by a primary structure
         6. Others
      4. By End-Use
         1. Residential
         2. Office
         3. Education
         4. Retail & Commercial
         5. Hospitality
         6. Healthcare
         7. Others
      5. By Country
         1. Germany
         2. United Kingdom
         3. Italy
         4. France
         5. Spain
         6. Belgium
         7. Russia
         8. The Netherlands
         9. Rest of Europe
6. Germany Modular Construction Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Material
      3. By Module
      4. By End Use
7. United Kingdom Modular Construction Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Material
      3. By Module
      4. By End Use
8. Italy Modular Construction Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Material
      3. By Module
      4. By End Use
9. France Modular Construction Market
   1. Market Size & Forecast, 2019–2030
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type
      2. By Material
      3. By Module
      4. By End Use
10. Spain Modular Construction Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Material
       3. By Module
       4. By End Use
11. Belgium Modular Construction Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Material
       3. By Module
       4. By End Use
12. Russia Modular Construction Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Material
       3. By Module
       4. By End Use
13. The Netherlands Modular Construction Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Material
       3. By Module
       4. By End Use
14. Rest of Europe Modular Construction Market
    1. Market Size & Forecast, 2019–2030
       1. By Value (USD Billion)
    2. Market Share & Forecast
       1. By Type
       2. By Material
       3. By Module
       4. By End Use
15. Competitive Landscape
    1. List of Key Players and Their Offerings
    2. Europe Modular Construction Company Market Share Analysis, 2023
    3. Competitive Benchmarking, By Operating Parameters
    4. Key Strategic Developments (Mergers, Acquisitions, Partnerships, etc.)
16. Impact of Escalating Geopolitical Tensions on Europe Modular Construction Market
17. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, and SWOT Analysis)
    1. Skanska
    2. Bouygues Construction
    3. Vinci
    4. Strabag SE
    5. Modulaire Group
    6. Daiwa House Modular Europe Ltd
    7. DFH Haus GmbH
    8. Elements Europe
    9. Karmod Prefabricated Technologies
    10. Laing O'Rourke
    11. Other Prominent Players
18. Key Strategic Recommendations
19. 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 Country
    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       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