Report Overview

Growing infrastructure investments, a spurring demand for prefabricated buildings from country-wide urban redevelopment projects in Türkiye and Ukraine and the growing adoption of technology advancements and supportive government regulations and policies are projected to propel the expansion of Europe prefabricated buildings market during the forecast period between 2023 and 2029.

Europe Prefabricated Buildings Market - Industry Trends & Forecast Report, 2029

Europe prefabricated buildings market size was estimated at USD 23.23 billion in 2022. During the forecast period between 2023 and 2029, the size of Europe prefabricated buildings market is projected to grow at a CAGR of 5.04% reaching a value of USD 32.71 billion by 2029. Major growth drivers for Europe prefabricated buildings market include growing infrastructure investments and increasing supportive government regulations and policies. As demand for higher-quality, environmentally friendly homes grow across the continent, the market is expanding, with the UK and Germany accounting for a major share. The use of additive manufacturing in Europe is likely to improve the prefabricated construction business significantly. Businesses use environmentally friendly products and manufacturing techniques to distinguish themselves from the competition. Focusing on energy efficiency has resulted in the invention of energy-absorbing materials such as micro homes. Prefabricated housing demand is increasing as the benefits of the building process are increasingly being tapped by new home buyers in an improving economic and demographically dynamic market. An estimated 70,100 units were sold across six Northern European nations in 2022, with demand from Germany constituting a sizable level, particularly for turnkey systems.

Europe Prefabricated Buildings Market – Overview

Prefabricated homes, often known as prefab homes, are ones that were built using prefabricated building materials. These building materials are prefabricated in a facility off-site and then delivered to the intended place for assembly. Prefabricated homes are a hybrid of traditional home ownership and cutting-edge technology. These homes are prefabricated in off-site locations utilizing various processes such as 3D printing and then erected on-site. Modular homes are those that are at least 70% prefabricated. Although prefabricated homes are built on fixed foundations, their structures are prefabricated in pieces. This facilitates the dismantling, transfer, and construction of these homes.

Europe Prefabricated Buildings Market

Growth Drivers

Growing Investments in Infrastructure

According to the National House Building Council (NHBC), the number of new dwellings registered for construction in the UK fell by 23.2% in 2021 to 123,151, the lowest level since 2012 (104,922). According to the NHBC, new home registrations declined in all UK regions in 2021, with the biggest declines coming in the second quarter. According to the Office for National Statistics, new housing construction orders in the private market explicitly - seasonally adjusted volume - increased by 4.6% quarter on quarter and 154.8% year on year in the second quarter of 2021, indicating that the order book for property developers is on the mend following the lockdown. While the UK government expects to build about 300,000 new homes per year by 2022 to address housing market difficulties, prefab building is projected to play an important part. Furthermore, the Worthing council granted Ikea permission to develop modular homes on the south coast in a joint venture with the building firm Skanska in June 2019. Ilke Homes and Legal & General have both developed plants to produce prefabricated homes. These two businesses are revolutionizing the country's prefabricated housing market by producing two- and three-bedroom homes ranging in price from GBP 65,000 to GBP 79,000. Ilke Homes promised to build 2,000 residences per year, eventually increasing to 5,000. Legal & General has constructed a massive factory south of Leeds, capable of producing 3,500 homes each year.

Countrywide Massive Urban Redevelopment Projects in Türkiye and Ukraine

Major companies in Europe prefabricated buildings market are expected to gain from significant opportunities provided by the massive infrastructure projects in earthquake-hit Türkiye and war-ravaged Ukraine.

On February 06, 2023, a 7.8-magnitude of earthquake hit Türkiye and Syria, killing tens of thousands of people and severely damaging infrastructure in cities and villages across its fault line. The President of Türkiye announced that the government would engage in a comprehensive construction program to rebuild cities with safety and sustainability. Analysts estimated that the urban redevelopment across Türkiye post the earthquake would provide huge opportunities for the construction and related industries in total investment of more than USD 250 billion. 

In Ukraine, Russia’s war in the country has been continuing for more than a year now. Consequently, infrastructure across Ukraine has been severely damaged. In September 2022, Ukraine government, the European Commission, and the World Bank, along with their partners estimated the cost of Ukraine’s reconstruction and recovery would be about USD 350 billion. As the war continues, the cost is anticipated to escalate.

Massive redevelopment and recovery projects in Türkiye and Ukraine are expected to provide lucrative growth opportunities for construction and supplementary industries. It, in turn, is projected to aid the growth of Europe prefabricated buildings market during the forecast period between 2023 and 2029 and beyond.

Restraints

Lack of Skilled Labor

An assortment of issues may impede the growth of the market for prefabricated structures. However, the installation of Prefabricated Buildings requires specialized workforce, which is projected to impede the growth of the global Prefabricated Buildings market. As a result, this component will have a major impact and will slow the expansion to some extent. Even the smallest of pieces can be dangerous to assemble without the correct training and experience. Damage to items during transportation is another possible cost factor. The fact that there are other viable, low-cost alternatives to examine is also a possible impediment.

Impact of COVID -19 on Europe Prefabricated Buildings Market

COVID-19 had a detrimental impact on prefabricated buildings market across Europe. The pandemic caused significant uncertainty for vendors and contractors in Europe's construction industry. Due to lockdowns and limitations, some construction businesses had to halt their operations. Yet, due to acute needs in the hospital and quarantine sectors, demand for prefabricated materials increased. Because traditional construction requires a large crew, prefabricated buildings proved the best option during the pandemic.

Europe Prefabricated Buildings Market

Segmental Coverage

Europe Prefabricated Buildings Market – By Type

By type, Europe prefabricated buildings market is divided into Skeleton System, Panel System, Cellular System, and Combined System. The panel system segment held the highest market share due to the increasing demand for a panel system. Because of the higher quality offered, such as short manufacturing times, simple transportation and installation services, adjustable designs, easy re-location, and more, demand for panel systems is expanding in both the residential and non-residential sectors.

Europe Prefabricated Buildings Market – By Material

Based on material, Europe prefabricated buildings market is divided into Concrete, Glass, Metal, and Timber segments. The timber segment held the highest market share. Timber construction is becoming more common in France. It has typically made up a lower proportion of all apartment buildings and has usually been designated for complexes up to four floors tall. There are already a growing number of projects in the works for buildings with seven to sixteen floors that use timber for the shell or structure. Bordeaux, in southwestern France, has pledged to build 270,000 square feet of timber spaces per year for the next 15 years. One of the structures leading the way is the Hyperion skyscraper, an 18-story residential complex with CLT floors and walls. It is intended to be one of the world's highest timber structures. Precast concrete products compete with items made from other materials. For instance, in France, wooden rail sleepers account for 15% of total rail sleeper volume (due to a statute requiring the construction of 250,000 rail sleepers per year due to an agreement with the timber sector), while precast concrete accounts for 100% of the remaining rail sleeper market.

Europe Prefabricated Buildings Market – By Application

Based on application, Europe prefabricated buildings market is segmented into Residential, Commercial, and Other Applications (Industrial, Institutional, and Infrastructure). The commercial segment held the highest market share because the business sector is employing more prefabricated building solutions. Prefabricated building technologies are often used in highway, railroad, mining, hydroelectric, petroleum, tourism, and military facilities such as offices, hotels, canteens, recreation areas, and gyms. Because in some cases, action is faster than traditional building. Residential segment dominates the market in second place. Modular construction can be employed to develop buildings that prioritize sustainability and aesthetics. It allows for speedy construction, viability of challenging designs, and the creation of unique homes with changeable characteristics that satisfy community needs.

Europe Prefabricated Buildings Market – By Country

Europe prefabricated buildings market covers Germany, UK, Italy, France, Spain, The Netherlands, and Rest of Europe. During the forecast period, Germany is expected to grow at a high CAGR. The geographic market expansion can be linked to considerable changes in Germany's housing sector. A significant transition is taking place, with young people travelling to cities in search of education and a way of life. As a result, demand in cities for cheap, target-group-focused living areas is increasing, boosting demand for modular construction across the country. Increasing construction investments are predicted to boost revenue in Germany. Nonetheless, the prefabricated industry in the UK is expected to grow rapidly in the future years as a result of increased investment in the UK's modular building sector. Each year, Legal & General, Homes, and others have announced plans to build hundreds or even thousands of modular homes. Major companies that have constructed prefabricated housing factories are Ilke Homes and Legal & General. These two businesses are transforming the nation's prefabricated housing market by producing two and three-bedroom homes ranging in price from GBP 64,000 to GBP 78,000.

Competitive Landscape

Major players operating in Europe prefabricated buildings market include Lindal Cedar Homes Inc, Red Sea Housing Services, Astron Buildings, United Partition Systems, Butler Manufacturing Company, Ritz-Craft Corporation, Champion Home Builders, Kirby Building Systems LLC, and Tempohousing. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2022 - The University of Oxford hired Laing O'Rourke, a long-standing collaborator, to deliver the Stephen A. Schwarzman Centre for the Humanities. The win might represent one of the university's largest single-building projects, and it would be Laing O'Rourke's 12th project for a client with whom it has worked for two decades. The new structure is expected to house nine faculties, institutes, and seven libraries and collections, as well as sustainable, adaptable, and accessible spaces for graduate postgraduate and postdoctoral learning, research, and experimentation.

Scope of the Report

By Type

• Skeleton system

• Panel system

• Cellular system

• Combined system

By Material

• Concrete

• Glass

• Metal

• Timber

• Other Material Types

By Application

• Residential

• Commercial

• Other Applications (Industrial, Institutional, Infrastructure)

By Country

• Germany

• UK

• Italy

• France

• Spain

• Netherlands