According to the latest research report titled, “European Modular Construction Market Report (2023 – 2029)” by Mordor Intelligence, the market is estimated at USD 11.31 billion in 2023 and growing at a CAGR of >4 % during the forecast period. 

The modular construction market is poised for growth, driven by an increasing demand for permanent modular construction, which offers significant time and cost savings compared to traditional methods. However, challenges such as the substantial initial funding required for large-scale production setup and the risk of project failure during transportation to the designated site may impede market expansion. Additionally, the potential impact of a recession could further dampen demand for modular construction in Europe. Government initiatives to reduce waste and promote green construction and building techniques are driving the demand for modular construction.  

According to the European Investment Bank Group, the bank provided EUR 99 million (USD 105.48 million) loan to Hemsö Fastighets AB to create more energy-efficient social infrastructure in Sweden and Finland. Nine buildings for social services will be built, including nursing homes, a medical facility, preschools, and school services.

Report Summary 

• Market Size (2023): USD 11.31 billion 
• Market Size (2028): USD 11.78 billion 
• CAGR (2023 – 2028): >4% 
• Study Period: (2019-2027) 
• Market Concentration: Low 
• Forecasted Data Period: 2023-2028 
• Historical Data Period: 2018-2021 
• Report Scope: Market Dynamics, Revenue Forecast & Segmentation, Competitive Landscape & Recent Developments, Market Growth, Future Opportunities, and Trends    
• Key Market Drivers: Growing Demand for Modular Construction in Commercial Segment, and Rising Demand for Higher-quality, and Eco-friendly Homes  

Which are the Top Companies in the European Modular Construction Market?     

The modular construction market in Europe is characterized by significant fragmentation, where no individual player possesses a substantial share capable of influencing the market. Some of the key players in European modular construction include Skanska, Modulaire Group, DFH Group, Daiwa House Modular Europe Ltd. (Jan Snel), and Elements Europe, among others. 

Prominent players in the European modular construction market are: 

• Berkeley Group 

• Bouygues Batiment International 
• Daiwa House Modular Europe Ltd. (Jan Snel) 
• DFH Haus GmbH 
• Elements Europe 
• Karmod Prefabricated Technologies 
• Laing O’Rourke Corpt Ltd. 
• Modulaire Group  
• Modubuild 
• Moelven Industrier ASA 
• Skanska AB 

Other Reports that Might be of Your Interest 

• Modular Construction Market Report: The Modular Construction Market size is estimated at USD 58.61 billion in 2023, and is expected to reach USD 89.29 billion by 2028, growing at a CAGR of 8.78% during the forecast period (2023-2028) 
• North America Modular Construction Market Report: The North America Modular Construction Market size is expected to grow from USD 32.49 billion in 2023 to USD 40.70 billion by 2028, at a CAGR of 4.61% during the forecast period (2023-2028). 

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Key Highlights from the European Modular Construction Market Report 

 

1. Projected Market Supremacy: Commercial Sector Takes the Lead 

• Commercial buildings are constructed using the modular construction process by the International Building Code (IBC) or a version of a code modeled after the IBC and state regulations. 
• The European modular market thrives in commercial construction, notably with modular office buildings commonly utilized as extensions for increased workspace or as temporary offices during traditional building renovations 
• In Europe, according to the Europe Hotel Construction Pipeline Trend Report, at the close of the third quarter of 2021, Europe’s hotel construction pipeline stood at 1,814 projects and 295,719 rooms and remained largely unchanged year-over-year 

• According to the EU Industrial R&D Investment Scoreboard, Europe’s industrial sector was back on track in research and development investments with an increase of 8.9% in 2021 compared to the -2.2 % pandemic-related dip in 2020. 
• Globally, the private sector R&D investment in industrial construction grew strongly beyond pre-pandemic levels by 14.8% in 2021 (compared to 2020). 
• The European Investment Bank Group granted a EUR 99 million (~USD 105.48 million) loan to Hemsö Fastighets AB for constructing energy-efficient social infrastructure in Sweden and Finland, involving the development of nine buildings for various social services.  

2. Germany’s Ascendance: Leading European Region’s Growth 

As the foremost economy in Europe and the fifth largest worldwide, Germany’s economic standing, as per the International Monetary Fund (IMF), indicates an anticipated GDP increase of 2.8% in 2021 amid the ongoing global economic recovery from the pandemic. The GDP is projected to sustain growth at a 2.1% rate in 2022. 

Germany boasts the largest construction industry on the European continent. The prefabricated building sector is experiencing a notable surge, particularly in the residential domain. Aligned with the overall upswing in residential construction nationwide, the prevalence of prefabricated housing solutions is on the rise, surpassing a 20% market share. Furthermore, the heightened demand for turnkey solutions is contributing to the increased popularity of prefabricated houses, thereby driving market expansion. 

According to the Federal Statistical Office, Germany authorized the construction of 32,384 homes in May 2021, reflecting an 8.7% increase from April 2021. In October 2021, permits were granted for 29,597 dwellings. The cumulative building permits for January to October 2021 showed a 4.2% rise compared to the corresponding period in the preceding year. 

 

What are the Market Developments in the European Modular Construction Market?    

• In October 2022: Japan’s largest homebuilder, Daiwa House, announced their joint venture with Capital Bay to deliver modular construction across Europe. The JV will result in Capital Bay using modular construction units for its own projects and operator brands but will also be offered to third-party customers in Europe. 
• In June 2022: HS2 Ltd. (High Speed 2 – a planned high-speed railway line in the UK) announced that Laing O’Rourke Delivery Ltd will build HS2’s new Interchange Station in Solihull, at the heart of Britain’s new high-speed rail network. The contract, which is worth up to GBP 370 million, will see them work with HS2 Ltd in two stages to finalize the detailed design and then build the landmark station over the next few years. 

Mordor Intelligence Report on the European Modular Construction Market segments the market based on product type, application, and geography: 

• By Type (Market Size & Forecast based on Value (USD billion), 2023-2028)   

• Permanent 
• Relocatable 

• By Material (Market Size & Forecast based on Value (USD billion), 2023-2028)   

• Steel 
• Concrete 
• Wood 
• Plastic 

• By End-user Industry (Market Size & Forecast based on Value (USD billion), 2023-2028)   

• Commercial 
• Industrial/Institutional 
• Residential 

• By Geography (Market Size & Forecast based on Value (USD billion), 2023-2028)   

• Germany 
• United Kingdom 
• France 
• Italy 
• Rest of Europe 

In a nutshell, the Mordor Intelligence Market Research Report provides in-depth market insight to industry players, investors, researchers, consultants, and business strategists, looking for comprehensive details on the European modular construction industry. Get a glance at the European Modular Construction Market Report (2023 – 2028) 

About Mordor Intelligence 

Mordor Intelligence is a trusted partner for businesses seeking comprehensive and actionable market intelligence. Our global reach, expert team, and tailored solutions empower organizations and individuals to make informed decisions, navigate complex markets, and achieve their strategic goals.  

With a team of over 550 domain experts and on-ground specialists spanning 150+ countries, Mordor Intelligence possesses a unique understanding of the global business landscape. This expertise translates into comprehensive syndicated and custom research reports covering a wide spectrum of industries, including aerospace & defense, agriculture, animal nutrition and wellness, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, investment opportunities, and logistics.   

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