European Prefabricated Buildings Market - Growth, Trends, and Forecasts (2020 - 2025)

European Prefabricated Buildings Market is segmented by Material Type (Concrete, Glass, Metal, Timber and Other Material Types), Application (Residential, Commercial, and Other Applications (Infrastructure and Industrial)), Geography and Unit Size (small and Large)

Market Snapshot

Study Period:

2016-2025

Base Year:

2019

CAGR:

5 %

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Market Overview

The Prefabricated Building Market in Europe is expected to grow at a CAGR of approximately 5.5 % during the forecast period mainly driven by the demand for low- to- mid-rise residential buildings, project homes, and public housing.

Prefabricated housing demand is on the rise, as the building technique’s advantages are increasingly being leveraged by new home buyers in an improving economic and demographically charged marketplace. By 2022, an estimated 70,100 units will be sold across six Northern European countries, with German demand representing a sizeable level, particularly for turnkey solutions. 

The prefabricated housing market is picking up across Europe, as people increasingly focus on turnkey solutions that tick all the modern boxes. Acceptance of the manufacturing firms, as well as ease of planning and consent processes, are expected to further boost demand. The modular construction is gaining popularity across the European region, owing to the population growth and shortages in housing. It is gaining momentum as an effective means to build affordable housing.

In Italy, the demand for prefabricated, anti-seismic houses in steel are expected to gain popularity, owing to their validity and efficiency in housing safety, especially in those areas subject to recurrent seismic events.  

Sweden is one of the most developed markets for prefabricated construction in the world with a high penetration rate. Sweden is the leading country in the implementation of panelized building systems, where around 80% of its housing sector uses structures and elements prefabricated in factories. Offsite manufacturing is used in Sweden to build at least 45% of its new homes and at least 30% of new-build multi-residence buildings. According to an industrial study, about eight out of 10 detached houses in Sweden are built using modern methods

In Russia, the outlook for prefabricated construction looks steady with demand for modular systems expected to rise driven by affordable, comfortable, and eco-friendly housing. Russia has experience in the development of 3D reinforced concrete modules. 3D modular house construction is well developed and was one of the most promising methods providing high construction rate of residential buildings. 

As the focus on turnkey solutions is increasing, the prefabrication is witnessing steady growth in the European region. Other significant countries for prefabrication construction in Europe include Austria, Switzerland, Poland, and the countries in the Scandinavian region. The prefab industry in the Scandinavian region is comparatively strong.

Scope of the report

The European Prefabricated Buildings Market covers the growing trends and projects in prefab building markets, like commercial construction, residential construction, industrial construction. The report also covers the industry along the type of material used, like concrete, timber, glass, metal, and other types. The market scope has been extended to provide insights at a regional level by segmenting across the geography. Along with the scope of the report also it analyses the key players and the competitive landscape in the European Prefabricated Buildings Market. The impact of COVID’19 has also been incorporated and considered during the study.

Material Type
Concrete
Glass
Metal
Timber
Other Material Types
Application
Residential
Commercial
Other Applications ( Industrial, Institutional, and Infrastructure)
Geography
Belgium
Finland
France
Germany
Italy
Poland
Russia
Spain
The Netherlands
Ukraine
United Kingdom
Others
Unit Size
Small (below 1 ton)
Large (above 1 ton)

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Key Market Trends

Wood & Timber holds the Largest share in the Sector

The precast concrete products face competition from products made from other materials. For instance, in the rail sleepers’ market, which is a key end-user of precast concrete, the precast concrete rail sleepers compete to a certain degree with rail sleepers made of wood, steel, and plastic. In France, wooden rail sleepers currently account for 15% of the total rail sleepers in terms of volume (mainly due to the fact that, by law, 250,000 rail sleepers per year must be made of wood due to an agreement with the timber industry), while precast concrete occupies 100% of the remaining market for rail sleepers. The prefabricated market for wood products is also growing in Italy, which is also reflected in growing Cross Laminated Timber (CLT) production. The total output of CLT in "DACH" region (Germany, Austria and Switzerland), in the Czech Republic and in Italy is more than 750,000 m3 and is growing at more than 10% per year. In Russia, the government has introduced quotas for use of wood in state housing program construction in 2016 – 20% in 2016, 25% in 2017, and 30% in 2018.

Segezha Group is the Russian leader in glulam-based building construction. Segezha subsidiary Sokol Timber Company is a major industrial home-building facility that primarily produces glued timber for export. In June 2019, Segezha Group launched the construction of the CLT manufacturing plant with a production capacity of 250,000 m2 per year. The use of steel in infrastructure, housing, communal, and social construction is expanding in Russia, owing to the high environmental friendliness of metal structures within their life cycle, as well as the growth of investment in infrastructure. In France, timber construction is witnessing a significant growth. Traditionally, it accounted for lesser than all apartment buildings, and has been used mainly for buildings up to four storeys high. Now, there are an increasing number of projects underway for buildings with between 7 and 16 storeys that use timber either for the shell of the building or its structure. The city of Bordeaux in southwestern France has pledged to build 270,000 square feet of wooden spaces per year for the next 15 years. One of the projects leading the way is the Hyperion tower, an 18-story residential building with CLT floors and walls. It aims to be one of the tallest timber structures in the world when completed in 2020.

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Increase in the Investments in Prefab Industry in Major Countries such as UK to Boost the Market

The prefabricated building industry in the UK is expected to register an approximate growth of CAGR 4.5% during the forecast period. Modular construction technology has been gaining more attention in the building industry over the last few years in Europe. The increasing investments in the UK’s modular construction sector are also boosting the growth of the prefab industry. Homes, Legal & General have announced plans to deliver thousands of modular homes per year. According to an industrial source, out of the 200,000 homes that are constructed in the country every year, about 15,000 of them are modular. 

As the UK government plans to build around 300,000 new homes per year by 2020s to address the challenges in the housing market, prefab construction is expected to play a significant role there. In addition, in Jun 2019, the Worthing council gave permission to Ikea to build modular homes on the south coast in a joint venture with the construction firm Skanska. The two companies, Ilke Homes and Legal & General, has built factories for manufacturing prefab homes. These two companies are transforming the prefabricated housing industry in the country with the production of two and three-bedroom homes that range between GBP 65,000 to GBP 79,000. Ilke Homes pledged to produce 2,000 houses a year, reaching eventually to 5,000. The insurance company Legal & General has built a vast factory outside Leeds, which would build 3,500 homes a year.

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Competitive Landscape

The report covers the major players operating in the European Prefabricated Buildings Industry. The market is highly competitive with none of the players occupying the major share. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the prefab construction building investments and up-coming major projects in the country and other few factors are driving the market. Prefabricated building systems and construction hold high potential to improve the efficiency and performance of the European construction industry in a more sustainable sense. 

In 2019, Japan’s biggest housebuilder, Sekisui, entered a venture with the UK government expected to result in thousands of modular homes across the country. Berkley Homes, one of the largest players also announced plans to open a factory in Kent with the aim of producing a thousand homes a year.

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Table Of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definitions

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET INSIGHTS

    1. 4.1 Current Market Scenario

    2. 4.2 Technological Trends

    3. 4.3 Insights on Supply Chain/Value Chain Analysis of the Prefabricated Buildings Industry

    4. 4.4 Brief on Different Structures Used in the Prefabricated Buildings Industry

    5. 4.5 Cost Structure Analysis of the Prefabricated Buildings Industry

    6. 4.6 Impact of COVID 19

  5. 5. MARKET DYNAMICS

    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunitites

    4. 5.4 Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers / Buyers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitute Products

      5. 5.4.5 Intensity of Competitive Rivalry

  6. 6. MARKET SEGMENTATION

    1. 6.1 Material Type

      1. 6.1.1 Concrete

      2. 6.1.2 Glass

      3. 6.1.3 Metal

      4. 6.1.4 Timber

      5. 6.1.5 Other Material Types

    2. 6.2 Application

      1. 6.2.1 Residential

      2. 6.2.2 Commercial

      3. 6.2.3 Other Applications ( Industrial, Institutional, and Infrastructure)

    3. 6.3 Geography

      1. 6.3.1 Belgium

      2. 6.3.2 Finland

      3. 6.3.3 France

      4. 6.3.4 Germany

      5. 6.3.5 Italy

      6. 6.3.6 Poland

      7. 6.3.7 Russia

      8. 6.3.8 Spain

      9. 6.3.9 The Netherlands

      10. 6.3.10 Ukraine

      11. 6.3.11 United Kingdom

      12. 6.3.12 Others

    4. 6.4 Unit Size

      1. 6.4.1 Small (below 1 ton)

      2. 6.4.2 Large (above 1 ton)

  7. 7. COMPETITIVE LANDSCAPE

    1. 7.1 Overview (Market Concentration and Major Players)

    2. 7.2 Company Profiles

      1. 7.2.1 Laing O-Rourke

      2. 7.2.2 Bouygues Construction, VINCI

      3. 7.2.3 Skanska AB

      4. 7.2.4 Kleusberg GmbH & Co. (KG)

      5. 7.2.5 Deutsche Fertighaus Holding

      6. 7.2.6 Berkley Homes

      7. 7.2.7 Ilke Homes

      8. 7.2.8 Segezha Group

      9. 7.2.9 Moelven Byggmodul AB

      10. 7.2.10 ALHO Systembau GmbH

      11. 7.2.11 Fertighaus Weiss GmbH *

  8. *List Not Exhaustive
  9. 8. MARKET OPPORTUNITIES AND FUTURE TRENDS

  10. 9. APPENDIX

    1. 9.1 Marcroeconomic Indicators (GDP breakdown by sector, Contribution of construction to economy, etc.)

    2. 9.2 Key Production , Consumption,Exports & import statistics of construction Materials

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