PREFABRICATED BUILDING INDUSTRY INSIGHTS
The Europe prefabricated building market size was valued at USD 24 billion in 2020 and is likely to reach USD 32 billion in 2026, growing at a CAGR of over 4% during the forecast period. The market is growing as the demand for better quality sustainable homes across the region increases, with the UK and Germany accounting for the largest shares. The use of additive manufacturing in Europe expects to lend tremendous support to the prefabricated construction market. Companies are using eco-friendly materials and manufacturing techniques to differentiate their offerings from their competitors. The focus on energy efficiency has led to the adoption of energy-absorbing materials such as micro homes. The advent of turnkey solutions is another major factor, which is driving the market growth in the region, especially in Switzerland, Nordic, and the UK. Germany, Nordic, and the UK dominate the Europe prefabricated building market share. The outbreak of the COVID-19 pandemic has led to severe uncertainty for vendors and contractors in the construction industry across Europe. Several construction companies shut down their projects due to lockdown and restrictions. However, due to immediate requirements for hospitals and quarantine sectors, the demand for prefabricated materials witnessed an increase. Since a high workforce is required for traditional construction, opting for prefabricated buildings came out as an optimum solution during the pandemic.
- The steel prefabricated building market in Europe expects to reach approx. USD 11 billion by 2026 due to the material’s proven strength and durability.
- The wood prefabricated building market is likely to grow at the highest CAGR during 2020–2026 because of the increasing application in large and multi-story buildings.
- The commercial prefabricated buildings market in Europe is likely to cross over USD 5 billion by 2026 due to the increased usage of prefabricated materials in offices, shopping malls, trade centers, auditoriums, hospitals.
- Cellular systems are projected to reach approx. USD 8 billion by 2026 due to the increasing demand for finished turnkey solutions across Europe.
- Germany is expected to reach over USD 6 billion by 2026 due to a strong housing demand fueled by growing incomes, low-interest rates, and high levels of net migration.
EUROPE PREFABRICATED BUILDING MARKET SEGMENTATION
This research report includes a detailed segmentation by
- Material Type
- System Type
INSIGHTS BY MATERIAL TYPE
The steel prefabricated buildings market expects to observe an incremental growth of approx. USD 3 billion by 2026. Steel reframes observe high adoption in prefabricated buildings due to lightweight, ductility, and recyclability. These reframes are witnessing high acceptance in the construction sector as they can absorb wind turbulence and offer high elasticity during earthquakes. However, with the outbreak of the COVID-19 pandemic in Europe, manufacturing activities and steel-using industrial sectors were shutdown, which affected the steel demand. The EU28 steel consumption declined by -25.5% YOY in the second quarter of 2020 after witnessing a drop of -12% in the first quarter due to the onset of the COVID-19 pandemic.
Concrete was the second-largest revenue contributor to the Europe prefabricated building market share. Concrete buildings are popular for site-built facilities where the production of reinforced concretes and inclined concretes is used. Concrete structures offer several benefits, including affordability, sustainability, and safety, which is increasing the application in the construction sector. They can provide a thermal barrier, allowing heat (or cooling) to escape the structure.
INSIGHTS BY APPLICATION TYPE
The residential prefabricated building market in Europe accounted for over 44% share in 2020. With the increasing shift toward turnkey housing solutions, the prefabricated housing market expects to pick across Europe. Moreover, the ease of preparation and consent procedures are likely to boost the demand for prefabricated houses. The demand for prefabrication material in the renovation of residential houses is also expected to provide significant opportunities in the future, thereby boosting the market growth during the forecast period.
In 2020, the commercial building segment dominated the non-residential prefabricated buildings market in Europe. The immediate demand for hospitals and quarantine centers due to the outbreak of the COVID-19 pandemic has boosted the revenue from the commercial sector. Several start-ups, collaborative workspaces, and other offices opt for complete fit-out services. Therefore, the demand for turnkey solutions is constantly increasing from the commercial sector.
INSIGHTS BY SYSTEM TYPE
The prefabricated building market in Europe by cellular systems accounted for over 24% share in 2020. The increasing demand for complete and finished turnkey solutions in Europe is the primary factor responsible for cellular systems' growth. The growing number of prefabricated constructions expects to boost the demand during the forecast period. Cellular systems play a vital role in the development of multidimensional structures. In addition, they are also regularly used for building cells, which provide isolation.
Panel systems constitute an important place in modern construction as they are used in buildings, apartments, houses, public and industrial buildings, roads, airfields, dams, and canals. They have widely been used in large-scale housing and civil construction, increasing their revenue share. The application of panel systems is growing as they reduce construction time compared to traditional materials, including bricks. They are highly cost-efficient as they decrease labor expenditures by 30–40%.
Skeleton systems are expected to grow at a CAGR of over 4% during the period 2020–2026. They constitute a significant share of the prefabricated building market in Europe. They enable interior floor layouts to be free from immovable walls, making them flexible spaces and promoting the usage of different materials. Skeletal frameworks are typically used for structures that are relatively low-rise and do not have several partitions. Skeleton systems are commonly used in large-scale car parking buildings. Construction speed and high-quality components are the key advantages of using prefabricated skeletal structures.
INSIGHTS BY GEOGRAPHY
The prefabricated building market in Germany is expected to account for the highest revenue share by 2026. The housing market in Germany is witnessing drastic changes. A significant shift has been witnessed with the young population turning cities for educational opportunities and livelihood. Hence, the demand for affordable, target-group-oriented living space is increasing in cities, boosting the demand for modular construction in the country. Growing investments in the construction sector are likely to boost revenues in Germany. Launching new innovative buildings can offer a competitive edge in the market. The UK, Spain, France, and Italy are the other countries that are likely to emerge as the major contributors to the market.
INSIGHTS BY VENDORS
Vendors are focusing on technological innovations. Several vendors are involved in offering wooden prefabricated structures with complete customization. High capital requirements and rapid advances in technology are significant entry barriers for new players. The competition has intensified, leading to the introduction of many innovative and advanced solutions in the market, such as turnkey solutions and lightweight ceramic houses. Therefore, attaining sustainability, expanding into other geographies, and reviving domestic demand are essential factors for vendors. Vendors can boost profitability by practicing efficient production techniques that minimize product costs and mitigate associated risks.
The Europe prefabricated building market research report includes in-depth coverage of the industry analysis with revenue and forecast insights for the following segments:
- Skeleton System
- Panel System
- Cellular System
- Combined System
- Other Systems