The modular construction market - France (2025)

1.2 The global modular construction market

Global modular construction market World, ****-****, in billions of $ CAGR: +*.**% Source: ****

The global modular construction market is booming, underpinned by growing demand for fast, cost-effective and eco-friendly building solutions. In ****, its size is estimated at **.** billion USD and is expected to reach *** billion USD in ****, registering a compound annual growth rate (***) of *.**% over the period ****-****.

Modular construction, characterized by factory prefabrication and on-site assembly, is attracting attention thanks to its many advantages, such as reduced construction times and costs, as well as a smaller ecological footprint. However, certain obstacles, such as the high cost of logistics, are holding back its growth. The growing adoption of innovative technologies, such as Building Information Modeling (***), is opening up new opportunities for the sector.

The Asia-Pacific region dominates the global market, benefiting from strong demand from countries such as China, Japan, South Korea and Singapore. It is also the fastest-growing region, underpinned by massive investment in public and private infrastructure, as well as government initiatives to promote sustainable construction techniques such as PPVC (***). For example, China, the world's largest construction market, plans to invest nearly **,*** billion USD in buildings by ****. India is following suit, with a plan to invest USD *,*** billion in infrastructure over ...

1.3 The French market

The industrialized and modular construction market in France has enjoyed sustained growth in recent years, marked by significant changes in sales.

Between **** and ****, the sector saw revenues rise by **%, from *** million euros in **** to *,*** million euros in ****. This momentum intensified from **** onwards, when sales reached *** million euros, and then recorded a notable **% increase in ****, reaching *,*** million euros.

The year **** consolidated this trend with an increase of **% over ****, reflecting increased demand for flexible, efficient building solutions, in line with the imperatives of innovation and sustainability.

Industrialized and modular construction sales France, ****-****, in millions of euros Source: ****

1.4 France, a net importer of modular buildings

The modular construction business is listed by the General Directorate of Customs and Excise under the following codes:

******** - Prefabricated buildings, of wood, whether or not complete or assembled ******** - Prefabricated greenhouses, whether or not complete or assembled, made exclusively or mainly of iron or steel ******** - Prefabricated buildings, whether or not complete or assembled, made exclusively or mainly of iron or steel (***) ******** - Prefabricated buildings, whether or not complete or assembled (***)

Exports, imports and market coverage for modular construction France, ****-****, in millions of euros and as a % of sales Source: ****

In ****, French modular construction exports will cover only **% of its imports. This figure is down * points on the previous year, as imports have picked up after the slowdown due to the Covid crisis. By ****, however, the coverage rate will have improved significantly, reaching **%.

Modular construction export destination France, ****, in Source: ****

France exports mainly to Europe (***).

Origin of modular construction imports France, ****, in % Source: ****

France imports mainly from Italy, China and Belgium.

2.1 Demand and its determinants

A gradually diversifying customer base

initially, the modular construction market was centered around a single customer segment: the construction industry, to help build construction sites. In recent years, however, other customers have emerged, such as the public sector (***).

The individual and collective housing segment : According to Le Moniteur, players in the modular construction market were already present in the construction of student residences and retirement homes, but are now investing in the construction of individual and collective housing. Costs for customers are said to be lower, with savings of **% to **% and delivery times two to three times faster.

Modular building is developing to serve the ephemeral economy. The modular format is perfectly suited to the needs of temporary and seasonal activities. These concepts are appearing in one-off marketing operations with pop-up stores, or in a "guinguette" spirit with fast-food establishments. [***]

A major factor driving demand for modular construction is urbanization.

Urbanization trends France, ****-****, in % Sherbrooke University

We can see here that urbanization is growing steadily in France. However, the increase remains relatively stable.

We can also look at construction costs, since if they're too high, demand may fall back on modular construction.

Construction cost trends France, ****-****, index base *** (***) ...

2.2 Customer sectors

The modular construction market is divided into two main sectors: rental and sales. Each branch has its own outlets in different sectors.

Modular buildings, once associated mainly with the construction industry to meet temporary needs on building sites, have extended their use to a variety of strategic sectors. Local authorities adopt them for rapid expansion and disaster recovery, while the healthcare sector favors them for the creation of infirmaries, laboratories, doctors' surgeries and viral testing centers. Industry uses them to expand production sites and provide storage space. In the tertiary sector, modular buildings optimize workspaces, reduce flow in open spaces and create temporary meeting rooms. The event industry exploits them for trade shows, sanitary facilities, conference rooms and ticket offices. [***]

Key growth drivers France, ****, in Source: ****

The chart illustrates the breakdown of sales in the modular construction sector between rental and sales. Rental accounts for a majority share with **% of total sales, or *** million euros, while sales make up the remaining **%.

This breakdown reflects the growing importance of rental, which is establishing itself as the sector's main growth driver, thanks to the flexibility and responsiveness it offers. conversely, sales, while still significant, seem to be evolving more slowly in terms of ...

2.3 Increasingly eco-friendly demand for wooden modules

The recent development of wooden modules has seen the arrival of new players in the market, positioned primarily in the housing segment (***). This development is due to the promising growth of wood construction in France. Indeed, the authorities are subsidizing and developing this market with a Wood Construction Plan from **** to ****.

One of the main players in this segment is BH, a subsidiary of boat manufacturer Bénéteau, which offers a MUSE concept for social landlords, featuring prefabricated timber-frame modular homes. Other offerings include GINKGO, a specialist in turnkey wooden houses (***), and AIREMODULAIRE, which designs low-consumption, three-dimensional modular wooden houses.

The ecological argument is a strong criterion driving demand for wooden modular construction. Indeed, this type of construction is more respectful of the environment thanks to the use of renewable and renewed wood, a transformation process that emits little CO* and a relative ease of recycling construction materials. This is a significant criterion at a time when people are becoming increasingly sensitive to these issues, yet the construction industry is the most polluting industry in France.

evaluation of pollution emitted by the construction industry France, ****, % Source: ****

Progress is nevertheless being made in terms of greenhouse gas emissions: From **** to ****, the ...

2.4 The rise of modular construction as a solution to the low profitability of the building industry

As the decline of the construction industry seems inexorable, the sector needs to adopt new methods. One answer to the building crisis could be the use of off-site construction. This currently accounts for **% of the French construction market, but **% of companies in the sector plan to invest in this area over the period ****-****.

Offsite (***) to cut lead times and costs:

At a time when construction costs are steadily rising, the use of offsite is a way of saving money. In ****, for example, costs rose by between **% and **% in just a few months for the tertiary sector. Yet while modular construction has high initial costs, which can be up to *% higher than for the on-site equivalent, it allows a considerable reduction in expenditure when the project as a whole is considered, up to -**%. This is thanks to delivery times that are at least six months shorter .

Off-site cost advantages and disadvantages France, ****, % Source: ****

Off-site advantages according to users France, ****-****, in Off-site

Environmental impact is one of the most valued advantages of modular construction, in contrast to the pollution potential of the traditional construction sector.

Overcoming skills shortages in the construction industry

The construction industry is one of the hardest ...

3.1 Competitive intensity limited by market structure

The modular construction market is characterized by a small number of players and limited competitive intensity (***), with a few behemoths such as Algeco and Yves Cougnaud. There are around ** major players in the modular construction market, the remainder being made up mainly of SMEs with a more local reach, which fragment the market.

Sales of main competitors on the market France, ****, in millions of euros Source: ****

The two biggest players in the French market (***) concentrate around **% of market share. This result indicates a concentrated sector where the big players largely dominate the market. Algeco and Yves Cougnaud take the lion's share of the modular construction market. While Yves Cougnaud has recently become the market leader in France, its activities are limited to the national territory, whereas Algeco is the world leader, with world sales of US$*** million in **** and US$*.* billion in ****.

Market share of the * biggest players in the sector France, ****, in Source: ****

The market structure is explained by relatively high fixed production costs, which require economies of scale to be profitable. As a result, barriers to entry are high in this market in terms of capital requirements. Most substitute products are not economically competitive.

The high level of concentration ...

3.3 The production system and its advantages

Modular building production involves the factory assembly of entire buildings from prefabricated modules, which are then placed on foundations.Modular construction is part of the wider real estate sector, of which it can be both a corollary and a substitute product. Indeed, in addition to reducing the construction risk inherent in real estate development activities, modular construction can offer several advantages:

According to IFS, production is carried out in local factories, with the creation of entire apartment blocks or site modules. Interior finishes are also produced locally, then manufactured on a large scale, transported and assembled on site.

According to a McKinsey study reported by IFS, this production process enables savings of **% on labor costs and delivery times. In-plant production also reduces construction air and noise pollution, and enhances worker safety.

The MonDevis website provides some interesting information on the production of modular buildings. According to the site, which takes the example of a "kit house", the cost of labor is estimated at **% of the total construction price. This compares with **% to **% of the total cost of building a conventional house.

like Actimodul, many companies in the modular construction sector are vertically integrated. The company takes care of *D design, building ...

3.4 Reorganizing the value chain

The January **** report from the French Ministry of Housing gives an account of the changing distribution of value in the construction industrialization market. In particular, the report highlights the verticalization of the sector worldwide, with materials manufacturers tending to control downstream supply chains, and developers moving into the upstream chain. These two types of player are also involved in numerous cross-industry partnerships, since the industrialization of the sector presupposes the development of long-term partnerships between customers and suppliers.

This trend is accompanied by a tendency towards internalization and consolidation, with the aim of creating the modular construction players of the future, at a time when the market is becoming increasingly vast and international.

The industrialization of construction is also characterized by a shift in value from the building site to the factory. Today, structural work, i.e. the building's framework, accounts for **% of a project's overall costs. With modular construction, this is considerably reduced, and a significant part of the margin is now captured further up the value chain.

In timber construction, for example, added value on the building site is already reduced to **% of the total. However, the implementation stage still accounts for **% of the workforce in the timber construction ...

3.5 Focus on eco-friendly modular wood construction

Modular wood construction is a fast-growing building method involving the prefabrication of wooden components in a factory, followed by their assembly on the building site. This approach offers rapid construction, cost savings of around **% compared with traditional construction, enhanced energy performance thanks to high-quality insulation, and great flexibility for extensions. What's more, wood is affordable, durable, environmentally friendly and aesthetically appealing. It emits little waste, is ***% recyclable and meets high energy-efficiency standards, sometimes similar to those of passive houses. However, modular wood construction can generate a carbon footprint due to the transportation of modules to the site, present limitations in terms of customization and financing challenges from banks. Despite these drawbacks, it is an excellent alternative for those who want aesthetically pleasing, durable and affordable buildings, while minimizing their environmental impact.

[***]

Modular wood construction is a building method based on workshop prefabrication. It is currently enjoying renewed interest as an efficient, sustainable solution for a variety of building types. Whether for collective housing, single-family homes, temporary structures or workplaces, this approach can be adapted to a wide range of building types. It is based on the assembly of prefabricated wooden modules, custom-designed and transported to the construction site. The advantages ...

3.6 Modular construction: economic and ecological benefits

Modular construction is rapidly gaining ground as an innovative solution to the environmental and economic challenges facing the construction industry. According to an article published by Martin Calais Construction Hors Site on August **, ****, this off-site approach offers multiple benefits, both economically and ecologically.

Reduced lead times and improved quality

Volumetric modular methods can reduce construction times by **-**%, while improving quality, productivity and safety on site. These gains are due in particular to in-plant production, which guarantees rigorous control of materials and processes.

Waste reduction

The construction sector, which will be responsible for *.* billion tonnes of waste worldwide by ****(***), benefits greatly from this approach. Modular construction reduces waste generation by up to **%compared to traditional methods. Excess materials produced in the factory are recycled or reused for future projects, thus limiting landfill disposal. In addition, the protection of materials against humidity and climatic conditions helps to reduce waste.

Energy efficiency and sustainability

Energy efficiency is another key benefit. Factory fabrication consumes on average **% less energy, and on-site construction requires **% less time, reducing vehicle movements by up to **%. These improvements reduce local disruption and carbon emissions.

What's more, modular buildings are designed to meet demanding environmental standards such as BREEAM and Passivhaus, ...

4.1 Customer-specific modular construction forms

The modular construction system is based on the construction of a two- or three-dimensional metal, wood or mixed structure, which can be prefabricated (***). They can also be stacked to create several storeys.

The system is based on the manufacture of ** to **% of modular elements in the workshop, including, as required, a watertight/airtight finish with all technical and finishing work. The remaining **-**% of the work is carried out on site, to assemble the modules, adapt them to the constraints of the terrain and customize them to the visual and technical requirements of the project. [***]

Several types of modular construction to suit requirements

The best-known modular constructions are the prefabricated building, which has been the precursor of modular construction since the ****s, the modular building, which is made up of rectangular modules, and modular panels. of rectangular modules, and sandwich panels, which are made from a steel skeleton on which prefabricated panels are installed.

According to Usine Nouvelle, there are different types of modular construction for different sectors:

Modular constructions for the construction industry are generally modular site bungalows (***), site offices and site trailers; Modular constructions for events are temporary sanitary facilities or prefabricated reception rooms (***); Modular buildings for medical professionals ...

4.2 Prices vary according to the material used

Here's an overview of prices in ****:

Source: ****

The chart highlights the variations in modular home costs according to type. Container homes are the most affordable, costing between €*** and €*** per m². Standard modular constructions offer a wider range, with an average price of €*,***, rising to €*,*** per m² depending on options. Concrete models, renowned for their sturdiness, range from €*,*** to €*,*** per m². Finally, wooden modular homes are the most upmarket, with prices ranging from €*,*** to €*,*** per m², reflecting their quality and thermal performance. Overall, the modular home remains an economical alternative, costing **% to **% less than traditional construction, with prices ranging from €*** to over €*,*** per m².

4.3 The contribution of robotics and digital technology to the modular construction market

According to IFS, by ****, over **% of modular construction companies will be using *D printing for modular construction, and **% of work will be carried out by robots in construction.

We offer a quick overview of the contributions of new technologies to modular construction:

A masonry robot has been created by Construction Robotics (***) to help masons with repetitive tool handling tasks. These new technologies make it possible to increase productivity, reduce the drudgery of creative tasks and reduce the environmental impact of construction by reducing the use of materials such as concrete. In Japan, a country with severe space constraints when constructing buildings, many companies are developing prefabricated manufacturing solutions using advanced robotics. This country is a pioneer in standardized housing construction, and modular construction occupies a significant share of the market. In the USA, robotics-assisted modular construction enables housing to be built to very tight deadlines. This is particularly important in a country with a highly mobile population. The more reliable and competitive assembly of buildings by robotics also makes it possible to construct buildings with specific functions, such as schools, warehouses or even care centers or shelters for the homeless.

These examples point to a bright future for modular construction in ...

4.4 Developing new market segments

Residential modular construction

The Yves Cougnaud company is the symbol of this new trend, with the creation of a ***-room, *,***-square-meter student residence in ****, but also through its construction of collective housing such as EHPAD and social housing. Indeed, the Group's objective is to generate ¼ of its sales in residential modular housing, both collective and individual, by ****.

BODARD CONSTRUCTION has created the INOV modular home concept, selling ***,*** square meters per year and nearly *,*** modules.

The design of modular residential buildings is constantly being improved, and often corresponds to trends in traditional real estate. We're seeing the emergence of modular residences featuring plant-based or noble materials at very attractive prices. The ecological arguments intrinsically linked to modular construction are attracting more and more individuals wishing to live in a home that consumes less and is more eco-responsible.

The democratization of modular garden sheds has also been noted. These garden sheds are becoming real outbuildings, and modular technologies are providing greater comfort at a reasonable price.

in Bristol, in ****, Go Modular Technologies innovated by inserting prefabricated housing into an old building. This technique could be developed on a large scale, as it is inexpensive (***) and requires far less work than rebuilding the entire ...

4.5 Garden studios

Living Garden Studios: An Overview Live-in garden studios are self-contained spaces designed to offer a main room and amenities such as a bathroom and kitchen. They are located in the garden of a property and provide space for a variety of uses, whether as an office, a playroom, a gym or even a self-contained dwelling. These garden studios offer a number of advantages, including a rapid increase in living space, long-term savings thanks to effective insulation, and great flexibility in terms of architectural style. How to build a garden studio? There are several options for building a garden studio. You can call in a professional for a turnkey solution, buy a custom kit for self-build, or use a standard kit supplied by a manufacturer. The choice depends on your DIY skills and preferences. Legislation and regulations Building a habitable garden studio is subject to a number of rules and regulations, particularly as regards building permits. The need for planning permission or a declaration of works depends on the floor area and height of the structure, as well as the geographical area and local regulations. In addition, there may be a planning tax to pay, the amount of which depends on factors ...

5.1 Current regulations

Modular construction also complies with manufacturing, installation, use, reliability and design standards and certifications:

CE marking: ****: Guarantees that products comply with European standards, and authorizes their free circulation within the European Union. NF C**-*** standard: ****: Regulates low-voltage electrical installations in buildings, guaranteeing their safety and compliance. ERT and ERP legislation: ****: Provides a framework for fire safety in establishments open to the public or workers, facilitating evacuation in the event of an incident. RE****: ****: Sets carbon neutrality targets for ****, by reducing the energy consumption and CO* emissions of buildings. Garantie décennale: ****: Commits builders to covering damage affecting the solidity of structures for ten years after acceptance. Réglementation thermique ****: ****: Limits the primary energy consumption of new buildings to an average of ** kWh EP/m²/year. Accessibility of premises: ****: Requires buildings to be accessible to disabled people, in accordance with the Equal Rights Act. Fire safety of premises: ****: implies design standards to limit fire risks and facilitate occupant evacuation. HQE (***): ****: Encourages a sustainable approach to construction, integrating environmental criteria such as energy, carbon and biodiversity. Eurocodes: ****: A set of ** European standards designed to guarantee the stability and safety of civil engineering structures. [***]

5.2 Thermal Regulations 2012

Any temporary construction planned for a period of use of more than two years must comply with a standard: the Réglementation Thermique **** or RT****. This regulation came into force on January *, ****, and orders compliance with energy consumption and performance criteria. Modular constructions whose planned use exceeds two years therefore fall within the scope of this law as the law applies " to all new buildings or parts of buildings heated or cooled to ensure occupant comfort. "

RT**** is based on a number of key points that must be met thanks to a study carried out by a thermal design office. The results of this study must comply with RT****, and the conclusions must be provided when applying for a building permit.

There are * main points to bear in mind:

Bioclimatic need (***):

The Bbio characterizes the energy requirements of the building's design components (***). To comply with regulations, your project's Bbio must be lower than the Bbiomax defined by the Thermal Regulations. The building permit is validated if Bbio project < Bbio max RT ****.

The Bbio of a project is calculated according to the following formula: Bbio = * x Heating Requirement + * x Cooling Requirement + * x Lighting Requirement

Primary Energy Consumption (***):

RT**** defines a maximum overall ...

6.1 Segmentation

6.2 The analyst's eye

Context:

The modular construction sector operates in an environment dominated by environmental imperatives and the need for flexibility on the part of construction industry players. With average annual global growth of *.**% expected between **** and ****, this solution is becoming increasingly attractive for its ability to meet one-off or evolving needs. In France, this market grew by **% between **** and ****, driven by increased demand for fast, sustainable solutions. The entry into force of the RE****(***) imposes strict criteria in terms of energy performance and carbon footprint, favoring solutions such as modular construction, which limits waste and optimizes resources. At the same time, pressure to achieve carbon neutrality by **** is stimulating research into more sustainable and circular construction techniques.

Major trends:

*st trend: The market is concentrated: The top two players (***) will account for around **% of the sector's market share in ****.

*nd trend: The modular construction industry presents itself as an alternative to the building crisis:between January **** and October ****, authorized housing fell by **.*%, while housing starts dropped by **.*%, testifying to a sharp slowdown in the construction sector.

trend *: The modular construction market has two main outlets: rental and sales. Rental accounts for the majority, with **% of total sales, or *** million euros, while ...

• Cougnaud Groupe
• Algeco Scotsman
• OBM Construction
• Portakabin (Shepherd Group)
• Dassé Constructeur
• Loxam
• Kiloutou
• GreenKub
• GSCM (Solfab Construction Modulaire groupe)
• Le Goupil industrie
• Pro Contain (Alho Groupe)
• Bodard Construction Modulaire (Groupe GSCM)
• Courant Construction
• Module Création
• Locas MS
• Mobile Home IRM (Trigano groupe)
• Thevenin SA
• Locabri
• Manufacture des Usines Réunies