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Summary of our market study
The modular construction market in France is estimated at around €1 billion in 2023.
The global modular construction market, valued at $91 billion in 2022, is expected to reach $120 billion in 2027.
China leads the way in prefabricated building exports.
The French market saw significant growth of 32% between 2017 and 2021.
Initially focused on the production of installations for construction sites, the market has seen its customer base diversify. Demand from the public sector, particularly schools, has increased to meet renovation and reconstruction needs. The industrial and service sectors are looking for modular options to extend their offices, while the housing segment sees modular construction as a cost-effective solution for both individual and collective housing.
Modular constructions are used for temporary and seasonal activities such as ephemeral stores and fast-food outlets.
Demand for mobile homes for residential purposes is booming.
The sector is concentrated, with few major players.
The French modular construction market is fast-growing and dominated by just a few players
- Algeco, world leader in modular space solutions.
- Yves Cougnaud, a major name in the sector
- The GSCM group stands out for its acquisitions of Daudin and Deltamod.
- Kiloutou , construction equipment rental company, has expanded into the modular construction market.
- Loxam European leader in public works equipment rental
- Portakabin British player present in France
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Summary and extracts
1 Market overview
1.1 Market overview and definition
The modular construction market refers to the construction of prefabricated buildings or containers (or modules) designed directly in the factory and then assembled on the construction site. Assembly enables the creation of buildings capable of meeting one-off or permanent requirements:
- Construction site huts ;
- Offices;
- New forms of housing (container houses).
Modules or containers are generally made of steel, equipped with plumbing, heating and electrical power. Interior finishes are specified as they leave the production workshop, and are worked on to a greater or lesser degree depending on the purpose of the building.
For a long time, modular construction was primarily designed for the construction industry - for site workers in particular - but over time it has become a credible alternative for the construction of single-family homes and offices. The modular construction market is divided into sales and rental activities.
Modular construction is often used to meet short-term needs for temporary accommodation when a building is being rebuilt or refurbished, but also when there is a need to extend office or workshop space in the service sector.
Modular construction can therefore be found in the construction sector, in the public sector (emergency housing, sports locker rooms, school premises, etc.) and in the private tertiary sector (offices, shops and kiosks, events, healthcare, etc.).
The global market for modular construction is booming. It is expected to grow at a rate of almost 6% a year until 2027. France, which has traditionally lagged behind Anglo-Saxon countries in this market, is rapidly catching up. In fact, the French market has grown by 32% between 2017 and 2021.
The development of the modular construction market is due in particular to a relative crisis in the traditional construction market (ecology, labor shortages, declining profitability, etc.).
This rapid expansion can be explained by the many advantages of modular construction in terms of production costs, construction lead times, ease of installation and respect for environmental constraints.
The trend towards eco-friendly modular wood construction is also driving a certain dynamism in the French market, with innovative players such as Greenkub in garden studio construction.
The main players on the French market are Algeco, Yves Cougnaud, Groupe GSCM and Kiloutou.
1.2 The global modular construction market
The global modular production market is estimated at $** billion in ****, rising to $***.* billion by ****. This implies an average annual growth rate of +*.*% over the period ****-****.
Global modular construction market World, ****-****, in $ billions CAGR: +*.**% Source: ****
Using data made available by the United Nations via the Comtrade database, it is possible ...
1.3 The French market
The modular construction market will be worth *** million euros in ****. It employed *,*** people in ****, for the equivalent of ***,*** square meters of modular constructions installed.
The market is growing strongly, with a **% increase between **** and ****. After a slowdown due to the Covid crisis, it is set to rise again by +**% in ****.
Industrialized ...
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 ...
1.5 A market temporarily held back by the Covid-19 pandemic
The early days of the Covid-** pandemic were very difficult for the modular construction industry. According to a study carried out by INSEE, the drop in activity amounted to **% during the first phase of containment. Rental companies were also faced with a demand from their customers to break their contracts, even ...
2 Demand analysis
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 ...
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 ...
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, particularly 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 ****.
Among ...
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 ...
3 Market structure
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 ...
3.2 Case study: understanding barriers to entry
An analysis of the annual reports of Algeco, one of the industry's leading companies, provides an insight into the cost structure and investments required in the market (***).
Of particular note is the high proportion of fixed costs, which totaled €*** million in FY ****. This cost structure is explained by the industrial production ...
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 ...
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 ...
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, a cost reduction of around **% compared with traditional construction, enhanced energy performance thanks to high-quality insulation, and great flexibility for extensions ...
4 Offer analysis
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 the modular elements in the workshop, including, as required, ...
4.2 Prices vary according to the material used
Here's an overview of prices in ****:
[***]
According to Mon Devis, the construction of a modular home costs between **% and **% less than a traditional house: prices per square meter range from €*** to €*,*** (***).
However, prices vary according to the materials used to produce the modular building: concrete, wood or container.
For a ...
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 construction work will be carried out by robots.
We offer a quick overview of the contributions of new technologies to modular construction:
A masonry robot has been created by Construction Robotics (***) to ...
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 ...
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 ...
5 Regulations
5.1 Current regulations
Modular construction also complies with manufacturing, installation, use, reliability and design standards and certifications:
The ten-year warranty : an insurance scheme governed by the Spinetta law. Under this law, the builder is automatically liable to the owner or purchaser of the building for any damage of a decennial nature that occurs after ...
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 ...
6 Positioning the players
6.1 Segmentation
- 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
List of charts presented in this market study
- Global market for modular construction
- Main prefabricated building trade flows worldwide
- Breakdown of sales by business segment
- Industrialized and modular construction sales
- Number of premises started and built
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Latest news
Construction: Loxam holds up well despite the new-build crisis - 22/03/2024
- - Last year's sales: over 2.5 billion euros, up more than 6%.
- - Revenues generated in France: 1,042 million euros (+6.6%).
- - Share of the new housing market in Loxam's business: 10%.
- - Public works sector share of sales: over a quarter
- - Proforma sales in Brazil: around 100 million euros.
- - Loxam presence: 25 countries.
- - Revenues generated outside France and Northern Europe: 804 million euros (+14.4%).
- - Reduction in capital expenditure: from 520 million to 350 million euros.
IRM expands its range of mobile homes - 28/07/2023
- Mobile homes must respect a size limit of 40 m2 according to the town planning code and road transport restrictions.
- IRM is a subsidiary of the Beneteau Group, headquartered in La Chaize-le-Vicomte, Vendée.
- Founded in 1992, IRM employs 800 people at 7 production sites in the Vendée, Gard, Nord, Aude and Italy.
- The company was formerly part of Bio Habitat, the outdoor hotel division of the Beneteau Group.
- This division also includes the O'Hara and Coco Sweet brands.
- Bio habitat employs around 900 people and generated sales of €257.2 million in 2022.
- IRM produces an average of 11,000 mobile homes each year.
- The brand is currently being sold to Trigano.
Kiloutou tops one billion euros in sales - 18/04/2023
- Kiloutou has made 5 acquisitions in 2022.
- Kiloutou's sales rise from €793 million in 2021 to €1.08 billion in 2022, an increase of 28.4%.
- Kiloutou's international share doubled to 36%.
- The overall market grew by 2% to 7% in European countries, and by 4% in France.
- Kiloutou is number three in Europe and number two in France, with a 13.4% market share.
- The group has 600 branches (including 500 in France) and 7,000 employees (including 5,000 in France).
- Kiloutou has invested 270 million euros in 2022 and plans to reduce its investments by 10 to 20% in 2023.
- Kiloutou's online business should increase from 21 to 34 million euros in 2023 thanks to its new website.
Cougnaud prepares for the arrival of the third generation - 13/04/2023
- French leader in modular buildings, founded in 1972 by Yves Cougnaud
- 1.500 employees
- Nearly 300 million euros in sales
Equipment rental: Loxam ready for new acquisitions - 15/03/2023
- Key figures - Sales :
- 2.4 billion euros by 2022
- - Annual growth: 10% and 9% on a comparable basis
- - Operating profitability: 279.7 million euros in 2022 (12% margin)
- - Presence in some thirty countries
- - Market share: 20% in France, 7% in Europe
- - Growth forecast for 2023: +5% to +6
- - number four worldwide
- - two acquisitions in 2022, one in Spain, the other in Portugal
Bodard brings a nomadic studio to market - 17/02/2023
- The GSCM group (Groupe Solfab constructions modulaires) specializes in modular construction for temporary and permanent facilities
- French number three in the sector, producing over 9,000 units each year
- Consolidated sales of €100 million with 450 employees.
- Group made up of six companies: Solfab, Bodard, Decortes, CNSE, Daudin and Deltamod.
- Bodard has 120 employees and sales of €30 million
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the modular construction market | France
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