Summary

The global modular construction market, valued at $91 billion in 2022, is expected to reach $120.4 billion by 2027, a growth rate of 5.7% per year. China leads the way in prefabricated building exports, with substantial international trade also involving Germany, the Netherlands and the USA. In the French market, which has seen significant growth of 32% between 2017 and 2021, players such as Algeco, Yves Cougnaud, Groupe GSCM, and Kiloutou are predominant. Demand comes from a variety of sectors, including construction, the public and private tertiary sectors, and is increasingly moving towards environmentally-friendly practices such as modular wood construction.

The market has also adapted to changing demand due to the Covid-19 pandemic, moving towards temporary housing and office space solutions. Despite overall market growth, some segments, such as administration, saw their sales decline in 2020 due to the pandemic. The market structure favors established companies due to high fixed production costs, leading to a concentrated landscape with few major players and a barrier to new entrants who understand the need for economies of scale and significant capital investment.

Modular construction market trends and dynamics

The modular construction market is experiencing a significant upward trend in the country, driven by a variety of factors that are reshaping demand in several sectors. Initially focused on the construction industry to provide facilities for building sites, the market has seen its customer base diversify. Demand from the public sector, particularly in the schools sub-segment, has increased to meet renovation and reconstruction needs. The industrial and service sectors are looking for modular options to expand their offices, while the housing segment sees modular construction as a cost-effective solution for both individual and collective housing.

The market isn't just growing, it's evolving to accommodate ephemeral economic activities, with modular buildings being used for temporary and seasonal activities.the market is not just growing, it's evolving to accommodate ephemeral economic activities, with modular buildings being used for temporary and seasonal activities such as ephemeral stores and fast-food outlets. The trend towards urbanization, although stable, also contributes to the increase in demand, as more and more people settle in urban spaces. However, it's not all upward trends - construction activity has declined considerably due to the Covid-19 pandemic, threatening the short-term prospects of modular construction.

Nevertheless, demand for mobile homes for residential purposes is booming, and saw only a slight decline during the Covid-19 crisis. The modular construction market was valued at around 912 million euros according to a recent report, demonstrating the industry's good health and growth potential. Although growth has stabilized somewhat due to the pandemic, a resumption of growth is expected, with projections for 2021 indicating a 10% increase. This market growth is also reflected in trade flows: prefabricated buildings represent a major export for leading countries, led by China, reflecting the global appeal of modular construction. The apparent advantages - cost reduction, speed of construction and adaptability - give this market leverage over traditional construction methods.

In summary, the modular construction market in the country is showing promising growth, with uses extending beyond the temporary needs of construction sites to permanent structures for a variety of sectors. With a market value of around 900 million euros, the sector is in good health, and although it has been affected by the pandemic, indicators point to a rapid recovery and continued expansion, driven by versatility, environmental concerns and economic benefits: Algeco, Yves Cougnaud, Groupe GSCM and Kiloutou

The French modular construction market, while growing strongly, is largely dominated by a few key players, each of whom has carved out a significant place in the industry. These players have shaped the market through innovation, strategic acquisitions and the provision of comprehensive solutions tailored to different customer needs.

  • Algeco stands out as the world leader in modular space solutions. As an industry pioneer, Algeco boasts an extensive product portfolio that meets the needs of a wide range of sectors, including construction, education, healthcare and events. With a global presence, Algeco is known for providing fast, flexible and efficient space solutions to its customers, ensuring it maintains its market position through quality customer service and innovative designs.
  • Yves Cougnaud, another big name in the sector, has established itself as a major competitor, particularly in the French market. Focused on sustainability and innovation, Yves Cougnaud has differentiated itself by emphasizing environmentally-friendly approaches and streamlined construction processes. Its "made in France" philosophy appeals both to national pride and to a growing demand for sustainable, local solutions.
  • The GSCM Group stands out not only for its modular construction offerings, but also for its dynamic growth strategy through acquisitions. GSCM's purchase of companies such as Daudin and Deltamod testifies to its desire to broaden its market base and offer increasingly diversified, environmentally-friendly options. Their recent activities indicate that they are ready to capitalize on the growing sustainable construction segment.
  • Kiloutou, primarily known for its extensive equipment rental service, has expanded into the modular construction market through the acquisition of smaller companies, consolidating a significant share of the market. With Kiloutou Module, it has created a specialized branch focusing on solutions for professionals in the construction, public works, industry and events sectors, underlining its adaptability and commitment to meeting the multiple needs of the construction industry.

These key players in the French modular construction market, thanks to their extensive service offerings and strategic growth initiatives, have consolidated their position at the forefront of the industry. Each brings a unique approach to modular construction, demonstrating the versatility and potential of this dynamic market. Thanks to their collective vision and capabilities, they are poised to take modular construction to the next level, responding to both temporary needs and long-term evolutions towards more agile and sustainable building practices.

Get all the information you need
to understand this market

Detailed content

Inforamtion

  • Number of pages : 30 pages
  • Format : Digital and PDF versions
  • Last update : 16/10/2023
Update Details

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 ...

List of charts

  • 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
Show more Hide

All our studies are available online in PDF format

Take a look at an example of our research on another market!

Do you have a question about this study?   +44 238 097 0676

Latest news

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
Kiloutou also sees its future abroad - 01/09/2022
  • Kiloutou Group: sales in excess of €1 billion, 7,000 employees
  • 95% of business with professionals in earthmoving and civil engineering equipment rental
  • number 2 in France with 15% market share behind Loxam number 3 in Europe with leading positions in
  • in Portugal and Denmark
  • Acquisition of Grupo Vendap, leader in Portugal, with sales of 40 million euros and an 18% market share Purchase of Holbæk Lift in Denmark (20 employees, sales of 6 million euros)
  • Since 2018, Kiloutou has increased its international sales fivefold

Companies quoted in this study

This study contains a complete overview of the companies in the market, with the latest figures and news for each company. :

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)

Choosing this study means :

Access to more than 35 hours of work

Our studies are the result of over 35 hours of research and analysis. Using our studies allows you to devote more time and added value to your projects.

Benefit from 6 years' experience and over 1,500 industry reports already produced

Our expertise enables us to produce comprehensive studies in all sectors, including niche and emerging markets.

Our know-how and methodology enable us to produce reports that offer unique value for money.

Access to several thousand articles and paid-for data

Businesscoot has access to all the paid economic press as well as exclusive databases to carry out its market research (over 30,000 articles and private sources).

To enhance our research, our analysts also use web indicators (semrush, trends, etc.) to identify market trends and company strategies. (Consult our paying sources)

Guaranteed support after your purchase

A team dedicated to after-sales service, to guarantee you a high level of satisfaction. +44 238 097 0676

A digital format designed for our users

Not only do you have access to a PDF, but also to a digital version designed for our customers. This version gives you access to sources, data in Excel format and graphics. The content of the study can therefore be easily retrieved and adapted for your specific needs.

Our offers :

the modular construction market | France

89 €
  • What are the figures on the size and growth of the market?
  • What is driving the growth of the market and its evolution?
  • What is the positioning of companies in the value chain?
  • Data from several dozen databases

Pack 5 études (-15%) France

75.6 € / study
378 € instead of 445 € -15%
  • 5 études au prix de 75,6€HT par étude à choisir parmi nos 800 titres sur le catalogue France pendant 12 mois
  • Conservez -15% sur les études supplémentaires achetées
  • Choisissez le remboursement des crédits non consommés au terme des 12 mois (durée du pack)

Consultez les conditions du pack et de remboursement des crédits non consommés.

Updates

Do you have a question ?
Our team is at your disposal at   +44 238 097 0676