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Summary
The global modular construction market has grown significantly since 2020, and is projected to expand at a compound annual growth rate (CAGR) of 5.75% between 2022 and 2027, reaching an estimated value of $120.35 billion. This boom is due to the advantages of modular construction, such as lower production costs, shorter construction times, ease of installation and greater respect for environmental constraints. In Italy, the Russian-Ukrainian conflict that began in 2022 has had an impact on the market, causing producer and consumer price indices to rise, affecting wood and concrete product costs by 31.9% and 37.9% respectively. Despite these challenges, the residential segment continues to dominate the market, with leading Italian companies such as Edilsider S.r.l and Marlegno S.r.l making significant contributions to industry sales.
Trends in the Italian modular construction market
In Italy, the modular construction market has shown significant growth and dynamism, underlining a demand that is becoming increasingly widespread due to various societal and economic factors. The adoption of modular construction extends to a variety of sectors, from residential homes and offices to emergency healthcare facilities and schools. Recently, Italy has seen a recovery in demand in the construction market, particularly after setbacks due to the COVID-19 pandemic and the implementation of tax bonuses. In terms of imports and exports, Italy appears to be a net exporter of prefabricated buildings, with the total value of exports increasing by around 40% over a five-year period, highlighting the country's strong production capabilities in this market. The main import partners in this sector are Russia and several European countries. Interestingly, demand appears to be more evenly distributed geographically in Italy, with the northwest and northeast regions accounting for a substantial percentage of new residential construction, closely followed by the south, center and islands. In terms of market structure, while the total number of companies in the residential and non-residential construction sector remained relatively stable, the number of employees indicated a market concentration with a notable increase, particularly in response to a surge in demand, reflecting the sector's growth trajectory.
The pioneers of Italian modular construction: innovation and sustainability
- EdilsiderSpA - A seasoned veteran of the prefabricated modular steel building sector, Edilsider boasts over five decades of expertise. Since its foundation in 1963, the company has consolidated its international stature by offering a diverse range of products to meet temporary and permanent architectural needs. Its avant-garde approach has led to the creation of unique prefabrication systems that include modular units, cabins, monoblocks, hangars and even residential buildings.
- Marlegno Srl - Marlegno, which initially made its mark in the field of wooden roofing, soon moved into a broader construction business. Today, with a production area of 10,000 square meters, Marlegno is at the forefront of wood construction. The company is renowned for its innovative work in residential buildings, eco-districts and major public and hospitality projects, displaying a remarkable fusion of sustainability and modern living solutions.
- Kager Italia - The standard-bearer for prefabricated wood homes in Italy, Kager combines superior craftsmanship with advanced energy solutions. Its commitment to total project customization is evident in the personalized homes it builds across Europe. Thanks to its R&D department, which is constantly striving to improve its products, Kager harmoniously combines traditional techniques with modern engineering.
- Modularee Srl - Since its creation in 2015, Modularee has distinguished itself with a clear focus on eco-sustainability and bio-architecture, emphasizing wood as the main building material. Their philosophy is to harmonize human comfort with ecological balance, while emphasizing the importance of energy efficiency and the adoption of renewable resources.
- HomyBuild - Homy Build brings a unique perspective to the modular construction landscape, with a focus on lightweight steel-frame systems. Homy Build prides itself on being a versatile, hands-on partner for its projects, with a particular focus on industrial sectors, EPC contractors, real estate projects and architects.
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- Last update : 27/10/2023
Summary and extracts
1 Market summary
1.1 Definition and scope of the study
The market for modular construction, also known as prefabricated construction, refers to the construction of prefabricated buildings or containers(modules) that are directly designed and manufactured in a factory and then assembled on site. Assembly makes it possible to create buildings to meet occasional or permanent needs: construction site billets, offices, as well as new forms of housing such as container houses. The modules or containers are usually made of steel, concrete , or wood, equipped with plumbing, heating, and electricity. Interior finishes are specified upon leaving the production workshop and are more or less machined according to the purpose of the building to be constructed.
Long used primarily for theconstruction industry-for site personnel in particular-modular construction has over the years become an important credible alternative to the construction ofsingle-family homes and offices.
Often, modular construction makes it possible to meet short-term needs to install buildings on a temporary basis when a building is being reconstructed or rehabilitated, but also when there is an increased need for offices or laboratories in the service sector.
Thus, modular construction is present in construction in the government sector (emergency housing, sports facilities, school premises, etc.) and in the private tertiary sector (offices, stores and kiosks, events, health, etc.). The use of prefabricated construction in the residential sector has also seen major growth in recent years.
The world market for modular construction is booming. Between 2022 and 2027, it is expected to grow at a compound annual rate (CAGR) of 5.75%, due to which the world market could reach a total value of $120.35 billion.
This rapid expansion is due to the many advantages of modular construction in terms of production costs, construction time, ease ofinstallation , and compliance with environmental constraints.
The main players in the Italian market are Edilsider, Marlegno, Damiani-Holz, Operamed and Costantini Legno. However, there are hundreds of manufacturers ranging from large multinational groups to SMEs.
1.2 The global market
Construction represents one of the world's major markets from an economic value perspective. In ****, the value of the global construction market reached $****.* billion. A compound annual growth rate (***) of *.*% is expected between **** and ****, under which the value of the market could touch a total value of more than $**** billion.
Construction Market World, ...
1.3 The Italian market
Between **** and ****, the construction market in Italy grew by **.*% thanks to a compound annual growth rate (***) while the nonresidential segment occupies the remaining **.*% or $***.* billion. Construction market Italy, ****-****, in billions of dollars Researchandmarkets As for the turnover of companies employed in building construction, between **** and **** the trend is negative (***). However, ...
1.4 Imports and exports
As for prefabricated buildings (***). The coverage ratio is over ***% during the entire period, with peaks up to ***% in ****.
Imports, exports and coverage ratio of prefabricated construction Italy ****-****, in millions of dollars and % Source: UN Comtrade The trade flow of prefabricated buildings out of Italy is directed to numerous countries. The ...
1.5 The consequences of the Russian-Ukrainian conflict
The outbreak of the Russian-Ukrainian conflict in February **** led to, among other things, a general increase in both the producer and consumer price index. In terms of new residential and nonresidential housing, between March **** and June ****, the housing price index (***) rose by **.* points, more than double the entire ****-**** period. This ...
2 Demand analysis
2.1 Demand in Italy
To analyze the demand for modular homes in Italy, the evolution of the housing market in economic terms, the evolution of the number of new residential units built and the spending of Italian households on home ownership are considered. A correlation is assumed between the trend of the residential sector in ...
2.2 Demand drivers
key demand drivers include :
Environmental Sustainability: modular construction is recognized for its potential to reduce environmental impact. This building approach helps to reduce the environmental impact of construction while improving energy efficiency and the overall sustainability of the structure. In addition, modular construction also fits the principles of the circular economy, ...
2.3 Geographical distribution of demand
To highlight the geographic distribution of demand for modular homes, in the absence of specific data on this sector, a map was created with the percentage of new residential housing raised by each Italian macro-region in ****.
In ****, more than */* of new residential housing, or **,*** units, was built in the Northwest (***). Finally, ...
2.4 New demand trends: sustainability first
Recent trends show a growing interest in eco-friendly modular homes. The emphasis is on sustainability, with a preference for eco-friendly materials, energy-efficient solutions, and the use of renewable energy. Specifically:
Eco-friendly Materials:
Certified Wood: FSC-certified wood comes from sustainably managed forests, ensuring reforestation and protection of biodiversity. Recycled Steel: steel is ...
3 Market structure
3.1 The market structure
In order to analyze the structure of the market, since no specific data are available for the modular construction sector alone, the macrocategory related to residential and nonresidential building construction companies (***) is taken into consideration, which is still the market in which the companies under study operate. Specifically, the number of ...
3.2 The value chain
Design is one of the most delicate phases of the modular construction process. In fact, this is crucial in determining the quality, efficiency and sustainability of the final product. Attention to detail, technological innovation and customization are crucial to ensure customer satisfaction and project success. It is possible to break down ...
3.3 The main manufacturers
A list of leading Italian manufacturers is offered below:
Kager: is Italy's leading company in the construction of high-quality prefabricated wooden houses, with an approach that combines high construction technology, craftsmanship and state-of-the-art energy solutions. Kager specializes in total project customization, with over ** years' experience in building wooden houses throughout Europe ...
4 Supply analysis
4.1 Type of the offer
The prefabricated construction system is based on the construction of a wood, metal, concrete or mixed structure, made in * or * dimensions and which can be prefabricated (***). They can also be stacked to obtain multiple floors.
This system is based on the fabrication of modular elements that take place between ** and **% in ...
4.2 The prices
Due to the outbreak of the Russian-Ukrainian conflict in February ****, the indexes of producer prices and consumer prices experienced not insignificant positive changes. Regarding the residential and nonresidential building construction sector, the producer price index increased by * points, which is reflected in a * percent increase in costs. Compared to ****, producer prices ...
4.3 New supply trends: 3D printing
*D printing in modular home construction enables efficient production, reducing time and costs. With *D printing, custom components can be created in a controlled environment, reducing errors and material waste. This technology also facilitates the creation of complex architectural designs that would be difficult or expensive to achieve with traditional methods. ...
5 Rules and regulations
5.1 The legislation
https://www.altalex.com/documents/codici-altalex/****/**/**/testo-unico-in-materia-edilizia
6 Positioning of actors
6.1 Segmentation
Residential segment
Healthcare segment
- Lignoalp (Damiani-Holz & Ko)
- Technowood s.r.l
- Ecohouse s.r.l
- Costantini Legno s.r.l
- Marlegno s.r.l
- Edilsider s.r.l
- Homy Build s.r.l
- Modularee s.r.l
- Kager s.r.l
- Speed Hospital s.r.l (Adam s.r.l)
- Mangini s.r.l
- Operamed
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