Content of the study:
The modular construction market - France

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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 ...


2.1 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 ...


3.1 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 ...


4.1 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 ...


5.1 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 ...


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The modular construction market - France

Publicado en 19/11/2021 by Client Anonyme - Ce client a souhaité rester anonyme

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