The modular construction market in France

Modular construction refers to the construction of prefabricated buildings or containers (or modules) designed directly in the factory and then assembled on the construction site. The assembly process creates buildings capable of meeting one-off or permanent requirements, such as site huts, offices or new forms of housing, such as container houses. The modules or containers, generally made of steel, are equipped with plumbing, heating and electricity. Interior finishes, defined in the workshop, vary according to the purpose of the building.

Long thought of primarily for the construction industry - especially for site workers - modular construction has become a credible alternative for individual homes and offices. This market is divided into two main segments: sales, which accounted for 40% of business in 2023, and property rental, which contributed 60% of sales.

Modular construction is often used to meet short-term needs (e.g., the 2024 Olympic Games in Paris), such as the temporary installation of buildings during renovations, or to meet expansion requirements in the tertiary sector. It is used in a variety of sectors, including construction, the public sector (emergency housing, sports locker rooms, school buildings) and the private tertiary sector (offices, shops, kiosks, healthcare, events).

The global modular construction market is booming, with a compound annual growth rate (CAGR) of 8.78% forecast for the period 2024-2029. In France, the sector saw revenues rise by 72% between 2017 and 2023, testifying to a rapid catch-up with Anglo-Saxon countries. This dynamism can be explained by the crisis in the traditional construction market (labor shortages, declining profitability, ecological constraints) and by the many advantages of modular construction: lower production costs, shorter construction times, less complex installation and greater respect for environmental constraints. In fact, the average cost of a modular home is 20% to 30% less than that of traditional construction.

In fact, the slowdown in the traditional construction sector in France is striking. Between January 2023 and October 2024, authorized housing fell by 30.8%, while housing starts dropped by 33.3%. This context reinforces the appeal of modular construction, perceived as a viable alternative.

Last but not least, the French market is distinguished by innovations in eco-friendly wooden modular construction, driven by players such as Greenkub, which specializes in garden studios. Key French market leaders include Algeco, Yves Cougnaud, Groupe GSCM and Kiloutou.