Articles

Modular construction market reaches new heights

Top 100 manufacturers of prefabricated buildings made of wood, steel, concrete, or LECA generated revenue of PLN 9.9bn in 2023, with more than 48% of the figure contributed by sales in the modular building segment, according to Spectis report "Modular construction market in Poland 2025-2030". This equates to a market value of approximately PLN 4.8bn. Based on preliminary data, Spectis analysts estimate that in 2024, the market value grew by 4% in nominal terms to a record-breaking level of nearly PLN 5.1bn.

Positive outlook despite temporary slowdown

In 2025, the market value is expected to grow at a more dynamic pace. The primary drivers of this improvement will be the recovery in the residential construction market, as well as the implementation of investments from the National Recovery and Resilience Plan by 2026. This plan includes support for the construction sector, particularly investments in eco-friendly, modern, and energy-efficient solutions.

Factors supporting the growth of modular construction

In the coming years, key factors supporting the continued growth of the modular construction market will include strong long-term macroeconomic fundamentals of the Polish economy, the continued shortage of housing in Poland compared to the EU average, the increased interest in modular construction in Poland, well-developed production facilities comprising experienced, specialised manufacturers, a large selection of available prefabrication technologies, a growing pressure on shortening the construction process, and big popularity of modular houses built in Poland across Europe.

Factors hindering the development of the prefabricated buildings market

Major factors that will have a negative effect on the modular construction market will include unfavourable demographic forecasts for Polish economy, a continued high level of interest rates, high prices of key raw materials and semi-finished products, such as cement, aggregates, steel and timber, growing prices of specialist construction services, as well as high initial investment costs, which pose a significant barrier to market entry.

Institutional investors drive the growth of the modular construction market

Following a period of temporary market cooling, the long-term outlook for the Polish modular construction market appears highly promising. Interest in modular technologies is increasing not only among individual investors but especially within the institutional investor group, including hotel chains, residential developers, and government or municipal institutions, which are driving demand for larger-scale buildings.

The future of modular construction in Poland: PLN 7bn by 2030?

All indications suggest that in the coming years, modular technologies will gain prominence in both commercial and public construction. Market forecasts remain moderately optimistic, and the combination of previously mentioned factors is expected to drive the value of the modular construction market in Poland to exceed PLN 7bn by 2030. This is a clear signal that the future of Polish modular construction is shaping up to be exceptionally bright.

Report methodology

For the purposes of the report, the modular construction sector is defined as the manufacturing of large-sized building components conducted by specialist prefabrication plants. Products covered in the report can be divided into two main categories: 2D modular construction (precast walls or complete precast buildings consisting of walls, ceilings, staircases, and balconies, which are assembled on-site). 3D modular construction (modular buildings, modular bathrooms, container homes, sanitary containers, and office containers delivered to construction site in 3D form). These categories are further divided into sub-categories that vary according to the dominant structural material. The sub-categories are as follows: wood and wood-based products, concrete products, steel products, expanded clay products.

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