The UK prefabricated volumetric buildings market, excluding  ‘Pods’, comprises off-site manufactured fully assembled 3-dimensional units, or modules, with two principal product sectors – cabin/accommodation units, and modular buildings. The market is estimated to be worth some £520 million in 2010, which represents a decline of around 9% compared to 2009.

While the UK volumetric market experienced positive growth during 2007, reflecting high levels of government expenditure in health, education and defence, the global financial crisis adversely impacted the volumetric sector during 2008-2010 resulting in a significant market downturn. In 2011 the market continues to be particularly difficult, with a decline of around 25% over the 3-year period 2008-2011 – primarily due to the major decline in housebuilding and cuts in public sector capital expenditure programmes.

There is overlap between the prefabricated volumetric sector and the prefabricated frame and panel, and traditional building sectors, with manufacturers and building projects incorporating elements from all three construction methods.

Key application areas for volumetric buildings include hire, defence, health care, education, hotel, commercial and industrial, and residential housing, with certain sectors performing better than others, while underlying low level growth in cellular applications – including, for example, hotels and student accommodation, represents a positive market influence.

Significant consolidation has occurred in the UK prefabricated buildings sector reflecting the cumulative impact of challenging market conditions, restructuring and the exit of major players. Distribution channels include direct to end users, or via contractors, distributors, and the hire/rental channel.

The underlying trend to single living accommodation represents a key driver for growth in the prefabricated volumetric buildings market with high repeatability of standardised modules producing significant economies of scale – for example, student and social housing, hotels, etc.

The development in the volumetric sector of integrated structural design, facilitating the assembly of buildings up to 24 storeys without the necessity of a secondary structural support system, is likely to enhance levels of market penetration, in terms of productivity, build schedules and cost benefits, in the medium to long term.

Niche sector growth opportunities include the hotel sector, also self contained units for off and on shore oil and gas drilling rigs, and wind farm construction, reflecting increasing investment in the oil and renewable industries, and the replacement of the ageing asset base. Temporary structures for security, administration, also tourist and travel information, in connection with the 2012 Olympic Games, are also likely to provide some additional short term opportunities for the volumetric sector. 

In general, trends in the volumetric buildings market tend to reflect construction trends, with some sectors – including student accommodation and hotels increasing, and other sectors including defence decreasing. Current forecasts indicate that the UK prefabricated volumetric buildings market is likely to experience further decline in the short to medium term, before stabilising during 2012-2013, with low level recovery forecast through 2014-2015, reaching a value of around £524 million in 2015.