Panelised Modular Building Systems Market Report UK 2025-2029
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The 10th edition of the Panelised Modular Building Systems Market Report UK 2025-2029 delves into the market’s structure, recent trends, key product sectors, stakeholder reviews, and market forecasts, offering an in-depth understanding of this evolving industry.
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The UK panelised modular buildings market continues to evolve, driven by government housing targets, sustainability initiatives and the increasing adoption of Modern Methods of Construction (MMC).
Valued at £1.26bn in 2024, the market remains a key player in the construction sector, particularly in housing, education, healthcare, and commercial developments. Timber frame dominates (~70% market share), while light gauge steel frame (LGSF) and hybrid modular solutions are gaining traction. Despite economic pressures, including rising material costs and supply chain disruptions, long-term confidence in modular construction remains strong, with major housebuilders investing in offsite manufacturing.
The public sector continues to be a stable buyer, with significant funding allocated for schools, hospitals, prisons, and MOD facilities. As Net Zero policies and sustainability goals reshape the industry, energy-efficient materials and prefabricated solutions are set to drive future market growth.
Report Overview
- Timber frame remains dominant, accounting for ~70% of the market, followed by Light Gauge Steel Frame (LGSF) at 14% and Precast Concrete at 8%.
- Housing represents 43% of total UK construction output, with modular solutions playing a critical role in delivering 1.5 million new homes by 2029.
- Timber frame remains dominant, accounting for ~70% of the market, followed by Light Gauge Steel Frame (LGSF) at 14% and Precast Concrete at 8%.
- Net Zero targets and government ‘green grants’ are accelerating demand for energy-efficient modular solutions.
- Hybrid MMC solutions (e.g., CLT, LGSF, and precast concrete) are growing as developers seek sustainable, cost-effective construction methods.
- Market consolidation is expected, with some modular firms struggling financially, leading to acquisitions and mergers.
Market Size
The UK panelised modular buildings market was valued at £1.26bn in 2024, with growth expected to continue, but at a slower rate than the 2021 boom.
Market Analysis
The UK panelised modular buildings market, valued at £1.26bn in 2024, is experiencing slow but steady growth. Timber frame remains the dominant system (~70% market share), with Light Gauge Steel Frame (LGSF) and hybrid modular solutions gaining traction. Housing is the largest sector (43% of construction output), driven by the government’s target of 1.5 million new homes by 2029. The public sector is a key buyer, with major investment in schools, hospitals, and prisons, while the private commercial sector (21% of new builds) is showing mixed performance due to economic pressures and rising costs.
Despite strong long-term confidence in MMC (Modern Methods of Construction), market challenges include inflation, supply chain disruptions, and skills shortages. However, sustainability policies, Net Zero targets, and government-backed green initiatives are creating new opportunities for offsite construction and energy-efficient materials. As major housebuilders invest in timber frame production, the market is expected to remain resilient, though some modular firms may face financial consolidation due to economic uncertainty and rising business costs.
Forecast
The UK panelised modular buildings market is set to expand throughout the forecast period, driven by housing targets, public sector investment, and sustainability initiatives. While growth will be steadier than previous years, demand for offsite construction, timber frame, and hybrid modular solutions is expected to rise. However, economic pressures and market consolidation may reshape the competitive landscape, with larger players strengthening their positions through investment in advanced manufacturing and green building technologies.
Key Companies Mentioned
The UK panelised modular buildings market is shaped by a mix of specialist modular manufacturers, housebuilders investing in MMC, and suppliers of key materials like timber and steel. Leading companies in the sector include:
Major Housebuilders Investing in MMC
- Barratt Developments – Expanding timber frame usage through in-house production.
- Taylor Wimpey – Increasing investment in offsite construction and modular housing.
- Vistry Group – Growing its presence in timber and hybrid modular construction.
Specialist Modular & Panelised Building Companies
- TopHat – A leading modular home manufacturer, focusing on sustainable timber-based solutions.
- Ilke Homes – Specializes in precision-engineered modular housing.
- L&G Modular Homes – Part of Legal & General’s offsite construction division, with a focus on large-scale housing developments.
Structural Panel & Frame Manufacturers
- Stewart Milne Timber Systems – One of the UK’s largest timber frame manufacturers.
- Donaldson Timber Engineering – A major supplier of timber frame and engineered wood.
- EOS Framing – A leader in Light Gauge Steel Frame (LGSF) systems.
Hybrid & Precast Concrete System Providers
- FP McCann – A major player in precast concrete modular solutions.
- PCE Ltd – Specializes in hybrid precast concrete and steel panelised systems.
Public Sector & Infrastructure-Focused Firms
- Portakabin – A leading provider of temporary and permanent modular buildings.
- Premier Modular – Supplies panelised and volumetric modular solutions across education, healthcare, and infrastructure.
Table of Contents
- Introduction and Definition
- Market Summary
- Market Influences and Drivers
- End Use Sectors
- Product Categories
- Competitive Landscape
- Market Forecasts
- Innovation
- Appendices
List of Charts Included:
Chart 1 – UK Panelised Modular Building Systems
Market Size 2019 – 2024, £m MSP
Chart 2 – GB Construction Output, % year on Year Change 2020–2024 current prices, seasonally adjusted.
Chart 3 – All Construction output by Sector % value, current prices 2024
Chart 4 – New build output by sector by % value, current prices 2024
Chart 5 – RMI Out by sector by % value, current prices 2024
Chart 6 – Other Non-residential new work $MN current prices YTD Sept 2024.
Chart 7 – Trends in UK Ter-time Student Accommodation by domicile types 2016-2023
Chart 8 – UK Housebuilding Completions by sector 2018 -2024
Chart 9 – UK Housebuilding quarterly trends in completions 2023 -2024
Chart 10: Capital Budgets in Real Terms (£bn), 2019/20 to 2024/25
Chart 11: Index of Price Trends in Selected Building Materials, 2020 – 2024
Chart 12: UK Panelised Modular Building Systems, % Share (Value) By Type,
Chart 13: UK Panelised Modular Buildings Systems by Type, £m (MSP), 2019 – 2024
Chart 15: UK Market for SIPS in 2D Panelised Modular Solutions, £m MSP, 2020 – 2025
Chart 15: UK Market for SIPS in 2D Panelised Modular Solutions, £m MSP, 2022 – 2025
Chart 28: UK Market for Panelised Modular Building Systems, By Value, 2019 – 2029 (Forecast), £m MSP
Chart 29: Forecast UK Panelised Modular Building Systems Market by Type
£m (MSP) 2025 – 2029
Chart 30: Forecast UK Market for SIPS, £m MSP, 2025 – 2029
Growth in Modern Methods of Construction (MMC) Adoption
- The UK government is pushing for greater offsite construction to accelerate housing delivery and public sector projects.
Government Housing & Infrastructure Investment
- 1.5 million new homes targeted by 2029, boosting demand for panelised modular solutions.
Net Zero & Sustainability Influences
- Future Homes Standard (2025) is set to reduce carbon emissions, increasing demand for energy-efficient materials like Cross-Laminated Timber (CLT), SIPS, and hybrid panelised solutions.
- Green building certifications (BREEAM, Passivhaus) and ‘Net Zero’ mandates are influencing construction material choices and supply chain sourcing.
Technological Advancements & Digital Construction
- Increasing use of Building Information Modelling (BIM) and digital twin technology to streamline design, manufacturing, and installation of panelised modular systems.
- AI and robotics in modular construction are improving efficiency, reducing waste, and enabling mass customization of offsite-manufactured building components.
Legislative and Regulatory Influences
Building Safety Act 2022
- Strengthens building safety regulations, particularly for high-rise residential buildings.
- Places greater accountability on developers and manufacturers to meet fire safety and structural integrity standards.
UK Building Regulations (Approved Documents A to Q)
- Covers structural safety, fire protection, insulation, accessibility, and ventilation.
- Part L (Energy Efficiency) and Part F (Ventilation) are especially relevant for offsite modular and panelised systems, ensuring buildings meet thermal and air quality standards.
Future Homes Standard (2025)
- Aims to reduce carbon emissions from new homes by at least 75% compared to 2013 levels.
- Encourages use of energy-efficient construction materials and airtight modular systems, favouring timber frame, SIPs, and hybrid modular solutions.
Modern Methods of Construction (MMC) Frameworks
- Government-backed initiatives to accelerate offsite and modular construction adoption, particularly in public sector projects (housing, schools, healthcare).
- Supports procurement under MMC Categories 1-7, defining fully modular and panelised solutions.
Fire & Structural Safety Regulations
- BS 9991 & BS 9999 – Fire safety codes influencing cladding, escape routes, and material selection in modular construction.
- Eurocode 5 (Timber Structures) & Eurocode 3 (Steel Structures) – Essential for panelised timber and steel frame compliance.
UKCA Marking & Post-Brexit Compliance
- Replaces CE marking for construction products, ensuring all modular panels, LGSF, and precast components meet UK safety and performance criteria.
Product Category
Timber Frame Systems
- Open Panel Timber Frame – Prefabricated wall, floor, and roof panels with structural framing, requiring on-site finishing.
- Closed Panel Timber Frame – More complete systems with insulation, cladding, and services pre-installed.
- Cross Laminated Timber (CLT) – Large, engineered solid timber panels used for walls, floors, and roofs, known for sustainability and strength.
Light Gauge Steel Frame (LGSF) Systems
- Panelised LGSF – Prefabricated steel wall and floor panels, offering high strength-to-weight ratio.
- Hybrid LGSF – Combined with CLT or precast concrete for added flexibility in construction.
Precast Concrete Systems
- Cross Wall Panels – Load-bearing external and internal walls, widely used in high-rise buildings.
- Twin Wall Panels – Two precast slabs joined on-site with concrete, providing a strong, insulated structure.
- 3D Precast Modules – Fully assembled volumetric units, common in prisons, hospitals, and hotels.
Structural Insulated Panels (SIPS)
- Insulated wall and roof panels made with foam core (EPS/XPS) between OSB or metal facings.
- Used for energy-efficient, airtight building envelopes in residential and commercial applications.
Hybrid Modular Systems
- Combination of materials (timber, steel, precast concrete, SIPs) tailored for specific project needs.
- Offers flexibility, cost efficiency, and faster build times, particularly in housing and public sector buildings.
Sector Analysis
The UK construction market remains housing-led, with housing accounting for 43% of total construction output as of September 2024. This dominance reflects ongoing demand for new homes and residential refurbishments, supported by government targets for 1.5 million new homes by 2029.
New Build Sector: Housing remains the largest segment, making up 39% of new build output, followed by infrastructure (25%) and private commercial (21%).
These highlights continued investment in transport, utilities, and commercial spaces, despite economic uncertainties.
Repair & Maintenance (R&M): Housing plays an even greater role in this segment, accounting for 50% of all R&M activity, signalling a strong focus on renovations, retrofits, and energy efficiency improvements.
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