The UK Panelised Modular Buildings Market: New Report Unveils Key Trends and Growth Drivers

The 10th edition of the UK Panelised Modular Buildings Market Report 2025-2029 is now live.

The report provides in-depth analysis of the sector’s opportunities, challenges, and future outlook. With panelised modular solutions gaining traction across housing, commercial, and public sector developments, the report offers critical insights for industry professionals navigating this evolving landscape.

Market Overview & Key Findings

The UK panelised modular buildings market was valued at £1.26bn in 2024, with growth projected to continue, albeit at a slower pace than the post-pandemic boom.

Despite economic pressures, supply chain disruptions, and rising material costs, the market remains a vital component of the UK’s construction sector, driven by government housing targets, sustainability initiatives, and a shift towards offsite construction.

Housing Sector Leads Growth

Housing currently accounts for 43% of total UK construction output as of September 2024. Modern Methods of Construction (MMC), including panelised modular systems, play a crucial role in meeting the government’s target of 1.5 million new homes by 2029.

Timber frame remains the dominant solution in this segment, representing approximately 70% of the market.

Private Commercial Market Holds Potential, but Faces Challenges

Private commercial construction represents 21% of new build projects, covering offices, retail, hospitality, and private student accommodation.

The growth of e-commerce and the rise of hybrid working trends are reshaping demand for office and retail spaces, creating opportunities for modular refurbishments and fit-outs.

While student accommodation demand remains uncertain post-Brexit, there is a growing need for affordable rental options within this sector.

Government-funded projects drive demand in:

• Education: 518 projects under the School Rebuilding Programme (SRP).
• Healthcare: £1bn for hospital refurbishments and £102m for GP surgery upgrades.
• Prisons & MOD Facilities: £2.3bn allocated for new prison builds, with 40,000 additional bed spaces planned.

Sustainability & Material Trends

There is a growing adoption of light gauge steel frame (LGSF), cross-laminated timber (CLT), and hybrid modular solutions.

Environmental targets and ‘Net Zero’ policies are pushing investments in energy-efficient, prefabricated solutions. The expansion of MMC is further supported by ‘green grants’ and government incentives.

Industry Challenges & Risks

Several factors could slow market growth, including economic uncertainty, material cost inflation, and ongoing supply chain disruptions.

Skills shortages in MMC and offsite manufacturing present additional barriers to scalability. Market consolidation is expected, as some modular firms face financial pressures, leading to acquisitions and mergers.

Who Should Read This Report?

This comprehensive report serves as an essential resource for multiple industry stakeholders.

Manufacturers and suppliers of panelised modular building systems will find valuable insights, as will developers, housebuilders, and construction firms seeking to understand MMC adoption. Public sector stakeholders involved in education, healthcare, and infrastructure projects can also benefit from the report’s findings.

Additionally, investors and policymakers interested in the future of sustainable construction in the UK will gain critical information on market trends and opportunities.