Market Trends of Germany Prefabricated Buildings Industry
This section covers the major market trends shaping the Germany Prefabricated Buildings Market according to our research experts:
Comparative Study of Multi- Family Housing & Single- Two Family Housing in Prefab Industry
Modular and prefabricated technology is utilized to pursue practicality in work, as well as the speed of project development. The prefabricated building expanded its market share of the approved one and two-family houses to 20.8 percent in 2019. For the first time, the prefabricated construction exceeded the 20 percent mark - and even significantly. In 2018, the prefabrication rate was 19.6 percent and at the turn of the millennium was still a relatively 13.5 percent.
According to official statistics, in 2019 more people decided to build a one- or two-family house. However, while the overall market only grew by 1.3 percent compared to 2018, prefabricated construction developed significantly more positively than the average of all construction methods, with an increase of 7.7 percent.
From January to December 2019, a total of 101,569 new one- and two-family houses were approved, including 21,171 prefabricated houses. In ten out of twelve months, the prefabrication rate across Germany was over 20 percent. At the end of the year in December even 22.5 percent.
The prefabricated construction also has good growth rates in multi-family house construction. A total of 17,689 multi-family houses were approved in Germany in 2019, including 743 prefabricated buildings. The total number of approved apartment buildings rose by 1.6 percent compared to the previous year. The number of approved apartment buildings in prefabricated construction increased significantly more significantly by 21.2 percent.
Timber/ Wood Holds Largest Share in the Prefab Buildings Market
Timber holds the largest share in the market driven by the increase in the off-site construction activity. Timber is a widely used material in the German prefab market and Turnkey models are expected to witness high growth over the forecast period in the German prefab housing market.
The floor-covering models are also expected to witness significant growth. It is also expected to exhibit growth with a rise in non-residential and residential construction due to rising urbanization. Timber is a more widely accepted method of construction in Southern Germany and the uptake in the Northern region has traditionally been weaker. However, the demand for energy-optimized sustainable buildings has led to an increase in demand for timber constructions.
With the increasing demand for timber construction, the prefabricated timber component manufacturers are gaining confidence and are employing automated solutions. In Germany, about 25% of residential homes and apartment buildings are now being built out of wood owing to many benefits such as sustainability, fewer carbon emissions, etc.
With affordable urban housing becoming a major concern in Germany, where around 85% of the population is estimated to be urban by 2050, the need for better infrastructure with sustainability has gained prominence.
