Report Examines the Market Realities of Modular Construction

16 October 2025

A new white paper from Periskop Partners provides a clear and data-driven look at how modular construction could help address housing shortages and cost pressures in Europe. The report, “Modular Construction at a Glance: Market, Opportunities, and Key Success Factors,” presents modular building as an effective approach for accelerating project delivery and improving sustainability, while also highlighting the practical limits that developers and investors must consider.

According to the analysis, factory-based production can shorten construction timelines, improve quality control, and reduce on-site waste and emissions. The use of digital planning tools such as Building Information Modelling (BIM) and automation technologies further enhances coordination between stakeholders and minimizes delays. However, the authors caution that these efficiencies depend on early decision-making, standardized processes, and strong alignment between designers, manufacturers, and contractors.

The report emphasizes that modular systems are not suited to every project or location. Transport logistics, site access, and early capital commitments can affect feasibility, while design flexibility remains more restricted than in conventional construction. Successful adoption, the study notes, requires disciplined planning from the earliest project stages and a clear understanding of where modular methods provide the greatest benefit.

In assessing the DACH region’s market, Periskop Partners finds a fragmented landscape made up of diverse suppliers—from timber specialists to industrial steel module producers—each offering different approaches to sustainability, prefabrication depth, and cost structure. The report offers a comparative overview to help developers and investors evaluate potential partners and navigate this evolving sector.

While modular construction continues to attract growing interest as a solution for the housing and public infrastructure sectors, Periskop’s research strikes a realistic tone. It positions modular building as a promising but complex tool that demands careful planning, reliable partners, and long-term investment in industrial capacity. The findings suggest that modular construction’s value lies not in replacing traditional methods outright, but in integrating off-site manufacturing where it offers measurable advantages in speed, quality, and sustainability.

Photo: Lars Meisinger, CEO at Periskop Partners ©Periskop Partners

Source: Periskop Partners

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