The UK market for panelised modular building systems is estimated to have grown by 10% in 2015, marking a recovery from the market low caused by a decline in the housing market between 2008-2012.
According to the research from AMA, the demand for offsite building systems has increased strongly since 2012, underpinned by the improved economic situation and specifically increased levels of activity in the house-building, hotel, student accommodation and education sectors.
With the exception of the MoD, where many projects are now complete, most of the key end use sectors for panelised modular building systems look set for growth over the next few years and a number of housing developers and housing associations have declared their intentions to increase usage of offsite systems.
Growth over the next few years should also be enhanced by the mandatory use of Building Information Modelling on public sector projects from 2016. The new scheme will streamline building design, procurement and construction, which should favour the use of offsite building.
The drive towards sustainable development, with an increasing need and determination to meet energy efficiency and carbon reduction targets should also further promote growth within the sector.
Keith Taylor, director of AMA Research, said: “Difficult market conditions in recent years had led to all sectors of the panelised building systems industry suffering a number of business failures, leading to a reduction in production capacities, and market supply has become much more polarised, in particular in the timber frame sector.
“However, the market has improved since 2012 and further sustained recovery is expected until 2020, driven by improvements in key end use sectors such as housing – including self build, which is significant in this market.”
AMA Research’s definition of the panelised modular building systems market consists of pre-fabricated, two-dimensional frames or panels in systems for constructing walls, partitions, roofs and floors, typically supplied to site as systems in flat-pack format.
The main product type is timber frame, which is competing with light gauge steel, precast concrete and other engineered wood-based panels, with the latter group including structural insulated panels and cross-laminated timber systems.