Europe Modular Construction for Healthcare Market Size, Share & Covid-19 Impact Analysis, By Type (Permanent Modular Construction (PMC), and Relocatable Modular Construction), By Application (Surgery Room & Theatres, Laboratories, Emergency Rooms, Hospital Wards & Therapy Centers, Offices, Pharmacy, and Others) and Country Forecast, 2020-2027

The Europe modular construction for healthcare market size was USD 2,660.0 million in 2019. The regional impact of COVID-19 has been unprecedented and staggering, with modular construction for healthcare witnessing a positive demand across the region amid the pandemic. Based on our analysis, the market will exhibit a modest growth of 4.9% in 2020. The market is projected to grow from USD 2,790.0 million in 2020 to USD 4,110.0 million in 2027 at a CAGR of 5.7% in the 2020-2027 period. The sudden fall in CAGR is attributable to this market’s demand and growth returning to pre-pandemic levels once the pandemic is over.

Modular constructions for the healthcare sector have emerged as a logical and secure alternative to traditional construction techniques. Additionally, hospital modules exhibit substantially decreased waste generation by complying with the ISO standard acceptance and environmental regulations. This very factor has emerged as the biggest plus point in fueling the demand for healthcare modular structures across Europe.

Moreover, governments and the private sector in the UK, Germany, France, Sweden, etc. are making huge investments in the construction of residential & commercial buildings and public infrastructures, including healthcare centers, courts, and other institutions, supporting the growth of the modular construction industry. Several healthcare facilities and hospital contractors across Central Europe and Scandinavian countries are turning towards this approach for entire hospitals to offer a clean environmental experience to the patient in surgical, medical, dental, and clinical settings.

COVID-19 to Impede Construction Projects and Investments, Creating Fickle Business Environments

Facing the COVID-19 outbreak, Europe is combating a full-blown health emergency. The immediate lockdown in countries, including the UK, Germany, Italy, Spain, Poland, The Netherlands, and others, has had a drastic impact on the non-residential construction and infrastructure development industry. The UN Department of Economic and Social Affairs (DESA) states that COVID-19 has disturbed supply chain processes and trade operations. The European Commission stated that there would be a 9.2% contraction in European countries' economic activities.

It is anticipated that the overall Europe modular construction market will observe a considerable downfall owing to the sudden shutdown of factories in the 1st and 2nd quarter of 2020, disruptions in transportation, halted construction and infrastructure projects, and related ecosystems. This, in turn, is relentlessly affecting the end-users of modular constructions across the healthcare industry. Eurostat stated that construction production has dropped by 12% and observed major decreases in France (-40.2%) and Italy (-36.2%). Also, for EU-27, the construction of buildings and civil engineering projects also dropped sharply. Owing to this, the European economy is facing a steep downfall, further leading to a stagnant position in the market.

However, the sudden increase in the need for healthcare facilities across Europe on account of the COVID-19 outbreak has increased the demand for isolated healthcare modules and healthcare centers. Across the UK, Germany, Italy, Benelux, and the Baltic countries, modular construction has gained wide applications in the healthcare sector. The national health services across the region are offering guidance to utilize the modular approach to expand healthcare delivery capabilities, such as showering facilities, triage rooms, or entire wards with minimal disruptions. For instance, in September 2020, the UK National Health Service (NHS) included Portakabin on the NHS Shared Business Services procurement framework. Under this inclusion, Portakabin has installed isolation units for Hywel DDA University Health Board in Wales and a 30-bed modern ward built (in just 8-weeks) to treat coronavirus affected patients.

However, the bigger challenge lies ahead as the demand for healthcare modules will be dependent on the ongoing healthcare projects and, most importantly, the availability of transport across the region.

LATEST TRENDS

Adoption of Isolated Prefabricated Healthcare Modules to Lay the Foundation for Future Market Growth

The concepts of standardized project management and lean manufacturing, along with modular construction, are gaining importance in the European industry. Advanced economies, such as Germany, Italy, the U.K, Sweden, Poland, Austria, the Netherlands, Switzerland, etc., have a huge demand for modules in the healthcare sector. This sector offers strong prospects for manufacturers, thus laying the foundation for future growth.

As per the secondary study, all the requirements for isolated healthcare buildings, including operating rooms, new rehabilitation clinics, hospital extensions, emergency rooms, laboratories, diagnostic centers, and other medical facilities, could be delivered in nearly 40% less time with the help of the modular construction technique. This technique is also utilized to provide custom-made facilities with the least possible budgets and maintain stringent medical specifications. Although modular techniques in the hospitality and healthcare sectors are still emerging, the adoption of isolated healthcare modules is considered an emerging trend across the healthcare industry.

Report Scope & Segmentation

DRIVING FACTORS

Production Enhancement across Green Building Module Activities to Augment Market Growth

Modular construction for hospitals and other healthcare applications is a design concept that is typically advertised to be easier, cheaper, and quicker than traditional construction. In Europe, the acceptance of this modular approach in the healthcare sector is helping green building module activities. Besides the waste reduction benefits, the other initiatives undertaken for green buildings are off-site works that can reduce site disturbance and habitat, thus protecting the building materials from harsh weather conditions and driving the market in the forecasted period.

In the current era, BIM (Building Information Modeling, an intelligent 3D model-based process that gives quantified insights to architecture, engineering, and construction (AEC) professionals for managing and building infrastructure) is at the forefront of the green building module activities across Europe. It is valuable in deciding the definitive nature of a healthcare building design when compared to other building designs.

RESTRAINING FACTORS

Rising Transportation Crisis to Hamper Europe Modular Construction for Healthcare Market Growth

Transportation plays a major role in moving building modules on site. Height and width considerations restrict these modules' transportation, leading to financial complications and trade barriers amongst the importing regional and local markets. Additionally, logistical issues limit the transportation of pre-assembled buildings with a lifting ability of 10-30 tons and 3.5-4 meters in width, thus impeding market growth. Moreover, multiple regional market players fail to establish a comprehensive supply chain process; thus, it spikes transportation costs and eventually shrinks the direct supply to its customers. High investment costs and skilled professionals' demand is also encumbering the industry-leading quality demand from the healthcare facility owners.

SEGMENTATION

By Type Analysis

PMC Segment to Grow at a Higher CAGR

By type, the market has been bifurcated into permanent modular construction (PMC) and relocatable modular construction.

The growth of the PMC segment is owed to manufacturers’ extensive focus on constructing sustainable PMC healthcare modules that can be installed in urban, rural, and even in remote areas. With the support of the UK NHS, these manufacturers are constructing ideal permanent healthcare facilities, including rural health centers, labs & clinics, medical offices, rehabilitation centers, etc. Additionally, PMC can be assembled into an existing structure and with the help of cranes, it can be set onto the foundation of the building.

The healthcare sector is highly demanding the re-locatable modules. Considering the social distancing suggested by health organizations, the demand for re-locatable healthcare modules is anticipated to witness progressive growth in the healthcare sector.

By Application Analysis

Surgery Rooms and Theatres to Dominate Market Growth  

By application, the market is segmented into surgery rooms & theatres, laboratories, emergency rooms, hospital wards & therapy centers, offices, pharmacies, and others (secure storage, etc.).

The utilization of healthcare modules as surgery rooms & theaters has witnessed the highest market share and is expected to grow exponentially over the forecast period. The growth is owed to the numerous advantages in terms of design flexibility, structural integrity, low maintenance needs, and fire resistance. The modular structure of surgery rooms not only improves the efficiency of treatment but also enhances the overall patient experience. Additionally, modular surgery theaters aim to improve the engineering design and ergonomics of the occupied space.

The utilization of the modular construction technique in other applications, such as laboratories, emergency rooms, hospital wards & therapy centers, medical offices, pharmacies, and secure storage spaces, is expected to witness substantial growth in the forecast period, owing to their utilization across remote places, where re-locatable and permanent health modules are of great use in these unprecedented times.

COUNTRY INSIGHTS

The European modular construction for healthcare market is expected to grow substantially owing to the rising demand for permanent and re-locatable modules in remote places. Additionally, considering the current COVID-19 pandemic situation, the demand for isolated hospital modules is booming as they offer access to end-users even in remote places. European countries, namely, the U.K, Germany, Sweden, Poland, Latvia, Benelux, and the Nordic sub-region, are opting for this technique as it offers sustainable, permanent, or re-locatable healthcare modules that provide prefabricated multi-storied structures for healthcare applications.

United Kingdom to Witness Highest CAGR with Rising Focus of Manufacturers on Green Building Modules

The U.K. is expected to witness the highest CAGR owing to the presence of leading manufacturers across the country. This is resulting in the manufacturers focusing on innovative green building module activities to enhance construction quality, which is expected to augment market growth.

Moreover, increasing government initiatives across Poland, Sweden, Latvia, Germany, and others to promote isolated modules in remote locations are resulting in revenue growth for market players. A few manufacturers, such as Skanska, have owned factories in Sweden and several sub-contracted module manufacturing factories in Poland and the Baltic countries that are bolstering market growth in these countries.

KEY INDUSTRY PLAYERS

Skanska, Portakabin, and Elite Systems to Focus on Strategic Partnerships and Product Development  

The key players are strengthening their brand image by strategically collaborating with various governmental organizations to capture new opportunities in the healthcare industry. For instance, in January 2020, The Norfolk and Norwich University Hospital (NNUH), U.K. awarded a project to Portakabin Ltd to construct an off-site healthcare suite for patients. The suite, named 'The Aylsham Suite', has space for nearly 28 patients and also includes areas for relaxation, therapies, and treatments.

Furthermore, prominent market players, such as Elite Systems GB Limited, Cotaplan, Portakabin Ltd, Swedish Modules AB, and others, are majorly focusing on the development of portable and re-locatable modules, with the implementation of intelligent design services and intuitive clinic designs.

LIST OF KEY MARKET PLAYERS PROFILED:

• Spacemaker Modular & Portable Buildings (England, United Kingdom‎)


• Portakabin (England, United Kingdom‎)


• Elite Systems GB Limited (England, United Kingdom‎)


• Bouygues Construction (Paris, France)


• LAING O'ROURKE (Dartford, United Kingdom)


• VINCI Construction Grands Projets (VINCI GROUP) (Brentford, United Kingdom)


• Skanska (Stockholm, Sweden)


• Algeco (Modulaire Group) (London, United Kingdom)


• KLEUSBERG GmbH & Co. KG (Wissen, Germany)


• Wernick Group (England, United Kingdom‎)


• Swedish Modules AB (Emtunga, Sweden)


• Forta PRO (Riga, Latvia)

KEY INDUSTRY DEVELOPMENT:

• May 2020: Elite Systems GB Limited manufactured a 20-bed isolation ward for the Royal Surrey County Hospital in Surrey, U.K. The company has agreed to deliver the modular building to the hospital and final-fix the building on-site. The ward features 20 patient rooms with an en-suite bathroom and extra central space for cleaning supplies and other treatments.


• March 2020: Forta PRO presented the ‘MARS Satellite Clinic Project’ in Copenhagen, Denmark. This project includes delivering 24 hospital modules manufactured in a factory in Latvia and primed for installation on-site, i.e., in the Frederiksberg and Bispebjerg Hospital in Denmark. Forta PRO installed these modules in just 2 weeks, without disturbing the neighboring clinical departments and road closure.

REPORT COVERAGE

The Europe modular construction for healthcare market research report provides a detailed analysis of the market and focuses on key aspects, such as leading companies, product/service types, and leading applications of the product. Besides, the report offers insights into the current market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

IN-DEPTH COVERAGE OF SEGMENTATION

By Application

• Surgery Room & Theatres


• Laboratories


• Emergency Rooms


• Hospital Wards & Therapy Centers


• Offices


• Pharmacy


• Others (Secure Storage, etc.)

By Country

• The UK (By Application)


• Germany (By Application)


• France (By Application)


• Italy (By Application)


• Spain (By Application)


• Nordics (By Application)


• Poland (By Application)


• Benelux (By Application)


• Czech Republic (By Application)


• Romania (By Application)


• Baltics Countries (By Application)


• Rest of Europe