Europe Modular Construction for Healthcare Market to Reach US$5.4 Bn by 2032, Says Persistence Market Research

The Europe modular construction for healthcare market is poised for significant growth, with its estimated value projected to rise from US$ 3.6 billion in 2025 to US$ 5.4 billion by 2032, reflecting a CAGR of 5.7% during the forecast period. Modular construction has emerged as a pivotal solution for healthcare infrastructure across Europe, addressing the growing demand for rapid, cost-effective, and flexible healthcare facilities. The COVID-19 pandemic underscored the importance of adaptable healthcare spaces, accelerating investments from both government and private sectors in countries such as Germany, the U.K., and France. These nations have increasingly adopted modular construction techniques to shorten project timelines, reduce labor costs, and improve construction quality.

Key growth drivers include the rising need for healthcare facilities due to aging populations, increasing chronic illnesses, and urgent demands for emergency medical services. Among modular construction types, permanent modular construction (PMC) dominates, offering durability and long-term infrastructure benefits. Similarly, hospital wards and therapy centers represent the leading application segment, providing patient accommodation and therapeutic services efficiently. Geographically, Germany emerges as the leader, accounting for approximately 20% of the market share in 2025, fueled by its advanced healthcare infrastructure and proactive adoption of modular technologies to address increasing patient needs.

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Key Highlights from the Report

• The market growth is driven by the need for fast, cost-effective healthcare infrastructure.
• Modular construction allows rapid responses to healthcare surges during pandemics and natural disasters.
• Modular solutions reduce labor and operational costs by 20% to 35% compared to traditional construction.
• Rising emphasis on eco-friendly, energy-efficient modular units boosts market adoption.
• Germany dominates the regional market, holding 20% of the share in 2025.
• Permanent modular construction accounts for 65% of the market share in 2025.

Market Segmentation

The Europe modular construction for healthcare market can be segmented based on product type, application, and construction methodology. By product type, the market is broadly classified into permanent modular construction and relocatable modular construction. Permanent modular construction dominates, driven by its durability and suitability for long-term healthcare infrastructure, making it ideal for hospitals, outpatient clinics, diagnostic centers, and specialized care units. Relocatable modular solutions, on the other hand, provide flexibility for temporary facilities or emergency response scenarios, enabling rapid deployment during health crises or natural disasters.

Based on application, hospital wards and therapy centers represent the leading segment, accounting for 26% of the market share in 2025. These facilities require quick construction timelines to manage patient care efficiently, making modular construction a preferred approach. Additionally, outpatient clinics, diagnostic centers, and specialized treatment units contribute to the growth of modular healthcare infrastructure by offering scalable and adaptable solutions for Europe's evolving healthcare needs.

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Regional Insights

Europe's modular construction for healthcare market exhibits distinct regional trends. Germany leads the market due to its proactive healthcare infrastructure planning, aging population, and consistent adoption of innovative modular construction techniques. The country's commitment to developing high-quality, cost-effective healthcare facilities positions it as a dominant player in the European landscape. The U.K. and France are also witnessing growing adoption, driven by government initiatives to expand healthcare access and reduce project timelines. Southern European countries, such as Italy and Spain, are increasingly leveraging modular solutions for emergency response, particularly during pandemic waves and natural disasters. Overall, the region demonstrates a trend toward sustainable, energy-efficient, and flexible healthcare infrastructure to meet both current and future demands.

Market Drivers

Several factors are driving the growth of modular construction in Europe's healthcare sector. Foremost among these is the rising need for rapid and efficient healthcare infrastructure. Aging populations and increasing patient volumes have placed immense pressure on existing facilities, prompting the adoption of modular solutions that can be quickly constructed off-site and assembled on-site. This method allows hospitals and clinics to expand capacity without compromising operational efficiency.

Additionally, cost-efficiency is a key driver. Modular healthcare construction reduces labor requirements, operational expenses, and overall construction costs compared to traditional methods. The ability to bring facilities online faster also minimizes financial strain by reducing rental or temporary facility expenses. The COVID-19 pandemic highlighted the critical need for adaptable healthcare units, further cementing modular construction as a practical and strategic solution for Europe's healthcare infrastructure expansion.

Market Restraints

Despite the positive growth outlook, the Europe modular construction for healthcare market faces challenges, primarily due to a limited availability of skilled workforce. Modular construction requires a specialized set of skills for off-site prefabrication, assembly, and integration of medical-grade infrastructure. Shortages of skilled labor, including welders, carpenters, electricians, and modular construction experts, can delay project timelines and increase costs. This constraint poses a significant barrier, particularly as demand for modular healthcare units continues to rise across Europe.

Market Opportunities

The market presents ample opportunities for growth, particularly in the rapid deployment of modular healthcare units amid emergencies. The COVID-19 pandemic demonstrated the strategic advantage of modular solutions, enabling countries to quickly set up hospitals, ICU facilities, and treatment centers. Nations such as Spain, Italy, and France have implemented temporary modular hospitals to manage patient surges efficiently.

As climate change and other factors increase the frequency of natural disasters, the demand for scalable, flexible, and quickly deployable healthcare infrastructure will continue to grow. Innovative modular designs that integrate energy efficiency and sustainable materials also present opportunities for companies to differentiate themselves and align with Europe's green construction initiatives.

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Company Insights

Key players operating in the Europe modular construction for healthcare market include:

• Skanska AB
• Modulaire Group
• Laing O'Rourke
• KLEUSBERG GmbH and Co. KG
• Wernick Group
• KOMA MODULAR
• Spacemaker Modular and Portable Buildings
• Bouygues Construction
• Swedish Modules AB
• Portakabin
• Elite Systems GB Limited
• Algeco (Modulaire Group)
• VINCI Construction Grands Projets
• Forta PRO

Market Segmentation

By Type

Permanent Modular Construction
Relocatable Modular Construction

By Application

Surgery Room and Theaters
Laboratories
Emergency Rooms
Hospital Ward and Therapy Centers
Offices
Pharmacy

By Country

Germany
Italy
France
Spain
UK
Russia
Rest of Europe

Recent Developments:

In February 2025, Skanska signed a Share Purchase Agreement to sell its modular factory, BoKlok Byggsystem AB, in Sweden to Surewood Housing AB.

In January 2024, Bouygues Construction launched a new line of modular healthcare units designed for rapid emergency deployment.

Conclusion

The Europe modular construction for healthcare market is on a strong growth trajectory, driven by the need for rapid, cost-efficient, and flexible healthcare infrastructure. Permanent modular construction remains the leading segment due to its durability and long-term suitability for hospitals and therapy centers. Germany emerges as the dominant regional market, benefiting from proactive healthcare planning and early adoption of modular methods. While the market faces challenges such as skilled labor shortages, opportunities abound in emergency deployment, sustainable building practices, and scalable modular designs. As European nations continue to prioritize healthcare accessibility and efficiency, modular construction is set to play a critical role in transforming the healthcare infrastructure landscape, offering faster, more adaptable, and environmentally responsible solutions for the years ahead.

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