Poland Prefabricated Buildings Industry - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Poland Prefabricated Buildings Industry - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Poland's prefabricated buildings industry is expected to register a CAGR of over 4% during the forecast period. Due to the industrialization, urbanization, and rapid population growth of the developing economy, the prefabricated building market is expected to witness growth during the forecast period. The prefabrication process of building changed the entire construction industry. It is more efficient and can be completed 30-50% faster than traditional construction methods. Additionally, prefabricated construction will have ample opportunities to grow due to the rising consumer preferences for green buildings and sustainable construction processes.

The outbreak of the COVID-19 pandemic led to severe uncertainty for vendors and contractors in the construction industry across Poland. Several construction companies shut down their projects due to lockdown and restrictions. However, due to immediate requirements for hospitals and the quarantine sectors, the demand for prefabricated materials increased. As a high workforce is required for traditional construction, prefabricated buildings are an optimum solution during the pandemic. With the increasing shift toward turnkey housing solutions, the prefabricated housing market expects to pick across Poland. Moreover, the ease of preparation and consent procedures are likely to boost the demand for prefabricated houses.

Key Market TrendsDemand for Prefabricated Houses is Increasing in Poland

In Poland, prefabricated housing is currently assumed to be less popular than other regions in Europe, with some catch-up effect anticipated going forward, underpinned by strong growth until 2026. The demand for prefabricated houses is expected to be driven by a growing demand for convenience and security (provision of guarantee) across Europe. The market value of prefabricated family housing is expected to grow faster than volume growth due to the shift toward turnkey solutions with 20-30% higher average prices (greater value-added) and floor-covering – favorable pricing trends due to the growing wage levels across Europe. Prefabricated housing growth in Poland is expected to outpace the traditional family housing market.

Labour Cost is Rising in Poland

The Polish government significantly increased the national minimum wage by 15% and employer social insurance contributions by 10%. These measures placed a greater burden on smaller construction companies and self-employed individuals. Large construction companies need to implement employee capital plans (PPK) or employee pension plans (PPE). The wage increase has the biggest impact on small- and medium-sized construction companies because they often pay workers the minimum wage. Larger companies with 250 or more employees usually pay higher than the legal minimum wage. Despite this, large companies still have an indirect impact, as these companies usually hire subcontractors to increase prices. The construction sector is concerned that the Ukrainian workers will find more lucrative work in other countries, specifically Germany or even back in Ukraine, which recently witnessed an economic upturn and rapid growth in wages.

Competitive Landscape

The market is relatively fragmented. There are several international and domestic companies present in the Polish prefabricated buildings market. Companies are focusing on technological innovations. Some suppliers are providing fully customized wooden prefabricated structures. High capital requirements and rapid technological advancement are important barriers to entry for new participants. Intensified competition led to the emergence of many innovative and advanced solutions on the market, such as turnkey solutions and lightweight ceramic houses.

Therefore, achieving sustainability, expanding to other regions, and restoring domestic demand are important factors for companies. Companies can implement effective production technologies to minimize product costs and reduce related risks, thereby increasing profitability. The major players are Containex, Unihouse, Thomas Beton, Styrobud, and Pepebe.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
Containex
Unihouse
Thomas Beton
Styrobud
Pepebe
MCM Project
Budizol
Prologis
Unimex
Mabudo*

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