Modular Amsterdam

EVENT OVERVIEW

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A digital disruption wave is hitting all industry sectors including construction and it is undoubtable that modular constructions can go hand-in-hand with technological development. The basis of volumetric modular systems, or prefabricated construction, is the initial digital 3D design and the ability to utilise Building Information Modelling (BIM) to ensure the building is suitable for the planned location and design requirements. It is also behind the stackable modules used in several storey homes or larger industrial buildings, including hotels and office blocks.

McKinsey & Company calculated that, the market value for modular in new real-estate construction alone could reach $130 billion in Europe and the United States by 2030, delivering annual cost savings of $22 billion. In many countries, modular construction is still very much an outlier but there are strong signs of what could be a genuine broad-scale disruption in the making. It is already drawing in new competitors—and it will most likely create new winners and losers across the entire real estate and construction ecosystem.

Many factors determine whether a given market is likely to embrace modular construction, but the two biggest determinants are real-estate demand and the availability of skilled construction labor. In places such as Germany’s major cities and the southern part of the United Kingdom, labor shortages and large-scale unmet demand for housing intersect, making this model particularly relevant.