Page contents Page contents Description The EU suffers from a widespread housing crisis. Offsite construction (where components are centrally manufactured in a factory and then assembled on-site) can offer a potential for ramping up housing supply and help reshaping the European construction sector. This specific construction process is streamlined, with a high potential to reduce costs, e.g. construction times are shortened by 20 to 60%. Offsite construction also delivers environmental benefits (10 to 15% reduction in waste), safer working conditions and other social benefits. EU companies already possess strong technological capabilities and could become global leaders in this growing market, which has a growth potential by 2040 estimated at up to €1 trillion, i.e. a 600% increase in revenues. Scaling up offsite construction remains a challenge, with currently low adoption rates in the EU overall. Regulatory fragmentation across the EU, high upfront investment cost, a shortage of skilled workers, low digital penetration of the sector and the lack of stable demand form key bottlenecks. © AdobeStock / Novanture To accelerate the uptake of offsite housing construction in the EU, a CCT Pilot has been proposed in the Affordable Housing Package and the European Strategy for Housing Construction, which is the industrial pillar of that package.The project is exploring how targeted financial support can be provided to strengthen supply chains and boost industrial capacity. For example, some demonstration projects could be envisaged as testbeds to support an EU-wide offsite construction market. In addition, a platform for structured dialogue between industry, Member States, regional authorities and civil society has been created under the High-level Construction Forum. The pilot also aims to identify legal bottlenecks and help participating Member States align their regulatory frameworks. Reforms and simplification are key enablers for the free flow of offsite construction components across the Single Market, for unlocking private investment and for the scaling up of cross-border, multi-country offsite construction projects. On the demand side, complementary measures will be considered to make innovative construction solutions more attractive and competitive in public and private markets. This would contribute to delivering affordable houses across the EU at pace and competitive cost.By combining industrialised offsite construction with circular design principles, also the New European Bauhaus offers a pathway toward a more sustainable and inclusive European built environment.The scoping of priority reform and investment actions, in close consultation between the Commission, Member States and industry, is currently underway. It is envisaged to work towards a political document, which could take the form of a declaration, outlining clear delivery targets for agreed reforms and investments. Keys facts and figures +4.5% Offsite construction sector annual growth potential by 202920-60% Decrease in construction time€68.8 billion Overall value of EU market by 204010-15% Reduction in waste Estimated preliminary timeline Q2/Q3 2026Scoping dialogue with industry and Member States Related links Delivering on the EU’s CompetitivenessThe Competitiveness Coordination Tool aims to develop cross-border investment projects with an EU added value.
The EU suffers from a widespread housing crisis. Offsite construction (where components are centrally manufactured in a factory and then assembled on-site) can offer a potential for ramping up housing supply and help reshaping the European construction sector. This specific construction process is streamlined, with a high potential to reduce costs, e.g. construction times are shortened by 20 to 60%. Offsite construction also delivers environmental benefits (10 to 15% reduction in waste), safer working conditions and other social benefits. EU companies already possess strong technological capabilities and could become global leaders in this growing market, which has a growth potential by 2040 estimated at up to €1 trillion, i.e. a 600% increase in revenues. Scaling up offsite construction remains a challenge, with currently low adoption rates in the EU overall. Regulatory fragmentation across the EU, high upfront investment cost, a shortage of skilled workers, low digital penetration of the sector and the lack of stable demand form key bottlenecks. © AdobeStock / Novanture
Delivering on the EU’s CompetitivenessThe Competitiveness Coordination Tool aims to develop cross-border investment projects with an EU added value.
