While residential construction as a whole remains under pressure, the prefabricated house segment has seen a strong recovery – with further growth potential in the coming years. The segment recorded volume growth of +6.5 percent in 2025. A further increase of +3.5 percent is forecast for 2026, and in terms of value, the market is expected to grow by as much as +6.5 percent, according to a study by Interconnection Consulting. Catch-up effects increase the proportion of prefabricated houses The recovery is largely attributable to a strong catch-up effect (2024: -21.9 percent): postponed construction projects were increasingly realized in 2025, significantly increasing the proportion of prefabricated houses. In 2025, this figure already stood at 33.5 percent, up from 25.3 percent in 2024. The outlook remains positive in the long term: Interconnection Consulting expects average volume growth of +5.9 percent per year for the period from 2025 to 2029. “The German prefabricated house market will prove its resilience in 2025 and 2026. Shorter construction times, high standardization, fixed price guarantees, and growing demand for efficiently planned living concepts will strengthen the segment's appeal in the long term,” explains Johannes Lözelt, author of the study. Structural shifts are shaping the market However, there are clear structural shifts: single-family homes continue to dominate with an 82.2 percent market share, but are losing ground. Two-family homes exceeded the 11 percent mark for the first time with 11.3 percent, and row houses increased their share to 6.5 percent. Price development stabilizes After sharp price increases of +7.3 percent (2023) and +8.5 percent (2024), price momentum has slowed significantly. In 2025, growth was moderate at +2.8 percent, and +2.9 percent is expected for 2026. The total market reached a volume of €5.46 billion in 2025, up 9.5 percent on the previous year. Timber Frame construction unchallenged Timber Frame construction clearly dominates the market: almost nine out of ten prefabricated houses are built using this method. There is also a clear trend in terms of construction stages: more than four out of ten prefabricated houses are built on a turnkey basis – with further growth potential in the coming years. Increasing market concentration The competitive environment is showing signs of increasing market concentration. While the top 10 remained virtually unchanged in terms of value, the top 5 in particular were able to significantly expand their market shares. The largest suppliers in 2025 include – in alphabetical order – Allkauf, Bien-Zenker, Danwood, Finger Haus, Hanse, Kampa Haus, Massa, OKAL, Schwörer, and Weber. While residential construction as a whole remains under pressure, the prefabricated house segment is developing into a clear anchor of stability – with further growth potential in the coming years.

After two years of decline, the European Sandwich Panels market is starting to grow again, driven by an increase in renovation projects and a solid level of new investments in 2025. According to the study “IC Market Tracking – Sandwich Panels” by Interconnection Consulting, market volume remained nearly stable in 2025 (-0.3%), while value grew by 1.5%, indicating early signs of recovery. The outlook is more positive, with volumes expected to grow by 2.8% and value by 5.2% in 2026, supported by stronger demand and a shift toward higher-quality solutions. Growth across Europe remains uneven, reflecting the fragmented recovery of the construction sector. Poland led with a 5.3% increase in volume, driven by thermal modernization and stricter energy standards, followed by Slovakia (+2.7%) and Switzerland (+2.8%), both supported by renovation and stable demand. In contrast, Austria declined sharply (-8.1%) due to a construction slowdown, while Germany (-2.1%) and Hungary (-2.1%) were affected by weak investment and cost pressures, although stabilization is emerging. Demand is concentrated in industrial and logistics applications, with warehouses and production facilities representing 58.1% of total volume and remaining stable despite challenging conditions. Along with cold storage, these segments proved resilient. In contrast, cyclical sectors such as shopping malls, agriculture, and healthcare, education, and leisure buildings declined due to reduced investment activity. Key trends include rising demand for energy-efficient and compliant solutions, increasing use of mineral wool (28.8% share), and the continued dominance of PUR/PIR panels (69.0%), reflecting their strong performance in insulation efficiency. Steel price fluctuations continue to impact costs, particularly as steel represents over 94.9% of cover material usage. Pricing remained largely stable across Europe, with price increase of around 1–2%. Only Germany recorded a slight decline (-1%), while the UK showed the strongest increase (+4%). Overall, stabilizing input costs and subdued demand are intensifying competitive pressure. The European market is moderately consolidated, with the top six players holding 48.5% share. Large groups leverage scale, while regional firms compete through flexibility and local proximity. Key companies include ArcelorMittal, Brucha, Falk, Gór-Stal, Isolpack, Isopan, Italpannelli, Izopanel, Kingspan, Lattonedil, Marcegaglia, Metecno, Pruszynski, Romakowski, Ruukki, Tata Steel, and Trimo. “After two years of decline, we are seeing the first signs of stabilization. The recovery will be gradual, driven by energy efficiency, stricter regulations, and the need for safer and more sustainable buildings,” explains Robert Lukac, author of the study. Overall, the market is expected to return to gradual growth from 2026 onwards, exceeding 135.6 million square meters by 2028, driven by sustainability trends, regulation, and construction sector developments.

The Europe TOP7 market for Door Access Control (DAC) Locking Devices has faced a period of weakness in recent years, reflecting subdued construction activity and cautious renovation demand. In 2025, the market declined slightly in volume (-0.9%). With residential new-builds expected to recover gradually from 2027, supported by ongoing renovation activity, the DAC locking devices market is projected to enter a phase of moderate recovery, growing at an average annual rate of +3.1% over the next three years and reaching approximately €1.9 billion by 2029. Following peaks in previous years, average prices are entering a gradual downward trend. While modest price gains were still recorded in 2024 and 2025, prices are expected to decline progressively from 2026 onward, tempering short-term value growth despite improving volume dynamics. Germany remains a key market within the Europe TOP7 region, accounting for around 18.9% of total DAC locking device volumes. Its size and structural significance continue to shape overall European market dynamics. BENELUX is expected to outperform, recording the highest value CAGR of +6.1%, well above the Europe TOP7 average. The 2025 market clearly favors integrated locking devices. Electronic cylinders and handles are steadily gaining ground, while separate-reader solutions — though still the largest segment — underperformed. Looking ahead, electronic handles and cylinders are expected to drive the next growth wave, with projected CAGRs of +6.9% and +6.8% through 2029, reflecting strong demand for fully integrated, easy-to-install access solutions. Price dynamics further underscore the market’s evolution: separate-reader devices see modest increases due to rising biometric adoption, integrated handles peak around 2027, and integrated cylinders become increasingly cost-efficient, highlighting a shift toward smarter, streamlined, and more affordable systems. Demand patterns across applications diverged in 2025. Residential volumes lagged, and Business Offices — the largest segment — experienced a slight decline. Hospitality emerged as the fastest-growing segment, driven by Europe’s post-COVID tourism recovery, and is projected to maintain a CAGR of +9.4% through 2029. This trend underlines strong opportunities for integrated access control solutions in hotels and related services. In 2025, business segment dynamics showed early signs of stabilization. New installations dipped slightly, while renovation volumes fell marginally after years of steady performance. Looking ahead, new installations are set to become the main growth driver, with a projected CAGR of +5.7% through 2029, supported by renewed investment in new buildings and gradual recovery in construction activity. Renovation continues to serve as a stable backbone, sustaining overall market volumes and mitigating cyclical fluctuations.   26/02/2026 Copyright: Interconnection Consulting. Publication free of charge for coverage regarding the study and Interconnection Consulting.

While Austria’s overall residential construction market continues to face significant pressure, the prefabricated housing sector is proving remarkably resilient. Despite an ongoing downturn in the construction industry expected to last until the end of 2026, the prefabricated home segment already achieved volume growth of +2.7 percent in 2025. A further increase of +1.2 percent is forecast for 2026. In value terms, the market is projected to grow by +4.8 percent, according to a study by Interconnection Consulting.

Catch-Up Effects Drive Market Recovery

The positive development of the prefabricated housing market last year is primarily attributable to catch-up effects: numerous construction projects that had previously been postponed were completed in 2025. As a result, the prefabricated housing market is performing significantly better than the overall residential construction sector and continues to gain importance.

In 2025, prefabricated homes already accounted for 35.4 percent of completed single- and two-family houses (excluding log homes).
“Over the long term, a further structural shift of the market toward prefabricated homes can be expected,” explains Dr. Frederik Lehner, Managing Director of InterConnection. For the period from 2025 to 2029, Interconnection analysts forecast an average annual volume growth rate of +3.0 percent.

Price Dynamics Have Clearly Eased

Following an exceptional price increase of +17.0 percent in 2023, market conditions have stabilized considerably. Prices rose by only +1.8 percent in 2024 and by +2.6 percent in 2025. The main reason is a growing trend toward more compact and cost-efficient house types.

With a total market volume of €907 million, market value in 2025 was 5.4 percent higher than the previous year.

Cost Pressure Is Shifting Housing Concepts

Despite challenging economic conditions, prefabricated homes are increasingly establishing themselves as the preferred construction method in the single- and two-family housing segment. Single-family homes still dominate with a share of 86.1 percent but are gradually losing importance.

Two-family houses (7.6 percent) and terraced houses (6.3 percent) are gaining noticeable market share — an indication of rising cost pressure and changing housing concepts.

Timber Frame Construction Remains Dominant

Timber frame construction continues to lead the market, accounting for around three-quarters of all prefabricated homes. Its market share is continuing to grow relative to solid construction methods and other building systems.

Clear trends are also visible in construction stages: turnkey homes already accounted for approximately 44 percent of the market in 2025 and are expected to exceed 45 percent by 2029. Despite an average price of around €321,240, an increasing number of buyers are opting for this convenient solution.

Regional Differences and Increasing Market Concentration

The market shows strong regional concentration: in 2025, 58.4 percent of all prefabricated homes were built in Lower Austria and Upper Austria. The strongest growth in the coming years is expected in Salzburg, Tyrol, and Burgenland, while Vienna is projected to see declining figures.

At the same time, market concentration is increasing significantly. The top 10 providers have substantially expanded their value-based market shares. Larger, well-capitalized companies benefit from economies of scale and greater stability, while smaller providers are increasingly coming under pressure.

Every Second House in Vienna Built by Glorit

Glorit continues to expand its leading market position in Vienna’s residential construction sector. With a market share of 51.5 percent, the company clearly confirms its market leadership in the Austrian capital. Nationwide, Glorit ranks second overall despite its strong regional focus.

“De facto, every second newly built house in Vienna comes from Glorit. We support this leading position through consistent premium quality, excellent financial stability, and a genuine all-inclusive package for our customers,” emphasizes Lukas Sattlegger, Managing Director of Glorit.

For 2026, the premium developer has increased production of its housing projects by around 30 percent. Growth is particularly focused on Vienna’s rapidly developing districts 1210, 1220, and 1230.

Glorit also reinforces its premium positioning through its construction stages: 100 percent of homes sold in 2025 were delivered turnkey. The company’s comprehensive all-inclusive package has therefore proven to be a decisive factor in property purchases — a trend that is becoming increasingly evident across the market.

“Especially in economically challenging times, customers place particular importance on security, predictability, and full cost control. Turnkey homes delivered from a single source are therefore becoming increasingly important,” says Sattlegger.