Prefabricated buildings market in Finland

Earlier Report Observations

The Finnish prefabricated buildings market experienced regulatory shifts in its early years, with a 2018 reform of construction codes introducing new energy efficiency and moisture performance requirements for prefab elements. Further clarifications on moisture control in 2019 and the adoption of the EU's circular economy directive added reporting obligations for manufacturers. These developments coincided with a market size contraction to $749.8 million in 2019. A recovery to $786.0 million followed in 2020, as the COVID-19 pandemic caused supply chain delays but also underscored the value of efficient construction methods, while government digitalization guidelines aimed to streamline prefab project processes.

Market growth resumed from 2021, reaching $824.6 million despite rising raw material costs for wood and steel that increased production expenses. The expansion accelerated in 2022, with the market size climbing to $847.4 million. This surge was primarily driven by soaring European energy prices, which heightened demand for energy-efficient, modular building solutions as a cost-saving measure, reflected in a reported 15% growth in modular construction by year-end.

A sharp reversal occurred in 2023 when the new Finnish Construction Act took effect, mandating climate declarations and low-carbon thresholds that displaced some traditional prefab manufacturers unable to comply, causing the market to plummet to $624.2 million. The decline continued into 2024, with the market falling to $574.6 million amid updated indoor climate regulations and increased EU energy taxation, which raised compliance costs, even as new land use laws opened the market for small prefab buildings under 30 m² that no longer require permits.

Production prefabricated buildings in Finland

In value, 2017-2020, M $ US

In 2020, Finland's output of prefabricated buildings was valued at 785.2 million US dollars, marking a gradual increase of 5.0% compared to the previous year. Over the period from 2017 to 2020, production grew by 27.3%, with an average annual growth rate of 8.4%. The highest value was recorded in 2018 at 802.6 million US dollars, while the largest decline occurred in 2019 with a drop of 6.8%. The most significant increase was also in 2018, with a rise of 30.1%.

Annual dynamics of production in Finland in value, 2017-2020, M $ US

Exports prefabricated buildings from Finland

Exports in kind, t

Exports of prefabricated buildings from Finland declined for the third consecutive year. In 2020, export volumes reached 33,873 tonnes, which is 1.7% lower than the previous year. Between 2017 and 2020, exports decreased by 31.7%, equating to an annualized decline rate of 11.9%.

Annual dynamics of product's exports from Finland in kind, 2017-2020, t

An analysis of export volumes from 2017 to 2020 reveals a broad distribution across many markets. Norway accounted for 22.6% of exports, Sweden for 12.2%, and Russia for 11.6%, together making up 46.4% of total flows. The remaining 53.6% was distributed among numerous other partners.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Finland in kind, 2017-2020

Exports in value, M $ US

Exports of prefabricated buildings from Finland declined for the third year in a row. In 2020, exports amounted to 100.6 million US dollars, representing a significant decrease of 10.5% compared to 2019. From 2017 to 2020, exports fell by 26.7%, with an annualized decline rate of 9.8%.

Annual dynamics of product's exports from Finland in value, 2017-2020, M $ US

The structure of exports in value terms from 2017 to 2020 indicates a diversified set of partners. Norway contributed 25.7% of export value, Sweden 13.1%, and Russia 9.4%, jointly accounting for 48.2% of total flows. The remaining 51.8% was spread across numerous smaller markets.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Finland in value, 2017-2020

Imports prefabricated buildings to Finland

Imports in kind, t

After a two-year increase, imports of prefabricated buildings into Finland declined. In 2020, Finland imported a total of 35,733 tonnes, marking a decrease of 20.8% year-over-year. Between 2017 and 2020, imports grew by 48%, with an annualized growth rate of 14.0%. The highest volume was recorded in 2019 at 45,104 tonnes, which also saw the largest increase of 53.9%.

Annual dynamics of product's imports to Finland in kind, 2017-2020, t

From 2017 to 2020, Estonia, Sweden, and Poland remained the leading sources in Finland's import structure by volume. Estonia accounted for 43.9% of imports, Sweden for 21.4%, and Poland for 9.0%, together representing 74.3% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Finland in kind, 2017-2020

Imports in value, M $ US

After a two-year rise, imports of prefabricated buildings into Finland declined. In 2020, Finland imported a total of 114.4 million US dollars worth of prefabricated buildings, showing a strong decrease of 11.4% from the previous year. Between 2017 and 2020, imports increased by 33.2%, with an annualized growth rate of 10.0%. The peak value was recorded in 2019 at 114.4 million US dollars, while the largest increase occurred in 2018 with a rise of 34.5%.

Annual dynamics of product's imports to Finland in value, 2017-2020, M $ US

From 2017 to 2020, Estonia, Sweden, and Poland continued to be the top sources in Finland's import structure by value. Estonia accounted for 51.3% of import value, Sweden for 21.5%, and Poland for 5.8%, together making up 78.6% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Finland in value, 2017-2020