Setting the Tempo of Transformation: Modular Renovation Picks Up Speed
The construction industry is among the largest emitters of greenhouse gases, with buildings accounting for around 35% of Germany’s total energy consumption. Germany’s ambitious goal of achieving climate neutrality by 2045 presents the sector with major challenges. Energy-efficient retrofitting of the existing building stock is a key lever for sustainable change. Traditional renovation methods may appear cost-effective at first glance, but long construction periods, rising labour costs, and lost rental income during extended works often drive overall costs higher – costs that many clients underestimate. This is where modular renovation offers a compelling alternative: it improves efficiency and quality, significantly shortens construction times, and provides an intelligent response to the skilled labour shortage.
Energiesprong: The Dutch Blueprint for Germany
The Dutch concept of Energiesprong has been a crucial driving force for the renovation industry. Rather than upgrading individual building components on-site, an energy-efficient building envelope is prefabricated and digitally planned. A 3D laser scan captures the necessary data for a model that serves as a blueprint for serial production. Windows, insulation, sun protection, and heat-recovery ventilation are all integrated at the factory and quickly installed on-site. In Germany, the German Energy Agency (DENA), with support from the Federal Ministry for Economic Affairs and Energy, has further developed the concept. Since 2023, the Federal Funding Program for Efficient Buildings (BEG) has supported modular renovations with a 15% bonus for projects that achieve the Efficiency House 55 standard or better. Today, over 450 companies are active in modular renovation in Germany, around 50 of them as full-service providers.
Market Development: From Niche Product to Growth Market
The transition from niche to mainstream application has been rapid. In 2022, modular renovations accounted for just 2% of subsidised Efficiency House projects. By 2024, almost one in four subsidised renovations was being carried out using modular methods. This dynamic unleashes potential – rising volumes reduce costs for prefabricated elements, while on-site processes become increasingly seamless. Most notably, the open collaboration between companies fosters an unparalleled culture of innovation.
Speed, Quality, Sustainability: Clear Advantages
Storey-high modules up to twelve metres long are delivered by truck and precisely positioned on the building. Digital twins allow exact planning of production and installation, ensuring even complex processes run smoothly. Up to 500 sqm of facade can now be renovated per day – a task that previously took months is completed in just a few weeks.
From Renovation Case to Energy Model: Two Exemplary Projects
In Witten, a 1950s residential complex with 112 units underwent a modular renovation using prefabricated facade elements, including insulation, building services, and photovoltaics. Energy consumption fell from 145 to approximately 26 kWh/m²a, representing a leap from energy efficiency class E to A+ – alongside a marked improvement in living comfort.[1] In Herford, the primary energy demand of a residential complex was reduced from 386 to 49 kWh/m²a. Photovoltaics installed on roofs and loggias generate an additional 75 kWh/m²a, producing a surplus of 26 kWh/m²a. This saves approximately 170 tonnes of CO₂ annually, equivalent to up to 12,000 km of emission-free mobility per apartment – a striking example of sector-spanning sustainability.
Market Potential: A Renovation Wave Is Imminent
The number of potentially suitable buildings is enormous: roughly 2.1 million multi-family dwellings from the 1950s to 1970s are ideal candidates for modular renovation. Single-family homes and non-residential buildings are also becoming increasingly relevant. By 2045, up to four million residential units and two million other buildings, including schools and offices, could benefit from this approach. The estimated market volume is around €500 billion, much of which can be refinanced through energy cost savings – offering the construction sector a substantial new field of activity.
Aesthetics is the Fourth Pillar of Modular Renovation
Technically sophisticated, economically attractive, and environmentally sound – but what about design quality? Modular renovation often still appears functional and pragmatic. Without architectural ambition, it risks being seen as a mere construction product, dictated by system providers rather than designers. Yet some providers are showing that standardisation and design are not mutually exclusive. Instead of criticising the logic of prefabricated housing, architects can help set the pace: with creative module adaptations and a stylish design language. Only by combining efficiency, sustainability, and aesthetic appeal can modular renovation deliver truly future-ready buildings.
[1] https://i-magazin.com/industrialisierte-loesung-fuer-serielle-wohnbausanierungen/