Home » Insights » News » The Reality of Modular Construction in 2026: From Ambition to Accountability
The latest news and insights from Premier Modular.
David Harris, CEO, Premier Modular Group, recently joined Jonathan Mussen and Jackie Maginnis of the MPBA at Futurebuild for a conversation about the true state of modular construction in the UK today. It was an honest discussion about where the industry is succeeding, where the challenges still exist, and what clients are really demanding from modern construction solutions.
One thing is clear: modular construction is no longer at the stage of proving the technology works. That debate has largely been settled. We know modular can deliver high-quality, sustainable buildings faster, safer, and with greater certainty than many traditional approaches.
The bigger question now is whether the industry can consistently operate at scale, with the discipline and maturity needed to meet growing client expectations.
One of the biggest misconceptions about modular construction is that it is still centred around standardised products. In reality, the sector has evolved significantly.
Today, modular is fundamentally about delivering solutions. Clients are looking for highly customised environments that solve operational problems, whether that means temporary space, semi-permanent accommodation, or long-term estate strategies.
Flexibility has become one of the defining advantages of modular delivery. Increasingly, clients want buildings that are future-proofed assets that can be reconfigured, relocated, adapted, or expanded over time as needs change.
That shift is changing the conversation entirely. We are moving away from simply constructing buildings and towards helping organisations actively manage and optimise their estates.
Over the past few years, the modular sector has gone through a necessary correction.
There was a period where modular construction was positioned as a disruptive force that would rapidly transform the entire construction industry. But modular is not an easy business to run. It is capital-intensive, operationally demanding, and highly dependent on disciplined execution.
A number of well-publicised failures, particularly within housing-focused modular businesses, have demonstrated that very clearly.
What is emerging now is a more mature market. Businesses with long-standing expertise, refined manufacturing methodologies, and strong financial foundations are starting to demonstrate what sustainable modular delivery actually looks like.
That financial strength matters more than ever because clients increasingly expect more than just a building. Many are looking for funded solutions that help balance capital expenditure against operational expenditure, removing some of the barriers that can slow project delivery.
Modular construction delivers its greatest value where certainty, flexibility, and speed genuinely matter.
In education, we continue to see modular outperform traditional approaches on programmes where timelines are non-negotiable. Projects such as TEDI University in Canada Water, St Margaret’s School, and Ark Academy demonstrated how manufacturing concurrently with foundation works allows facilities to be delivered rapidly, often during narrow summer holiday windows where traditional construction simply could not meet the programme.
The benefit is not just speed. It is certainty. Schools open on time, disruption is minimised, and operational continuity is protected.
Healthcare is another sector where modular delivery creates clear advantages. Projects including James Cook UTC, King’s College Hospital, Northumbria Specialist Emergency Care Hospital, and St Mary’s Hospital on the Isles of Scilly highlighted how offsite manufacturing reduces disruption, site traffic, and programme risk in highly sensitive live environments.
The Isles of Scilly project, demonstrated the logistical strength of modular construction, with completed structures transported directly to site, significantly reducing complexity and risk.
In commercial environments, modular creates value through earlier occupation and faster operational readiness. Delivering space months earlier can have a direct impact on revenue generation and business continuity. Infrastructure projects such as Hinkley Point C also demonstrate the importance of flexibility. Workforce accommodation needs change constantly over the life of major infrastructure programmes, and modular allows assets to scale up, relocate, or adapt far more effectively than traditional construction.
The expectations clients have of the construction industry today are very different from those of ten years ago.
Previously, many clients focused primarily on speed and cost. Today, they are looking for certainty, flexibility, resilience, and long-term value.
Clients increasingly expect:
Importantly, clients no longer accept “modular-looking” spaces as a compromise. Expectations around design quality, internal environments, and user experience are now significantly higher.
The modular sector is forecast to continue growing strongly over the next five years, particularly in semi-permanent solutions, leased models, and ‘customised’ modular spaces that deliver a comparable experience to traditional construction.
Several factors are driving that growth:
I do not believe perception is still the industry’s biggest challenge. The technology is proven and clients understand the benefits.
The more significant blockers now sit elsewhere.
Fragmented procurement routes, late-stage engagement, inconsistent project pipelines, and limited modular knowledge across parts of the wider construction ecosystem still create unnecessary friction. Designers, planners, cost consultants, building control teams, and even some clients are often still working within traditional construction frameworks that do not align with manufacturing-led delivery.
Modular works best when projects are designed for manufacture from the outset and when decisions are made early and decisively.
Another major shift is the growing importance of carbon data and circular economy thinking.
Sustainability has moved beyond aspiration and into procurement requirements. Whole-life carbon reporting, embodied carbon data, ESG metrics, and measurable waste reduction are increasingly expected as standard, particularly within public sector and institutional projects.
Clients are also placing far greater emphasis on reuse, relocation, and design for disassembly. The ability to adapt and redeploy assets over time is becoming a critical part of long-term estate planning.
This is where modular construction has a strong natural advantage. Offsite manufacturing can significantly reduce waste, improve quality control, lower embodied carbon, and create long-term flexibility around asset management.
At the same time, there is still inconsistency in how carbon and social value are measured across the industry, which creates challenges for suppliers and clients alike.
Looking ahead, I believe the next phase of modular construction will not simply be defined by growth figures.
Success will come from modular becoming a mainstream, trusted, and integrated delivery model for the sectors where it clearly adds value.
We will see greater emphasis on:
Most importantly, the conversation around modular is changing.
The industry is moving away from ambition and disruption narratives and towards accountability, consistency, and long-term performance.
That is a healthy evolution for the sector.
The future of modular construction will not be decided by who can make the boldest claims. It will be decided by who can deliver reliably, sustainably, and at scale over the long term.
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