To achieve the recast Energy Performance of Buildings Directive targets and overcome slow, costly on-site renovation practices, off-site prefabrication is vital, yet existing research often neglects real-world applicability and circularity constraints. This study presents a systematic market mapping and a three-category taxonomy—Single-function envelopes, Multifunctional integrated systems, and Stand-alone installations—of prefabricated European renovation solutions. Applying a structured three-step protocol screening literature, industry reports, and EU projects, technologies were evaluated through a multidimensional framework capturing maturity, functional integration, structural constraints, and circularity indicators. Results reveal a strongly polarized market where passive envelope systems dominate, while multifunctional integrated solutions remain confined to prototype stages. Furthermore, most systems target low-to-mid-rise residential buildings, show limited compatibility with complex geometries, and exhibit underdeveloped circularity due to conventional material reliance. This study concludes that bridging the research-to-market gap requires system interface standardization, demand stimulation through Green Public Procurement, and regulatory adaptation for increased envelope thickness. Ultimately, this taxonomy provides an operational assessment framework and establishes a rigorous foundation for a future quantitative Prefabrication Readiness Index (PRI).

To achieve the European Union’s zero-emission building targets and overcome the limitations of slow, costly on-site construction, off-site prefabrication is vital. However, existing research often neglects real-world constructability and circularity constraints. This study presents a systematic technology supply mapping and a performance-oriented taxonomy—single-function envelopes, multi-functional integrated systems, and stand-alone installations—of prefabricated renovation solutions, focusing predominantly on Southern European contexts. Applying a structured three-step screening protocol across the literature, industry databases, and European project repositories, technologies were evaluated through a multi-dimensional framework capturing market readiness, functional integration, structural constraints, and circularity indicators. Results reveal a strongly polarized market where passive envelope systems dominate commercial availability, while multi-functional active solutions remain largely confined to experimental prototype stages. Furthermore, most systems target low-to-mid-rise residential buildings, show limited compatibility with complex architectural geometries, and exhibit low integration of circular criteria due to conventional material reliance. This study concludes that bridging the research-to-market gap requires interface standardization, demand aggregation through Green Public Procurement, and localized regulatory adaptations for envelope thickness. Ultimately, this taxonomy establishes a rigorous diagnostic framework and a solid foundation for a future quantitative Prefabrication Readiness Index (PRI).