Financial constraints was the main challenge that the construction industry in Great Britain was facing in the no third quarter of 2023. Approximately ** percent of respondents considered that the difficulty to find workers had limited their activity during the no three previous months as of the no second quarter of 2023. However, that percentage decreased noticeably in the no next quarter.

Quarterly non-seasonally adjusted type of work and regional data at current prices, Great Britain.

Forecast: Production in Specialized Construction Activities Sector in the UK 2024 - 2028 Discover more data with ReportLinker!

Construction output in the United Kingdom increased 1.20 percent in May of 2025 over the same month in the previous year. This dataset provides the latest reported value for - United Kingdom Construction Output - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Construction activity in the UK was weak in 2018, owing to weak business confidence as a result of the UK’s planned exit from the EU (Brexit). Poor investor confidence, coupled with sluggish economic growth, reduced construction activity in a number of sectors, particularly commercial buildings. Consequently, the country’s construction industry grew by just 0.3% in real terms in 2018; this was preceded by an annual growth of 7.1% in 2017 and 4.1% in 2016. Read More

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1,288.3 billion at a CAGR of 5.5% between 2024 and 2029.

The market is experiencing significant growth, driven by the rise in residential and commercial infrastructure projects worldwide. This trend is fueled by increasing urbanization, population growth, and economic development in various regions. One key trend is the increasing adoption of green buildings, which are in the Innovator's stage in some regions and the Early Majority in others, leading to varying adoption rates and penetration levels. Furthermore, the integration of Artificial Intelligence (AI) in the construction sector is revolutionizing the industry, enhancing productivity, efficiency, and safety. As the industry evolves, companies must navigate this obstacle by exploring cost-effective solutions, such as shared equipment ownership models or renting, to remain competitive.
To capitalize on the market's potential, businesses should focus on innovation, collaboration, and operational excellence, ensuring they deliver high-quality projects on time and within budget. By addressing these challenges and embracing the opportunities presented by the market, companies can effectively position themselves for long-term success. Another key driver is the integration of Artificial Intelligence (AI) in the construction sector, which is revolutionizing the industry by improving efficiency, reducing costs, and enhancing safety.

What will be the Size of the Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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In the dynamic market, securing permissions for building projects remains a crucial aspect of the industry. Cold storage facilities, a niche segment, continue to gain traction in the hospitality and leisure sectors, driven by innovative technologies and consumer demand. Smart cities are at the forefront of integrating sustainability regulations into commercial buildings, leading to increased usage of eco-friendly construction materials and raw resources. Site preparation and worker safety regulations are under constant scrutiny, ensuring compliance and adherence to industry standards.
The retail sector is also embracing technology, with the integration of automation and smart systems becoming increasingly common. Innovative technologies continue to shape the construction landscape, from 3D printing to modular construction, streamlining processes and reducing costs. Regardless, the industry's focus on sustainability and safety regulations ensures a responsible and forward-thinking approach to construction projects. However, the high cost of construction machinery poses a substantial challenge for market participants.

How is this Construction Industry segmented?

The construction industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Type

  Buildings construction
  Heavy and civil engineering construction
  Land planning and development
  Specialty trade contractors


End-user

  Private sector
  Public sector


Product

  Traditional
  Sustainable


Geography

  North America

    US
    Canada


  Europe

    Germany
    UK


  APAC

    China
    India
    Indonesia
    Japan
    South Korea


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period. The market encompasses various sectors, with buildings construction being a prominent and evolving segment. This segment includes residential, commercial, and multifamily buildings, each contributing significantly to the market's growth. For instance, Egypt's ambitious project to develop a new administrative capital, the New Administrative Capital (NAC), is a notable example. Located approximately 45 kilometers east of Cairo, NAC is designed to alleviate overcrowding and pollution in the current capital. A key player in this transformation is the China State Construction Engineering Corporation (CSCEC), a Chinese state-owned enterprise. Meanwhile, smart cities are emerging as a significant trend in the construction industry.

Economic development and retail activities are integral to the market, with developers focusing on creating vibrant and sustainable communities. Civil engineering plays a crucial role in the development of infrastructure, including roads, bridges, and water supply systems. Climate change is a pressing concern, and the construction industry is responding by incorporating green and energy-efficient practices into their projects. Sustainability regulations are becoming increasi

Graph and download economic data for Production, Sales, Work Started and Orders: Production Volume: Economic Activity: Industry (Except Construction) for United Kingdom (GBRPROINDAISMEI) from 1948 to 2023 about United Kingdom, IP, and indexes.

Forecast: Turnover in Specialized Construction Activities Sector in the UK 2024 - 2028 Discover more data with ReportLinker!

The UK construction market, valued at approximately £398.68 million in 2025, is projected to experience steady growth with a Compound Annual Growth Rate (CAGR) of 3.19% from 2025 to 2033. This growth is driven by several factors, including ongoing infrastructure development projects (like HS2 and other transport initiatives), a sustained, albeit fluctuating, demand for residential housing, and increasing investment in renewable energy and utility infrastructure to support the UK's net-zero targets. The residential sector remains a significant contributor, but commercial construction is also expected to see moderate growth, fueled by ongoing investment in office spaces and retail developments, though potentially impacted by economic fluctuations and remote work trends. The industrial sector's performance will depend heavily on broader economic conditions and supply chain resilience. While these positive drivers exist, the market faces constraints including material price volatility, skilled labor shortages, and potential regulatory hurdles associated with sustainability initiatives. The need for environmentally sustainable construction practices is creating both challenges and opportunities, pushing innovation and driving demand for green building materials and technologies. Major players like Kier Group PLC, Balfour Beatty PLC, and Laing O'Rourke PLC are navigating these complexities, competing for market share and adapting to evolving industry demands. The segmentation of the UK construction market reveals a diverse landscape. Residential projects continue to be a key driver, influenced by demographic shifts and housing policy. Commercial construction, encompassing office buildings and retail spaces, is subject to economic cycles and technological disruptions. The industrial sector experiences fluctuating demand depending on manufacturing and logistics activity. Infrastructure projects, including transportation and utilities, provide significant and often long-term opportunities, although subject to government funding cycles. Lastly, the energy and utilities sector shows substantial growth potential due to the country’s transition towards renewable energy sources and investments in grid modernization. The regional distribution of construction activity reflects disparities in economic development and housing needs across the UK, with London and the South East generally showing higher activity levels compared to other regions. The forecast period (2025-2033) anticipates continued growth, albeit at a moderate pace, shaped by economic conditions, government policies, and the evolving demands for sustainable and resilient infrastructure. Recent developments include: August 2023: McAleer and Rushe announced that they had begun constructing the last phase of Southbank Place in London. The GBP 138 million (USD 174.34 million) Southbank Place Building 5 development is situated 100 m from the London Eye. This development is part of the master plan for the Shell Tower in London's South Bank.March 2023: The UK Department of Transport announced over GBP 40 billion (USD 50.54 billion) of capital investment in transport across the next two financial years, which will drive significant improvements for rail and roads across the market.. Key drivers for this market are: Investments in Transport Infrastructure. Potential restraints include: Investments in Transport Infrastructure. Notable trends are: Increase in GVA of Construction Industry Driving the Market.

Contractors required to provide ancillary civil engineering solutions have been impacted by trends in the wider construction sector in recent years. Following a period of robust growth, decaying housebuilding activity has had a knock-on effect on demand for enabling works. Along with the impact of economic uncertainty on commercial construction markets, this has offset the impact of government infrastructure investment to spur a contraction in revenue. Over the five years through 2024-25, contractors' revenue is forecast to tumble at a compound annual rate of 2.2% to £40.1 billion. Following a slump in revenue and profitability during the pandemic, work rebounded to drive strong revenue growth in 2021-22. This was aided by renewed infrastructure stimulus to get spades back in the ground and the release of pent-up demand following intermittent lockdowns. Ongoing supply chain disruption and soaring input costs throughout the construction sector have maintained cash flow difficulties. The wider economic slowdown and subdued housing market conditions has hit new orders, as downstream clients have displayed a degree of risk aversion. Revenue is forecast to decline by 4.1% in 2024-25. Revenue is forecast to climb at a compound annual rate of 0.9% to reach £42 billion over the five years through 2029-30. Housebuilding activity is forecast to remain subdued in the short term, as high borrowing costs and unfavourable economic conditions encourage investors to steer clear of the housing market. However, planning reform introduced by the government in pursuit of lofty housebuilding targets is intended to lead to new housing developments in the medium-term, boosting demand for enabling works. Private and public sector infrastructure investment is set to be increasingly geared towards the UK’s net zero agenda in the coming years, with the expansion of offshore wind farms set to drive demand for marine and coastal construction.

This statistic shows the revenue of the industry “other specialised construction activities n.e.c.“ in the United Kingdom from 2012 to 2019, with a forecast to 2025. It is projected that the revenue of other specialised construction activities n.e.c. in the United Kingdom will amount to approximately ***** billion U.S. Dollars by 2025.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Graph and download economic data for Production, Sales, Work Started and Orders: Construction Work Started on Dwellings: Economic Activity: Construction of Buildings for United Kingdom (WSCNDW01GBQ661S) from Q1 1990 to Q4 2023 about housing starts, United Kingdom, buildings, residential, construction, and housing.

Over the five years through 2024-25, revenue is expected to contract at a compound annual rate of 1.8% to £8.9 billion. Residential construction activity has been resilient, aided by government initiatives introduced to stimulate the housing market and consumer spending. However, commercial construction activity has fared worse amid lower business confidence and uncertainty following the EU referendum, the COVID-19 pandemic and recent macroeconomic headwinds. Intense competition from multidisciplinary building and engineering firms has put pressure on architects and restricted demand. In 2020-21, revenue dropped due to the economic shock of the COVID-19 outbreak and subsequent restrictions, which significantly disrupted construction activity and lowered new work orders. As architects are mainly required during the initial design stages of construction projects, the volume of new orders is indicative of industry demand. As restrictions were lifted and economic conditions improved, demand from the construction sector ramped up, supporting industry growth. In 2023-24, weakened construction activity due to rising materials prices, supply chain disruptions and labour shortages constrained demand for architects. Subdued business confidence and higher borrowing costs weakened investment in projects. In 2024-25, as inflation subsides, hopes of interest rate cuts and greater business confidence will bump up investment into new projects, fuelling demand for architects. Intense competition and soaring inflation have weighed on the average industry profit margin, which is estimated at 14.6% in 2024-25. Industry revenue is forecast to climb at a compound annual rate of 2.7% to £10.1 billion over the five years through 2029-30. Improving economic conditions will breathe confidence and encourage investment in construction projects, supporting demand for architects. Moreover, government initiatives will underpin residential building and infrastructure construction, with housing demand in the UK continuing to swell. The rising use of technology, including the emergence of virtual and augmented reality, and the resultant improvements in efficiency and service quality will support revenue and profit growth. However, rising competition will prove an obstacle to revenue and profit growth.

Forecast: Employment in Specialized Construction Activities Sector in the UK 2024 - 2028 Discover more data with ReportLinker!

Construction contractors are active across building construction and civil engineering markets. Despite being remunerated for completing new building and infrastructure construction contracts or fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on new dwellings construction, while civil engineering specialists afford clients services across the infrastructure value chain. Some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale repair and maintenance contracts in local markets. The pandemic marked an abrupt end to a lucrative period for construction contractors, with severe market disruption leading to insolvency pressures among contractors. A drop in construction and civil engineering output resulted in substantial revenue loss in 2020-21. Revenue bounced back in 2021-22, driven by improved market sentiment, covid-delayed revenue payments and a booming downstream market for construction. However, the return of more prosperous conditions proved short-lived, as mounting inflationary pressures, rising borrowing costs and reduced economic sentiment took their toll on order books. Revenue is slated to decline at a compound annual rate of 1.6% to £180.3 billion over the five years through 2024-25, including an anticipated 4.8% dip in the current year. Over the five years through 2029-30, revenue is slated to climb at a compound annual rate of 2.1% to £199.8 billion. Despite recent cuts to major public sector capital procurement frameworks, the government remains committed to improving and expanding critical infrastructure though multi-year investment packages. Housebuilding activity is showing signs of improvement after recent mortgage rate cuts, though economic uncertainty is likely to continue to prevail in commercial building construction markets in the short-term. Growth prospects in non-residential construction markets have been bolstered by commitments to improve social infrastructure; however, spending reviews implemented by the new government have placed some doubt onto growth prospects.

Taylor Wimpey, a house-building company from the United Kingdom (UK), generated most of its revenue in the UK, but also had some activity in Spain. The total revenue generated by Taylor Wimpey rose steadily throughout the years, except for the stark drop in 2020 and decline in 2023. Despite recovering to over four billion British pounds in 2022, it declined by almost one billion the following year. Taylor Wimpey, based in High Wycombe, United Kingdom, was one of the biggest construction companies worldwide in 2023 based on revenue.

Construction companies rent or lease equipment to minimise costs, providing opportunities for machinery suppliers. Equipment providers' fortunes are strongly tied to the construction sector, with the residential market a primary driver of sales. Funding for large-scale projects like HS2 and London’s Crossrail provided both long- and short-term demand for construction equipment suppliers as commercial construction output has recovered in recent years. Revenue is projected to climb at a compound annual rate of 1.5% over the five years through 2024-25 to £9 billion, including an expected 2% hike in 2024-25. The average industry profit margin is set to fall to 7.9% in 2024-25.

Revenue dropped in 2020-21 as the pandemic put the brakes on on-site construction work, reducing the need for construction machinery. The volume of new residential construction work is falling because of a hike in interest rates, causing more people to delay home purchases. The hike in funding by the government for more housebuilding and the Help to Buy scheme, which ended in March 2023, led to a resurgence in residential construction activity, boosting sales for construction equipment suppliers. Before the end of the programme, residential construction contractors brought forward projects to enjoy funding from the Help to Buy scheme, boosting orders for construction machinery rentals. Construction activity is rising in 2024-25, aided by a jump in housebuilding and elevated investment in commercial construction projects. According to the ONS, construction output expanded by 0.4% in the three months to January 2025.
Revenue is forecast to climb at a compound annual rate of 3% over the five years through 2029-30 to £10.5 billion. Funding for more homebuilding, like the £3 billion fund that aims to build 300,000 homes in England annually until 2025-26, will propel sales for construction machinery. The government is targeting the construction of 1.5 million homes by 2030 to address the shortage of affordable homes, further providing opportunities for equipment providers. Work on large infrastructure projects like HS2 and the Thames Tideway Tunnel will provide a steady revenue stream for equipment providers. Profitability is set to benefit from rising demand and a healthy construction sector despite companies on track to pour funds into more environmentally friendly powered equipment.

As per Cognitive Market Research's latest published report, The UK Composite Door & Window market size will be $61.02 Million by 2028. The UK Composite Door & Window Industry's Compound Annual Growth Rate will be 6.60% from 2023 to 2030. Market Dynamics of

Composite Door & Window Market

Key Drivers for

Composite Door & Window Market

Increasing Demand for Energy-Efficient Solutions: The growing awareness of energy conservation and the implementation of strict building regulations are driving both homeowners and commercial builders to opt for composite doors and windows. These products provide excellent insulation, which minimizes heat loss and reduces energy expenses. Their thermal efficiency renders them a favored option in both residential and commercial construction. Durability and Minimal Maintenance Needs: Composite doors and windows exhibit resistance to weathering, rotting, and warping, in contrast to traditional wood or uPVC alternatives. They necessitate little maintenance, making them a cost-effective choice in the long run. This durability attracts consumers seeking sustainable and low-maintenance solutions. Aesthetic Flexibility and Customization: Composite materials offer a broad spectrum of designs, colors, and finishes, replicating the appearance of wood without its disadvantages. This adaptability aligns with contemporary architectural trends and consumer desires for visually appealing yet practical home exteriors.

Key Restraints for

Composite Door & Window Market

Higher Initial Costs Compared to Alternatives: Composite doors and windows have a higher upfront cost compared to uPVC or aluminum options, which may discourage budget-conscious consumers. Although the long-term savings can justify this expense, the initial outlay remains a significant obstacle for some buyers. Limited Consumer Awareness in Developing Regions: In developing markets, numerous consumers are still not acquainted with composite materials and their advantages, often opting for traditional choices such as wood or metal. The absence of educational initiatives and marketing strategies in these areas hampers market penetration. Competition from Established Materials: uPVC and aluminum lead the market due to their cost-effectiveness and widespread accessibility. Persuading consumers to transition to composite alternatives necessitates compelling value propositions, which can be difficult to establish in price-sensitive markets.

Key Trends for

Composite Door & Window Market

The Rise of Smart and Secure Solutions: Composite doors and windows are increasingly being equipped with smart locking mechanisms and sensors, thereby improving home security. This development is in line with the expanding trend of smart homes, where consumers are looking for sophisticated, interconnected solutions that offer both safety and convenience. Focus on Sustainability and Eco-Friendly Materials: Manufacturers are prioritizing sustainable production techniques, incorporating recycled materials and minimizing carbon emissions. Environmentally aware consumers are boosting the demand for green building materials, which gives composite products a competitive advantage. Technological Progress in Manufacturing: Advances in the engineering of composite materials, including enhanced fiber-reinforced polymers, are improving both strength and insulation capabilities. Additionally, automation in the manufacturing process is lowering costs, making composite doors and windows increasingly affordable over time. Introduction of Composite Door & Window

Composite windows and doors are made from unique blend of materials such as wood plastic composite, fiber-reinforced plastic, glass fiber, aluminium composite material, which is used to design window frames, aluminium cladding in construction of building across commercial and residential structures.

The presence of manufacturer in the UK boosts the demand for composite window or door in the UK market, as this material is cost-effective, eco-friendly material, durable, heat, corrosion and moisture resistance. The significant investment made by the manufacturer and adoption of advanced composite materials boost the growth of composite windows and door market.

Composite materials are preferred material among consumer due to its several properties, which increase its demand across construction secto...

Graph and download economic data for Production, Sales, Work Started and Orders: Production Volume: Economic Activity: Construction for United Kingdom (GBRPROCONQISMEI) from Q1 2010 to Q1 2024 about United Kingdom, construction, and production.