The UK Construction Market Forecast Report Covers Industry Trends and is Segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure Construction, and Energy and Utility Construction) and by Key Regions (England, Northern Ireland, Scotland, and Wales). The Report Offers Market Sizes and Forecasts in Value (USD Billion) for all the Above Segments.

In 2024, the UK Construction Market reached $316.38 billion, and it is projected to surge to $439.04 billion by 2030 due to surge in infrastructure sector

The UK construction market size was valued at GBP 398.68 million in 2025 and is projected to grow at a compound annual growth rate (CAGR) of 3.19% from 2025 to 2033. The growth of the market can be attributed to the increasing demand for residential, commercial, and infrastructure projects, as well as government initiatives to support the construction industry. Key drivers of the UK construction market include the rising population, increasing urbanization, and need for new infrastructure. The government's focus on infrastructure development, such as the High Speed 2 (HS2) project, is also expected to boost market growth. Additionally, the growing adoption of sustainable construction practices and the increasing use of technology in the industry are expected to drive market growth. The market is expected to be supported by the government's initiatives to increase investment in infrastructure and the construction of new homes. However, the market is also facing some challenges, such as rising costs of materials and labor, and the impact of Brexit. Recent developments include: December 2022: The Access Group has announced that it has successfully acquired Construction Industry Solutions (COINS), enhancing its capacity to offer international software and services to businesses engaged in the construction industry., March 2023: The Department of Transport, UK, has announced over £40 billion of capital investment in transport across the next two financial years, which will drive significant improvements to rail and roads across our country.. Key drivers for this market are: Transport Infrstructure Investment. Potential restraints include: Shortage of Skilled Labor. Notable trends are: Increase in GVA of construction Industry.

The Residential Construction Market Report is Segmented by Type (Villas and Landed Houses and Condominiums and Apartments) and Key Cities (London, Birmingham, Glasgow, Liverpool, and the Rest of the UK). The Report Offers Market Size and Forecasts for UK Residential Construction Market in Value (USD) for all the Above Segments.

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.

Forecast: Construction Output in the UK 2024 - 2028 Discover more data with ReportLinker!

The output of new private home construction in the United Kingdom is forecast to keep growing at a fast pace significantly after 2025. In 2029, the output of private housing is expected to amount to ***** billion British pounds.

The United Kingdom Data Center Construction Market is Segmented by Tier Type (Tier 1 and 2, Tier 3 and Tier 4), Data Center Type(Colocation, Self-Built Hyperscalers (CSPs), Enterprise, and Edge), and Infrastructure (Electrical Infrastructure, Mechanical Infrastructure). The Market Forecasts are Provided in Terms of Value (USD).

This statistic shows the revenue of the industry “construction of residential and non-residential buildings“ in the United Kingdom from 2012 to 2019, with a forecast to 2025. It is projected that the revenue of construction of residential and non-residential buildings in the United Kingdom will amount to approximately ****** billion U.S. Dollars by 2025.

The construction industry in Great Britain, including value of output and type of work, new orders by sector, number of firms and total employment.

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

Construction Orders in the United Kingdom decreased 0.10 percent in December of 2024 over the same month in the previous year. This dataset provides - United Kingdom Construction Orders- actual values, historical data, forecast, chart, statistics, economic calendar and news.

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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

Forecast: Construction Value Added in the UK 2024 - 2028 Discover more data with ReportLinker!

This statistic illustrates the forecasted output change for industrial construction in the United Kingdom (UK) from 2021 to 2025. In 2021, output for the construction of industrial facilities was expected to amount to **** percent.

UK Construction Market growth is driven by increasing infrastructure investments, urbanization, and technological advancements in construction methods.

Forecast: Number of Enterprises in Construction Services 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.

The United Kingdom construction market size reached approximately USD 363.03 Billion in 2024. The market is further projected to grow at a CAGR of 2.90% between 2025 and 2034, reaching a value of USD 483.17 Billion by 2034.

The size of the United Kingdom Data Center Construction market was valued at USD XX Million in 2023 and is projected to reach USD XXX Million by 2032, with an expected CAGR of 5.05% during the forecast period.At present, the Data Center Construction market is growing at a very robust pace in the United Kingdom. This is primarily due to the fact that digital technologies are gaining acceptance in every sector and that the growth of cloud services is purely exponential. Data centers are specially constructed premises housing computer systems and other accompanying components. To put it briefly, they provide all the requirements for data storage, processing, and connectivity for any network. These are critically important for all types of businesses, including small, medium, and large in nature, as digital applications require high, reliable, efficient, and secure implementations. The UK Data Centre market is highly dynamic with enormous numbers of existing and new facilities. The major cloud service providers, namely AWS, Microsoft Azure, and Google Cloud Platform, are investing heavily in the UK to meet the growing demand for cloud-based solutions. Other than the above, co-location providers include Equinix, Digital Realty, and VIRTUS Data Centres, which make significant investments in the UK market through the provision of flexible data center solutions to any class of business. There are several factors driving the UK data center construction market. Demand for 5G technology continues to create a higher demand for more data centers because of the high data traffic connected with these connected devices. In addition, there have been efforts from the UK government through digitization as well as enabling the regulatory environment in the country, which is certainly calling for huge investments in the data center space. The other major demand growth driver is a growing need for safe and resilient data center facilities; above this, the rising anxiety over the data privacy and security coupled with increased volumes of data is creating a growing need for secure and resilient data center facilities. The UK data center construction market, therefore, is booming with huge growth prospects mixed with increased demand for data center services, friendlier government policies, and advanced technologies make it necessary to build more data centers throughout the country. As businesses will mostly rely on digital technologies, the importance of data centers will increase even further; hence, the UK data center construction market is an extremely promising investment opportunity. Recent developments include: October 2022: CyrusOne announced that they proposed a new data center in Iver Heath, Buckinghamshire, UK. The site will have 10 data halls supporting around 90MW of capacity, and the project would include a new on-site substation., August 2022: Colt announced to open a new data center in Hayes, West London, that would more than triple its existing footprint in the UK capital. It will deliver a new purpose-built 50MW in a 2.1-hectare data center campus known as 'London 4'.. Key drivers for this market are: 5G Developments Fuelling Data Center Investments, Growing Cloud Servce adoption; Green Data Centers rising awarness of Carbon-Neutrality leading to Infrastructure upgrades. Potential restraints include: Security Challenges Impacting Growth of Data Centers. Notable trends are: IT and Telecom to have significant market share.