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.

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 United Kingdom Construction Market Report is Segmented by Sector (Residential, Commercial, Infrastructure), by Construction Type (New Construction, Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (England, Scotland, Wales, Northern Ireland). The Market Forecasts are Provided in Terms of Value (USD).

The UK Residential Construction Market is Segmented by Type (Apartments & Condominiums, Landed Houses & Villas, and Other Types), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (London, Birmingham, and More). The Market Forecasts are Provided in Terms of Value (USD).

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

********************** were estimated to be one of the occupations in the construction industry in the United Kingdom with most workers in 2029. Nevertheless, there were even more people employed as non-construction professionals and technical office-based staff.

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

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).

In 2021, the construction industry in the United Kingdom (UK) is forecast to spend close to *********** U.S. dollars on software. By 2024, the construction industry's spending is projected to increase to around *** billion U.S. dollars.

Construction output in the United Kingdom increased 1 percent in August 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 Orders in the United Kingdom increased 10.50 percent in March of 2025 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.

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

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

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Construction Market Size 2025-2029

The construction market size is valued to increase by USD 1288.3 billion, at a CAGR of 5.5% from 2024 to 2029. Increase in residential and commercial infrastructure projects will drive the construction market.

Major Market Trends & Insights

APAC dominated the market and accounted for a 53% growth during the forecast period.
By Type - Buildings construction segment was valued at USD 1608.40 billion in 2023
By End-user - Private sector segment accounted for the largest market revenue share in 2023

Market Size & Forecast

Market Opportunities: USD 63.08 billion
Market Future Opportunities: USD 1288.30 billion
CAGR from 2024 to 2029 : 5.5%

Market Summary

The market continues to be a significant economic driver, fueled by the increasing demand for infrastructure development in various sectors. This demand is spurred by population growth, urbanization, and technological advancements. One of the most notable trends shaping the industry is the integration of artificial intelligence (AI) in construction processes. AI is revolutionizing the sector by enhancing efficiency, reducing costs, and improving safety. However, the high cost of construction machinery and materials remains a significant challenge. To mitigate this, companies are exploring innovative solutions such as Modular construction and offsite fabrication. These approaches enable the production of high-quality structures at a lower cost and with reduced environmental impact.
Furthermore, the adoption of Building Information Modeling (BIM) and other digital technologies is enabling more accurate project planning, design, and execution. Despite these advancements, the market faces complex regulatory environments and labor shortages, which necessitate collaboration and innovation to overcome. The industry's future direction lies in the continued adoption of technology and the development of sustainable, cost-effective solutions.

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

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How is the Construction Market 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 continues to evolve, with buildings construction being a significant and dynamic segment. This sector encompasses residential, commercial, and multifamily buildings, each contributing to the overall growth and development of the global construction industry. For instance, Egypt's ambitious project to build a new administrative capital (NAC) 45 kilometers east of Cairo is a testament to this ongoing activity. With a goal to ease overcrowding and pollution in the current capital, NAC is expected to accommodate over six million residents and become Egypt's new political and administrative center. CSCEC, a leading Chinese state-owned enterprise, is a major player in this transformation.

Risk assessment methodologies, building envelope systems, and foundation engineering are essential elements in this evolving landscape. Innovative approaches, such as prefabricated construction methods, green building certifications, and cost estimation techniques, are shaping the future of construction. For example, 3D printing construction and modular construction techniques are revolutionizing the industry, offering faster and more cost-effective solutions. Quality control procedures, structural engineering software, and lifecycle cost analysis are crucial components in ensuring the long-term success of construction projects. Safety management systems, construction site safety, and digital twin technology are essential in minimizing risks and optimizing resource allocation. Concrete mix design, structural analysis software, and heavy equipment operation are other critical aspects that require continuous improvement.

Building automation systems, sustainable building materials, and smart building technologies are becoming increasingly important in creating energy-efficient and environmentally friendly structures. Compliance with building codes, Geotechnical engineering principles, and mep engineering design are also essential in ensuring safety and

Forecast: Production Value of Construction Services in the UK 2022 - 2026 Discover more data with ReportLinker!

This statistic shows the revenue of the industry “development of building projects“ in the United Kingdom from 2012 to 2019, with a forecast to 2025. It is projected that the revenue of development of building projects in the United Kingdom will amount to approximately ***** billion U.S. Dollars by 2025.

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 UK construction market, valued at £398.68 million in 2025, is projected to experience steady growth, exhibiting a compound annual growth rate (CAGR) of 3.19% from 2025 to 2033. This positive outlook is driven by several factors. Increased government investment in infrastructure projects, such as transportation networks and renewable energy initiatives, is a significant catalyst. Furthermore, a growing population and the ongoing need for housing, particularly in urban areas, are fueling demand for new construction and renovation projects. The private sector also contributes significantly, with ongoing investments in commercial real estate and industrial facilities. However, the market faces certain challenges, including fluctuations in material costs, skilled labor shortages, and the impact of economic uncertainty. Despite these headwinds, the long-term forecast remains positive, underpinned by the sustained need for infrastructure development and housing solutions across the UK. Key players like Morgan Sindall, Winvic Group, and Balfour Beatty are well-positioned to capitalize on these opportunities, though competition remains intense. The market segmentation, while not explicitly detailed, likely includes residential, commercial, infrastructure, and industrial construction, each responding differently to market drivers and constraints. The continued growth trajectory of the UK construction market suggests significant investment opportunities. While economic volatility and supply chain disruptions present risks, the underlying demand for construction services remains robust. The sector's adaptation to technological advancements, such as Building Information Modeling (BIM) and sustainable construction practices, will be crucial for continued success. Strategic partnerships and innovative project management techniques will be key differentiators for companies seeking market share within this dynamic landscape. The projected market size in 2033 can be estimated by applying the CAGR to the 2025 value, indicating substantial growth over the forecast period. Detailed regional analysis would further illuminate the diverse opportunities and challenges within the UK construction market. 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.

In UK Lean Construction Market is projected to expand from USD 5.8 billion in 2025 to USD 9.4 billion

The UK residential building construction industry, valued at approximately £185.55 million in 2025, is projected to experience moderate growth, with a Compound Annual Growth Rate (CAGR) of 2.26% from 2025 to 2033. This growth is fueled by several factors. Increased urbanization and population growth in key cities like London, Birmingham, Glasgow, and Liverpool are driving demand for new housing, particularly within the villas and landed houses, and condominiums and apartments segments. Government initiatives aimed at addressing housing shortages and improving infrastructure also contribute positively. However, the market faces constraints including fluctuating material costs, skilled labor shortages, and potential economic downturns which could impact investment and consumer confidence. The industry is highly competitive, with major players such as Willmott Dixon Holdings, Mace, Skanska UK, and Balfour Beatty vying for market share. These companies leverage expertise in project management, sustainable construction practices, and innovative technologies to remain competitive. The geographical distribution of projects varies, with London and other major cities expected to dominate, but regional growth will be influenced by local economic conditions and availability of land. The industry's future trajectory will depend on addressing these challenges effectively while capitalizing on the opportunities presented by population growth and government support. The construction sector's performance is closely tied to broader economic health. Interest rate fluctuations and changes in mortgage availability directly influence consumer purchasing power, impacting housing demand. Environmental regulations and a growing emphasis on sustainable building practices are reshaping the industry, promoting the adoption of eco-friendly materials and energy-efficient designs. This trend aligns with broader societal concerns regarding climate change and resource management, impacting material sourcing and project specifications. Competition is likely to intensify as established firms consolidate and new entrants emerge, particularly those specializing in sustainable and technological innovations. Strategic partnerships and mergers and acquisitions will play a significant role in shaping the competitive landscape, leading to increased efficiency and potentially improved capacity to manage the industry's challenges and capitalize on its growth opportunities. Recent developments include: December 2022: 375 low-carbon rental homes are delivered as part of a historic restoration project for Bristol City Center through public-private partnerships., December 2022: As the One Sydney Harbour residential building from Lendlease celebrates a critical milestone of "topping out" of Residences One, marking the completion of the highest structural point of the 72-story tower, it has secured more than $3.7 billion in sales over its three towers.. Key drivers for this market are: 4., Growth in Commercial Activities and Increased Competition4.; Increasing Demand for Affordable Housing Units. Potential restraints include: 4., Lack of Housing Spaces and Mortgage Regulation can Create Challenges. Notable trends are: Government mandates pertaining to Energy Efficiency.