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

In the first quarter of 2025, the value of new warehouse construction orders was lower than in the same quarter of the previous year. In the last quarter of 2022, warehouse construction orders were worth 1.6 billion British pounds, reaching the highest spending figures in warehouse construction since the first quarter 2000.

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.

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.

Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has spurred a reluctance among private investors to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have led to further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering provate investemt. Revenue is slated to rise at a compound annual rate of 0.5% over the five years through 2024-25, reaching £22.8 billion. Aided by the release of pent up demand and a stronger than anticipated initial economic recovery from the pandemic, the industry recorded a strong rebound in new orders from pandemic-induced lows in 2021-22, particularly in private commercial and private industrial markets. However, capacity constraints and the impact of reduced new work volumes secured during the height of the pandemic limited output growth. Growth in new order volumes slowed in 2022-23, as economic uncertainty compounded and rising tender prices reduced the propensity of investors to commit to commercial real estate ventures. High borrowing costs continued to weigh on investor sentiment in 2023-24. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, is set to maintain revenue growth through the current year. Revenue is expected to increase by 6.6% in 2024-25. Revenue is slated to climb at a compound annual rate of 0.3% to reach £23.2 billion over the five years through 2029-30. The effects of the UK's economic slowdown will continue to bite in the near term, as weak order books limit remuneration. Input price inflation is set to continue to ease in the medium term. However, material costs are likely to remain elevated and a construction worker shortage will pressure profit. Commitments made by the government as part of capital procurement frameworks will continue to support demand for commercial building contractors in the coming years, while private sector order books should improve as borrowing costs come down.

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 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.

Number of Businesses statistics on the Commercial Building Construction industry in United Kingdom

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Construction Market Size 2024-2028

The construction market size is forecast to increase by USD 1179.2 billion at a CAGR of 5.3% between 2023 and 2028.

The market is experiencing significant growth driven by the increasing demand for residential and commercial infrastructure projects worldwide. This trend is particularly prominent in emerging economies where urbanization and population growth are fueling the need for new housing and commercial spaces. 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. However, the high cost of construction machinery and raw materials poses a significant challenge for market growth.
Companies in the construction industry must navigate these challenges by implementing cost-effective solutions, embracing technological advancements, and forming strategic partnerships to remain competitive. To capitalize on market opportunities, businesses should focus on innovation, sustainability, and collaboration to meet the evolving needs of clients and stakeholders.

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

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The market encompasses a diverse range of activities, from designing and planning building projects to securing permits, site preparation, and the actual building of structures. This market includes the construction of houses, commercial buildings, infrastructure such as roads and dams, and various types of structures for the economy's key sectors, including hospitality, retail, leisure, and smart cities. Raw resources and innovative technologies play significant roles in the construction process, with a focus on sustainability and worker safety regulations. The market size is substantial and continues to grow, driven by increasing demand for new infrastructure and the need for maintenance and upgrades to existing structures.
Economic conditions and government policies also influence market dynamics. Innovative technologies, such as Building Information Modeling (BIM) and smart construction materials, are transforming the industry, improving efficiency and reducing waste. Regulations related to sustainability and worker safety are becoming increasingly stringent, shaping the market's direction.

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 2024-2028, as well as historical data from 2018-2022 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


Contractor Type

  Large Contractor
  Small Contractor


Geography

  APAC

    China
    India
    Japan
    South Korea


  Europe

    France
    Germany
    UK


  North America

    US
    Canada


  Middle East and Africa

    UAE


  South America

    Brazil


  Rest of World (ROW)

By Type Insights

The buildings construction segment is estimated to witness significant growth during the forecast period.

The market comprises various sectors, with building construction being a significant and continually evolving segment. This segment includes residential, commercial, and multifamily buildings, collectively driving the expansion of the global construction industry. For instance, in July 2022, Ivanhoe Cambridge and Hines formed a strategic joint venture to construct, manage, and own high-end multifamily buildings in Sao Paulo, Brazil. With an investment capacity of approximately USD750 million in equity, this venture aims to offer superior amenities and international-standard products and services. The initiative caters to the increasing demand for premium residential spaces in urban areas, underscoring the market's need for high-quality housing solutions.

the market, building construction, residential, commercial, multifamily buildings, strategic joint venture, investment, high-quality residential spaces, urban areas.

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The Buildings construction segment was valued at USD 1532.10 billion in 2018 and showed a gradual increase during the forecast period.

Regional Analysis

APAC is estimated to contribute 48% to the growth of the global market during the forecast period.Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The Asia Pacific the market is experiencing significant growth due to urbanization, economic expansion, and infrastructure development. This region comprises va

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.

Housing and non-housing repair and maintenance were the segments with the largest construction output in the United Kingdom in 2024. Those two sectors together amounted to over 44 percent of the industry. Meanwhile, the output of new private housing construction amounted to 17.9 percent. The output volume of infrastructure in the past five years has been higher than in previous decades. A look at the construction output index for new private housing shows that output increased in 2021 and 2022, but it has fallen after that. Construction GVA increasingAn increased output also translated into a growing contribution to the gross domestic product (GDP). In the fourth quarter of 2024, the construction industry had a gross value added of nearly 38 billion British pounds. That value reached a low point during the start of the COVID-19 pandemic. In comparison, the overall GDP of the United Kingdom was valued at over 2.56 trillion British pounds. Private housing construction expected to declineThe output of the private housing sector was forecast to increase significantly in 2025. The few years after that, the output of private housing construction is expected to keep increasing but at a slower rate. The average price of houses in the UK increased noticeably in 2024, higher demand for and higher prices of housing generally incentivize the housing sector.

The UK Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, and more.), By Electrical Infrastructure (Power Distribution Solution, and more.), By Mechanical Infrastructure (Cooling Systems, and more.), By Tier Type (Tier-I and-II, and more.), and By End User (Banking, Financial Services, and Insurance, and more.).

UK Construction Market size was valued at USD 372.95 Billion in 2024 and is projected to reach USD 512.37 Billion by 2032, growing at a CAGR of 4.05% from 2026 to 2032.

Key Market Drivers:

Government Infrastructure Investment: Government infrastructure investment and major railroad projects are fueling significant development in the UK construction industry. According to the Infrastructure and Projects Authority (IPA), the UK government's National Infrastructure and Construction Pipeline calls for £650 billion in investment across over 400 major projects by 2030, with HS2 alone contributing £100 billion. The extensive scope of these infrastructure projects continues to drive demand across many construction subsectors.

Construction output in the United Kingdom increased 1.40 percent in March 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.

The UK construction market, valued at £398.68 million in 2025, is projected to experience steady growth, driven by several key factors. Increased infrastructure investment, particularly in transport and renewable energy projects, is a significant driver. Government initiatives promoting sustainable construction practices and housing development further contribute to market expansion. The residential sector, fueled by population growth and housing shortages, remains a major contributor to overall market size. However, the market faces challenges including material price inflation, skilled labor shortages, and potential economic slowdowns, which could moderate growth in certain years. The commercial sector, while showing resilience, is sensitive to economic fluctuations and may experience slower growth compared to residential and infrastructure segments. Regional variations exist, with England expected to dominate the market due to its higher population density and economic activity. Scotland, Wales, and Northern Ireland will likely contribute proportionately less, though infrastructure projects could stimulate growth in these regions. The forecast period (2025-2033) anticipates a continuation of these trends, with the market demonstrating moderate but consistent expansion. Competition among established players like Morgan Sindall, Balfour Beatty, and Kier Group will remain intense, driving efficiency improvements and innovation. The consistent CAGR of 3.19% suggests a predictable, albeit not explosive, growth trajectory. To sustain this momentum, the industry must address workforce challenges through effective training and recruitment programs. Furthermore, adoption of innovative technologies, such as Building Information Modeling (BIM) and modular construction, will be crucial for improving efficiency and reducing costs, enhancing the market's long-term competitiveness. Strategic partnerships and collaborations will likely become more common to mitigate risks associated with fluctuating material prices and economic uncertainty. The market's performance over the forecast period hinges on the successful navigation of these challenges and the continued implementation of supportive government policies. 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.

An all-work summary of monthly construction output in Great Britain at current price and chained volume measures, seasonally adjusted by public and private sector.

The industry in 2035 is anticipated to amount to USD 750.8 million, progressing at a steady CAGR of 6.2% throughout the forecast period. As the industry evolves, growing manufacturers will emphasize cost-effective, high-performance anchoring solutions that meet environmental sustainability as well as go on regulatory standards.

Metric	Value
Industry Size (2025E)	USD 420.5 million
Industry Value (2035F)	USD 750.8 million
CAGR (2025 to 2035)	6.2%

Market Share Analysis of Leading Companies

Company	Market Share (%)
Hilti Corporation	18.5%
Würth Group	15.2%
Fischer Group	12.8%
ITW (Illinois Tool Works)	10.3%
EJOT Holding GmbH & Co. KG	8.7%
Simpson Strong-Tie	7.9%
HUAWEI Industrial Fasteners	6.5%
RAWLPLUG	5.2%
Sika AG	4.8%
Others	10.1%

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.

Revisions triangles for monthly construction output indices in Great Britain.