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).

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 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).

The size of the UK Construction Market market was valued at USD 398.68 Million in 2024 and is projected to reach USD 496.69 Million by 2033, with an expected CAGR of 3.19% during the forecast period. 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 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.

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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

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).

Economic uncertainty and inflationary pressures have spurred a degree of instability in the UK economy in recent years. This has made private investors reluctant to dedicate significant spending towards capital ventures, weighing on lead generation in commercial building construction markets. High construction costs and rising interest rates have created further apprehension among property developers to engage in new ventures, though long-term government capital procurement frameworks have provided some resilience to wavering private investment. 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 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, with interest rates hitting 5.25% in August 2023, according to the Bank of England. However, a steady stream of work on projects procured through capital procurement frameworks, including Procure23 and the School Rebuilding Programme, has bolstered revenue growth for publicly funded buildings. Overall, revenue is expected to climb at a compound annual rate of 3.6% over the five years through 2025-26 to £21.6 billion, despite a forecast dip of 1.4% in 2025-26 as inflationary pressure hits demand. Revenue is slated to swell at a compound annual rate of 1.1% over the five years through 2030-31 to reach £22.9 billion. The effects of the UK's economic slowdown will continue to bite in the near term as weak order books limit remuneration. Still, 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. Although input price inflation is set to continue to ease in the medium term, material costs are likely to remain elevated and a construction worker shortage will pressure profit. According to the Building Cost Information Service, material costs are anticipated to grow by 15% in the five years through Q3 2030.

Construction output in the United Kingdom increased 1.30 percent in September 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.

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.

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

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 ** percent of the industry. Meanwhile, the output of new private housing construction amounted to **** 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 ** 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 **** 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.

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.

The UK Residential Building Construction market is poised for steady growth, projected to reach an estimated USD 185.55 million in 2025. The industry is expected to experience a Compound Annual Growth Rate (CAGR) of 2.26% during the forecast period of 2025-2033. This sustained expansion is driven by persistent demand for diverse housing solutions, including villas, landed houses, condominiums, and apartments, across key urban centers like London, Birmingham, Glasgow, and Liverpool, as well as the broader UK landscape. The sector benefits from ongoing urbanization, a growing population, and government initiatives aimed at boosting housing supply and affordability. Furthermore, the increasing focus on sustainable building practices and the adoption of innovative construction technologies are contributing to market resilience and future development. Despite the positive growth trajectory, the UK Residential Building Construction market faces certain constraints. Rising material costs, labor shortages, and stringent regulatory frameworks present ongoing challenges. However, established construction giants such as Willmott Dixon Holdings, Mace, Skanska UK, Balfour Beatty, and Kier Group, alongside emerging players and international firms like Lendlease and Bouygues UK, are actively navigating these complexities through strategic investments in technology, supply chain optimization, and talent development. The market's segmentation by property type and its concentration in major cities highlight areas of opportunity and competition, with a keen eye on market dynamics in Europe and beyond as the industry continues to evolve. 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.

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.

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

In the second quarter of 2025, the gross value added (GVA) of the construction industry in the United Kingdom was slightly higher than in the same period of the previous year. In the second quarter of 2025, the GVA of construction in the UK amounted to ***** billion British pounds. Out of its various segments, private housing constituted the biggest share of the UK construction industry based on output.

Prior to the Coronavirus (COVID-19) outbreak, the UK construction industry had posted growth of 1.8% for 2019 in real terms. However, with disruptions caused by the COVID-19 outbreak and the subsequent lockdown measures, the industry was severely impacted in 2020. According to the Office for National Statistics (ONS), the UK construction industry contracted by 12.5% year on year (YoY) in the third quarter of 2020 (the latest data available at the time of writing), following Y-o-Y declines of 38.2% in Q2 and 4.0% in Q1 2020. Read More

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. 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.

Discover the latest insights into the UK residential building construction market. Explore market size, growth trends (CAGR 2.26%), key players (Willmott Dixon, Mace, Balfour Beatty), regional analysis, and future forecasts (2025-2033) for London, Birmingham, and more. Learn about driving factors, restraints, and segmentation impacting the £185.55 million market. 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.