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

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).

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.

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).

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

This report brings together under one cover a wide range of statistics that are currently available on the construction industry. It gives a broad perspective of statistical trends in the construction industry in Great Britain through the last decade together with some international comparisons and features on leading initiatives that may influence the future. Source agency: Office for National Statistics Designation: National Statistics Language: English Alternative title: Construction Statistics

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 industry was severely impacted in 2020, due to the disruptions caused by the Coronavirus (COVID-19) outbreak and the subsequent lockdown measures. The industry contracted by 14% in real terms last year, following growth of 1.8% in 2019. According to the Office for National Statistics (ONS), the construction industry contracted by 1.2% year on year (YoY) in the first quarter of 2021, following year-on-year (Y-o-Y) declines of 5.9% in Q4, 10% in Q3 and 36.2% in Q1 2020. Read More

Construction output in the United Kingdom increased 1.50 percent in June 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.

********************** 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.

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.

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.

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Construction Market Size 2025-2029

The construction market size is forecast to increase by USD 1.29 trillion, at a CAGR of 5.5% between 2024 and 2029.

Major Market Trends & Insights

APAC dominated the market and accounted for a 53% growth during the forecast period.
By the Type - Buildings construction segment was valued at USD 1608.40 billion in 2023
By the 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 : 5.5%
APAC: Largest market in 2023

Market Summary

The market continues to expand, driven by the increasing demand for residential and commercial infrastructure projects. Notably, the integration of artificial intelligence (AI) in the sector is transforming the industry's landscape. According to recent reports, the global market for AI in construction is projected to grow significantly, with a focus on improving project efficiency and reducing costs. For instance, AI is being used to optimize resource allocation, streamline workflows, and enhance safety measures.
Moreover, the high cost of construction machinery has led industry players to explore AI solutions for predictive maintenance and equipment performance analysis. These advancements underscore the market's continuous evolution, positioning it as a dynamic and innovative space for businesses.

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

Explore market size, adoption trends, and growth potential for construction market Request Free Sample

The construction industry exhibits a steady expansion, with current market participation exceeding 10% of the global economy. Future growth prospects remain promising, as the industry anticipates a continuous expansion of approximately 3% annually. Notably, the non-residential sector is experiencing a significant increase in demand, with commercial and industrial projects accounting for over half of the market's growth. In contrast, the residential sector is growing at a more modest pace.
The integration of advanced technologies, such as Building Information Modeling (BIM) and automation, is driving efficiency and productivity gains. Additionally, the emphasis on sustainability and energy efficiency is influencing design trends and material choices. These factors contribute to a dynamic and evolving market landscape.

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 experiences continuous evolution, with buildings construction being a significant and dynamic segment. This segment comprises residential, commercial, and multifamily buildings, each contributing to the market's growth and development. For instance, Egypt's new administrative capital (NAC), located 45 kilometers east of Cairo, is a substantial undertaking aimed at alleviating overcrowding and pollution in the current capital. With a vision to become Egypt's new political and administrative center, NAC is expected to accommodate over six million residents. The China State Construction Engineering Corporation (CSCEC), a prominent Chinese state-owned enterprise, plays a major role in this transformation.

In terms of innovation, building information modeling (BIM), virtual reality construction, and smart building technologies are increasingly adopted to improve efficiency and productivity. Concrete mix design, heavy machinery operation, and resource allocation strategies are optimized using advanced techniques and technologies. Structural engineering calculations and energy efficiency measures are essential components of modern construction projects, with cost estimation techniques and lifecycle cost assessments ensuring economic viability. Moreover, green building certification, such as LEED building standards, and sustainable building materials are gaining popularity due to their environmental benefits. Building performance simulation, construction project management, and building codes compliance are crucial aspects of ensuring high-quality structures.

Furthermore, waste ma

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.

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

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