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 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

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).

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.

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.

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.

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.

Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 1% over the five years through 2024-25, reaching £97.4 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. Revenue is set to grow by 1.5% in 2024-25, aided by a slight improvement in new orders for residential building construction and an uptick in average selling prices. Revenue is slated to climb at a compound annual rate of 1.5% to reach £105.1 billion over the five years through 2029-30. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

Market Size statistics on the Commercial Building Construction industry in the UK

In 2021, the construction industry in the United Kingdom (UK) is forecast to spend close to one billion U.S. dollars on software. By 2024, the construction industry's spending is projected to increase to around 1.5 billion U.S. dollars.

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 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.

The UK construction industry has been severely impacted due to the disruption caused by the Coronavirus (COVID-19) outbreak and the subsequent lockdown measures. Industry output declined by 13.6% in real terms in 2020, while output contracted by 2.8% year on year (YoY) in the fourth quarter of 2020, which was preceded by declines of 8.8% in Q3, 35% in Q2 and 3.4% in Q1 2020. Read More

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.

Quarterly new orders at current price and chained volume measures, seasonally adjusted by public and private sector. Quarterly non–seasonally adjusted type of work and regional data.

The report covers UK Prefabricated Construction Companies and it is segmented by Material Type (concrete, glass, metal, timber, and other material types) and application (residential, commercial, and other applications (infrastructure and industrial)). The market size and forecast are provided in terms of values (USD) for all the above segments.

Construction contractors are active across building construction and civil engineering markets. Despite being remunerated for completing new building and infrastructure construction contracts or fulfilling maintenance, repair, renovation and remodelling contract obligations, the spectrum of services offered by civils and general building contractors in this industry is multifaceted. Some contractors focus on new dwellings construction, while civil engineering specialists afford clients services across the infrastructure value chain. Some contractors specialise in commercial building activity, while many independent contractors may focus on small-scale repair and maintenance contracts in local markets. The pandemic marked an abrupt end to a lucrative period for construction contractors, with severe market disruption leading to insolvency pressures among contractors. A drop in construction and civil engineering output resulted in substantial revenue loss in 2020-21. Revenue bounced back in 2021-22, driven by improved market sentiment, covid-delayed revenue payments and a booming downstream market for construction. However, the return of more prosperous conditions proved short-lived, as mounting inflationary pressures, rising borrowing costs and reduced economic sentiment took their toll on order books. Revenue is slated to decline at a compound annual rate of 1.6% to £180.3 billion over the five years through 2024-25, including an anticipated 4.8% dip in the current year. Over the five years through 2029-30, revenue is slated to climb at a compound annual rate of 2.1% to £199.8 billion. Despite recent cuts to major public sector capital procurement frameworks, the government remains committed to improving and expanding critical infrastructure though multi-year investment packages. Housebuilding activity is showing signs of improvement after recent mortgage rate cuts, though economic uncertainty is likely to continue to prevail in commercial building construction markets in the short-term. Growth prospects in non-residential construction markets have been bolstered by commitments to improve social infrastructure; however, spending reviews implemented by the new government have placed some doubt onto growth prospects.

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