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UK Construction Market
Updated On

Jan 14 2025

Total Pages

200

UK Construction Market Strategic Insights: Analysis 2025 and Forecasts 2033

UK Construction Market by Construction Type (Residential construction, Commercial construction, Industrial construction, Infrastructure & heavy civil construction, Institutional construction, Mixed-use construction, Specialized construction, Renovation/Remodeling construction, Environmental construction), by End Use (Private sector, Public sector), by Contracting Type (General contracting, Design-build contracting, Construction management), by Scale (Mega project, Major project, Medium project, Small project), by UK Forecast 2025-2033

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UK Construction Market Strategic Insights: Analysis 2025 and Forecasts 2033

Key Insights

The size of the UK Construction Market was valued at USD 239.46 Billion in 2023 and is projected to reach USD 304.66 Billion by 2032, with an expected CAGR of 3.5% during the forecast period. The UK Construction Market includes a diverse array of tasks, such as residential, commercial, industrial, and infrastructure development. It is an essential sector in the UK economy, fueled by public and private funding in infrastructure initiatives, residential properties, and commercial real estate. The market is shaped by elements like urban development, increasing population, government regulations, and the need for sustainable and energy-efficient structures. Key factors consist of the continual demand for residential properties resulting from population increase, the construction of transportation systems like roads, railways, and airports, along with infrastructure initiatives focused on enhancing energy efficiency and tackling environmental issues. The market is witnessing considerable investment in the upgrading and modernization of current properties to align with contemporary standards, including sustainability objectives. Issues like workforce shortages, supply chain interruptions, and increasing material costs can affect market expansion. Nonetheless, advancements in construction technologies, including modular construction, off-site manufacturing, and sustainable building practices, are aiding in alleviating these challenges. The construction sector in the UK is anticipated to maintain its growth pattern, emphasizing sustainability and modernization of infrastructure in the years ahead.

UK Construction Market Research Report - Market Size, Growth & Forecast

UK Construction Market Concentration & Characteristics

The UK construction market exhibits high concentration, with a limited number of large players controlling a significant market share. Key characteristics include:

  • Innovation: The industry is embracing technological advancements, such as Building Information Modeling (BIM) and digital construction, to improve efficiency and productivity.
  • Regulations: Stringent regulations on sustainability, safety, and building codes impact the construction process and influence market dynamics.
  • End-user concentration: The market is driven by both private and public sector clients, with varying requirements and expectations.
  • M&A activity: The market has witnessed significant merger and acquisition activity, driven by consolidation and strategic partnerships.

UK Construction Market Trends

Several key trends are shaping the UK construction market, including:

  • Digitalization: Construction companies are increasingly adopting digital technologies to streamline processes, enhance collaboration, and improve risk management.
  • Sustainability: Environmental concerns are driving a shift towards sustainable practices, such as energy-efficient building design and green materials.
  • Modular construction: Off-site construction methods are gaining popularity, offering faster and more cost-effective solutions.
  • Labor shortages: The industry faces challenges in attracting and retaining skilled labor, leading to increased wages and project delays.

UK Construction Market Growth

Key Region or Country & Segment to Dominate the Market

Region: The London metropolitan area is expected to remain the dominant construction market in the UK, driven by ongoing infrastructure projects, high-rise developments, and commercial property demand.

Segment: Residential construction is projected to experience substantial growth, driven by a shortage of affordable housing and government initiatives supporting new homeownership.

UK Construction Market Product Insights Report Coverage & Deliverables

This report provides comprehensive insights into the UK construction market, including:

  • Detailed analysis of market size, market share, and growth trends
  • In-depth segmentation based on construction type, end use, contracting type, and scale
  • Assessment of market dynamics, driving forces, challenges, and emerging trends
  • Profiles of leading players and their market positions

UK Construction Market Analysis

The UK construction market has experienced steady growth in recent years, with a market size of £239.46 billion in 2023. The residential sector accounts for the largest share, followed by commercial and infrastructure segments.

UK Construction Market Regional Insights

London: Dominant market with major infrastructure projects, high-rise developments, and strong commercial property demand.

South East England: Significant growth in residential and commercial construction, driven by population growth and economic development.

North West England: Strong manufacturing and infrastructure projects, with demand for new housing and commercial space.

Scotland: Growing construction market with a focus on infrastructure, renewable energy, and social housing.

Wales: Smaller construction market with a focus on residential projects and infrastructure upgrades.

Driving Forces: What's Propelling the UK Construction Market

  • Government investment in infrastructure and housing
  • Rising demand for new and renovated homes
  • Increasing adoption of sustainable construction practices
  • Innovation and technological advancements

Challenges and Restraints in UK Construction Market

  • Labor shortages and rising wages
  • Supply chain disruptions and material price volatility
  • Stringent regulatory environment
  • Economic uncertainty and geopolitical events

Emerging Trends in UK Construction Market

  • Modular construction
  • Digitalization and automation
  • Sustainable and energy-efficient building design
  • Focus on building safety and resilience

UK Construction Industry News

  • January 2023: VINCI Construction and Wilmotte & Associates Architecture enter into a business contract to accelerate construction operations.

Leading Players in the UK Construction Market

UK Construction Market Segmentation

  • 1. Construction Type
    • 1.1. Residential construction
    • 1.2. Commercial construction
      • 1.2.1. Sports facilities construction
      • 1.2.2. Hospitality facilities construction
      • 1.2.3. Retail facilities construction
      • 1.2.4. Office buildings construction
    • 1.3. Industrial construction
    • 1.4. Infrastructure & heavy civil construction
    • 1.5. Institutional construction
      • 1.5.1. Healthcare facilities construction
      • 1.5.2. Educational facilities construction
    • 1.6. Mixed-use construction
    • 1.7. Specialized construction
    • 1.8. Renovation/Remodeling construction
    • 1.9. Environmental construction
  • 2. End Use
    • 2.1. Private sector
    • 2.2. Public sector
  • 3. Contracting Type
    • 3.1. General contracting
    • 3.2. Design-build contracting
    • 3.3. Construction management
  • 4. Scale
    • 4.1. Mega project
    • 4.2. Major project
    • 4.3. Medium project
    • 4.4. Small project

UK Construction Market Segmentation By Geography

  • 1. UK

UK Construction Market Regional Share

UK Construction Market REPORT HIGHLIGHTS

AspectsDetails
Study Period 2019-2033
Base Year 2024
Estimated Year 2025
Forecast Period2025-2033
Historical Period2019-2024
Growth RateCAGR of 3.5% from 2019-2033
Segmentation
    • By Construction Type
      • Residential construction
      • Commercial construction
        • Sports facilities construction
        • Hospitality facilities construction
        • Retail facilities construction
        • Office buildings construction
      • Industrial construction
      • Infrastructure & heavy civil construction
      • Institutional construction
        • Healthcare facilities construction
        • Educational facilities construction
      • Mixed-use construction
      • Specialized construction
      • Renovation/Remodeling construction
      • Environmental construction
    • By End Use
      • Private sector
      • Public sector
    • By Contracting Type
      • General contracting
      • Design-build contracting
      • Construction management
    • By Scale
      • Mega project
      • Major project
      • Medium project
      • Small project
  • By Geography
    • UK
Table Of Content
  1. 1. Introduction
    • 1.1. Research Scope
    • 1.2. Market Segmentation
    • 1.3. Research Methodology
    • 1.4. Definitions and Assumptions
  2. 2. Executive Summary
    • 2.1. Introduction
  3. 3. Market Dynamics
    • 3.1. Introduction
      • 3.2. Market Drivers
        • 3.2.1 Booming commercial infrastructure development
        • 3.2.2 Growing emphasis on modern & smart buildings across Europe
        • 3.2.3 Surging focus on energy-efficient & sustainable construction
        • 3.2.4 Proliferating demand for housing in urban areas
      • 3.3. Market Restrains
        • 3.3.1 Shortage of skilled labor
        • 3.3.2 Rising geopolitical issues
      • 3.4. Market Trends
  4. 4. Market Factor Analysis
    • 4.1. Porters Five Forces
    • 4.2. Supply/Value Chain
    • 4.3. PESTEL analysis
    • 4.4. Market Entropy
    • 4.5. Patent/Trademark Analysis
  5. 5. UK Construction Market Analysis, Insights and Forecast, 2019-2031
    • 5.1. Market Analysis, Insights and Forecast - by Construction Type
      • 5.1.1. Residential construction
      • 5.1.2. Commercial construction
        • 5.1.2.1. Sports facilities construction
        • 5.1.2.2. Hospitality facilities construction
        • 5.1.2.3. Retail facilities construction
        • 5.1.2.4. Office buildings construction
      • 5.1.3. Industrial construction
      • 5.1.4. Infrastructure & heavy civil construction
      • 5.1.5. Institutional construction
        • 5.1.5.1. Healthcare facilities construction
        • 5.1.5.2. Educational facilities construction
      • 5.1.6. Mixed-use construction
      • 5.1.7. Specialized construction
      • 5.1.8. Renovation/Remodeling construction
      • 5.1.9. Environmental construction
    • 5.2. Market Analysis, Insights and Forecast - by End Use
      • 5.2.1. Private sector
      • 5.2.2. Public sector
    • 5.3. Market Analysis, Insights and Forecast - by Contracting Type
      • 5.3.1. General contracting
      • 5.3.2. Design-build contracting
      • 5.3.3. Construction management
    • 5.4. Market Analysis, Insights and Forecast - by Scale
      • 5.4.1. Mega project
      • 5.4.2. Major project
      • 5.4.3. Medium project
      • 5.4.4. Small project
    • 5.5. Market Analysis, Insights and Forecast - by Region
      • 5.5.1. UK
  6. 6. Competitive Analysis
    • 6.1. Market Share Analysis 2024
      • 6.2. Company Profiles
        • 6.2.1 VINCI SA
          • 6.2.1.1. Overview
          • 6.2.1.2. Products
          • 6.2.1.3. SWOT Analysis
          • 6.2.1.4. Recent Developments
          • 6.2.1.5. Financials (Based on Availability)
        • 6.2.2 ACS Group
          • 6.2.2.1. Overview
          • 6.2.2.2. Products
          • 6.2.2.3. SWOT Analysis
          • 6.2.2.4. Recent Developments
          • 6.2.2.5. Financials (Based on Availability)
        • 6.2.3 Skanska AB
          • 6.2.3.1. Overview
          • 6.2.3.2. Products
          • 6.2.3.3. SWOT Analysis
          • 6.2.3.4. Recent Developments
          • 6.2.3.5. Financials (Based on Availability)
        • 6.2.4 Bouygues Construction
          • 6.2.4.1. Overview
          • 6.2.4.2. Products
          • 6.2.4.3. SWOT Analysis
          • 6.2.4.4. Recent Developments
          • 6.2.4.5. Financials (Based on Availability)
        • 6.2.5 Hochtief AG
          • 6.2.5.1. Overview
          • 6.2.5.2. Products
          • 6.2.5.3. SWOT Analysis
          • 6.2.5.4. Recent Developments
          • 6.2.5.5. Financials (Based on Availability)
        • 6.2.6 Eiffage S.A.
          • 6.2.6.1. Overview
          • 6.2.6.2. Products
          • 6.2.6.3. SWOT Analysis
          • 6.2.6.4. Recent Developments
          • 6.2.6.5. Financials (Based on Availability)
        • 6.2.7 STRABAG International GmbH
          • 6.2.7.1. Overview
          • 6.2.7.2. Products
          • 6.2.7.3. SWOT Analysis
          • 6.2.7.4. Recent Developments
          • 6.2.7.5. Financials (Based on Availability)
        • 6.2.8 Balfour Beatty plc
          • 6.2.8.1. Overview
          • 6.2.8.2. Products
          • 6.2.8.3. SWOT Analysis
          • 6.2.8.4. Recent Developments
          • 6.2.8.5. Financials (Based on Availability)
        • 6.2.9 Ferrovial S.A.
          • 6.2.9.1. Overview
          • 6.2.9.2. Products
          • 6.2.9.3. SWOT Analysis
          • 6.2.9.4. Recent Developments
          • 6.2.9.5. Financials (Based on Availability)
        • 6.2.10 Acciona S.A
          • 6.2.10.1. Overview
          • 6.2.10.2. Products
          • 6.2.10.3. SWOT Analysis
          • 6.2.10.4. Recent Developments
          • 6.2.10.5. Financials (Based on Availability)
        • 6.2.11 Interserve Group Limited
          • 6.2.11.1. Overview
          • 6.2.11.2. Products
          • 6.2.11.3. SWOT Analysis
          • 6.2.11.4. Recent Developments
          • 6.2.11.5. Financials (Based on Availability)
        • 6.2.12 Costain Group PLC
          • 6.2.12.1. Overview
          • 6.2.12.2. Products
          • 6.2.12.3. SWOT Analysis
          • 6.2.12.4. Recent Developments
          • 6.2.12.5. Financials (Based on Availability)
        • 6.2.13 Taylor Wimpey Plc
          • 6.2.13.1. Overview
          • 6.2.13.2. Products
          • 6.2.13.3. SWOT Analysis
          • 6.2.13.4. Recent Developments
          • 6.2.13.5. Financials (Based on Availability)
        • 6.2.14 Crest Nicholson Holdings PLC
          • 6.2.14.1. Overview
          • 6.2.14.2. Products
          • 6.2.14.3. SWOT Analysis
          • 6.2.14.4. Recent Developments
          • 6.2.14.5. Financials (Based on Availability)
        • 6.2.15 Berkeley Group Holdings PLC.
          • 6.2.15.1. Overview
          • 6.2.15.2. Products
          • 6.2.15.3. SWOT Analysis
          • 6.2.15.4. Recent Developments
          • 6.2.15.5. Financials (Based on Availability)
List of Figures
  1. Figure 1: UK Construction Market Revenue Breakdown (Billion, %) by Product 2024 & 2032
  2. Figure 2: UK Construction Market Share (%) by Company 2024
List of Tables
  1. Table 1: UK Construction Market Revenue Billion Forecast, by Region 2019 & 2032
  2. Table 2: UK Construction Market Revenue Billion Forecast, by Construction Type 2019 & 2032
  3. Table 3: UK Construction Market Revenue Billion Forecast, by End Use 2019 & 2032
  4. Table 4: UK Construction Market Revenue Billion Forecast, by Contracting Type 2019 & 2032
  5. Table 5: UK Construction Market Revenue Billion Forecast, by Scale 2019 & 2032
  6. Table 6: UK Construction Market Revenue Billion Forecast, by Region 2019 & 2032
  7. Table 7: UK Construction Market Revenue Billion Forecast, by Construction Type 2019 & 2032
  8. Table 8: UK Construction Market Revenue Billion Forecast, by End Use 2019 & 2032
  9. Table 9: UK Construction Market Revenue Billion Forecast, by Contracting Type 2019 & 2032
  10. Table 10: UK Construction Market Revenue Billion Forecast, by Scale 2019 & 2032
  11. Table 11: UK Construction Market Revenue Billion Forecast, by Country 2019 & 2032

STEP 1 - Identification of Relevant Samples Size from Population Database

Step Chart
bar chart
method chart

STEP 2 - Approaches for Defining Global Market Size (Value, Volume* & Price*)

approach chart
Top-down and bottom-up approaches are used to validate the global market size and estimate the market size for manufactures, regional segemnts, product and application.

Note* : In applicable scenarios

STEP 3 - Data Sources

Primary Research

  • Web Analytics
  • Survey Reports
  • Research Institute
  • Latest Research Reports
  • Opinion Leaders

Secondary Research

  • Annual Reports
  • White Paper
  • Latest Press Release
  • Industry Association
  • Paid Database
  • Investor Presentations
approach chart

STEP 4 - Data Triangulation

Involves using different sources of information in order to increase the validity of a study

These sources are likely to be stakeholders in a program - participants, other researchers, program staff, other community members, and so on.

Then we put all data in single framework & apply various statistical tools to find out the dynamic on the market.

During the analysis stage, feedback from the stakeholder groups would be compared to determine areas of agreement as well as areas of divergence

Additionally after gathering mix and scattered data from wide range of sources, data is triangull- ated and correlated to come up with estimated figures which are further validated through primary mediums, or industry experts, opinion leader.

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