UK Construction Market Size
| Study Period | 2019-2028 |
| Base Year For Estimation | 2022 |
| Market Size (2023) | USD 386.36 Billion |
| Market Size (2028) | USD 452.15 Billion |
| CAGR (2023 - 2028) | 3.19 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UK Construction Market Analysis
The United Kingdom Construction Market size is estimated at USD 386.36 billion in 2023, and is expected to reach USD 452.15 billion by 2028, growing at a CAGR of 3.19% during the forecast period (2023-2028).
- Due to the strict execution of the measures to restrict the disease's spread, the COVID-19 pandemic had a significant negative impact on the UK construction industry in 2020, with overall output decreasing by almost 46% year over year in April 2020. However, there has also been a significant recovery, with positive growth rates in the UK's construction output every month since March 2021.
- The gross value added by building activities in the UK not only returned to pre-pandemic levels in the third quarter of 2021 but also continued to increase. For instance, compared to 2020, more new homes were registered to be built in 2021 in every region outside London, with growth rates in the North East, East Midlands, and Eastern regions reaching above 45%. Infrastructure construction had the biggest market share growth in the sector.
- Even though the general trends point to significant expansion, the UK construction industry has recently faced numerous difficulties. Inflation and Russia's invasion of Ukraine further disrupted the supply chain and drove up the price of building materials, in addition to the COVID-19 outbreak.
- For instance, rising energy and oil prices had an impact on steel production, which requires a lot of energy. Concrete reinforcing bars, which are also composed of steel, cost 45.8% more in March 2022 than they did in March 2021. The cost of transporting other construction supplies has increased as a result of the rising price of oil, driving up the overall cost of most construction materials.
- At the start of 2021, the value of new warehouse construction orders rose significantly, reaching a peak. In the second quarter of 2022, warehouse construction orders were worth 1.4 billion British pounds. The value of new construction orders for public buildings in the health sector in Great Britain amounted to 561 million British pounds in the second quarter of 2022. In the first half of 2022, roads and railways were the infrastructure types with the highest output value in Great Britain. On the other side of the spectrum, water and sewerage construction had the lowest output values, under 165 million British pounds in 2022, according to Office for National Statistics (United Kingdom) data.
UK Construction Market Trends
This section covers the major market trends shaping the UK Construction market according to our research experts:
Increase in GVA of construction Industry
Construction is a sector where the UK has a strong competitive edge. The UK has world-class expertise in architecture, design, and engineering, and British companies are leading the way in sustainable construction solutions.
Changes in the international economy are creating new opportunities for Britain. To help boost economic recovery, the government is doing all it can to help British businesses grow and have the aspiration, confidence, and drive to compete in the global market. This includes reforming the planning system, ensuring funding is available for key infrastructure projects, and supporting the housing market through key initiatives such as the Help-to-Buy Equity Loan Scheme and the Funding for Lending Scheme.
The gross value added (GVA) to the construction sector in the United Kingdom in the second quarter of 2022 was more than four billion British pounds higher than in the corresponding period of 2021, according to Office for National Statistics (United Kingdom).
The GVA of this sector dropped to GBP 20 billion (USD 25.6 billion) in the second quarter of 2020 as a result of the COVID-19 pandemic, marking the sector's lowest point in a decade. Out of all the subsectors in the United Kingdom construction industry, private housing was the one that made the most money.
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Private Housing Share is the Highest in the United Kingdom Construction Industry
Private housing was the biggest sector within the construction industry. Nevertheless, housing and non-housing repair and maintenance together amounted to almost 39 percent of the construction output in 2022, according to Office for National Statistics (United Kingdom) data. The output volume of infrastructure grew during the past years, surpassing the construction of commercial buildings.
The number of households occupied by private renters in England has increased gradually since 2000. From two million in 2000, the number of households reached 4.61 million in 2022. The private housing sector was forecast to see further growth in 2023. In the coming years, that segment of the industry was expected to grow between three and five percent annually. The average price of houses in the United Kingdom has also been increasing significantly.
According to Office for National Statistics (United Kingdom), private rental prices paid by tenants in the UK rose by 4.4% in the 12 months to January 2023, up from 4.2% in the 12 months to December 2022. Annual private rental prices increased by 4.3% in England, 3.9% in Wales, and 4.5% in Scotland in the 12 months to January 2023. Within England, the East Midlands saw the highest annual percentage change in private rental prices in the 12 months to January 2023 (5.0%), while the West Midlands saw the lowest (3.9%). London's annual percentage change in private rental prices was 4.3% in the 12 months to January 2023.
UK Construction Industry Overview
The report covers the major players operating in the United Kingdom's construction market. Furthermore, the residential and transport construction sectors have a huge potential for growth in the forecasted period which stimulates opportunities for other market players. The major players include Balfour Beatty plc, Kier Group plc, Interserve plc, Galliford Try plc, and Morgan Sindall Group plc. Further, the market is expected to grow during the forecast period due to the increase in construction investments and upcoming major projects in the United Kingdom.
UK Construction Market Leaders
Balfour Beatty plc
Kier Group plc
Interserve plc
Galliford Try plc
Morgan Sindall Group plc
*Disclaimer: Major Players sorted in no particular order
UK Construction Market News
- 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.
- December 2022: The acquisition of DPS, one of the top consulting, engineering, and construction management firms for life sciences and semiconductor facilities, has been finalized by Arcadis, the leading worldwide design and advisory organization for natural and built assets. Through this acquisition, Arcadis will gain 2,850 more employees, establish a dominant position in the high-growth, hi-tech industrial manufacturing facilities industries, and provide clients with an integrated full-service offering.
UK Construction Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Deliverables
1.2 Study Assumptions
1.3 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Drivers
4.3 Opportunities
4.4 Restraints
4.5 Value Chain / Supply Chain Analysis
4.6 Industry Attractiveness - Porter's Five Forces Analysis
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Buyers/Consumers
4.6.3 Bargaining Power of Suppliers
4.6.4 Threat of Substitute Products
4.6.5 Intensity of Competitive Rivalry
5. MARKET INSIGHTS
5.1 Current Economic and Construction Market Scenario
5.2 Technological Innovations in the Construction Sector
5.3 Impact of Government Regulations and Initiatives on the Industry
5.4 Insights on Upcoming and Ongoing Infrastructure Projects in United Kingdom
5.5 Impact of Covid-19 on the Market
6. MARKET SEGMENTATION
6.1 By Sector
6.1.1 Residential
6.1.2 Commercial
6.1.3 Industrial
6.1.4 Infrastruture
6.1.5 Energy and Utilities
6.2 By Key Regions
6.2.1 England
6.2.2 Northern Ireland
6.2.3 Scotland
6.2.4 Wales
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Balfour Beatty plc
7.1.2 Kier Group plc
7.1.3 Interserve plc
7.1.4 Galliford Try plc
7.1.5 Morgan Sindall Group plc
7.1.6 Amey UK plc
7.1.7 Mace Ltd
7.1.8 ISG plc
7.1.9 Keller Group plc
7.1.10 Laing O'Rourke plc*
- *List Not Exhaustive
8. FUTURE OF THE MARKET
9. APPENDIX
UK Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation. Construction encompasses the processes involved in constructing buildings, infrastructure, and industrial facilities, as well as related operations, from start to finish.
The United Kingdom Construction Market 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 size and forecasts for the United Kingdom Construction market in value (USD billion) for all the above segments.
The report provides a comprehensive background analysis of the United Kingdom Construction Market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study.
| By Sector | |
| Residential | |
| Commercial | |
| Industrial | |
| Infrastruture | |
| Energy and Utilities |
| By Key Regions | |
| England | |
| Northern Ireland | |
| Scotland | |
| Wales |
UK Construction Market Research FAQs
How big is the UK Construction Market?
The UK Construction Market size is expected to reach USD 386.36 billion in 2023 and grow at a CAGR of 3.19% to reach USD 452.15 billion by 2028.
What is the current UK Construction Market size?
In 2023, the UK Construction Market size is expected to reach USD 386.36 billion.
Who are the key players in UK Construction Market?
Balfour Beatty plc, Kier Group plc, Interserve plc, Galliford Try plc and Morgan Sindall Group plc are the major companies operating in the UK Construction Market.
UK Building Industry Report
The United Kingdom Construction Market is divided by sector and principal regions, with the sectors encompassing commercial, residential, industrial, infrastructure, and energy and utility construction. The market has witnessed substantial development, in spite of confronting challenges such as inflation and disruptions in the supply chain. The gross value contributed by building activities in the UK has not only bounced back to pre-pandemic levels but has also continued to escalate. The UK construction industry possesses world-class proficiency in architecture, design, and engineering, and British establishments are pioneering in sustainable construction solutions. The report offers an all-inclusive background analysis of the UK construction market, covering current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. For a more detailed comprehension of key trends, a free PDF download of the sample report is available.
UK Building Market Report Snapshots
