United Kingdom Construction Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

United Kingdom Construction Market. The market is segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), Energy and Utilities)

Market Snapshot

united kingdom construction market
Study Period: 2016 - 2026
Base Year: 2020
CAGR: 4 %

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Market Overview

  • The United Kingdom Construction Market is estimated to grow at a CAGR of approximately 4% during the forecast period.
  • In 2018, the construction contributed GBP 117 billion to the UK economy, 6% of the total. Economic output in 2018 was slightly down in 2017, the first fall since 2013. There are 2.4 million construction industry jobs in the UK in Q2 2019, 6.6% of all jobs. There are more construction jobs now than at any time since 2007, although throughout this period, roughly the same proportion of jobs have been in construction. The construction industry is unusual because of the high proportion of self-employment in the sector 36% in Q2 2019, compared to the average for the whole economy of 13%. New orders to the construction industry were worth GBP 61.7 billion in 2017. This is 13% down in 2017, the first fall since 2011. New housing orders accounted for 35% of all construction orders, commercial orders accounted for 25% and infrastructure orders accounted for 19%.
  • In 2018, new orders to the construction industry were worth GBP 61.7 billion. This is a 13% fall on the value of new orders in 2017. The fall in the value of new orders in 2018 is partly because several high value HS2 contracts were awarded in 2017. This contributed to 2017 having the highest ever new orders value (GBP 71.0 billion), 2018’s new orders were also lower than in 2016 and 2015.
  • The United Kingdom’s construction industry grew for the first time in ten months in February 2020, as reduced political uncertainty helped unleash pent-up demand. Index of building activity rose to the highest level since December 2018 as the housing and commercial sub-sectors saw particularly strong improvements.

Scope of the Report

The United Kingdom construction market covers the growing construction projects in different sectors, like commercial construction, residential construction, industrial construction, infrastructure (transportation construction), and energy and utility construction. Along with the scope of the report also it analyses the key players and the competitive landscape in the United Kingdom Construction Market.

By Sector
Infrastruture (Transportation)
Energy and Utilities

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Key Market Trends

Increase in GVA of construction Industry:

In the period of consideration, GVA of the construction industries presented a trend of growth. In 2009, the gross value added decreased to roughly 14%, amounting to 79.54 billion GBP. Since 2010, GVA of the construction industries has seen constant growth, amounting to 112.2 billion GBP as of 2017. Construction is a sector where Britain 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 race. 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.


Private Housing Share is the highest in the United Kingdom Construction Industry:

Private housing was the biggest sector within the construction industry. In 2018, it accounted for 22.3% of all construction output. By comparison, public housing only made up 3.7% of the industry and was the second smallest sector. A look at the construction output index for new private housing shows that output has been increasing following the years of the recession and reached a peak in 2018. Private housing and infrastructure sectors remain the primary drivers of industry growth in the coming years. The confirmed extension of the Government's Help to Buy scheme through to March 2023 continues to encourage housebuilding activity, with output forecast to rise and 1% in 2020. The infrastructure sector is expected to reach its highest level on record in the coming years driven by large projects such as HS2, Thames Tideway and Hinkley. There remain concerns, however, about the government’s ability to deliver major infrastructure projects, as highlighted by the cost overruns and delays seen most recently on Crossrail, and suspension of the second new power station, Wylfa.


Competitive Landscape

The report covers the major players operating in the United Kingdom Construction Market. The market is Fragmented, the United Kingdom construction market presents opportunities for growth during the forecast period. 

Table of Contents


    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study




    1. 4.1 Market Overview

    2. 4.2 Market Drivers

    3. 4.3 Market Restraints

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 Market Insights

      1. 4.6.1 Current Economic and Construction Market Scenario

      2. 4.6.2 Technological Innovations in the Construction Sector

      3. 4.6.3 Impact of Government Regulations and Initiatives on the Industry

      4. 4.6.4 Insights on Up-coming and Ongoing Infrastruture projects in United Kingdom


    1. 5.1 By Sector

      1. 5.1.1 Residential

      2. 5.1.2 Commercial

      3. 5.1.3 Industrial

      4. 5.1.4 Infrastruture (Transportation)

      5. 5.1.5 Energy and Utilities


    1. 6.1 Vendor Market Share

    2. 6.2 Mergers & Acquisitions

    3. 6.3 Company Profiles

      1. 6.3.1 Balfour Beatty plc

      2. 6.3.2 Kier Group plc

      3. 6.3.3 Interserve plc

      4. 6.3.4 Galliford Try plc

      5. 6.3.5 Morgan Sindall Group plc

      6. 6.3.6 Amey UK plc

      7. 6.3.7 Mace Ltd

      8. 6.3.8 ISG plc

      9. 6.3.9 Keller Group plc

      10. 6.3.10 Laing O'Rourke plc

    4. *List Not Exhaustive

  8. 8. APPENDIX

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Frequently Asked Questions

The UK construction market market is studied from 2016 - 2026.

The UK construction market is growing at a CAGR of 4% over the next 5 years.

Balfour Beatty plc, Kier Group plc, Interserve plc, Galliford Try plc, Morgan Sindall Group plc are the major companies operating in UK construction market.

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