
Study Period | 2020 - 2030 |
Base Year For Estimation | 2024 |
Forecast Data Period | 2025 - 2030 |
Market Size (2025) | USD 411.40 Billion |
Market Size (2030) | USD 481.34 Billion |
CAGR (2025 - 2030) | 3.19 % |
Market Concentration | Medium |
Major Players![]() *Disclaimer: Major Players sorted in no particular order |
UK Construction Market Analysis
The UK Construction Market size is estimated at USD 411.40 billion in 2025, and is expected to reach USD 481.34 billion by 2030, at a CAGR of 3.19% during the forecast period (2025-2030).
The UK construction industry is experiencing significant transformations driven by economic pressures and regulatory changes. Construction costs in buildings have witnessed a substantial annual growth rate of 14%, primarily attributed to rising building materials and labor costs. The industry faces ongoing challenges with material price volatility, particularly in steel products, where concrete reinforcing bars saw a 45.8% price increase. These cost pressures have prompted industry stakeholders to explore innovative construction methods and alternative materials, leading to increased adoption of modular construction and sustainable building practices.
Infrastructure development remains a cornerstone of the industry's growth trajectory, with significant investments in both public and private sectors. In the second quarter of 2022, warehouse construction orders reached a notable 1.4 billion British pounds, while public health building construction orders amounted to 561 million pounds, reflecting the government's commitment to essential infrastructure. The sector received a further boost when IFM Investors, owned by Australian pension funds, announced plans to invest more than USD 12 billion in infrastructure and energy transition projects across the UK and European markets by 2027.
Environmental sustainability and regulatory compliance have emerged as critical focal points for the industry. In 2022, water companies across England and Wales registered more than 384,000 raw sewage discharges, highlighting the urgent need for infrastructure upgrades and environmental protection measures. In response to these challenges, the UK government has demonstrated its commitment to sustainable construction by allocating significant funding, including over USD 287 million for renewable energy projects in 2023, which are expected to generate enough power for more than 2 million homes.
The industry is witnessing a surge in technological integration and innovative construction approaches. Major infrastructure projects are incorporating advanced digital technologies, from Building Information Modeling (BIM) to artificial intelligence-driven construction management systems. This technological evolution is complemented by significant private sector investments, exemplified by Broadcom's announcement to build a USD 1 billion manufacturing facility in Spain and various other large-scale construction projects across the region. These developments are reshaping traditional construction methodologies and setting new standards for efficiency and sustainability in the industry.
UK Construction Market Trends
Government Infrastructure Investments and Policy Support
The UK government's robust infrastructure investment initiatives and supportive policies are significantly driving the construction market forward. In 2023, the government announced new leveling-up funding exceeding USD 1.2 billion to transform more than 55 projects across various communities, demonstrating its commitment to infrastructure development. These initiatives encompass diverse projects, including the upgrading of the fishing sector in Torbay, revitalization of heritage buildings in former mining communities in Doncaster, and transformation of Blackpool town center's transport network, creating substantial opportunities for construction activities.
The government's support extends beyond direct funding through strategic policies and schemes designed to stimulate construction activity. The Help-to-Buy Equity Loan Scheme and the Funding for Lending Scheme have been instrumental in supporting the housing market and ensuring funding availability for crucial infrastructure projects. Additionally, the government's reform of the planning system has streamlined construction processes, enabling British businesses to compete more effectively in the global market while maintaining the country's strong competitive edge in architecture, design, and engineering expertise.
Rising Housing Demand and Rental Market Growth
The substantial growth in the UK's rental housing sector has emerged as a significant driver for residential construction market expansion. According to the Office for National Statistics, private rental prices experienced a notable increase of 4.4% in the 12 months leading to January 2023, surpassing the previous month's growth rate of 4.2%. Regional variations in rental price growth, with the East Midlands recording the highest annual percentage change at 5.0% and the West Midlands showing the lowest at 3.9%, indicate widespread demand across different geographical areas.
The private rented sector has shown remarkable expansion, with the number of households occupied by private renters in England growing from two million in 2000 to 4.61 million in 2022. This significant increase in rental households has created sustained demand for new housing construction and property development. The trend is particularly evident in major urban centers, where population growth and urbanization continue to drive demand for both rental and owner-occupied properties, necessitating continued construction activity in the residential construction sector.
Sustainable Construction and Green Energy Integration
The increasing focus on sustainable construction and renewable energy integration has become a major driver in the UK construction market. As of 2022, more than 40% of the UK's electricity was generated from sustainable sources, including solar, wind, biomass, and hydropower, representing a significant shift towards green energy infrastructure. This transition has created substantial opportunities for construction services related to renewable energy facilities, with wind power notably surpassing gas-powered generation for the first time in the country's history during 2023.
The construction industry's commitment to sustainability is further evidenced by the integration of green technologies in new buildings and infrastructure projects. Major developments are increasingly incorporating sustainable features such as rooftop solar panels, energy-efficient systems, and environmentally friendly materials. For instance, in May 2023, at any given point, more than 70% of the grid's power came from renewable sources, demonstrating the growing importance of sustainable construction. This shift towards green building is not only driving innovation in building techniques but also creating new opportunities for specialized construction services focused on environmental sustainability.
Commercial and Industrial Development Expansion
The robust growth in commercial and industrial development has emerged as a crucial driver for the UK construction and development market. The sector has witnessed significant activity in data center construction, with major projects such as the Madrid One data center complex in Fuenlabrada and various other facilities being developed across the country. These developments are driven by the increasing demand for digital infrastructure and technology services, creating substantial opportunities for construction companies specializing in advanced facility development.
The logistics and warehousing sector has also experienced remarkable expansion, particularly in response to evolving retail patterns and supply chain requirements. Major companies are investing in new warehouse facilities, such as Maersk's expansion of its warehouse network with a 685,000-square-foot facility at SEGRO Logistics Park East Midlands Gateway. This trend is complemented by the development of new commercial spaces, including retail parks and office complexes, reflecting the dynamic nature of the UK's real estate development sector and its contribution to construction market growth.
Segment Analysis: By Sector
Commercial Construction Segment in UK Construction Market
The commercial construction segment maintains its position as a dominant force in the UK construction market, holding approximately 23% market share in 2024. This segment, valued at 75.36 billion GBP, encompasses various subsectors, including retail developments, data centers, and other commercial buildings. The segment's strong performance is driven by continued investments in office spaces, retail infrastructure, and technology centers across major UK cities. The robust growth in this sector is supported by increasing demand for modern office spaces, particularly in metropolitan areas, along with the expansion of retail infrastructure to meet evolving consumer needs. Additionally, the surge in data center construction projects and the modernization of existing commercial facilities have contributed significantly to maintaining this segment's substantial market position.

Logistics Construction Segment in UK Construction Market
The logistics construction segment has emerged as the fastest-growing sector in the UK construction market, with projections indicating a robust growth rate of approximately 6.5% during 2024-2029. This remarkable growth trajectory is primarily driven by the exponential rise in e-commerce activities and the subsequent demand for sophisticated warehousing and distribution facilities. The segment is witnessing substantial investments in automated warehouses, fulfillment centers, and last-mile delivery hubs across strategic locations in the UK. The adoption of advanced technologies in logistics facilities, including automated storage and retrieval systems, along with the integration of sustainable building practices, is further propelling the segment's growth. Major logistics companies and e-commerce giants are actively expanding their infrastructure footprint, contributing to the segment's accelerated growth rate.
Remaining Segments in UK Construction Market
The other segments in the UK construction market, including industrial construction and energy and utilities construction, play vital roles in shaping the overall market landscape. The industrial construction segment focuses on manufacturing facilities and production plants, contributing to the country's industrial capacity. The energy and utilities construction segment is particularly significant given the UK's commitment to renewable energy infrastructure and sustainable development goals. These segments are influenced by government policies promoting industrial growth, energy efficiency, and infrastructure development. The industrial sector benefits from investments in advanced manufacturing facilities, while the energy and utilities segment is driven by the ongoing transition to renewable energy sources and the modernization of utility infrastructure across the country.
UK Construction Market Geography Segment Analysis
Construction Market in the United Kingdom
The United Kingdom's construction sector demonstrates a robust framework supported by various segments, including commercial, industrial, energy and utilities, and logistics construction. The market is characterized by significant investments in infrastructure construction development, particularly in data centers and logistics facilities. The country has witnessed substantial growth in warehouse capacity over the past decade, driven by Brexit, the pandemic, and the rise of online shopping. The government's focus on sustainable development and renewable energy projects has further shaped the construction landscape, with numerous initiatives supporting the transition to green building practices. The market shows particular strength in commercial construction projects, especially in London and other major cities, while also maintaining significant activity in the industrial and logistics sectors.
Construction Market in Europe
The European construction market (excluding the UK) presents a diverse landscape with varying growth patterns across different regions. The market encompasses major economies like Germany, Spain, Italy, and France, each contributing significantly to the overall construction sector. The region has shown remarkable resilience despite economic challenges, with strong performance in both residential and commercial construction sectors. Infrastructure construction development remains a key focus area, particularly in transportation and energy projects. The European Union's Recovery and Resilience Facility (RRF) has played a crucial role in stimulating construction activities across member states, with significant investments in sustainable infrastructure and digital transformation projects.
Construction Market in Germany
Germany stands as the cornerstone of European construction, demonstrating leadership in infrastructure construction development and technological innovation. As the largest construction market in continental Europe, Germany holds approximately 17% of the total European (excluding the UK) construction market share in 2024. The country's construction sector is characterized by robust industrial development, significant infrastructure construction projects, and a strong focus on sustainable building practices. The market shows particular strength in commercial and industrial construction, supported by government initiatives and private sector investments. Germany's construction industry benefits from its central location and strong economic foundation, making it a hub for major infrastructure construction projects and innovative building technologies.
Construction Market Growth in Germany
Germany's construction sector is positioned for substantial growth, with a projected growth rate of approximately 5% from 2024 to 2029. The country's construction industry is driven by significant investments in digital infrastructure, sustainable building practices, and urban development projects. The German government's commitment to energy efficiency and environmental protection has sparked numerous green building initiatives, creating new opportunities in the construction sector. The market shows particular dynamism in commercial and industrial construction, with major projects in data centers, logistics facilities, and manufacturing plants. The country's focus on technological advancement and sustainable development continues to attract both domestic and international investment, supporting its position as the fastest-growing major construction market in Europe.
UK Construction Industry Overview
Top Companies in UK Construction Market
The UK construction market features prominent players like Goodman Group, SEGRO PLC, Land Securities Group, British Land Co PLC, and Derwent London leading major developments across commercial, industrial, and logistics segments. Companies are increasingly focusing on sustainable development practices and green building certifications like BREEAM and LEED to meet evolving market demands. Strategic brownfield redevelopment projects are gaining traction as firms look to revitalize existing properties in key urban locations. Digital transformation through Building Information Modeling (BIM), automation, and smart construction technologies is becoming a key differentiator. Players are expanding their portfolios through both organic growth and strategic acquisitions, particularly in high-demand sectors like data centers, logistics facilities, and sustainable commercial spaces. The market leaders are also strengthening their positions through long-term partnerships with major occupiers and investment in emerging asset classes.
Fragmented Market with Active M&A Landscape
The UK construction market exhibits a fragmented competitive structure with numerous domestic and international players operating across different segments and regions. While global conglomerates maintain a significant presence through their scale and diversified portfolios, specialized local players leverage their market knowledge and established relationships to maintain strong positions in specific niches. The market has witnessed considerable consolidation activity as larger players seek to expand their capabilities and geographic reach through strategic acquisitions of smaller, specialized firms.
The competitive dynamics are shaped by a mix of established property developers, construction companies, and investment firms actively pursuing growth opportunities. Recent years have seen increased participation from international investors and developers, particularly in major urban centers and emerging sectors like logistics and data centers. The market structure encourages both collaboration and competition, with companies often partnering on large-scale projects while competing for prime development opportunities. Joint ventures and strategic alliances have become common strategies for risk sharing and market expansion.
Innovation and Sustainability Drive Future Success
Success in the UK construction market increasingly depends on companies' ability to embrace technological innovation and sustainable practices while maintaining operational efficiency. Market leaders are investing heavily in digital capabilities, sustainable building technologies, and innovative construction methods to differentiate their offerings and meet evolving client demands. The ability to navigate regulatory requirements, particularly around environmental standards and building safety, while maintaining cost competitiveness has become crucial for market success. Companies that can effectively balance these factors while maintaining strong relationships with key stakeholders are better positioned to capture market opportunities.
For new entrants and growing players, success lies in identifying and exploiting underserved market segments while building strong operational capabilities. The focus on specialized expertise in emerging areas like smart construction, sustainable development, and modern methods of construction provides opportunities for differentiation. Strategic partnerships with established players, investment in technological capabilities, and a strong focus on customer relationships are becoming essential for gaining market share. The increasing emphasis on environmental, social, and governance (ESG) factors is creating new opportunities for companies that can effectively address these concerns while maintaining competitive pricing and service quality.
UK Construction Market Leaders
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Kier Group plc
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Morgan Sindall Group plc
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Mace Ltd
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Winvic Group
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ISG plc
- *Disclaimer: Major Players sorted in no particular order

UK Construction Market News
- August 2023: McAleer and Rushe announced that they had begun constructing the last phase of Southbank Place in London. The GBP 138 million (USD 174.34 million) Southbank Place Building 5 development is situated 100 m from the London Eye. This development is part of the master plan for the Shell Tower in London's South Bank.
- March 2023: The UK Department of Transport announced over GBP 40 billion (USD 50.54 billion) of capital investment in transport across the next two financial years, which will drive significant improvements for rail and roads across the market.
UK Construction Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Overview
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4.2 Drivers
- 4.2.1 Investments in Transport Infrastructure
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4.3 Restraints
- 4.3.1 Shortage of Skilled Labor
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4.4 Opportunities
- 4.4.1 The Birmingham Big City Plan
- 4.5 Value Chain/Supply Chain Analysis
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4.6 Industry Attractiveness - Porter's Five Forces Analysis
- 4.6.1 Bargaining Power of Suppliers
- 4.6.2 Bargaining Power of Buyers/Consumers
- 4.6.3 Threat of New Entrants
- 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 into Upcoming and Ongoing Infrastructure Projects in the United Kingdom
- 5.5 Impact of COVID-19 on the Market
6. MARKET SEGMENTATION
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6.1 By Sector
- 6.1.1 Residential
- 6.1.2 Commercial
- 6.1.3 Industrial
- 6.1.4 Infrastructure
- 6.1.5 Energy and Utilities
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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
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7.1 Company Profiles
- 7.1.1 Kier Group PLC
- 7.1.2 Morgan Sindall Group PLC
- 7.1.3 Mace Ltd
- 7.1.4 Winvic Group
- 7.1.5 ISG PLC
- 7.1.6 Bouygues UK
- 7.1.7 Balfour Beatty PLC
- 7.1.8 Galliford Try PLC
- 7.1.9 Keller Group PLC
- 7.1.10 Laing O'Rourke PLC*
- *List Not Exhaustive
- 7.2 Other Companies
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, industrial facilities, and related operations from start to finish. A complete background analysis of the UK construction market, including an assessment of the economy and contribution of sectors in the economy, market overview, market size estimation for key segments, and emerging trends in the market segments, market dynamics, and geographical trends, and the COVID-19 pandemic’s impact, is covered in the report.
The UK construction market is segmented by sector (residential, commercial, industrial, infrastructure, and energy and utilities) and key regions (England, Northern Ireland, Scotland, and Wales). The report offers market sizes and forecasts for all the above segments in value (USD).
By Sector | Residential |
Commercial | |
Industrial | |
Infrastructure | |
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 411.40 billion in 2025 and grow at a CAGR of 3.19% to reach USD 481.34 billion by 2030.
What is the current UK Construction Market size?
In 2025, the UK Construction Market size is expected to reach USD 411.40 billion.
Who are the key players in UK Construction Market?
Kier Group plc, Morgan Sindall Group plc, Mace Ltd, Winvic Group and ISG plc are the major companies operating in the UK Construction Market.
What years does this UK Construction Market cover, and what was the market size in 2024?
In 2024, the UK Construction Market size was estimated at USD 398.28 billion. The report covers the UK Construction Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the UK Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.
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UK Construction Market Research
Mordor Intelligence provides a comprehensive analysis of the construction industry through expert research. This research covers the civil engineering, building materials, and construction equipment sectors. Our extensive study includes commercial construction, residential construction, and infrastructure construction. It offers detailed insights into construction technology and building systems. The report, available as an easy-to-download PDF, examines emerging trends in green building and sustainable construction. It also analyzes developments in modular construction and prefabricated construction methodologies.
Stakeholders in construction management and architectural services benefit from our detailed analysis of construction machinery utilization and construction services optimization. The report explores smart construction innovations and engineering construction practices. It offers valuable insights into building renovation and remodeling trends. Our research covers both light construction and heavy construction segments, with a special focus on real estate development and construction and development opportunities. The comprehensive analysis includes detailed sections on building industry dynamics and the evolving landscape of construction technology, providing actionable intelligence for industry decision-makers.