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The UK Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q1 2025)

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    Report

  • 54 Pages
  • March 2025
  • Region: United Kingdom
  • GlobalData
  • ID: 5782606

The Construction in the UK - Key Trends and Opportunities to 2029 (Q1 2025) report provides detailed market analysis, information and insights into the UK's construction industry, including:

  • The UK's construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UK's construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline
The analyst expects the UK construction industry to grow in real terms by 1.6% in 2025, owing to the recovery in construction order levels and new investments in the construction works, coupled with falling insolvency among construction companies amid easing construction costs in the country. According to the Office for National Statistics (ONS), the total number of construction companies reporting insolvencies declined by 7.1% year-on-year (YoY) during the first eleven months of 2024, preceded by an annual growth of 5.3% in 2023. By construction segment, building construction and civil engineering company bankruptcy decreased by 8.1% YoY and 1.5% YoY respectively during the first eleven months of 2024. According to the ONS, the total value of new construction orders awarded at current prices grew by 2.6% YoY in Q4 2024, following a Y-o-Y decline of 6.5% in Q3 and a growth of 31.1% in Q2 2024. However, the continuous weakness in the residential construction sector is expected to hinder the growth of the construction industry in the short term. According to the ONS, the total value of new housing orders fell by 10.9% YoY in 2024.

Over the remainder of the forecast period, the construction industry is expected to recover and record an average annual growth rate of 3.2% between 2026 and 2029, supported by investments in industrial, transportation infrastructure, and energy sectors, coupled with the country’s aim to generate 70% of electricity from renewable sources by 2030 and reduce carbon emissions by 80% compared to 1990 levels by 2035. To achieve this, the government aims to increase offshore wind energy capacity to 50GW by 2030, up from 14.8GW in 2024. Additionally, it aims to increase solar capacity from 20GW in 2024 to 47GW by 2030 and 70GW by 2035.

Scope

This report provides a comprehensive analysis of the construction industry in the UK. It provides:

  • Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the UK, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

  • Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts
  • Understand the latest industry and market trends
  • Formulate and validate business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Table of Contents

1 Executive Summary2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • Latest news and developments
5 Key Industry Participants
5.1 Contractors
5.2 Consultants
6 Construction Market Data
7 Appendix
7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology
About the Analyst
Contact the Publisher
List of Tables
Table 1: Construction Industry Key Data
Table 2: The UK, Key Economic Indicators
Table 3: The UK, Commercial Construction Output by Project Type (Real % Change), 2020-29
Table 4: The UK, Top Commercial Construction Projects by Value
Table 5: The UK, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: The UK, Top Industrial Construction Projects by Value
Table 7: The UK, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: The UK, Top Infrastructure Construction Projects by Value
Table 9: The UK, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: The UK, Top Energy and Utilities Construction Projects by Value
Table 11: The UK, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: The UK, Top Institutional Construction Projects by Value
Table 13: The UK, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: The UK, Top Residential Construction Projects by Value
Table 15: The UK, Key Contractors
Table 16: The UK, Key Consultants
Table 17: The UK, Construction Output Value (Real, $ Million)
Table 18: The UK, Construction Output Value (Nominal, GBP Million)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Western Europe, Construction Output (Real % Change), 2023-29
Figure 2: The UK, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: The UK, Risk Summary
Figure 4: The UK, Risk Regional Comparison
Figure 5: The UK, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: The UK, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 7: The UK, Construction Output, Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 8: The UK, New Orders for Construction, GBP Million, Current Prices
Figure 9: The UK, Total Number of Company Insolvencies (Number of Companies), Unadjusted
Figure 10: The UK, Construction Material Price Index, 2015=100
Figure 11: The UK, Construction Output Price Index, 2015=100, % Change YoY
Figure 12: The UK, Number of people employed in the construction industry, In Thousands
Figure 13: The UK, Construction Projects Momentum Index
Figure 14: Western Europe, Construction Projects Momentum Index
Figure 15: The UK, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 16: The UK, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 17: The UK, Private Commercial Construction Output, Chained Volume Measures, Seasonally Adjusted 2022 Prices, In GBP Million
Figure 18: The UK, Accommodation and Food Services Value Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 19: The UK, Construction Orders for Office and Entertainment Buildings, In GBP Million, Current Price Non-Seasonally Adjusted
Figure 20: The UK, Retail Sales Volume Index, Seasonally Adjusted, 2022=100
Figure 21: The UK, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 22: The UK, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 23: The UK, Manufacturing Value Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 24: The UK, Private Industrial Construction Output, Chained Volume Measures, Seasonally Unadjusted 2019 Prices, In GBP Million
Figure 25: The UK, New Orders for Private Industrial Construction (GBP Million, Current Prices)
Figure 26: The UK, Export of Goods, Seasonally Adjusted, In GBP Million
Figure 27: The UK, Manufacturing Production Index, Seasonally Adjusted, 2022=100
Figure 28: The UK, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 29: The UK, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 30: The UK, Construction Output for Rail, Road, and Harbor Construction, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 31: The UK, Construction Orders for Rail, Road, and Harbor Construction, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 32: The UK, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 33: The UK, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: The UK, Construction Orders for Electricity Infrastructure, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 35: The UK, Construction Orders for Sewage and Water Infrastructure, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 36: The UK, Electricity Generated by Major Power Producers, in TWh
Figure 37: The UK, Electricity Consumption, in TWh
Figure 38: The UK, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 39: The UK, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 40: The UK, Construction Orders for Private Schools and Universities and Health Buildings, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 41: The UK, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 42: The UK, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 43: The UK, New Housing Construction Output, Chained Volume Measures, Seasonally Adjusted 2019 Prices
Figure 44: The UK, Real Estate Value Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 45: The UK, Orders for New Housing Construction, GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 46: The UK, Residential Property Transaction, Number
Figure 47: The UK, Housing Repair and Maintenance Output, Chained Volume Measures, Seasonally Adjusted 2019 Prices
Figure 48: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 49: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)