United Kingdom Construction Market Report and Forecast 2024-2032

United Kingdom Construction Market Report and Forecast 2024-2032

Market Outlook

According to the report by Expert Market Research (EMR), the United Kingdom construction market size reached a value of around USD 362.80 billion in 2023. Aided by government initiatives, technological advancements, and increasing investment in sustainable construction practices, the market is projected to grow at a CAGR of 2.9% between 2024 and 2032 to reach a value of nearly USD 469.55 billion by 2032.

The construction sector in the UK is critical for economic development, providing thousands of jobs and significantly contributing to the gross domestic product (GDP). It involves a wide range of activities from the building of new structures, including homes and offices, to the maintenance and renovation of existing buildings. The sector also includes civil engineering works such as roads, bridges, and utility systems, which are essential for the country's infrastructure and daily operation.

The push towards sustainability is the most significant trend boosting the United Kingdom construction market growth. This encompasses not only the use of eco-friendly materials but also involves sustainable construction practices that reduce environmental impact, enhance building efficiency, and comply with stringent regulations like the UK's commitment to achieving net-zero carbon emissions by 2050. Green construction practices include the integration of renewable energy sources such as solar panels, the use of sustainable materials like recycled steel or wood, and techniques that minimise waste and energy consumption during the construction process.

As per the United Kingdom construction market analysis, the digital transformation of the construction sector is accelerating, with technologies such as Building Information Modelling (BIM), drones, AI, and IoT leading the way. BIM provides a digital representation of the physical and functional characteristics of a facility, allowing for better decision-making throughout the construction lifecycle. Drones are being used for site surveys and inspections, offering significant savings in time and costs, while AI and IoT are being utilised for everything from predictive maintenance to safety monitoring and managing building systems post-construction.

As per the United Kingdom construction market outlook, modular construction, where buildings are constructed in sections offsite and then assembled onsite, is gaining popularity. This method offers numerous advantages including reduced construction times, less waste, and minimised disruption to the surrounding environment. It also allows for construction in a controlled environment, reducing the risks associated with weather delays and improving worker safety.

The United Kingdom construction market is focusing more than ever on improving health and safety standards. This includes the adoption of new technologies and practices that enhance site safety from wearable tech that monitors workers' health indicators to advanced machinery that includes safety-enhanced controls. The COVID-19 pandemic has also spurred innovations in how construction sites manage hygiene and social distancing.

With a significant portion of the UK's building infrastructure ageing, there is a growing trend towards retrofitting and renovating existing buildings rather than constructing new ones, which can also boost the United Kingdom construction market development. This not only helps preserve historical architecture but is often more sustainable than new constructions. Retrofitting older buildings with modern technology and materials can significantly improve their energy efficiency and structural integrity.

To overcome funding shortages for crucial public projects, the UK is seeing an increased trend in private-public partnerships, which can aid the United Kingdom construction market expansion. These collaborations are becoming essential in facilitating the development of infrastructure projects such as roads, hospitals, and schools. PPPs help distribute the financial risk of such projects between the public and private sectors and leverage private sector expertise and efficiencies.

Market Segmentation

The market can be divided based on end use.

Market Breakup by End Use

• Commercial
• Residential
• Education and Research
• Medical and Healthcare
• Others

Competitive Landscape

The EMR report looks into the market shares, plant turnarounds, capacities, investments, and mergers and acquisitions, among other major developments, of the leading companies operating in the United Kingdom construction market. Some of the major players explored in the report by Expert Market Research are as follows:

• Kier Group plc
• Balfour Beatty Plc
• Morgan Sindall Group
• Laing O’Rourke
• Willmott Dixon Holdings Limited
• Galliford Try Holdings plc
• BAM Nuttall Ltd.
• Mace Group
• ISG Ltd.
• Skanska Group
• Others

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*We at Expert Market Research always strive to provide you with the latest information. The numbers in the article are only indicative and may be different from the actual report.