United Kingdom (UK) Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

United Kingdom (UK) Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary

The outlook for the UK construction industry remains gloomy, with a contraction of 1.9% expected in 2023. In recent quarters, the industry has been outperforming expectations, supported by a solid pipeline of unfinished works, but there are major headwinds that will negatively impact output growth in the year ahead, notably rising interest rates, high energy and construction material prices, and uncertainty in global economic conditions.

In mid-November 2022, the Chancellor of the Exchequer Jeremy Hunt delivered the Autumn Budget 2022. To restore the country’s financial credibility, Mr. Hunt had announced a GBP55 billion ($66.5 billion) package of tax increases and spending cuts. The package was partly aimed at undoing some of the damage to the government’s policymaking credentials caused by the former Prime Minister Lizz Truss’ ‘Mini-Budget’ that was unveiled in late September 2022. As part of the Autumn Budget 2022, Mr. Hunt announced several tax measures, which includes an increase in windfall tax on profits of oil and natural gas companies operating in the North Sea from 25% currently to 35%; this change will be effective from January 2023 and will remain in place until 2028. The government reaffirmed that it would continue investing in energy and infrastructure projects, to boost economic growth. The government is also focused on delivering major infrastructure projects such as Sizewell C nuclear power plant, High Speed 2 (HS2) to Manchester, Northern Powerhouse Rail, and East West Rail.

The construction industry in the UK is expected to register annual average growth of 2.9% from 2024 to 2026, supported by investments in transport, energy, housing, health, education, and telecommunication infrastructure projects. As part of the Autumn Budget 2022, the government reported that construction of new infrastructure such as roads, railway lines and communities will be safeguarded by a capital investment of GBP600 billion ($725.5 billion) over the next five years

The report provides detailed market analysis, information and insights into the UK construction industry, including -

• The UK 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 construction industry
• Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

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

• Historical (2017-2021) and forecast (2022-2026) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.