United Kingdom (UK) Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

United Kingdom (UK) Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

Following moderate growth in 2022, the construction industry in the UK is expected to shrink by 1.2% in real terms this year and 0.7% in 2024, owing primarily to weakness in the residential sector. Rising interest rates and high construction costs will severely dampen investment in the residential sector this year. According to the Office for National Statistics (ONS), the average construction material price index rose sharply by 9.9% YoY in Q1 2023, owing to the rising cost of new housing (8.9%), repair and maintenance (6.8%), and other new works (11.5%). Indicating the potential for a downturn in the residential sector, the number of new dwellings started in Q4 last year was down by 9.5% year on year (YoY). The commercial construction sector is also set to remain sluggish. Overall, the total value of orders received by contractors for total buildings fell by 6.9% in Q1 2023.

Weakness in the residential sector is set to be partially offset by improvement in infrastructure and energy and utilities construction activity. The government aims to reduce greenhouse gas emissions by 100%, compared to 1990 levels, by 2050. To support this target, it is focusing on increasing the capacity of renewable energy across the country. In March 2023, the government unveiled a series of measure to strengthen counties’ long term energy security and independence and reduce household bills. This plan includes the launch of a GBP160 million ($197.6 million) fund to support offshore port infrastructure projects for wind energy, GBP205 million ($253.2 million) scheme to incentivize investment in renewable electricity, backed the first round of hydrogen projects under the GBP240 million ($296.4 billion) Net Zero Hydrogen Fund. There is also a GBP20 billion ($24.7 billion) investment for the creation of a new nuclear power plant - Sizewell C with in next 30 years. Furthermore, in 2022, the government launched GBP1 billion ($1.2 billion) energy efficiency program, to deliver more energy efficient homes and cute energy bills; this will be running from February 2023 until March 2026. Furthermore, in May 2023, Network Rail, the owner and infrastructure manager of most of the railway network in Great Britain announced its GBP44 billion ($54.3 billion), five-year plan for the railway in England and Wales. This regional Strategic Business Plan (SBP) covers the projected activities, outputs and cost of operating, maintaining and renewing its railway infrastructure between 2024 and 2029

This 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 (2018-2022) and forecast (2023-2027) 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.