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.
1 Executive Summary
2 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 GlobalData
Contact Us
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), 2018-27
Table 4: The UK, Top Commercial Construction Projects by Value
Table 5: The UK, Industrial Construction Output by Project Type (Real % Change), 2018-27
Table 6: The UK, Top Industrial Construction Projects by Value
Table 7: The UK, Infrastructure Construction Output by Project Type (Real % Change), 2018-27
Table 8: The UK, Top Infrastructure Construction Projects by Value
Table 9: The UK, Energy and Utilities Construction Output by Project Type (Real % Change), 2018-27
Table 10: The UK, Top Energy and Utilities Construction Projects by Value
Table 11: The UK, Institutional Construction Output by Project Type (Real % Change), 2018-27
Table 12: The UK, Top Institutional Construction Projects by Value
Table 13: The UK, Residential Construction Output by Project Type (Real % Change), 2018-27
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: GlobalData Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of Figures
Figure 1: Western Europe, Construction Output (Real % Change), 2021-27
Figure 2: The UK, Construction Output by Sector (Real % Change), 2021-23 and 2024-27
Figure 3: The UK, Risk Summary
Figure 4: The UK, Risk Regional Comparison
Figure 5: The UK, Construction Output Value (Real, $ Billion, 2017 Prices and Exchange Rate), 2018-27
Figure 6: The UK, Construction Output Value, by Sector (Real, $ Million), 2018-27
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, Employment in the Construction Industry, In Thousands
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, Construction Projects Momentum Index
Figure 13: Western Europe, Construction Projects Momentum Index
Figure 14: The UK, Commercial Construction Output by Project Type (Real, $ Million), 2018-27
Figure 15: The UK, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: The UK, Private Commercial Construction Output, Chained Volume Measures, Seasonally Adjusted 2019 Prices
Figure 17: The UK, Construction Orders for Office and Entertainment Buildings, In GBP Million, Current Price Non-Seasonally Adjusted
Figure 18: The UK, Accommodation and Food Services Value Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 19: The UK, Retail Sales Index, Seasonally Adjusted, 2019=100
Figure 20: The UK, Number of Overseas Visits to UK, In Thousands
Figure 21: The UK, Industrial Construction Output by Project Type (Real, $ Million), 2018-27
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
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, 2019=100
Figure 28: The UK, Infrastructure Construction Output by Project Type (Real, $ Million), 2018-27
Figure 29: The UK, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 30: The UK, Construction Output for Rail, Road, and Harbour Construction, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 31: The UK, Construction Orders for Rail, Road, and Harbour Construction, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 32: The UK, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018-27
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 Electricity, Water, and Sewage 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), 2018-27
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), 2018-27
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, Orders for New Housing Construction, GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 45: The UK, Real Estate Value Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 46: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 47: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)