United Kingdom (UK) Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast, 2023-2027
Summary
GlobalData expects the construction industry in the UK to shrink by 1.2% in real terms in 2023 and 0.7% in 2024, owing to subdued investor and consumer confidence amid falling construction orders, rising interest rates, elevated construction material prices, falling construction employment, and slowing housing market. According to the Office for National Statistics (ONS), the average construction material price index rose by 5.3% year-on-year (YoY) in H1 2023, owing to the rising cost of new housing (6.4%), other new works (5.1%), and repair and maintenance (3.9%). The current headwinds are also leading to an increase in the number of insolvencies in the UK’s construction industry.
The UK’s construction industry is expected to regain growth momentum from 2025, supported by investments in transport, renewable energy, housing, industrial and telecommunications infrastructure projects. The government aims to generate 95% of the country’s electricity from low-carbon sources by 2030, and fully decarbonising the grid by 2035. It also aims to reduce greenhouse gas emissions by 100%, compared to 1990 levels, by 2050. In early September 2023, the UK government awarded a funding of GBP227 million ($280.4 million) to support 95 clean energy projects, such as tidal, solar, and onshore wind.
The 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.
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
- 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
- 8 About GlobalData
- 9 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, $ Million, 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, In GBP Million
- 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, 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, 2019=100s
- 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 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), 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, Housing Repair and Maintenance Output, Chained Volume Measures, Seasonally Adjusted 2019 Prices
- Figure 45: The UK, Orders for New Housing Construction, GBP Million, Current Prices, Non-Seasonally Adjusted
- Figure 46: The UK, Real Estate Value Add (GBP Million, Constant Prices), Seasonally Adjusted
- Figure 47: The UK, Residential Property Transaction, Number
- Figure 48: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 49: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)
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