UK Construction Market Size - By End Use (Private Sector, Public Sector), By Contracting Type (General Contracting, Design-build Contracting, Construction Management), By Scale (Mega, Major, Medium, Small), Construction Type & Forecast, 2023 – 2032

UK Construction Market Size

UK Construction Market size was valued at USD 239.46 billion in 2022 and is projected to register a CAGR of over 3.5% between 2023 and 2032. As European countries prioritize energy efficiency, sustainability, and technological integration in building projects, the UK construction sector has been compelled to adapt to these evolving trends to remain competitive. Developers and clients in the UK are increasingly seeking innovative solutions that optimize resource consumption, enhance occupant comfort, and reduce operational costs. This demand has spurred investments in smart technologies, Building Information Modeling (BIM), the Internet of Things (IoT) applications, and green building practices.

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UK construction companies are embracing advanced construction methods and materials, attracting international collaborations & opportunities, and bolstering country's position as a forward-looking player in the European construction industry. As of January 2023, greenhouse gas emissions decreased by 35% in the European buildings sector, which will ultimately aid the region in achieving climate neutrality by 2050. With such targets, it is expected that the UK will focus more on sustainable and energy-efficient infrastructure development including residential, commercial & industrial construction on all-scale projects such as mega projects, major projects, and medium & small projects.

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The construction industry heavily relies on a skilled workforce to execute projects efficiently and maintain high-quality standards. Similarly, in recent years, there has been a shortage of skilled workers in various construction trades including carpenters, bricklayers, electricians, and plumbers. This shortage type can lead to delays in project completion, increased labor costs, and potential compromises in the quality of construction work.

COVID-19 Impact

The COVID-19 pandemic imposed a global shutdown and several restrictions. Many construction projects were temporarily halted or delayed, causing disruptions and financial losses. Social distancing measures and health protocols led to productivity challenges on construction sites. Supply chain disruptions and increased costs of construction materials further added to the industry's difficulties. However, as the situation improved and restrictions eased, construction activity gradually resumed but the pandemic's effects continued to shape the market dynamics.

UK Construction Business Trends

Technological innovations & advancements are driving the UK construction market by revolutionizing traditional practices and enhancing overall efficiency. Building Information Modeling (BIM), drones, 3D printing, and the Internet of Things (IoT) applications have improved project planning, visualization & communication. Automation and robotics have further increased productivity and safety on construction sites. Smart building technologies, such as energy management systems & IoT sensors, enhance sustainability and optimize building performance. These innovations attract investments, improve project outcomes, and position the UK construction industry as a dynamic player, thereby adapting to the demands of a rapidly evolving market.

UK Construction Market Analysis

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Based on type, the residential segment held approximately 15% share of the UK construction market in 2022 and is predicted to reach USD 70 billion in 2032. The increasing demand for housing, driven by population growth and urbanization, will spur the development of new residential projects. Additionally, government initiatives to address housing shortages and promote affordable housing will contribute to the residential construction sector segment expansion. Advancements in technologies and sustainable building practices will also play a role in attracting investments and driving growth in this segment.

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Based on end use, the private sector is witnessing an increasing emphasis on sustainability in its construction projects. They are integrating green building practices, renewable energy systems, and eco-friendly materials, thereby aligning with the country's commitment to environmental preservation & sustainable development. Moreover, the emergence of construction technology startups in the UK private sector has spurred innovation and fostered growth, driving advancements in construction practices and enhancing overall efficiency. These developments reflect the construction industry's commitment to embracing eco-conscious approaches and adopting cutting-edge technologies for a more sustainable future.

Based on the contracting type, the UK construction market is divided into general contracting, design-build contracting, and construction management. A contractor manages an entire project by coordinating all the aspects of the construction process. This includes subcontracting various trades, overseeing the project schedule, and handling the budget. A general contractor assumes the responsibility of ensuring smooth project execution, adhering to quality standards, and delivering the final product to the client. This approach remains a common method for project management and execution in the UK construction sector.

UK Construction Market Share

Major companies operating in the UK construction market include

• VINCI SA
• ACS Group
• Skanska AB
• Bouygues Construction
• Hochtief AG
• Eiffage S.A.
• STRABAG International GmbH
• Balfour Beatty plc
• Ferrovial S.A.
• Acciona, S.A
• Interserve Group Limited
• Costain Group PLC
• Taylor Wimpey Plc
• Crest Nicholson Holdings PLC
• Berkeley Group Holdings PLC.

UK Construction Industry News

• In January 2023, VINCI Construction and Wilmotte & Associates Architecture entered into a business contract to accelerate construction operations. The companies will invest over USD 197 million and will collaboratively work on new buildings, all interior trades work & the maintenance of the new site during the four-year tenure.

This UK construction market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2018 to 2032, for the following segments

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By Construction Type

• Residential construction
• Commercial construction
  • Sports facilities construction
  • Hospitality facilities construction
  • Retail facilities construction
  • Office buildings construction
• Industrial construction
• Infrastructure & heavy civil construction
• Institutional construction
  • Healthcare facilities construction
  • Educational facilities construction
• Mixed-use construction
• Specialized construction
• Renovation/Remodeling construction
• Environmental construction

By End Use

• Private sector
• Public sector

By Contracting Type

• General contracting
• Design-build contracting
• Construction management

By Scale

• Mega project
• Major project
• Medium project
• Small project