UK Construction Market by Type (Renovation, and New Construction), by Construction Method (Traditional, Prefabricated/Modular, 3D-Printed, and Green/Sustainable), by Contractor Type (Large Contractor, Medium Contractor, and Small Contractor), and Sector (Real Estate, Commercial, Infrastructure, Industrial) – Industry Trends and Forecast, 2025–2030
Industry: Construction & Manufacturing | Publish Date: 09-Jun-2025 | No of Pages: 85 | No. of Tables: 118 | No. of Figures: 63 | Format: PDF | Report Code : CM2197
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Industry Overview
The UK Construction Market size was valued at USD 316.38 billion in 2024, and is projected to grow to USD 356.19 billion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 439.04 billion by 2030, with a CAGR of 4.3% from 2025 to 2030.
The construction market in the United Kingdom is witnessing strong growth, primarily driven by large-scale infrastructure developments initiated in 2024 and 2025, which are enhancing national connectivity and energy capacity. This surge is further supported by the substantial contribution of the infrastructure sector to the country’s economy, reinforcing its role as a critical growth engine.
However, the sector also grapples with regulatory complexities, where intricate approval processes and bureaucratic hurdles often lead to project delays and increased costs. Amid these challenges, the growing adoption of digital technologies such as Building Information Modeling (BIM), AI, IoT, and cloud-based solutions presents a promising opportunity, enabling greater efficiency, collaboration, and innovation across project lifecycles.
Large Infrastructure Projects Drive Growth in the UK Construction Market
The construction market in the United Kingdom is experiencing significant expansion, largely propelled by the emergence of large infrastructure projects launched in 2024 and 2025. Notable projects include the HS2 Phase 1, a USD 70 billion high-speed rail project connecting London to Birmingham, with tunnelling completed in 2024 and track-laying advancing in 2025; the Hinkley Point C Nuclear Power Station, a USD 40 billion initiative progressing in 2025 to deliver 3.2 GW of clean energy by 2027; and the Lower Thames Crossing, a USD 11 billion project started in 2024 to build a 23-km road tunnel under the Thames, enhancing connectivity between Kent and Essex by 2030. These initiatives, supported by the UK Infrastructure and Projects Authority, significantly fuel growth within the nation’s infrastructure sector by boosting connectivity and energy capacity.
Substantial Contribution of the Construction Sector Boosts UK Construction Market Demand
The overall market expansion for urban regeneration is attributed to the substantial growth of the infrastructure sector, which holds a significant portion of the UK’s GDP. According to the Office for National Statistics (ONS), the construction and infrastructure sector contributed 6.4% to the UK’s GDP in 2024, surpassing that of other European countries such as France, Germany, and Denmark. This growth is driven by a 2.5% increase in building output in 2024, fueled by projects like the USD 2.5 billion Sizewell C nuclear plant, with preliminary works starting in 2025, and the USD 1 billion A66 Northern Trans- Pennine Road upgrade, advancing in 2024. This noteworthy contribution of the infrastructure sector to the UK’s economy serves as a key driver of the market’s overall growth.
Navigating Regulatory Complexities Hampers Infrastructure UK Construction Market Growth
The construction market faces significant challenges due to stringent regulatory frameworks. Infrastructure projects encounter obstacles from the complex network of government regulations and permitting processes, which often require securing numerous permits and approvals from various governmental bodies at local, regional, and national levels. These approvals include zoning regulations, environmental assessments, compliance with building codes, safety standards, and other regulatory requirements.
Lengthy permit acquisition processes, bureaucratic inefficiencies, and inconsistencies in regulations across jurisdictions can substantially delay project timelines and increase costs. Furthermore, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments. Regulatory bodies such as environmental agencies play a critical role in overseeing aspects like air quality, waste disposal, and water regulations, offering resources to ensure compliance during demolition, recycling, and the disposal of various materials and equipment.
Integration of Digitalization and BIM Presents Lucrative Opportunity for UK Construction Market Expansion
The construction industry is undergoing a major digital shift, propelled by the growing adoption of Building Information Modeling (BIM), which is unlocking new growth opportunities. BIM facilitates digital design, simulation, and infrastructure management, enhancing accuracy, teamwork, and efficient use of resources.
In line with this trend, ALLPLAN introduced Allplan 2024-1 in April 2024 to boost BIM functionalities and simplify cloud-based workflows, highlighting the industry's move toward fully digital project execution. Additionally, the integration of AI, IoT, and cloud technologies is advancing real-time collaboration, predictive maintenance, and streamlined facility management.
Competitive Landscape
The market players operating in the UK construction industry include China State Construction Engineering Corp. Ltd. (CSCEC), China Railway Group Ltd. (CREC), China Railway Construction Corp. Ltd. (CRCC), China Communications Construction Group Ltd. (CCCC), Metallurgical Corporation of China Ltd. (MCC), Power Construction Corp. of China, Vinci SA, China Energy Engineering Corp. (CEEC), Shanghai Construction Group (SCG), Bouygues Group, and others.
UK Construction Market Key Segments
By Type
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Renovation
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New Construction
By Construction Method
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Traditional Construction
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Prefabricated/Modular Construction
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3D-Printed Construction
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Green/Sustainable Construction
By Type of Contractor
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Large Contractor
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Medium Contractor
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Small Contractor
By Sector
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Real Estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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Laing O’Rourke
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Morgan Construction Limited
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Manchester & Cheshire Construction
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M Group Services Limited
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Skanska
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Balfour Beatty
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Barratt Developments Plc
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Taylor Wimpey Plc
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Persimmon Plc
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Bellway Plc
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Morgan Sindall Plc
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Kier Group Plc
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Keller Group Plc
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Berkeley Group Holdings
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Costain Group Plc
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 316.38 Billion |
|
Revenue Forecast in 2030 |
USD 439.04 Billion |
|
Growth Rate |
CAGR of 4.3% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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