UK Construction Market by Type (Renovation and New Construction), and by Sector (Real Estate, Infrastructure, and Industrial)–Opportunity Analysis and Industry Forecast, 2024–2030
Industry: Construction & Manufacturing | Publish Date: 31-Oct-2024 | No of Pages: 111 | No. of Tables: 78 | No. of Figures: 43 | Format: PDF | Report Code : CM2197
UK Construction Market Overview
The UK Construction Market size was valued at USD 316.86 billion in 2023, and is predicted to reach USD 439.04 billion by 2030, at a CAGR of 5.6% from 2024 to 2030.
The construction market, often referred to as infrastructure market, plays a vital role in the economy by managing the entire process from initial planning to ongoing maintenance of various physical structures, including infrastructure, buildings, and facilities. This sector encompasses a broad spectrum of projects, covering residential, commercial, industrial, civil engineering, and institutional infrastructure developments.
It involves collaboration among numerous stakeholders, including architects, engineers, contractors, suppliers, developers, investors, and government agencies. The industry is positioned for growth, driven by an increased emphasis on environmentally friendly practices such as the adoption of green building materials and energy-efficient designs. Additionally, factors such as rising per capita income in emerging economies and low-interest rates in developed countries are expected to further stimulate the expansion of the infrastructure market.
Large Infrastructure Projects Drive Growth in the Construction Industry
The construction market in this country is experiencing significant expansion, largely propelled by the emergence of large infrastructure projects. Notable projects in 2023, including the Heathrow Expansion, The New Hospital’s Programme, Houses of Parliament, HS2 tunnelling, Hinkley Point C, and Stonehenge Tunnel, play pivotal roles in fueling growth within the nation's infrastructure sector.
Substantial Contribution of the Construction Sector Boosts Market Growth
The overall construction market expansion is attributed to the substantial growth of the infrastructure sector, holds a significant portion of the GDP. According to a report by the United Nations Economic Commission for Europe (UNECE), the infrastructure sector's share in the UK's GDP was 6.2% in 2022, surpassing that of other European countries such as France, Germany, and Denmark. This noteworthy contribution of the infrastructure sector to the UK's GDP serves as a key driver of the market's overall growth.
Navigating Regulatory Complexities Hampers Infrastructure Market Growth
The infrastructure market faces significant impediments due to the challenges posed by stringent regulatory frameworks. Infrastructure ventures encounter hurdles stemming from the intricate network of government regulations and permitting processes. Infrastructure projects often necessitate obtaining numerous permits and approvals from governmental bodies at local, regional, and national levels. These permissions encompass various aspects such as zoning regulations, environmental assessments, adherence to building codes, safety standards, and other regulatory requirements.
Lengthy permit acquisition processes, bureaucratic inefficiencies, and regulatory disparities among jurisdictions can substantially extend project timelines and escalate costs. Additionally, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter prospective investments. For instance, the United States Environmental Protection Agency (EPA) oversees various facets of the infrastructure sector, including air quality, lead management, waste disposal, and water regulations. The EPA's compliance assistance centers provide resources to facilitate environmental compliance during demolition activities, the recycling of infrastructure materials, and the proper disposal of refrigeration and air-conditioning equipment.
Integration of Digitalization and BIM Presents Lucrative Opportunity for Market Expansion
The construction market is undergoing a significant transformation with the integration of digitalization and the adoption of Building Information Modeling (BIM), leveraging advanced technologies to enhance efficiency, accuracy, and collaboration across various projects. BIM, an advanced 3D modeling tool, empowers stakeholders to generate and oversee digital renditions of structures and infrastructure, facilitating improved coordination and communication among project teams.
For example, in September 2022, the National Institute of Building Sciences (NIBS) launched the UK National Building Information Management (BIM) Program, aiming to revolutionize the infrastructure industry and achieve unprecedented levels of industrial efficiency through digitalization. This initiative addresses the insufficient degree of digitalization within the UK infrastructure sector, impedes the evolution of lifecycle work processes to become more efficient, cost-effective, resilient, and safer for infrastructure and maintenance.
Competitive Landscape
The market players operating in the UK infrastructure industry include Balfour Beatty, Barratt Developments Plc, Taylor Wimpey Plc, Persimmon Plc, Bellway Plc, Morgan Sindall Plc, Kier Group Plc, Keller Group Plc, Berkeley Group Holdings, Costain Group Plc, and others.
UK Construction Market Key Segments
By Type
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Renovation
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New Construction
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 Player
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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 2023 |
USD 316.86 Billion |
|
Revenue Forecast in 2030 |
USD 439.04 Billion |
|
Growth Rate |
CAGR of 5.6% from 2024 to 2030 |
|
Analysis Period |
2023–2030 |
|
Base Year Considered |
2023 |
|
Forecast Period |
2024–2030 |
|
Market Size Estimation |
Billion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
10 |
|
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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