The analyst expects the construction industry in the UK to grow marginally in real terms by 0.8% in 2026, marking a slower growth compared to 1.4% in 2025, reflecting sluggishness characterized by weakness in manufacturing activities and slower infrastructure works. According to the Office for National Statistics (ONS), the total value of construction output in chained volume measures (seasonally adjusted terms) in the country fell by 1.3% year- on-year (YoY) in the first three months of 2026, driven by a sharp fall of 5.8% YoY for new works during the same period. The output in the upcoming quarters of 2026 is expected to continue to reflect a slowdown in construction activities owing to low construction orders.
The UK’s construction industry is expected to record an annual average growth rate of 3.2% from 2027 to 2030, supported by investments in transport, housing and data center projects. The government’s focus on boosting domestic steel production is also expected to support the infrastructure and data center developments in the coming quarters, with steel being one of the important raw materials for its construction. Under the Steel Strategy launched in March 2026, the domestic production of steel will be increased from the current level of around 30% to 50% of the total steel used in the UK
The UK’s construction industry is expected to record an annual average growth rate of 3.2% from 2027 to 2030, supported by investments in transport, housing and data center projects. The government’s focus on boosting domestic steel production is also expected to support the infrastructure and data center developments in the coming quarters, with steel being one of the important raw materials for its construction. Under the Steel Strategy launched in March 2026, the domestic production of steel will be increased from the current level of around 30% to 50% of the total steel used in the UK
The Construction in the UK - Key Trends and Opportunities to 2030 (Q2 2026) 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.
Scope
This report provides a comprehensive analysis of the construction industry in the UK. It provides:
- Historical (2021-2025) and forecast (2026-2030) 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 our 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 business strategies using the analyst's critical and actionable insight
- Assess business risks, including cost, regulatory and competitive pressures
- Evaluate competitive risk and success factors
