The analyst expects the construction industry in the UK to grow in real terms by 1.6% in 2025, supported by increasing construction orders and rising investments in data center and renewable energy projects. Which is further supported by increased government investments in construction, such as infrastructure, energy, healthcare and residential housing, which was announced during the recent spending review. According to the Office for National Statistics (ONS), the total value of construction output rose by 0.9% year-on-year (YoY) in the first three months of 2025, while the total value of new construction orders awarded at current prices grew by 15.8% YoY during the same period. The UK government has launched a new Artificial Intelligence (AI) action plan in January 2025, for the development of data center projects worth GBP13.2 billion ($17 billion). Three large companies have confirmed their data center investments in the UK, as of January 2025, as part of the AI action plan. However, the UK construction industry is expected to be affected by subdued growth in the residential construction sector, in the short term, owing to reduced housing construction orders and reduced investor confidence caused by the global uncertainty.
The construction industry, over the remainder of the forecast period, is expected to record an average annual growth rate 3.3% from 2026 to 2029, supported by investments in transport infrastructure, industrial, housing and energy sectors. In March 2025, the government has announced an allocation of GBP10 billion ($12.9 billion) towards road infrastructure improvements for the years 2025 and 2026, which also includes GBP4.8 billion ($6.2 billion) to the strategic road network for maintenance, GBP1.6 billion ($2.1 billion) for local road maintenance and another GBP1.3 billion ($1.7 billion) for road renewals
The construction industry, over the remainder of the forecast period, is expected to record an average annual growth rate 3.3% from 2026 to 2029, supported by investments in transport infrastructure, industrial, housing and energy sectors. In March 2025, the government has announced an allocation of GBP10 billion ($12.9 billion) towards road infrastructure improvements for the years 2025 and 2026, which also includes GBP4.8 billion ($6.2 billion) to the strategic road network for maintenance, GBP1.6 billion ($2.1 billion) for local road maintenance and another GBP1.3 billion ($1.7 billion) for road renewals
The Construction in the UK - Key Trends and Opportunities to 2029 (Q2 2025) 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 (2020-2024) and forecast (2025-2029) 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
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
