The construction industry in the UK is expected to grow in real terms by 2.2% in 2026, supported by investments in housing and commercial projects. Improvements in the business environment is also likely to boost the construction industry’s growth. As evident, according to the Office for National Statistics (ONS), the total construction company insolvencies in England and Wales fell by 2.4% YoY during the first eleven months of 2025, falling from 3,747 in January-November 2024 to 3,657 in January-November 2025. However, elevated inflation rates, and high government debts are likely to hinder the UK’s construction industry’s growth over the short to medium-term. According to the ONS, public sector net debt excluding public sector banks estimated at 95.5% of GDP at the end of December 2025, an increase of 0.9% compared to the end of December 2024.
The construction industry, over the remainder of the forecast period, is expected to record an average annual growth of 3.3% from 2027 to 2030, supported by investments in transport, housing, and energy projects, coupled with the government’s 10-year Infrastructure Strategy (2025-36), announced by the government in June 2025 with an estimated investment of GBP725 billion ($936.5 billion). Some of the major allocations under this include GBP70 billion ($90.4 billion) for health infrastructure, GBP39 billion ($50.4 billion) for affordable housing, GBP38 billion ($49.1 billion) for educational infrastructure, GBP15.6 billion ($20.2 billion) for transport, and GBP1.4 billion ($1.8 billion) for energy infrastructure. Growth will also be supported by government’s focus on generating 95% of the electricity consumption from clean sources by 2030 and reduce carbon emissions by 80% compared to 1990 levels by 2035 under the ‘’Clean Power 2030 Action Plan’’. To support this, the local electricity operator Scottish Hydro Electric Transmission (SSEN) is aiming to invest GBP22 billion ($28.4 billion) in developing the transmission lines in Scotland by 2031.
The construction industry, over the remainder of the forecast period, is expected to record an average annual growth of 3.3% from 2027 to 2030, supported by investments in transport, housing, and energy projects, coupled with the government’s 10-year Infrastructure Strategy (2025-36), announced by the government in June 2025 with an estimated investment of GBP725 billion ($936.5 billion). Some of the major allocations under this include GBP70 billion ($90.4 billion) for health infrastructure, GBP39 billion ($50.4 billion) for affordable housing, GBP38 billion ($49.1 billion) for educational infrastructure, GBP15.6 billion ($20.2 billion) for transport, and GBP1.4 billion ($1.8 billion) for energy infrastructure. Growth will also be supported by government’s focus on generating 95% of the electricity consumption from clean sources by 2030 and reduce carbon emissions by 80% compared to 1990 levels by 2035 under the ‘’Clean Power 2030 Action Plan’’. To support this, the local electricity operator Scottish Hydro Electric Transmission (SSEN) is aiming to invest GBP22 billion ($28.4 billion) in developing the transmission lines in Scotland by 2031.
The Construction in the UK - Key Trends and Opportunities to 2030 (Q1 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.
Report 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
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
