The UK Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q3 2026)

Summary

The analyst has revised down the growth forecast for the UK’s construction industry for 2026, from 0.6% growth forecasted in the Q2 2026 update to a decline of 1.4%, in real terms. This downward revision is attributed to weaker than expected growth in the construction value-add and reduced construction orders in Q2 2026, due to supply chain uncertainty and high interest rates. The industry’s output in 2026 will also be affected by rising energy costs, coupled with elevated raw construction material prices and borrowing costs, which is reducing private investor confidence. According to the Office for National Statistics (ONS), the construction industry’s value-add fell by 2% year-on-year (YoY) in Q2 2026, preceded by a YoY decline of 1.6% each in Q1 2026 and Q4 2025.

The UK’s construction industry is however expected to register an annual average growth of 3.2% from 2027 to 2030, supported by increasing data center, transport infrastructure and housing investments. According to the analyst’s Powering Data Centers Report, UK’s Data Center (DC) electricity consumption is projected to rise from 5.33TWh in 2024 to 17.15TWh by 2030, while the DC’s share of total power consumption will increase from 2.0% to 5.4%, during the same period. To boost investments in data centers sector, the UK government has brought large-scale data centers into the Nationally Significant Infrastructure Project (NSIP) regime in July 2026, which is expected to reduce planning approvals, and project timelines for key infrastructure projects by up to 12 months. In a recent boost to the construction industry’s output, the UK government-owned National Highways (NH) has issued invitation to tender, in mid-August 2026, for the GBP8 billion ($10.8 billion) Maintenance and Response 2 (M&R2) framework, which will cover the repair and maintenance of approximately 7,242km of motorways between 2028 and 2037, including essential asset upgrades, pothole repairs, and fixing structural damage to roads, curbs, and footways.

The analyst’s Construction in the UK - Key Trends and Opportunities to 2030 (Q3 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 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

1 Executive Summary2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

Outlook
Latest news and developments
Construction Projects Momentum Index

4.2 Commercial Construction

Outlook
Project analytics
Latest news and developments

4.3 Industrial Construction

Outlook
Project analytics
Latest news and developments

4.4 Infrastructure Construction

Outlook
Project analytics
Latest news and developments

4.5 Energy and Utilities Construction

Outlook
Project analytics
Latest news and developments

4.6 Institutional Construction

Outlook
Project analytics
Latest news and developments

4.7 Residential Construction

Outlook
Project analytics
Latest news and developments

5 Key Industry Participants

5.1 Contractors
5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact Us

List of Tables

Table 1: Construction Industry Key Data
Table 2: The UK, Key Economic Indicators
Table 3: The UK, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: The UK, Top Commercial Construction Projects by Value
Table 5: The UK, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: The UK, Top Industrial Construction Projects by Value
Table 7: The UK, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: The UK, Top Infrastructure Construction Projects by Value
Table 9: The UK, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: The UK, Top Energy and Utilities Construction Projects by Value
Table 11: The UK, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: The UK, Top Institutional Construction Projects by Value
Table 13: The UK, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: The UK, Top Residential Construction Projects by Value
Table 15: The UK, Key Contractors
Table 16: The UK, Key Consultants
Table 17: The UK Construction Output Value (Real, $ Million)
Table 18: The UK Construction Output Value (Nominal, GBP Million)
Table 19: GlobalData Construction Market Definitions
Table 20: GlobalData Construction Market Definitions
Table 21: Ratings, Scores and Definition

List of Figures

Figure 1: Western Europe, Construction Output (Real % Change), 2024-30
Figure 2: The UK, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 3: The UK, Risk Summary
Figure 4: The UK, Risk Regional Comparison
Figure 5: The UK, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 6: The UK, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 7: The UK, Construction Output, Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 8: The UK, Construction Value-Add (GBP Million, constant prices), Seasonally Adjusted
Figure 9: The UK, New Orders for Construction, GBP Million, Current Prices
Figure 10: The UK, Total Number of Company Insolvencies in England and Wales (Number of Companies), Unadjusted
Figure 11: The UK, Construction Materials Prices Index, 2015=100
Figure 12: The UK, Construction Output Price Index, 2015=100, % Change YoY
Figure 13: The UK, Number of people employed in the construction industry, In Numbers
Figure 14: The UK, Construction Projects Momentum Index
Figure 15: Western Europe, Construction Projects Momentum Index
Figure 16: The UK, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 17: The UK, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 18: The UK, Private commercial construction output, Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 19: The UK, Accommodation and food services Value-Add (GBP Million, constant prices), Seasonally Adjusted
Figure 20: The UK, Private New Orders for Office and Entertainment Buildings (GBP Million, Current prices)
Figure 21: The UK, Retail Sales Volume Index, Seasonally Adjusted, 2023=100
Figure 22: The UK, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 23: The UK, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 24: The UK, Manufacturing Value-Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 25: The UK, Private Industrial Construction Output, Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 26: The UK, New Orders for Private Industrial Construction (GBP Million, Current Prices)
Figure 27: The UK, Export of Goods (Seasonally Adjusted, GBP Million)
Figure 28: The UK, Manufacturing Production Index, Seasonally Adjusted, 2022=100
Figure 29: The UK, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 30: The UK, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: The UK, Construction Output for Rail, Road, and Harbor Construction, (GBP Million, Current Prices, Seasonally Adjusted)
Figure 32: The UK, Construction Orders for Rail, Road, and Harbor Construction (GBP Million, Current Prices, Non-Seasonally Adjusted)
Figure 33: The UK, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: The UK, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: The UK, Construction Orders for Electricity (GBP Million, Current Prices, Non-Seasonally Adjusted)
Figure 36: The UK, Construction Orders for Sewage and Water Infrastructure, (GBP Million, Current Prices, Non-Seasonally Adjusted)
Figure 37: The UK, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 38: The UK, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 39: The UK, Construction Orders for Private Schools and Universities and Health Buildings, In GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 40: The UK, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 41: The UK, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 42: The UK, New Housing Construction Output Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 43: The UK, Real Estate Value-Add (GBP Million, Constant Prices), Seasonally Adjusted
Figure 44: The UK, Orders for New Housing Construction, GBP Million, Current Prices, Non-Seasonally Adjusted
Figure 45: The UK, Residential Property Transactions, Number
Figure 46: The UK, Housing Repair and Maintenance Output, Chained Volume Measures, Seasonally Adjusted (GBP Million)
Figure 47: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 48: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)

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