UK Construction Industry 2025-2034: Government-Led Infrastructure Boom And Private Sector Momentum Propel The Market At 4.3% CAGR

(MENAFN- GlobeNewsWire - Nasdaq) Residential Construction in the UK Set to Grow at 5.3% CAGR, Driven by Housing Shortage and Build-to-Rent Boom

Dublin, May 01, 2025 (GLOBE NEWSWIRE) -- The "UK Construction Market Opportunity, Growth Drivers, Industry Trend Analysis, and Forecast 2025-2034" report has been added to ResearchAndMarkets.com's offering.
The UK Construction Market was valued at USD 256.6 Billion in 2024, and is projected to reach USD 388.6 Billion by 2034, rising at a CAGR of 4.30%.
This growth reflects the UK government's strong commitment to infrastructure development, with a notable emphasis on expanding the country's aviation network, currently ranked as the third largest globally. As the UK invests in upgrading transportation systems and modernizing public infrastructure, the construction sector is positioned for consistent growth. The increasing demand for sustainable construction practices, coupled with advancements in digital construction technologies such as Building Information Modeling (BIM) and modular construction, is driving operational efficiency and improving project outcomes.
Additionally, the push for greener infrastructure to meet the UK's net-zero carbon goals by 2050 is creating opportunities for innovation in the sector. Private investments are surging as developers and institutional investors recognize the long-term potential of sustainable and high-performance buildings. The market is further supported by an increasing focus on mixed-use developments that blend residential, commercial, and institutional spaces, offering multifaceted benefits to urban communities. With rising urbanization and population growth, the demand for new housing, commercial spaces, and public infrastructure is set to boost market momentum.
The UK construction market is segmented into residential, commercial, industrial, mixed-use, infrastructure & heavy civil, institutional, specialized, renovation/remodeling, and environmental sectors. The residential construction segment generated USD 48.5 billion in 2024 and is forecasted to grow at a CAGR of 5.3% between 2025 and 2034. Government-backed initiatives aimed at supporting first-time homebuyers and addressing the ongoing housing shortage are expected to drive this growth. Private investments are pouring into the residential segment, attracting real estate developers looking to capitalize on the growing demand for modern and energy-efficient housing solutions. The increased popularity of Build-to-Rent (BTR) properties is further accelerating investment in the housing sector.
The UK construction market is also segmented by end-use into the private and public sectors, with the private sector holding a dominant 74.7% share in 2024. Private developers, real estate firms, and institutional investors are driving growth by initiating large-scale residential, commercial, and infrastructure projects. Rising demand for rental housing, especially in the Build-to-Rent (BTR) sector, is creating lucrative opportunities for private sector investments. In addition to new construction, the renovation and remodeling segment is witnessing increased activity as property owners look to upgrade and modernize their existing assets.
The market is further categorized by contracting type, including general contracting, design-build contracting, and construction management. General contracting accounted for a significant share in 2024 and is expected to maintain its leading position throughout the forecast period. General contractors play a crucial role in managing the entire project lifecycle, from procurement and labor management to regulatory compliance and final project delivery. This model offers streamlined execution, cost control, and efficient risk management, making it the preferred choice for large-scale residential, commercial, and infrastructure projects. The steady rise in infrastructure investments and growing emphasis on sustainable construction practices are expected to bolster the market's growth trajectory in the coming years.
Comprehensive Market Analysis and Forecast

• Industry trends, key growth drivers, challenges, future opportunities, and regulatory landscape
• Competitive landscape with Porter's Five Forces and PESTEL analysis
• Market size, segmentation, and regional forecasts
• In-depth company profiles, business strategies, financial insights, and SWOT analysis

Key Attributes

Report Attribute	Details
No. of Pages	200
Forecast Period	2024-2034
Estimated Market Value (USD) in 2024	$256.6 Billion
Forecasted Market Value (USD) by 2034	$388.6 Billion
Compound Annual Growth Rate	4.3%
Regions Covered	United Kingdom

Key Topics Covered
Chapter 1 Methodology & Scope
1.1 Market scope & definition
1.2 Base estimates & calculations
1.3 Forecast calculation
1.4 Data sources
1.4.1 Primary
1.4.2 Secondary
1.4.2.1 Paid sources
1.4.2.2 Public sources
Chapter 2 Executive Summary
2.1 Industry 360 degree synopsis, 2021-2034
2.2 Business trends
2.3 Construction type trends
2.4 End Use trends
2.5 Contracting type trends
2.6 Scale trends
Chapter 3 Industry Insights
3.1 Impact of COVID-19
3.2 Impact of the Russia-Ukraine war
3.3 Industry ecosystem analysis
3.4 Vendor matrix
3.5 Profit margin analysis
3.6 Technology & innovation landscape
3.7 Patent analysis
3.8 Key news and initiatives
3.8.1 Partnership/Collaboration
3.8.2 Merger/Acquisition
3.8.3 Investment
3.8.4 Product launch & innovation
3.9 Regulatory landscape
3.10 Impact forces
3.10.1 Growth drivers
3.10.1.1 Booming commercial infrastructure development
3.10.1.2 Growing emphasis on modern & smart buildings across UK
3.10.1.3 Surging focus on energy-efficient & sustainable construction
3.10.1.4 Proliferating demand for housing in urban areas
3.10.2 Industry pitfalls & challenges
3.10.2.1 Shortage of skilled labor
3.10.2.2 Rising geopolitical issues
3.11 Growth potential analysis
3.12 Porter's analysis
3.13 PESTEL analysis
Chapter 4 Competitive Landscape, 2024
4.1 Introduction
4.2 Company market share, 2024
4.3 Competitive analysis of major market players, 2024
4.4 Competitive positioning matrix, 2024
4.5 Strategic outlook matrix, 2024
Chapter 5 Market Estimates & Forecast, by Construction Type (Revenue) - 2021-2034
5.1 Key trends, by construction type
5.2 Residential construction
5.3 Commercial construction
5.3.1 Sports facilities construction
5.3.2 Hospitality facilities construction
5.3.3 Retail facilities construction
5.3.4 Office buildings construction
5.4 Industrial construction
5.5 Infrastructure & heavy civil construction
5.6 Institutional construction
5.6.1 Healthcare facilities construction
5.6.2 Educational facilities construction
5.7 Mixed-use construction
5.8 Specialized construction
5.9 Renovation/Remodeling construction
5.10 Environmental construction
Chapter 6 Market Estimates & Forecast, by End Use (Revenue) - 2021-2034
6.1 Key trends, by end use
6.2 Private sector
6.3 Public sector
Chapter 7 Market Estimates & Forecast, by Contracting Type (Revenue) - 2021-2034
7.1 Key trends, by contracting type
7.2 General contracting
7.3 Design-build contracting
7.4 Construction management
Chapter 8 Market Estimates & Forecast, by Scale (Revenue) - 2021-2034
8.1 Key trends, by scale
8.2 Mega project
8.3 Major project
8.4 Medium project
8.5 Small project
Chapter 9 Company Profiles
9.1 ACS Group
9.2 Bouygues Construction
9.3 Costain Group PLC
9.4 Crest Nicholson Holdings PLC
9.5 Eiffage SA
9.6 Ferrovial SA
9.7 Hochtief AG
9.8 Interserve Group Limited
9.9 Skanska AB
9.10 VINCI SA
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