UK Construction Market at USD 481.34 B in 2030; Set for 3.2% CAGR Growth, Infrastructural Boom and Sustainability Drive

Mordor Intelligence has published a new report on the UK Construction Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

The UK construction market is anticipated to be valued at USD 411.40 billion in 2025 and is projected to grow to USD 481.34 billion by 2030, registering a CAGR of 3.19% over the forecast period from 2025 to 2030. This growth underscores renewed momentum, supported by government infrastructure investments, private sector resurgence, and strong residential housing demand. After a period of tightened activity-marked by four consecutive months of contraction-the sector is regaining footing, driven by commercial and civil engineering projects.

Report Overview: https://www.mordorintelligence.com/industry-reports/united-kingdom-construction-market?utm_source=openpr

Key Trends

1. Government-Fueled Infrastructure Expansion

The UK government's commitment to infrastructure is central to market growth. Recent investments, including plans for 1.5 million new homes and substantial skills training funds, aim to stimulate demand.

2. Volatility in Building Costs

Volatility in labor and materials costs is reshaping project dynamics. According to the Building Cost Information Service, construction costs may climb by 12% by 2030, with material prices-timber, steel, insulation-rising roughly 15%, and labor costs increasing 18% due to National Insurance and wage reforms.

3. Adoption of Modern Methods of Construction (MMC)

Innovations in building techniques, such as prefabrication and modular construction, are gaining traction. Modular construction can reduce costs, schedules, and waste-aligning with broader environmental goals . Globally, this trend has accelerated MMC adoption; in the UK, it's closely tied to affordable housing and government incentive schemes.

4. Sustainability and Green Building Emphasis

Sustainability is a key growth driver. The global green building market, projected to top USD 394.4 billion by 2028, reflects global and local commitments to emission reductions, energy efficiency, and circular resource use.

Market Segmentation

The UK construction industry can be profiled across multiple segmentation categories:

By Sector:

Commercial Construction: Currently the fastest-growing division, fueled by demand for office, retail, hospitality, and warehousing space.

Infrastructure & Heavy Civil: Supported by government-led transport, energy, and utilities investment.

Industrial & Institutional: Includes factories, schools, hospitals, and government facilities, showing steady but moderate growth.

Renovation & Mixed-use: Driven by adaptive reuse and retrofit demands for low-carbon upgrades.

By Construction Method:

Traditional On-site Builds: Still predominant.

Modular Construction: Expanding due to cost and time efficiencies.

Green Construction: Increasingly used in residential, commercial, and public buildings.

By Geography:

England: The largest region, reflecting concentration of urban and infrastructure projects.

Scotland, Wales, Northern Ireland: Growing steadily, with emphasis on housing and regional infrastructure.

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Key Players

The UK construction landscape is populated by leading firms across all segments:

Kier Group, Morgan Sindall, Mace, Winvic, and Bouygues UK dominate the residential and commercial space.

Multinational infrastructure firms such as ACS Group, Costain Group plc, Skanska AB, and VINCI SA engage in high-profile public-private projects.

Materials suppliers and manufacturers like Breedon Group have bolstered resilience through strategic investments and tight supply chain management.

Innovators in green construction and MMC-through start-ups or divisions in major firms-are pushing tailored solutions in offsite construction and low-carbon building technologies.

Conclusion

While short-term challenges persist-cost inflation, weak residential Confidence Indexes (PMI ~46-47)-long-term opportunities in infrastructure investment, MMC uptake, and sustainability are reshaping the sector's trajectory. As the UK strives to hit housing targets and upgrade its public assets, developers must take early strategic steps-locking costs, embracing innovation, and upskilling workforces. Modular and green methods, backed by supportive budgeting and regulatory reforms, will be critical levers to drive productivity and environmental outcomes.

Industry Related Reports

India construction market: The Indian construction industry is divided into sectors, including Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction.

Report Overview: https://www.mordorintelligence.com/industry-reports/india-construction-market?utm_source=openpr

Saudi Arabian Construction Market: The report includes an analysis of the Saudi Arabian construction market and segments it by sector: Residential, Commercial, Industrial, Infrastructure (Transportation), and Energy and Utility Construction. Market size and forecasts for each of these segments are presented in terms of value (USD).

Report Overview: https://www.mordorintelligence.com/industry-reports/construction-sector-in-the-kingdom-of-saudi-arabia-industry?utm_source=openpr

China Construction Market: The Chinese construction industry report is segmented by sector, including Residential, Commercial, Industrial, Infrastructure (Transportation), and Energy and Utilities. It provides market size and forecasts in terms of value (USD) for each of these segments.

Report Overview: https://www.mordorintelligence.com/industry-reports/china-construction-market?utm_source=openpr

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This release was published on openPR.