UK Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026 - 2031)

According to Mordor Intelligence, the UK construction market size is USD 325.33 billion in 2026 and is forecast to reach USD 391.45 billion by 2031 at a 3.77% CAGR.

This report is Segmented by Sector (Residential, Commercial, Infrastructure), by Construction Type (New Construction, Renovation), by Construction Method (Conventional On-Site, Modern Methods of Construction), by Investment Source (Public, Private), and by Geography (England, Scotland, Wales, Northern Ireland). The Market Forecasts are Provided in Terms of Value (USD).

UK Construction Market Trends and Insights

Chronic Housing Shortfall Pushing Residential Starts

Housing demand remains elevated relative to supply capacity, with household formation and urban regeneration priorities putting attention on mixed-tenure delivery and brownfield land. Planning performance and infrastructure servicing shape the pace of starts, while fire safety remediation and quality standards influence design choices and project sequencing. Homes England programs and local authority partnerships provide routes for enabling works, site assembly, and affordable tenures, which support throughput where consents are granted. Build-to-rent and later living continue to draw institutional capital that values stable yields and operational platforms. The pressure on supply continues to direct the UK construction sector toward scalable solutions and platform-based delivery for repeatable housing types.

Government Mega-Projects (HS2, RIS2) Boosting Civil-Engineering Backlog

Large transport and enabling works continue to anchor civil engineering workloads in 2026, with HS2 works in the south, strategic road upgrades, and associated station and regeneration sites shaping contractor backlogs. Program governance and information requirements promote higher digital maturity and emphasize safety, tracing, and material provenance. Government clients maintain standardized procurement and delivery protocols that favor teams with integrated design, construction, and manufacturing capability. The resulting pipeline supports multi-year resourcing, fleet investment, and supplier development to meet repeatable work packages. This driver reinforces the UK construction market's focus on predictable throughput and outcome-based performance.

Skilled-Labour Shortage and Aging Workforce

Persistent skills gaps restrict delivery capacity, especially in qualified trades, site supervision, digital engineering, and building control. Training programs expand, yet experience profiles take time to rebalance, and competition for specialist roles raises cost and delivery risk. Productivity tools and standardized design reduce pressure, but certain projects still require rare skills and accreditation, which are difficult to scale quickly. Public bodies and industry groups call for apprenticeships and mid-career transition pathways, with a focus on modern methods and digital competencies. The constraint continues to shape tendering strategies and workforce planning across the UK construction market.

Other drivers and restraints analyzed in the detailed report include:

1. Net-Zero 2050 Targets Stimulating Green Retrofit Demand
2. Off-Site and Modular Building Uptake Post-Building Safety Act
3. Lengthy Planning and Permitting Timelines

For complete list of drivers and restraints, kindly check the Table Of Contents.

Segment Analysis

Residential leads the sector composition with a 38.10% contribution in 2025, supported by demand for urban living, mixed-tenure delivery, and quality upgrades of the existing stock. Institutional capital continues to prioritize build-to-rent and later living formats with operational stability. Design and productization enable platform-build approaches that improve predictability, safety, and cost. Local authorities and Homes England programs enhance site assembly and affordable delivery pipelines, with a focus on quality and build safety. The UK construction market supports these requirements with standardized components, strong digital records, and assured building control compliance.

Infrastructure is the fastest-growing sector through 2031, reflecting strategic road renewals, station and urban realm upgrades, and enabling works for energy and utility networks. Contractors deploy integrated teams that combine civils, structures, and M&E to deliver complex staging around live operations. Information management and asset data handover are critical to lifecycle performance targets set by public clients. Skills and plant strategy align to tunneling, earthworks, and large structures where delivery risk is highest. The UK construction market, therefore, concentrates resources where civil engineering programs require proven multidisciplinary capabilities.

New construction holds the largest share in 2025 at 55.10%, reflecting live residential schemes, commercial repurposing, and strategic infrastructure packages. New build supports modern specifications for energy performance, fire safety, and digital documentation across asset types. Platform kits and off-site systems are applied where they reduce rework and accelerate commissioning without compromising safety. Contractors mix traditional trades with factory-enabled solutions based on site conditions and client objectives. This balanced model sustains throughput across the UK construction market.

Renovation records the fastest projected growth to 2031 as owners and public bodies target decarbonization, remediation, and longevity of existing assets. Programs in schools, hospitals, and local authority estates scale energy upgrades and safety improvements. Digital surveys, point-cloud models, and asset information requirements guide interventions and reduce risk during work on occupied buildings. Contractors combine building fabric upgrades with services modernization, controls, and heat decarbonization options. This renovation wave extends the service life of assets and shifts resources within the UK construction market to retrofit capabilities.

Complete Report Scope:

• By Sector
  • Residential
    • Apartments/Condominiums
    • Villas/Landed Houses
  • Commercial
    • Office
    • Retail
    • Industrial and Logistics
    • Others
  • Infrastructure
    • Transportation Infrastructure (Roadways, Railways, Airways, others)
    • Energy & Utilities
    • Others
• By Construction Type
  • New Construction
  • Renovation
• By Construction Method
  • Conventional On-Site
  • Modern Methods of Construction (Prefabricated, Modular, etc)
• By Investment Source
  • Public
  • Private
• By Geography
  • England
  • Scotland
  • Wales
  • Northern Ireland

List of Companies Covered in this Report:

1. Balfour Beatty
2. Kier Group
3. Morgan Sindall Group
4. Laing O'Rourke
5. ISG
6. Skanska UK
7. BAM Construct UK
8. Bouygues UK
9. Willmott Dixon
10. Wates Group
11. Galliford Try
12. Sir Robert McAlpine
13. Mace Group
14. Multiplex
15. Costain Group
16. VINCI Construction UK (incl. Taylor Woodrow)
17. Ferrovial Construction UK
18. Lendlease Europe (UK)
19. John Sisk & Son (UK)
20. Barratt Developments
21. Persimmon
22. Taylor Wimpey
23. Vistry Group
24. Berkeley Group

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support