Market Research Report
United Kingdom Construction Market - Growth, Trends, and Forecast (2020 - 2025)
|Published by||Mordor Intelligence LLP||Product code||937900|
|Published||Content info||150 Pages
Delivery time: 2-3 business days
|United Kingdom Construction Market - Growth, Trends, and Forecast (2020 - 2025)|
|Published: May 1, 2020||Content info: 150 Pages||
The United Kingdom Construction Market is estimated to grow at a CAGR of approximately 4% during the forecast period.
In 2018, the construction contributed GBP 117 billion to the UK economy, 6% of the total. Economic output in 2018 was slightly down in 2017, the first fall since 2013. There are 2.4 million construction industry jobs in the UK in Q2 2019, 6.6% of all jobs. There are more construction jobs now than at any time since 2007, although throughout this period, roughly the same proportion of jobs have been in construction. The construction industry is unusual because of the high proportion of self-employment in the sector 36% in Q2 2019, compared to the average for the whole economy of 13%. New orders to the construction industry were worth GBP 61.7 billion in 2017. This is 13% down in 2017, the first fall since 2011. New housing orders accounted for 35% of all construction orders, commercial orders accounted for 25% and infrastructure orders accounted for 19%.
In 2018, new orders to the construction industry were worth GBP 61.7 billion. This is a 13% fall on the value of new orders in 2017. The fall in the value of new orders in 2018 is partly because several high value HS2 contracts were awarded in 2017. This contributed to 2017 having the highest ever new orders value (GBP 71.0 billion), 2018's new orders were also lower than in 2016 and 2015.
Increase in GVA of construction Industry:
In the period of consideration, GVA of the construction industries presented a trend of growth. In 2009, the gross value added decreased to roughly 14%, amounting to 79.54 billion GBP. Since 2010, GVA of the construction industries has seen constant growth, amounting to 112.2 billion GBP as of 2017. Construction is a sector where Britain has a strong competitive edge. The UK has world-class expertise in architecture, design, and engineering, and British companies are leading the way in sustainable construction solutions. Changes in the international economy are creating new opportunities for Britain. To help boost economic recovery, the Government is doing all it can to help British businesses grow and have the aspiration, confidence and drive to compete in the global race. This includes reforming the planning system, ensuring funding is available for key infrastructure projects and supporting the housing market through key initiatives such as the Help-to-Buy Equity Loan Scheme and the Funding for Lending Scheme.
Private Housing Share is the highest in the United Kingdom Construction Industry:
Private housing was the biggest sector within the construction industry. In 2018, it accounted for 22.3% of all construction output. By comparison, public housing only made up 3.7% of the industry and was the second smallest sector. A look at the construction output index for new private housing shows that output has been increasing following the years of the recession and reached a peak in 2018. Private housing and infrastructure sectors remain the primary drivers of industry growth in the coming years. The confirmed extension of the Government's Help to Buy scheme through to March 2023 continues to encourage housebuilding activity, with output forecast to rise and 1% in 2020. The infrastructure sector is expected to reach its highest level on record in the coming years driven by large projects such as HS2, Thames Tideway and Hinkley. There remain concerns, however, about the government's ability to deliver major infrastructure projects, as highlighted by the cost overruns and delays seen most recently on Crossrail, and suspension of the second new power station, Wylfa.
The report covers the major players operating in the United Kingdom Construction Market. The market is Fragmented, the United Kingdom construction market presents opportunities for growth during the forecast period.