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UK Construction Market (2026-2031) - UK Construction Market to Reach USD 391.45 Billion by 2031 as Housing, Infrastructure and Retrofit Investment Accelerate

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BBY Balfour Beatty is listed as a key company within the UK construction market analysis, which is projected to grow. The article does not provide specific sentiment towards Balfour Beatty itself, but its inclusion suggests relevance to the market trends discussed. BAM BAM Construct UK is listed as a key company in the UK construction market analysis. The article discusses positive market trends like infrastructure development and renovation demand, which are relevant to BAM, but provides no direct sentiment for the company. MPX Multiplex is mentioned as a key company in the UK construction market report. The article outlines market growth drivers such as infrastructure programmes and housing demand, which are relevant to Multiplex, but offers no specific sentiment for the company. COST Costain Group is listed as a key company in the UK construction market analysis. The article discusses positive market trends like infrastructure development and renovation demand, which are relevant to Costain Group, but provides no direct sentiment for the company. FER Ferrovial Construction UK is listed as a key company within the UK construction market analysis. The article discusses positive market trends like renovation and green retrofit demand, which are relevant to Ferrovial, but provides no direct sentiment for the company. PSN Persimmon is listed as a key company within the UK construction market analysis. The article discusses positive market trends like renovation and green retrofit demand, which are relevant to Persimmon, but provides no direct sentiment for the company. TW Taylor Wimpey is mentioned as a key company in the UK construction market report. The article outlines market growth drivers such as infrastructure programmes and housing demand, which are relevant to Taylor Wimpey, but offers no specific sentiment for the company. BGL Berkeley Group is identified as a key company in the UK construction market report. The article highlights market growth drivers such as housing demand and infrastructure projects, which are relevant to Berkeley Group, but does not express a specific sentiment towards the company.

UK Construction Market (2026-2031) - UK Construction Market to Reach USD 391.45 Billion by 2031 as Housing, Infrastructure and Retrofit Investment Accelerate Dublin, Sept. 28, 2026 (GLOBE NEWSWIRE) -- "UK Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The UK construction market is valued at USD 325.33 billion in 2026 and is forecast to reach USD 391.45 billion by 2031, expanding at a compound annual growth rate of 3.77%. Market growth is being supported by sustained housing demand, major transport and civil engineering programmes, energy-efficiency upgrades, urban regeneration and increased adoption of modern construction methods.

Housing Shortfall Supports Residential Construction

The persistent gap between housing demand and available supply continues to influence residential construction across the UK. Household formation, urban regeneration priorities and demand for mixed-tenure developments are increasing attention on brownfield sites and scalable housing delivery. Planning performance, infrastructure availability, fire safety requirements and building quality standards remain important factors affecting project timelines.

Homes England initiatives and local authority partnerships are helping facilitate enabling works, site assembly and affordable housing delivery. Build-to-rent and later-living developments also continue to attract institutional investment, supported by demand for stable income and professionally managed residential assets. These trends are encouraging greater use of standardised designs, repeatable housing platforms and off-site manufacturing.

Major Infrastructure Programmes Strengthen Civil Engineering Backlogs

Large transport, road and urban regeneration projects are expected to sustain civil engineering activity through the forecast period. HS2-related works in southern England, strategic road upgrades, station improvements and associated regeneration schemes are supporting multi-year contractor backlogs and investment in equipment, skills and supply chain capacity.

Public-sector procurement requirements are also driving higher levels of digital maturity, safety oversight, information management and material traceability. Contractors with integrated design, construction and manufacturing capabilities are well positioned to secure repeatable work packages and deliver complex infrastructure programmes. Energy and utility network upgrades provide an additional source of long-term construction demand.

Skills Shortages Remain a Key Market Constraint

Shortages of qualified tradespeople, site supervisors, digital engineering specialists and building control professionals continue to restrict delivery capacity. An ageing workforce and strong competition for specialist roles are increasing project costs and execution risks. Apprenticeships, mid-career transition programmes and training focused on modern construction methods are expanding, although rebuilding experience across the workforce will require sustained investment.

Contractors are responding by adopting productivity tools, digital workflows, standardised designs and factory-enabled construction. However, projects requiring specialist accreditation or rare technical expertise remain particularly exposed to labour constraints. Lengthy planning and permitting timelines also continue to affect the pace of development.

Residential Construction Retains the Largest Sector Share

Residential construction accounted for 38.10% of the market in 2025, supported by demand for urban housing, mixed-tenure communities and upgrades to existing homes. Build-to-rent and later-living projects remain attractive to institutional investors, while platform-based design and standardised components are improving cost control, safety and delivery predictability.

Infrastructure is forecast to be the fastest-growing sector through 2031. Strategic road renewals, station upgrades, public-realm improvements and energy and utility projects are increasing demand for contractors with expertise across civil engineering, structures and mechanical and electrical systems. Digital asset information and lifecycle performance requirements are becoming central to public infrastructure delivery.

Renovation and Green Retrofit Demand Accelerate

New construction represented 55.10% of the UK construction market in 2025, reflecting active residential developments, commercial projects and strategic infrastructure packages. New-build schemes increasingly incorporate stronger energy-performance standards, enhanced fire safety measures and comprehensive digital documentation. Conventional on-site construction continues to be combined with prefabricated and modular systems where these approaches can reduce rework and accelerate completion.

Renovation is expected to record the fastest growth through 2031 as property owners and public bodies prioritise decarbonisation, safety remediation and asset longevity. Schools, hospitals, housing estates and commercial properties are generating demand for building-fabric improvements, modernised services, advanced controls and low-carbon heating solutions. Digital surveys, point-cloud modelling and structured asset information are also helping contractors manage risks in occupied buildings.

The UK's net-zero 2050 objectives are expected to strengthen demand for energy-efficient retrofit programmes, while regulatory changes are supporting greater adoption of off-site and modular construction. Together, housing investment, infrastructure development and the modernisation of existing assets are positioning the UK construction market for steady growth through 2031.

Key Topics Covered:

1 Introduction

1.1 Study Assumptions & Market Definition

1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape

4.1 Market Overview

4.2 Market Drivers

4.2.1 Government mega-projects (HS2, RIS2) boosting civil-engineering backlog

4.2.2 Chronic housing shortfall pushing residential starts

4.2.3 Net-Zero 2050 targets stimulating green retrofit demand

4.2.4 Off-site & modular building uptake post-Building Safety Act

4.2.5 Infrastructure secondary-market M&A by global PE & pension funds

4.2.6 Digital-twin adoption improving project delivery efficiency

4.3 Market Restraints

4.3.1 Skilled-labour shortage & ageing workforce

4.3.2 Material-price volatility & supply-chain disruption

4.3.3 Lengthy planning & permitting timelines

4.3.4 Cyber-security risks in BIM-centric projects

4.4 Value / Supply-Chain Analysis

4.4.1 Overview

4.4.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights

4.4.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights

4.4.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights

4.5 Government Initiatives & Vision

4.6 Regulatory Landscape

4.7 Technological Outlook

4.8 Industry Attractiveness - Porter's Five Force Analysis

4.8.1 Threat of New Entrants

4.8.2 Bargaining Power of Suppliers

4.8.3 Bargaining Power of Consumers

4.8.4 Threat of Substitutes

4.8.5 Intensity of Competitive Rivalry

4.9 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis

4.10 Comparison of Key Industry Metrics of the United Kingdom with Other Countries

4.11 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)

5 Market Size & Growth Forecasts (Value, In USD Billion)

5.1 By Sector

5.1.1 Residential

5.1.1.1 Apartments/Condominiums

5.1.1.2 Villas/Landed Houses

5.1.2 Commercial

5.1.2.1 Office

5.1.2.2 Retail

5.1.2.3 Industrial and Logistics

5.1.2.4 Others

5.1.3 Infrastructure

5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)

5.1.3.2 Energy & Utilities

5.1.3.3 Others

5.2 By Construction Type

5.2.1 New Construction

5.2.2 Renovation

5.3 By Construction Method

5.3.1 Conventional On-Site

5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)

5.4 By Investment Source

5.4.1 Public

5.4.2 Private

5.5 By Geography

5.5.1 England

5.5.2 Scotland

5.5.3 Wales

5.5.4 Northern Ireland

6 Competitive Landscape

6.1 Market Concentration

6.2 Strategic Moves

6.3 Market Share Analysis

6.4 Company Profiles {(includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Market Rank/Share for key companies, Products & Services, and Recent Developments)}

6.4.1 Balfour Beatty

6.4.2 Kier Group

6.4.3 Morgan Sindall Group

6.4.4 Laing O'Rourke

6.4.5 ISG

6.4.6 Skanska UK

6.4.7 BAM Construct UK

6.4.8 Bouygues UK

6.4.9 Willmott Dixon

6.4.10 Wates Group

6.4.11 Galliford Try

6.4.12 Sir Robert McAlpine

6.4.13 Mace Group

6.4.14 Multiplex

6.4.15 Costain Group

6.4.16 VINCI Construction UK (incl. Taylor Woodrow)

6.4.17 Ferrovial Construction UK

6.4.18 Lendlease Europe (UK)

6.4.19 John Sisk & Son (UK)

6.4.20 Barratt Developments

6.4.21 Persimmon

6.4.22 Taylor Wimpey

6.4.23 Vistry Group

6.4.24 Berkeley Group

7 Market Opportunities & Future Outlook

7.1 White-space & unmet-need assessment

For more information about this report visit https://www.researchandmarkets.com/r/inlfw0

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