Construction Market in the UK: USD 402.5 Billion by 2032, Supported by HS2, RIS3 and Expanding Civil Engineering Backlogs, Says Mordor Intelligence

The UK construction market is growing at a 3.58% CAGR from 2027 to 2032, with England accounting for 79.37% of market revenue in 2026.

Hyderabad, India, Oct. 28, 2026 (GLOBE NEWSWIRE) -- According to Mordor Intelligence, the UK construction market size is valued at USD 325.3 billion in 2026 and is estimated at USD 337.6 billion in 2027, reaching USD 402.5 billion by 2032 at a 3.58% CAGR. In England, public infrastructure programs, home upgrades, and social-housing refurbishment are supporting construction demand. However, skilled-labor shortages and material-cost volatility continue to challenge project delivery. Contractors are increasingly adopting modular construction, standardized designs, and stronger supply-chain planning to improve efficiency and manage project costs. 

United Kingdom Construction Market Growth Drivers 

Persistent housing shortage supporting residential construction 

The ongoing shortage of homes in England is creating a steady pipeline of opportunities for residential construction. Housing supply gaps are encouraging developers to pursue new projects in areas where demand exceeds available stock. Planning policies that recognize unmet housing requirements can further support proposals for new residential schemes. This environment is encouraging housebuilders to focus on locations with clear housing needs, suitable land availability, and stronger prospects for project approvals. 

Rising adoption of off-site and modular construction 

Off-site and modular construction is gaining traction as public-sector buyers seek faster and more flexible ways to deliver buildings. Accessible procurement frameworks are making it easier for organizations across healthcare, education, housing, and local government to source modular solutions. Options such as purchasing, hiring, or leasing also allow buyers to select arrangements based on project duration and operational needs. This is creating opportunities for contractors and modular-building suppliers to support both temporary facilities and longer-term developments. 

Net-zero targets driving demand for green retrofits 

The United Kingdom’s net-zero goals are encouraging social landlords to invest in energy-efficient upgrades across existing housing stock. Government-backed retrofit programs are helping fund improvements such as insulation, heating upgrades, and other measures that can enhance building energy performance. These initiatives are creating additional opportunities for contractors and retrofit specialists, while landlord co-investment is supporting the conversion of funded programs into completed projects. 

Jayveer V, Senior Research Manager, Mordor Intelligence says, “United Kingdom construction market analysis combines current market data with structured industry assessment to provide a consistent view of market size, trends, and competitive developments. Its transparent approach supports informed business decisions and enables meaningful comparison with other industry reports.” 

Key Segments Covered in the United Kingdom Construction Market

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) 
  

By Investment Source 

• Public 

• Private 

Key Construction Sectors Supporting Market Growth 

Residential housing 

Housing shortages, population needs, and demand for new homes are supporting residential construction activity. New housing developments, social-housing projects, and refurbishment of existing properties are creating opportunities for developers and contractors. 

Civil infrastructure 

Government spending on roads, railways, energy, utilities, and other infrastructure projects is supporting civil construction activity. Major infrastructure programs can create longer-term project pipelines and sustain demand for construction services. 

Commercial construction 

Demand for offices, retail spaces, industrial facilities, and logistics properties is contributing to commercial construction activity. Business expansion and the continued need for commercial and logistics facilities can support new developments and upgrades to existing assets.

United Kingdom Construction Market Analysis by Region 

Northern Ireland is expected to be the fastest-growing geography in the UK construction market, supported by increasing infrastructure activity and ongoing development needs. Investment in new assets, repair, and maintenance is creating a broader pipeline for contractors, while upgrades to existing transport and utility networks are generating recurring construction opportunities. This combination of new development and asset renewal is supporting sustained demand across the regional construction sector.

England remains the largest contributor to the United Kingdom construction market, supported by continued public-sector building activity and investment in existing assets. Local-authority spending spans new construction, property conversion, and renovation, creating opportunities for contractors across a broad range of public building requirements. This diverse project mix allows construction companies to participate in both new developments and the improvement of existing facilities.

Scotland and Wales are supporting regional construction activity through affordable-housing investment and social-housing development. Scotland’s multi-year housing pipeline provides contractors with opportunities to align delivery capacity with longer-term projects, while Wales is creating more targeted opportunities through funding agreements with registered social landlords. Together, these initiatives are strengthening demand for affordable housing construction across both regions. 

Access this Report in Japanese: https://www.mordorintelligence.com/ja/industry-reports/united-kingdom-construction-market?utm_source=globenewswire 

Overview – UK Construction Industry 

Key Companies Covered in the UK Construction 

• Balfour Beatty 

• Kier Group 

• Morgan Sindall Group 

• Laing O'Rourke 

• ISG 

• Skanska UK 

• BAM Construct & Ventures UK 

• Bouygues UK 

• Willmott Dixon 

• Wates Group 

• Galliford Try 

• Sir Robert McAlpine 

• Mace Group 

• Multiplex 

• Costain Group 

• VINCI Construction UK (incl. Taylor Woodrow) 

• Ferrovial Construction UK 

• Lendlease Europe (UK) 

• John Sisk & Son (UK)
• Barratt Redrow 

• Persimmon 

• Taylor Wimpey 

• Vistry Group 

• Berkeley Group  

Get in-depth industry insights on the UK construction market research report: https://www.mordorintelligence.com/industry-reports/united-kingdom-construction-market?utm_source=globenewswire 

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About Mordor Intelligence 

Mordor Intelligence is a global market intelligence firm, founded in 2014, helping businesses make informed decisions through data-driven insights, industry expertise, and advanced analytics. With 550+ domain experts and on-ground specialists across 150+ countries, the company delivers comprehensive intelligence across aerospace & defense, agriculture, automation, automotive, chemicals & materials, consumer goods & services, electronics, energy & power, financial services, food & beverages, healthcare, hospitality & tourism, information & communications technology, and logistics. 

Its offerings include syndicated industry reports, custom research and advisory, and subscription platforms such as Synapse, Data Center Intelligence, and Robotics Intelligence. Mordor Intelligence is ISO 9001:2015 and ISO/IEC 27001:2022 certified, a member of ESOMAR and the Market Research Society of India, and a four-time Great Place to Work® honoree. Learn more at mordorintelligence.com. 

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