DUBLIN--(BUSINESS WIRE)--The "United Kingdom Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional and Infrastructure Construction, Q1 2022 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in the United Kingdom is expected to grow by 14.1% to reach GBP 166,765 million in 2022.
Despite near-term challenges in certain construction sectors, medium to long term growth story in United Kingdom remains intact. The construction industry in the United Kingdom is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 8.1% during 2022-2026. The construction output in the country is expected to reach GBP 227,627.2 million by 2026.
A sharp increase in business activity was seen across all areas of the construction industry, including the residential, commercial, and infrastructure sectors. However, the housebuilding sector remains one of the fastest-growing in the United Kingdom construction industry.
Growth in the housebuilding sector is forecast to be spurred by the stamp duty exemption. Notably, the stamp duty exemption has fueled the demand for housing among buyers in 2021. With the pandemic measures easing and the economy reopening again for business, as usual, the demand is expected to continue in the housing sector over the next four to eight quarters. However, rising costs and material shortages could have a severe impact on the overall projected growth in the residential construction sector in the near term.
Increasing spending on infrastructure projects to boost the industry growth
In September 2021, the government announced the National Infrastructure and Construction Pipeline, thereby setting out a plan for GBP 650 billion of investment in various infrastructure projects over the next ten years. Of these GBP 650 billion, the largest share of investment has been allocated for the transport sector. Notably, the sector is expected to receive nearly ~GBP 68 billion from 2022 to 2025. The energy-related construction projects are expected to account for over ~GBP 50 billion during the same period.
Some of the major infrastructure projects currently undertaken by the United Kingdom also fall within these categories. These projects include the High Speed 2 rail network, the Hinkley Point C nuclear power plant, and the Lower Thames Crossing Road tunnel in London. The National Infrastructure and Construction Pipeline document released by the government states that over ~GBP 29 billion will be given to social and economic projects, which are expected to be launched this year. Notably, these projects are part of the Build Back Better program of the government, which is expected to account for a total investment of ~GBP 195 million.
This increased spending by the government on the infrastructure development projects is expected to support the growth of the industry from the short to medium-term perspective.
Sustainability driven innovation is expected to further boost growth in the construction industry
The UK Green Building Council is promoting a net-zero carbon buildings framework in the country. With this framework in mind, businesses are building new stores that are built using natural or recycled materials. For instance,
- In December 2021, McDonald's announced that the firm had opened UK's first net-zero restaurant building in the country. Notably, the restaurant store is built using natural or recycled materials and is powered by a combination of wind turbines and solar panels.
- Notably, the restaurant has been designed to meet net-zero standards in both its construction as well as its everyday operations. The firm has announced that the net-zero restaurant in the Market Drayton is the first in the country and will be used as a blueprint to build more new net-zero restaurants around the United Kingdom in 2022.
Green construction activities in the country are expected to boost further growth in the overall construction market over the next four to eight quarters in the United Kingdom.
This report provides data and trend analyses on construction industry in the United Kingdom, with over 100 KPIs. This is a data-centric report and it provides trend analyses with over 140+ charts and 110+ tables. It details market size & forecast, emerging trends, market opportunities, and investment risks in over 40 segments in residential, commercial, industrial, institutional, and infrastructure construction sectors.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
For more information about this report visit https://www.researchandmarkets.com/r/185fzw
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