UK Construction Industry Report 2025: Output to Register an AAGR of 3.2% Between 2026-2029, Supported by Investments in Infrastructure, Data Centers, Housing, and Renewable Energy Projects - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "The UK Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.

The construction industry in the UK was estimated to grow in real terms by 1.6% in 2025, supported by investments in the commercial and energy sectors, coupled with an improvement in consumer confidence, amid low interest rates.

In November 2025, the Bank of England has maintained the interest rate at 4%, after lowering it from 4.25% in July 2025 to 4% in August 2025. According to the Office for National Statistics (ONS), the total value of construction output grew by 1.3% year-on-year (YoY) in September 2025, following YoY growths of 1.1% in August and 2.1% in July 2025.

Growth in 2025 is also estimated to be supported by allocations under the UK's 2025 Autumn Budget Statement that was released on November 26, 2025, for the Financial Year (FY) 2025-26 (April 6, 2025, to April 5, 2026). Some of the major allocations include GBP203.4 billion ($262 billion) for the health and social care sector, GBP95.2 billion ($122.6 billion) for the Department for Education, GBP8.1 billion ($10.4 billion) for transport sector and GBP1.9 billion ($2.5 billion) for energy security and net zero.

Over the remaining part of the forecast period, the construction industry is expected to register an average annual growth rate of 3.2% between 2026 and 2029, supported by investments in infrastructure, data centers, housing, and renewable energy projects. Under the ''Clean Power 2030 Action Plan'', the government is targeting to generate approximately 95% of the country's electricity consumption from clean energy sources by 2030 and reduce carbon emissions by 80%, compared to 1990 levels, by 2035.

To support this, the local electricity operator Scottish Hydro Electric Transmission (SSEN) is aiming to invest GBP22 billion ($28.3 billion) in developing the transmission lines in Scotland by 2031. In another development, the American technology company Microsoft has pledged in September 2025 to invest GBP22 billion ($30 billion) to build artificial intelligence (AI) infrastructure in the UK by 2028.

Report Scope

• Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in the UK, featuring details of key growth drivers.
• Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
• Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
• Listings of major projects, in addition to details of leading contractors and consultants

Reasons to Buy

• Identify and evaluate market opportunities using our standardized valuation and forecasting methodologies
• Assess market growth potential at a micro-level with over 600 time-series data forecasts
• Understand the latest industry and market trends
• Formulate and validate business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/dp0d2g

About ResearchAndMarkets.com

ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.