Construction in the United Kingdom (UK) – Key Trends and Opportunities to 2024

Prior to the Coronavirus (COVID-19) outbreak, the UK construction industry had posted growth of 1.8% for 2019 in real terms. However, with disruptions caused by the COVID-19 outbreak and the subsequent lockdown measures, the industry was severely impacted in 2020. According to the Office for National Statistics (ONS), the UK construction industry contracted by 12.5% year on year (YoY) in the third quarter of 2020 (the latest data available at the time of writing), following Y-o-Y declines of 38.2% in Q2 and 4.0% in Q1 2020.

Reflecting the disruptions caused by the pandemic, coupled with the weak outlook for economic growth, GlobalData forecasts the construction industry to contract by 15.1% in 2020, and although the industry will grow by 6.8% in 2021, it will struggle over the forecast period to return to pre-COVID-19 output levels in real terms. The construction industry is likely to be constrained by the wider economic impact of the COVID-19 pandemic, and by a potentially less favorable trading environment once the UK leaves the EU.

Despite the challenges, over the remaining part of the forecast period, the industry’s output will be supported by investments in infrastructure, residential and renewable energy projects. Key plans include Highways England’s Road Investment Strategy 2 (RIS2), which started operating from April 2020, and will run until March 2025 with a total budget of GBP27.4 billion (US$32.7 billion), and the GBP25 billion (US$29.9 billion) investment program of Ofgem, the country’s energy regulator, to transform Britain's gas and electricity transmission network over the next five years.

This report provides detailed market analysis, information, and insights into the UK construction industry, including –

– The UK construction industry's growth prospects by market, project type and construction activity

– Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the UK construction industry

– Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in the UK. It provides –

– Historical (2015-2019) and forecast (2020-2024) 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.

– Assess business risks, including cost, regulatory and competitive pressures.

– Evaluate competitive risk and success factors.

Table of Contents

Table of Contents

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 COVID-19 Status

4 Construction Outlook

4.1 All Construction

4.2 Commercial Construction

4.3 Industrial Construction

4.4 Infrastructure Construction

4.5 Energy and Utilities Construction

4.6 Institutional Construction

4.7 Residential Construction

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 GlobalData Construction

List of Tables

List of Tables

Table 1: Construction Industry Key Data

Table 2: The UK, Key Economic Indicators

Table 3: The UK, Commercial Construction Output by Project Type (real % change), 2015-2024

Table 4: The UK, Top Commercial Construction Projects by Value

Table 5: The UK, Industrial Construction Output by Project Type (real % change), 2015-2024

Table 6: The UK, Top Industrial Construction Projects by Value

Table 7: The UK, Infrastructure Construction Output by Project Type (real % change), 2015-2024

Table 8: The UK, Top Infrastructure Construction Projects by Value

Table 9: The UK, Energy and Utilities Construction Output by Project Type (real % change), 2015-2024

Table 10: The UK, Top Energy and Utilities Construction Projects by Value

Table 11: The UK, Institutional Construction Output by Project Type (real % change), 2015-2024

Table 12: The UK, Top Institutional Construction Projects by Value

Table 13: The UK, Residential Construction Output by Project Type (real % change), 2015-2024

Table 14: The UK, Top Residential Construction Projects by Value

Table 15: The UK, Key Contractors

Table 16: The UK, Key Consultants

Table 17: The UK, Construction Output Value (Real, US$ Million)

Table 18: The UK, Construction Output Value (Nominal, GBP Million)

Table 19: GlobalData Construction Market Definitions

List of Figures

List of Figures

Figure 1: Western Europe, Construction Output (real % change), 2020

Figure 2: The UK, Construction Projects Pipeline by Sector (US$ Billion)

Figure 3: The UK, COVID-19 Confirmed Cases

Figure 4: The UK, Construction Output Value (Real, US$ billion, 2017 prices and exchange rate), 2015-2024

Figure 5: The UK, Construction Output Value, by Sector (Real, US$ Million), 2015-2024

Figure 6: The UK, Construction Value-Add (GBP Million, constant prices)

Figure 7: The UK, New Orders for Construction (GBP Million, constant prices)

Figure 8: The UK, Construction Projects Momentum Index

Figure 9: The UK, Commercial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 10: The UK, Commercial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 11: The UK, New Orders for Private Commercial Construction (GBP Million, constant prices)

Figure 12: The UK, Average Retail Sales Index (2016=100)

Figure 13: The UK, Accommodation and Food Services Value-Add (GBP Million, constant prices)

Figure 14: The UK, Industrial Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 15: The UK, Industrial Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 12: The UK, New Orders for Private Industrial Construction (GBP Million, constant prices)

Figure 17: The UK, Total Merchandise Export (GBP Million)

Figure 18: The UK, Manufacturing Production Index

Figure 19: The UK, Infrastructure Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 20: The UK, Infrastructure Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 21: The UK, New orders for infrastructure construction (GBP Million, constant prices)

Figure 22: The UK, Energy and Utilities Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 23: The UK, Energy and Utilities Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 24: The UK, Institutional Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 25: The UK, Institutional Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 26: The UK, Residential Construction Output by Project Type (Real, US$ Million), 2015-2024

Figure 27: The UK, Residential Construction Projects Pipeline, Value by Stage (US$ Million)

Figure 28: The UK, New orders for housing construction (GBP Million, constant prices)

Figure 29: The UK, Real Estate Value-Add (GBP Million, constant prices)

Figure 30: The UK, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 31: The UK, Headquarters of Key Consultants (% of Total Project Pipeline)

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