The United Kingdom's building and construction industry has experienced a curious journey over the previous years at the start of the pandemic. The numbers tell a compelling story of growth and stability. With a market size of $495.5 billion in 2022, the sector is gearing up for a projected Annual Average Growth Rate (AAGR) exceeding 2% during the period from 2024 to 2027. The driving forces behind this growth are strategic investments spanning transport, renewable energy, housing, industrial endeavors and telecommunications infrastructure projects.
Within the construction industry, the commercial sector is being affected the most as the construction of leisure and hospitality buildings, outdoor leisure facilities, retail establishments and offices slowed down during the height of the pandemic. As the forecast unfolds, a resurgence is anticipated thanks to an uptick in tourism alongside investments in pivotal projects such as offices, data centers, and stadiums. Despite this restart, the sector's output in 2027 is expected to hover below the levels recorded in 2019. It’s the industrial construction sector that’s poised for transformation as it embraces diverse project types from chemical and pharmaceutical plants to manufacturing and waste processing facilities. A significant catalyst for growth here is the surge in investment within the automobile manufacturing sphere, which aligns with governmental initiatives to promote electric vehicle (EV) usage.
Infrastructure development is seeing a lot of activity as of right now with attention being given to rail, road, and other pivotal projects. The sector's growth trajectory is intricately tied to robust investments in roadways, railways, ports and airports, which outlines a future where the backbone of the nation’s connectivity undergoes significant enhancement. In the pursuit of sustainability, the energy and utilities construction sector takes center stage. Encompassing electricity and power, oil and gas, the sector's expansion targets a wave of projects covering renewable energy, water management, sewage systems and telecommunication projects.