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Road & Railway Construction in the UK - Market Size, Industry Analysis, Trends and Forecasts (2025-2029)

John Griffin John Griffin London, United Kingdom Last Updated: June 2025 SIC UK-F421

Revenue

£306.4bn

2025-26

£320.9bn

Past 5-Year Growth

Profit

£XX.Xbn

Employees

2m

Businesses

81,502

Wages

£XX.Xbn

Road & Railway Construction in the UK industry analysis

Construction work on Europe’s extensive transport network is essential to keeping the continent moving. Maintaining and upgrading transport infrastructure in Europe typically falls on the government, with private contractors tendered to carry out necessary works. Strong investment to increase connectivity across the continent has supported construction order books in recent years, though inflationary pressures have threatened growth. Over the five years through 2025, revenue is slated to climb at a compound annual rate of 1.4% to €306.4 billion, including forecast growth of 1.5% in 2025.

Trends and Insights

  • Government funding dictates output. Investment in transport infrastructure has shaped activity, with efforts to expand connectivity across Continental Europe spurring tender opportunities.
  • New cross-border transport connections drive construction activity. Efforts to increase connectivity across the continent have created tender opportunities for road, rail and tunnel construction contractors.
  • The scale of Europe’s transport network ensures opportunities remain for smaller contractors. Smaller contractors account for a significant share of the market, mainly competing for low-value maintenance contracts on local transport networks.
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Top Questions Answered in this Report

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What is the market size of the Road & Railway Construction industry in the United Kingdom in 2025?

The market size of the Road & Railway Construction industry in the United Kingdom is £306.4bn in 2025.

How many businesses are there in the Road & Railway Construction industry in the United Kingdom in 2025?

There are 81,502 businesses in the Road & Railway Construction industry in the United Kingdom, which has grown at a CAGR of 3.6 % between 2020 and 2025.

Has the Road & Railway Construction industry in the United Kingdom grown or declined over the past 5 years?

The market size of the Road & Railway Construction industry in the United Kingdom has been growing at a CAGR of 2.5 % between 2020 and 2025.

What is the forecast growth of the Road & Railway Construction industry in the United Kingdom over the next 5 years?

Over the next five years, the Road & Railway Construction industry in the United Kingdom is expected to grow.

What does the Road & Railway Construction industry in the United Kingdom include?

Road and motorway construction and Railway and underground railway construction are part of the Road & Railway Construction industry in the United Kingdom.

How competitive is the Road & Railway Construction industry in the United Kingdom?

The level of competition is high and steady in the Road & Railway Construction industry in the United Kingdom.

Everything you need in one report

  • Reliable market estimates from 2015-2030
  • Competitive analysis, industry segmentation, financial benchmarks
  • Powerful SWOT, Porter’s Five Forces and risk management frameworks
  • Online membership platform with PDF, Word, Excel and PPT exports

Table of Contents

External Environment

Highlights

Trends
  • Regulation & Policy
  • Assistance

Key Takeaways

Major road and rail building projects must be assessed for their impact on the environment. Major transport construction projects are evaluated based on their impact on a range of environmental factors.

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External Drivers

Analysis

What demographic and macroeconomic factors impact the Road & Railway Construction in the UK industry?

Financial Benchmarks

Highlights

Trends
  • Profit Margin
  • Average Wage
  • Largest Cost

Key Takeaways

Soaring costs hit profitability. A surge in the cost of key construction materials has hit construction order books and eaten into operating profit.

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Cost Structure

Charts
  • Share of Economy vs. Investment Matrix
  • Industry Cost Structure Benchmarks:
    • Marketing
    • Depreciation
    • Profit
    • Purchases
    • Wages
    • Rent
    • Utilities
    • Other
Analysis

What trends impact cost in the Road & Railway Construction in the UK industry?


Key Ratios

Data tables
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)
  • Revenue per Employee (2015-2030)
  • Wages/Revenue (2015-2030)
  • Employees per Establishment (2015-2030)
  • Average Wage (2015-2030)

Country Benchmarks

European Leaders & Laggards

Data Tables

Top and bottom five countries listed for each:

  • Revenue Growth (2025)
  • Business Growth (2025)
  • Job Growth (2025)

European Country Performance

Data Tables

Rankings available for 37 countries. Statistics ranked include:

  • IVA/Revenue (2025)
  • Imports/Demand (2025)
  • Exports/Revenue (2025)
  • Revenue per Employee (2025)
  • Wages/Revenue (2025)
  • Employees per Establishment (2025)
  • Average Wage (2025)

Structural Comparison

Data Tables

Trends in 37 countries benchmarked against trends in Europe

  • Concentration
  • Competition
  • Barriers to Entry
  • Buyer Power
  • Supplier Power
  • Volatility
  • Capital Intensity
  • Innovation
  • Life Cycle

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Methodology

Where does IBISWorld source its data?

IBISWorld is a world-leading provider of business information, with reports on 5,000+ industries in Australia, New Zealand, North America, Europe and China. Our expert industry analysts start with official, verified and publicly available sources of data to build an accurate picture of each industry.

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and IBISWorld's proprietary database of statistics and analysis to provide balanced, independent and accurate insights. 

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