UK Architectural, Engineering, And Construction Services Market Size, Share & Trends Analysis Report By Service, By Sector, By Transportation Infrastructure, By Real Estate, And Segment Forecasts, 2025 - 2030

Market Size & Trends

The UK architectural, engineering, and construction services market size was estimated at USD 5.92 billion in 2024 and is anticipated to grow at a CAGR of 16.2% from 2025 to 2030. One of the primary growth drivers is the increasing demand for sustainable and energy-efficient buildings, fueled by stringent government regulations and a growing emphasis on reducing carbon emissions. Policies such as the Future Homes Standard and the push for net-zero carbon targets by 2050 are encouraging the adoption of green building practices, boosting demand for innovative architectural, engineering, and construction (AEC)  services that incorporate renewable energy solutions, smart technologies, and sustainable materials.

Moreover, the surge in infrastructure development across the UK, supported by both public and private investments, is also supporting the UK architectural, engineering, and construction (AEC) services industry. Large-scale projects such as HS2, Thames Tideway Tunnel, and various urban regeneration initiatives are creating substantial opportunities for AEC firms. The government’s commitment to upgrading transport networks, healthcare facilities, and residential housing to address population growth and urbanization further propels market expansion. In addition, the increasing adoption of digital technologies like Building Information Modeling (BIM), artificial intelligence (AI), and modular construction techniques is enhancing efficiency, reducing costs, and accelerating project timelines, making AEC services more attractive to developers and investors.

Government-backed initiatives and policies aimed at revitalizing infrastructure are another key growth driver for the AEC market. Many governments are launching large-scale construction projects to modernize aging infrastructure, such as roads, airports, and public transportation systems. Public-private partnerships (PPPs) are also becoming more common, with governments offering incentives and funding for construction companies to participate in major development projects.

The post-pandemic recovery and the rising need for flexible, adaptive spaces are contributing to market growth. The shift toward hybrid work models has increased demand for retrofitting offices and commercial buildings, while the housing shortage continues to drive residential construction. Foreign direct investment (FDI) in UK real estate and infrastructure projects also plays a crucial role, as international investors seek stable, high-return opportunities in the country’s AEC sector. These combined factors ensure sustained growth and innovation in the UK’s AEC services market in the coming years.

Service Insights

The digital services segment accounted for the largest market share of over 47.0% in 2024, driven by technological advancement, regulatory mandates, and the increasing demand for efficiency and sustainability across infrastructure and building projects. The widespread adoption of Building Information Modeling (BIM), especially following the UK government's mandate requiring BIM Level 2 for all public sector construction projects, is driving the market growth. This has accelerated the shift toward digitized design and collaboration, enabling architects, engineers, and contractors to coordinate more effectively while reducing errors and rework.

The city planning services segment is anticipated to grow at a CAGR of 20.1% during the forecast period. Government initiatives and funding programs aimed at levelling up underserved regions and revitalizing town centers are also propelling the city planning segment forward. Projects such as the UK's Levelling Up Fund and regional development plans require multidisciplinary planning expertise to align infrastructure upgrades with broader economic and community objectives. In particular, planners are playing a critical role in ensuring that new developments meet accessibility standards, integrate with public transportation networks, and support inclusive growth.

Sector Insights

The real estate segment accounted for the largest revenue share of over 19.0% in 2024, driven by evolving consumer preferences, shifts in work patterns, and increased investment in both residential and commercial properties. A major growth catalyst is the post-pandemic transformation in how people live and work, which has spurred demand for flexible housing solutions, home offices, and high-quality suburban developments. This shift is prompting real estate developers to partner with AEC firms to design and construct spaces that are adaptable, energy-efficient, and aligned with modern lifestyles.

The data centers segment of the UK architectural, engineering, and construction services industry is anticipated to grow at a significant CAGR over the forecast period. As organizations across sectors increasingly shift to cloud-native architectures and remote operations, the need for highly secure, scalable, and energy-efficient data centers has intensified. This surge in digital demand is prompting hyperscale and colocation providers to rapidly expand their physical infrastructure, creating substantial opportunities for AEC firms specializing in mission-critical facility design and construction.

Transportation Infrastructure Insights

The highways segment accounted for the largest market share of over 39.0% in 2024, driven by the government’s long-term infrastructure investment strategies and the need to upgrade aging transport networks. The Road Investment Strategy (RIS) program, spearheaded by National Highways, which outlines multi-year plans for enhancing motorways and major roads across the country, is contributing to the growth of the UK AEC services industry. This initiative commits to improving connectivity, reducing congestion, and boosting safety, leading to a surge in demand for AEC services related to road design, engineering, and construction.

The aviation segment of the UK architectural, engineering, and construction market is anticipated to grow at a significant CAGR over the forecast period, owing to the long-term planning and modernization initiatives being undertaken by major airports such as Heathrow, Gatwick, Manchester, and Stansted. These projects involve terminal expansions, runway enhancements, and logistics hub developments, all of which require sophisticated AEC services for planning, structural design, systems integration, and project management.

Real Estate Insights

The commercial segment accounted for the largest revenue share of over 53.0% in 2024, due to the increase in foreign direct investment in commercial real estate, particularly in high-demand cities such as London, Birmingham, and Edinburgh. International investors are targeting the UK for its regulatory transparency, property rights security, and stable market fundamentals. These capital flows are fueling new developments and redevelopment projects, especially in central business districts and emerging tech corridors, thereby creating sustained opportunities for AEC service providers.

The residential segment is anticipated to grow at a significant CAGR over the forecast period, owing to the resurgence of institutional investment in real estate, particularly in the Build-to-Rent (BTR), student accommodation, and senior living sectors. These asset classes are gaining traction due to their long-term income potential and rising demand across demographics. To capitalize on this, developers are increasingly relying on AEC services to deliver large-scale, purpose-built properties that meet stringent regulatory and design standards, while also offering enhanced amenities and community-focused features.

Key UK Architectural, Engineering, And Construction Services Company Insights

Key players operating in the UK AEC services industry are Balfour Beatty, Arup, WSP, Laing O’Rourke, and Mott MacDonald. Companies are focusing on various strategic initiatives, including new product development, partnerships & collaborations, and agreements to gain a competitive advantage over their rivals. The following are some instances of such initiatives.

• In March 2025, Laing O’Rourke and the Ellison Institute of Technology (EIT) signed a contract for the construction of a state-of-the-art research and development facility in Oxford. This new center is expected to feature advanced education and research spaces, an oncology and wellness clinic, immersive art experiences, and specially designed wellness gardens aimed at enhancing interaction between patients and researchers to promote well-being.

• In October 2024, a consortium comprising Arup, Energy Systems Catapult, Electron, and other partners launched a new initiative aimed at enhancing the flexibility of the UK’s energy system through advanced digital solutions. The project focuses on integrating and developing three key digital components designed to help both organizations and consumers optimize their energy flexibility and participate more effectively across multiple energy markets.

UK Architectural, Engineering, And Construction Services Market Report Scope

UK Architectural, Engineering, And Construction Services Market Report Segmentation

This report forecasts revenue growth at the country level and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the UK architectural, engineering, and construction services market report based on service, sector, transportation infrastructure, and real estate:

• Service Outlook (Revenue, USD Million, 2018 - 2030)

  • Digital Services

  • Sustainability Services

  • Technical Engineering

  • City Planning Services

  • Built Environmental Advisory

• Sector Outlook (Revenue, USD Million, 2018 - 2030)

  • Energy

  • Water & Environment

  • Resources

  • Transportation Infrastructure

  • Real Estate

  • Data Centers

  • Science & Technology

  • Healthcare

  • Others

• Transportation Infrastructure Outlook (Revenue, USD Million, 2018 - 2030)

  • Highways

  • Rail

  • Aviation

  • Maritime

• Real Estate Outlook (Revenue, USD Million, 2018 - 2030)

  • Commercial

  • Residential

  • Others