Discover the latest trends and statistics in the UK Schools, Universities, and Hospitals construction market with our in-depth market report. Our report provides a comprehensive five-year-outlook for the industry, including market size and market segmentation, alongside an expert analysis of the UK construction market for schools, universities, and hospitals. Read on to discover more about our insights.
UK Construction Industry – Market Overview
In 2022, the UK market for new construction of schools, universities and health facilities rose by an estimated 4.7% to £11.9 billion. However, as the UK construction industry continues to grapple with cost inflation and skills shortages this is likely to curtail growth in the near term.
- UK Construction Market Segmentation: Public sector accounted for 57% of new construction of schools, universities, and hospitals in 2022.
UK Healthcare Construction Market Size
Current data for 2022 indicates a 19% increase in new healthcare construction output in 2022, taking output to £3.5 billion. Recent growth was driven by public work.
UK Education Construction Market Size
Construction activity in the education sector has been subdued over the last three years. Available data for 2022 shows that output declined marginally to £8.4 billion. However, the government’s 10-year-school-rebuilding programme, announced in 2020, is expected to be a key driver over the coming years.
To discover more in-depth statistics and analysis of the healthcare and education construction markets, purchase our full report.
UK Construction Market Outlook
Future schools, hospitals, and universities construction projects will see a significant focus on sustainability and energy efficiency in order to meet clients’ sustainability targets and support the UK’s progress towards Net Zero by 2050. The increased focus on sustainability will require considerable investment in skills and employment in the construction industry.
Read on to discover more about our Schools, Universities, and Hospitals Market Report, learn more about the wider industry with our UK construction market report, or take a look at our other Industrial Market Research.
Quickly Understand
- Market sizes and segmentations of the schools, universities and hospitals construction market.
- Summaries of estates, and funding channels for capital works for schools, universities and hospitals.
- Key drivers for construction activity.
- Current challenges facing the schools, universities and hospitals construction market.
- A review of industry structure and recent company activity, performance and strategy.
Leading Construction Companies Covered in this Report
Balfour Beatty, Galliford Try, Kier Group, Skanska UK, Wilmott Dixon.
Expert Analysis from a Specialist in the Field
This report, written by Claudia Preedy, a leading analyst in the industrial sector, delivers in-depth commentary and analysis to highlight current trends in the UK construction market and add expert context to the numbers.
Across public build projects there will be a wider adoption of modern methods of construction to reduce on-site disruption, increase efficiencies and speed up the site programme. Future projects will also see a significant focus on decarbonisation and energy efficiency in order to meet clients’ sustainability targets and support the UK’s progress towards Net Zero by 2050. This will require considerable investment in skills and employment in the construction industry to make the move to Net Zero possible.
Claudia Preedy
Principal Analyst
Collapse All
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Overview
- Key issues covered in this Report
- Covered in this Report
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Executive Summary
- The five-year outlook for UK schools, universities and hospitals construction
- Figure 1: The five-year outlook for schools, universities and hospitals construction, 2023-28
- The market
- New construction activity not yet recovered to pre-COVID-19 levels
- Figure 2: UK market for new construction of schools, colleges, universities and health facilities (£bn), 2018-22
- Public sector accounts for 57% of new construction output in 2022
- Figure 3: UK market for new construction of schools, universities and hospitals, by activity (£bn), 2018-22
- Education sector
- Figure 4: UK market for new construction, education segment, by activity (£n), 2018-22
- Hospitals
- Companies and brands
- Industry structure
- Framework popularity persists
- The five-year outlook for UK schools, universities and hospitals construction
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Issues and Insights
- Decarbonisation agenda to play central role in new-build projects
- Wider adoption of Modern Methods of Construction expected
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Market Size and Performance
- The five-year outlook for UK schools, universities and hospitals construction
- Figure 5: The five-year outlook for schools, universities and hospitals construction, 2023-28
- New construction activity not yet recovered to pre-COVID-19 levels
- Figure 6: UK market for new construction of schools, colleges, universities and health facilities (£bn), 2018-22
- Wider adoption of MMC
- Focus in sustainability and decarbonisation
- The five-year outlook for UK schools, universities and hospitals construction
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Market Segmentation
- Education sector shows strongest decline in construction activity
- Figure 7: UK market for new construction of schools, universities and hospitals, by activity (£bn), 2018-22
- Education
- Figure 8: UK market for new construction, education segment, by activity (£bn), 2018-22
- School estate
- Figure 9: Schools, by nation and school type (number of schools), 2021/22
- Figure 10: UK schools, by type (number of schools), 2017/18-2021/22
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- Figure 11: Pupils in UK schools, by school type (number of pupils), 2017/18-2021/22
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- Figure 12: UK average number of pupils, by school type (number of pupils per school), 2018/19-2021/22
- University estate
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- Figure 13: UK university estate, by nation (units and hectares), 2021
- Health
- Restrained health funding over past decade has resulted in capital underinvestment in health facilities
- New Hospital Programme plagued by rising costs
- Construction output
- Figure 14: UK market for new construction, health segment, by activity (£bn), 2018-22
- Education sector shows strongest decline in construction activity
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Schools
- Current outlook
- English school estate condition
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- Figure 15: English school estate condition need, by education phase, 2019 (Number, m² and £)
- Figure 16: English school estate condition need, by region, 2019 (Number, m² and £)
- School funding in England
- Basic need funding
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- Figure 17: Basic need funding allocations, England, 2012-23
- Figure 18: Basic need funding allocations, by English region (£m), 2020/21 and 2021/22
- School condition funding
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- Figure 19: English schools capital funding (£m), 2017/18-2022/23
- School condition allocation spending outcomes
- Figure 20: SCA-funded capital spending, by type of work delivered (proportion of total SCA funding), 2018/19
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Universities
- Current outlook
- Figure 21: Top 10 UK universities, by number of overseas students (number of students), 2020/21
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- Figure 22: Higher education student enrolments, by level of study (number of enrolments), 2017/18-2021/22
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- Figure 23: UK universities sector capital expenditure and sources (£000), 2016/17-2020/21
- England
- Scotland
- Figure 24: Scottish Funding Council capital funding allocations, 2017/18-2022/23
- Current outlook
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Hospitals
- Current outlook
- Funding channels and capital expenditure
- England
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- Figure 25: Cost to eradicate backlog maintenance, by risk level (£m at 2021/22 prices), 2020/21 and 2021/22
- Scotland
- Figure 26: Health and social care capital expenditure budget (£m), 2018/19-2023/24
- Summary of estates
- England
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- Figure 27: NHS England estate profile (number of sites), 2020/21 and 2021/22
- Figure 28: Public hospital bed availability in England (number of overnight beds), Q1 2010/11-Q1 2022/23
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- Figure 29: Public hospital bed occupancy in England (%), Q1 2010/11-Q1 2022/23
- Scotland
- Figure 30: NHS Scotland hospital profile (number and area), 2017
- Figure 31: Public hospital bed availability and occupancy in Scotland (number of beds and %), 2012/13-2021/22
- Wales
- Figure 32: Public hospital bed availability and occupancy in Wales (number of beds and %), 2012/13-2021/22
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Industry Structure
- Changes in industry structure
- Figure 33: Analysis of changes in ‘construction of residential and non-residential buildings’ activities (number of outlets and businesses), 2018-22
- Structure by employment
- Figure 34: Analysis of the employment structure of ‘construction of residential and non-residential buildings’ activities (number of outlets), 2021 and 2022
- Structure by turnover
- Figure 35: Analysis of the turnover structure of ‘construction of residential and non-residential buildings’ activities (£000, number of businesses), 2021 and 2022
- Changes in industry structure
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Company Profiles
- Balfour Beatty
- Build to Last programme
- Financial performance
- Figure 36: Financial analysis of Balfour Beatty, 2017-21
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- Figure 37: Turnover analysis of Balfour Beatty, by segment, 2019-21
- Galliford Try
- Strategy
- Recent framework and contract awards in the health and education sectors
- Financial information
- Figure 38: Financial analysis of Galliford Try (£m and %), 2017-21
- Kier Group
- Strategic Review
- Financial performance and outlook
- Figure 39: Financial analysis of Kier Group, 2018-22
- Skanska UK
- Skanska adopts Laser Focus Plan to improve performance and focus on core business
- Skanska sells its infrastructure services arm
- Recent contract wins in the education sector
- Financial performance
- Figure 40: Financial analysis of Skanska UK, 2017-21
- Willmott Dixon
- Recent company activity in education and health sectors
- Financial information
- Figure 41: Financial analysis of Willmott Dixon Construction (£m and %), 2017-21
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Appendix – Data Sources, Abbreviations and Supporting Information
- Abbreviations
- Methodology
- Further sources and contacts
- Trade associations
- Trade magazines
- Trade events
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