Industry Statistics and Trends
Market size and recent performance (2016-2031)
Industry revenue has grown at a CAGR of 5.4 % over the past five years, to reach an estimated £4.5bn in 2026.
Trends and Insights
Fixed-price contracts are exacerbating the impact of volatile input costs
- Healthcare construction contractors are contending with volatile and climbing input costs. The Department for Business & Trade found that the material price index for all work rose by 3% in November 2025 compared with November 2024. Disruptions to the supply of key materials have been prevalent, with the Russia-Ukraine war restricting the supply of key metals, like steel, causing their prices to surge over the two years through 2022-23. While steel prices have cooled in recent years, contractors are experiencing elevated costs in other areas, including concrete and sawn wood. Imported sawn or planed wood prices rose 13.1% in the year through September 2025, according to ONS PPI Index data.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2026-2031)
Market size is projected to grow over the next five years.
Trends and Insights
The new 10-Year Health Plan will boost community hub projects
- The healthcare construction industry has a substantial revenue opportunity in expanding community hubs. Community hubs encompass community diagnostic centres (CDCs), neighbourhood health centres (NHCs) and mental health facilities.
Biggest companies in the Healthcare Construction in the UK
| Company | Market Share (%)
2025 | Revenue (£m)
2025 |
|---|---|---|
Kier Group plc | 387.3 | |
Laing O'Rourke plc | 361.4 | |
Balfour Beatty Group Ltd | 265.8 |
To view the market share and analysis for all 5 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including General hospitals, Medical centres and Other facilities. General hospitals is the largest segment of the Healthcare Construction in the UK.
Trends and Insights
A review of the New Hospital Programme slows down general hospital construction
- General hospitals include the construction, renovation and modernisation of acute care facilities that provide comprehensive inpatient and outpatient services. New hospitals are funded by a mix of private and public investment.
- More insights available in the full report
Table of Contents
About this industry
Industry definition
Contractors in this industry are responsible for the new construction, renovation, alteration, maintenance and repair of healthcare buildings and facilities on behalf of private- and public-sector entities. Buildings and facilities relevant to the industry include hospitals, clinics, medical research facilities, welfare centres, rehabilitation centres, hospices and psychiatric homes.
What's included in this industry?
Products and services covered in the Healthcare Construction industry in the United Kingdom include General hospitals, Medical centres and Other facilities.Companies
Companies covered in the Healthcare Construction industry in the United Kingdom include Kier Group plc, Laing O'Rourke plc and Balfour Beatty Group Ltd.Purchase this report to view all 5 major companies in this industry.
Related Terms
Related terms covered in the Healthcare Construction industry in the United Kingdom include private finance initiative (pfi) , public-private partnership (ppp) and national health service (nhs) trust .Industry Code
SIC 41.20/1 - Healthcare Construction in the UK
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
A growing need for maintenance services is providing opportunities for contractors. Rapid deterioration of parts of the NHS's estate is leading to a considerable pipeline in ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2016-2025) and forecast (2026-2031)
- Employees, including historical (2016-2025) and forecast (2026-2031)
- Businesses, including historical (2016-2025) and forecast (2026-2031)
- Profit, including historical (2016-2026)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Revenue from general hospitals is dipping sharply. The delay to a number of projects scheduled to commence in 2025 because of the reset to the New Hospital Programme is drivi...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2026
- Product innovation level
Charts
- Products & services segmentation in 2026
- Major market segmentation in 2026
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
London is home to a number of contractors. Given its prominence in life sciences and the number of key stakeholders located in the capital, it's a popular region among indust...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2026
Tables
- Number and share of establishments in each region in 2026
- Number and share of revenue each region accounts for in 2026
- Number and share of wages each region accounts for in 2026
- Number and share of employees in each region in 2026
Detailed analysis
- Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
The ProCure23 framework keeps the running of major project opportunities a closed shop. ProCure23 is the route to market for NHS capital projects and the framework has a limi...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2021-2026
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Kier has used innovative solutions to build its pipeline in the industry. The company uses live environment animations when bidding for projects to reassure staff of its abil...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2022 through 2026
- Major companies in the industry, including market share, revenue, profit and profit margin in 2026
- Overview of Kier Group plc's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Laing O'Rourke plc's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of Balfour Beatty Group Ltd's performance by revenue, market share and profit margin from 2020 through 2026
- Overview of revenue, market share and profit margin trend for 2 additional companies
Detailed analysis
- Description and key data for Kier Group plc, and factors influencing its performance in the industry
- Description and key data for Laing O'Rourke plc, and factors influencing its performance in the industry
- Description and key data for Balfour Beatty Group Ltd, and factors influencing its performance in the industry
- Description, key data and performance trends for 2 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Regulations uphold building standards and safety. The Building Act 1984 and numerous health and safety regulations reinforce the importance of adhering to safety standards, u...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2016-2031)
- Assistance historical data and forecast (2016-2031)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Industry profit is sinking. The sharp dip in the number of new hospital projects and the expansion of purchase and wage costs are eating into industry profitability.
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
- Investment vs. share of economy
Data tables
- Liquidity Ratios (2020-2024)
- Coverage Ratios (2020-2024)
- Leverage Ratios (2020-2024)
- Operating Ratios (2020-2024)
- Assets (2020-2024)
- Liabilities (2020-2024)
- Cash Flow & Debt Service Ratios (2016-2031)
- Revenue per Employee (2016-2031)
- Revenue per Enterprise (2016-2031)
- Employees per Establishment (2016-2031)
- Employees per Enterprise (2016-2031)
- Average Wage (2016-2031)
- Wages/Revenue (2016-2031)
- Establishments per Enterprise (2016-2031)
- IVA/Revenue (2016-2031)
- Imports/Demand (2016-2031)
- Exports/Revenue (2016-2031)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2016-2031)
- IVA (2016-2031)
- Establishments (2016-2031)
- Enterprises (2016-2031)
- Employment (2016-2031)
- Exports (2016-2031)
- Imports (2016-2031)
- Wages (2016-2031)
Top Questions Answered
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Healthcare Construction industry in the United Kingdom in 2026?
The market size of the Healthcare Construction industry in the United Kingdom is £4.5bn in 2026.
How many businesses are there in the Healthcare Construction industry in the United Kingdom in 2026?
There are 2,759 businesses in the Healthcare Construction industry in the United Kingdom, which has grown at a CAGR of 1.8 % between 2021 and 2026.
How may import tariffs affect the Healthcare Construction industry in the United Kingdom?
The Healthcare Construction industry in the United Kingdom is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.
How may export tariffs affect the Healthcare Construction industry in the United Kingdom?
The Healthcare Construction industry in the United Kingdom is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.
Has the Healthcare Construction industry in the United Kingdom grown or declined over the past 5 years?
The market size of the Healthcare Construction industry in the United Kingdom has been growing at a CAGR of 5.4 % between 2021 and 2026.
What is the forecast growth of the Healthcare Construction industry in the United Kingdom over the next 5 years?
Over the next five years, the Healthcare Construction industry in the United Kingdom is expected to grow.
What are the biggest companies in the Healthcare Construction industry in the United Kingdom?
The biggest companies operating in the Healthcare Construction industry in the United Kingdom are Kier Group plc, Laing O'Rourke plc and Balfour Beatty Group Ltd
What does the Healthcare Construction industry in the United Kingdom include?
General hospitals and Medical centres are part of the Healthcare Construction industry in the United Kingdom.
Which companies have the highest market share in the Healthcare Construction industry in the United Kingdom?
The company holding the most market share in the Healthcare Construction industry in the United Kingdom is Kier Group plc.
How competitive is the Healthcare Construction industry in the United Kingdom?
The level of competition is high and steady in the Healthcare Construction industry in the United Kingdom.
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the UK include:
- Office for National Statistics
- Office for Budget Responsibility
- Bank of England
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
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