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UK SIC SP0.047 | Industry Report

Healthcare Construction in the UK Industry Data and Analysis

MQ
Matthew Quail
Analyst London, United Kingdom February 2026

The Healthcare Construction industry in the UK has rebounded following the pandemic's disruptive impacts. Revenue is expected to surge at a compound annual rate of 12.8% to £4.5 billion over the five years through 2025-26. A sharp expansion in healthcare construction activity over the period has benefitted the industry. The launch of the New Hospitals Programme in October 2020 has led to an uptick in the number of high-value hospital construction projects contractors are working on, supporting industry revenue. When the programme was announced, 40 hospitals were planned to be built by 2030. Additionally, the NHS's severe backlog of essential repair and maintenance work is creating a high volume of orders for industry contractors.

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What's included in this industry analysis

IBISWorld's research coverage on the Healthcare Construction industry in the United Kingdom includes market sizing, forecasting, data and analysis from 2016-2031. The most recent publication was released February 2026.

About this industry

What's this industry report about?

The Healthcare Construction industry in the United Kingdom operates under the SIC industry code SP0.047. 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. 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 .

What's included in this industry?

Products and services covered in Healthcare Construction industry in the United Kingdom include General hospitals, Medical centres and Other facilities.

What companies are included in this industry?

Companies covered in the Healthcare Construction industry in the United Kingdom include Kier Group plc, Laing O'Rourke plc and Balfour Beatty Group Ltd.

Performance

What's included in the Performance chapter?

The Performance chapter covers detailed analysis, datasets, detailed current performance, sources of volatility and an outlook with forecasts for the Healthcare Construction industry in the United Kingdom.

Questions answered in this chapter include what's driving current industry performance, what influences industry volatility, how do successful businesses overcome volatility, what's driving the industry outlook. This analysis is supported with data and statistics on industry revenues, costs, profits, businesses and employees.

Products & Markets

What's included in the Products and Markets chapter?

The Products and Markets chapter covers detailed products and service segmentation and analysis of major markets for the for the Healthcare Construction industry in the United Kingdom.

Questions answered in this chapter include how are the industry's products and services performing, what are innovations in industry products and services, what products or services do successful businesses offer and what's influencing demand from the industry's markets. This includes data and statistics on industry revenues by product and service segmentation and major markets.

Geographic Breakdown

What's included in the Geographic Breakdown chapter?

The Geographic Breakdown chapter covers detailed analysis and datasets on regional performance of the Healthcare Construction industry in the United Kingdom.

Questions answered in this chapter include where are industry businesses located and how do businesses use location to their advantage. This includes data and statistics on industry revenues by location.

Competitive Forces

What's included in the Competitive Forces chapter?

The Competitive Forces chapter covers the concentration, barriers to entry and supplier and buyer profiles in the Healthcare Construction industry in the United Kingdom. This includes data and statistics on industry market share concentration, barriers to entry, substitute products and buyer & supplier power.

Questions answered in this chapter include what impacts the industry's market share concentration, how do successful businesses handle concentration, what challenges do potential industry entrants face, how can potential entrants overcome barriers to entry, what are substitutes for industry services, how do successful businesses compete with substitutes and what power do buyers and suppliers have over the industry and how do successful businesses manage buyer & supplier power.

Companies

What's included in the Companies chapter?

The Companies chapter covers Key Takeaways, Market Share and Companies in the Healthcare Construction industry in the United Kingdom. This includes data and analysis on companies operating in the industry that hold a market share greater than 5%.

Questions answered in this chapter include what companies have a meaningful market share and how each company is performing.

External Environment

What's included in the External Environment chapter?

The External Environment chapter covers Key Takeaways, External Drivers, Regulation & Policy and Assistance in the Healthcare Construction industry in the United Kingdom. This includes data and statistics on factors impacting industry revenue such as economic indicators, regulation, policy and assistance programs.

Questions answered in this chapter include what demographic and macroeconomic factors impact the industry, what regulations impact the industry, what assistance is available to this industry.

Financial Benchmarks

What's included in the Financial Benchmarks chapter?

The Financial Benchmarks chapter covers Key Takeaways, Cost Structure, Financial Ratios, Valuation Multiples and Key Ratios in the Healthcare Construction industry in the United Kingdom. This includes financial data and statistics on industry performance including key cost inputs, profitability, key financial ratios and enterprise value multiples.

Questions answered in this chapter include what trends impact industry costs and how financial ratios have changed overtime.

Industry Data

What's included in the Industry Data chapter?

The Industry Data chapter includes 10 years of historical data with 5 years of forecast data covering statistics like revenue, industry value add, establishments, enterprises, employment and wages in the Healthcare Construction industry in the United Kingdom.

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Frequently Asked Questions

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 2,725 businesses in the Healthcare Construction industry in the United Kingdom, which has grown at a CAGR of 4.1 % 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 12.8 % 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.

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