UK Architectural, Engineering, And Construction Services Market 2030: Smart Cities and Infrastructure

The UK architectural, engineering, and construction (AEC) services market was valued at USD 5.92 billion in 2024 and is expected to expand at a compound annual growth rate (CAGR) of 16.2% from 2025 to 2030. A key driver behind this growth is the rising demand for sustainable and energy-efficient buildings, spurred by strict government regulations and an increased focus on reducing carbon emissions. Initiatives like the Future Homes Standard and the UK’s commitment to achieving net-zero carbon emissions by 2050 are accelerating the adoption of green building solutions. This trend is fueling demand for innovative AEC services that incorporate renewable energy systems, smart technologies, and environmentally friendly materials.

The ongoing wave of infrastructure development across the UK, supported by both public and private sector investments, is also bolstering the AEC industry. Major projects such as HS2, the Thames Tideway Tunnel, and urban regeneration schemes are providing ample opportunities for growth. Additionally, the government’s focus on enhancing transport networks, healthcare infrastructure, and housing—especially in response to population growth and urbanization—is contributing to market expansion. Technological advancements, including Building Information Modeling (BIM), artificial intelligence (AI), and modular construction techniques, are further increasing operational efficiency, lowering costs, and speeding up project timelines, thereby making AEC services increasingly attractive to investors and developers.

Government-backed infrastructure revitalization programs also play a critical role in the sector’s expansion. Large-scale construction projects aimed at modernizing aging infrastructure—such as roads, public transport, and airports—are underway, often supported through public-private partnerships (PPPs). These collaborations offer financial incentives and encourage private participation in national development efforts.

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Key Market Trends & Insights

• Digital Services: This segment held the largest market share, exceeding 47.0% in 2024. Growth was driven by digital innovation, regulatory compliance, and the need for greater efficiency and sustainability in construction.
• Real Estate: Contributing over 19.0% of total revenue in 2024, this segment grew due to changing lifestyle patterns, increased investments in residential and commercial properties, and a surge in demand for flexible living spaces post-pandemic.
• Highways: The highways segment dominated with a market share of over 39.0% in 2024. This growth was fueled by long-term infrastructure strategies, including the Road Investment Strategy (RIS) spearheaded by National Highways.
• Commercial Sector: Leading the revenue charts with more than 53.0% share in 2024, the commercial segment benefited from rising foreign direct investment, particularly in key cities like London, Birmingham, and Edinburgh. The UK’s transparent regulatory framework and strong property rights continue to attract global investors.

Market Size & Forecast

• Market Size in 2024: USD 5.92 Billion
• Projected Market Size by 2030: USD 14.04 Billion
• CAGR (2025–2030): 16.2%

Key Industry Developments

• Laing O’Rourke & EIT Collaboration: In March 2025, Laing O’Rourke partnered with the Ellison Institute of Technology to construct a state-of-the-art research and development center in Oxford, featuring advanced laboratories, wellness clinics, and immersive environments promoting collaborative innovation.
• Digital Energy System Initiative: In October 2024, Arup, Energy Systems Catapult, Electron, and other partners launched a digital integration initiative aimed at enhancing energy system flexibility. This project is intended to optimize energy use and improve participation in energy markets through advanced digital tools.

Leading Companies in the UK AEC Services Market

• Arcadis
• Arup
• AVEVA Group Plc
• Balfour Beatty
• Kier Group
• Laing O’Rourke
• Morgan Sindall Group
• Mott MacDonald
• Skanska
• WSP

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Conclusion

The UK AEC services market is poised for significant growth, driven by environmental mandates, expansive infrastructure projects, and rapid technological adoption. With a projected market size of USD 14.04 billion by 2030 and a strong CAGR of 16.2%, the sector presents substantial opportunities for stakeholders. Sustainable development goals, public-private collaboration, and digital innovation will continue to shape the market landscape in the years ahead.