Smooth progress: The industry has been buoyed by rising vehicle numbers and government investment

The Road and Motorway Construction industry has a considerable influence on the UK economy, as an efficient UK road network facilitates journeys made by commuters and hauliers. Typically, the government distributes money to agencies such as Highways England and local authorities, which then procure industry contractors to undertake road development projects. In recent years, the government has prioritised spending on transport infrastructure to enhance economic output, buoying industry demand. Additionally, in line with economic recovery, private finance initiatives and public-private partnerships on transport infrastructure projects have increased as the public-sector looks to diversify investment risk. A...read more.

Industry Statistics & Market Size
Revenue
£8.5bn
Annual Growth 15-20
4.1%
Forecast Growth 20-25
Profit
Employment
45,776
Businesses
4,270

Industry Threats & Opportunities

  • Government prioritisation of infrastructure has supported growth over the past five years
  • A number of schemes under the Road Improvement Strategy have been delayed or pushed back
  • Backlogs in road maintenance work are expected to sustain considerable demand over the coming years
  • Industry Report - Industry SWOT Analysis Chapter

    The Road and Motorway Construction industry is in the growth stage of its life cycle. Over the 10 years through 2024-25, industry value added (IVA), which measures the industry's contribution to GDP, is expected to increase at a compound annual rate of 5.4%. Meanwhile, the economy is expected to grow at a compound annual rate of 1.5% over the same period. This means the industry is expected to represent a larger share of the overall UK economy. While demand has increased due to the substantial backlog of maintenance and repairs needed on UK roads, the industry has innovated new technologies, such as smart motorways and connected motorways, which has and will continue to increase demand for industry services in the decade through 2024-25...purchase to read more.

    Additional Insights for the Road & Motorway Construction Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Road & Motorway Construction Industry are

  • Ability to compete on tender
  • Ensuring pricing policy is appropriate
  • Ability to accommodate environmental requirements
  • IBISWorld analysts also discuss how external factors such as Government capital expenditure and Real gross fixed investment in the Road & Motorway Construction industry impact industry performance..

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    What's in this report

    What is the Road & Motorway Construction Industry?

    Industry contractors build, repair and alter motorways, roads, runways and other vehicular and pedestrian routes. The work can be carried out on the operator’s own account or on a fee or contract basis. This industry excludes the installation of streetlighting and signalling.

    Industry Products
  • Road repair and maintenance
  • Road expansion
  • New motorway and road construction
  • Airfield runway construction, extension and maintenance
  • Industry Activities
  • Constructing motorways, roads, and other vehicular and pedestrian routes
  • Constructing and maintaining aircraft runways
  • Maintaining surface work on roads, motorways, bridges and tunnels
  • Paving roads with asphalt
  • Painting road markings
  • Installing crash barriers, traffic signs and other roadside furniture
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Government capital expenditure
  • Real gross fixed investment
  • Total number of registered motor vehicles
  • Housing starts

  • Current Performance
  • Rising usage
  • Driving investment
  • Private equity
  • Chart: Revenue Growth

  • Industry Outlook
  • Highways England
  • Maintaining performance
  • Private investment
  • Table: Road & Motorway Construction Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Road & Motorway Construction Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Building Project Development
  • Residential Building Construction
  • Scheduled Passenger Air Transport

  • Key Selling Industries
  • Concrete Construction Product Manufacturing
  • Construction Equipment Rental & Leasing
  • Gravel, Sand & Clay Extraction
  • Iron & Steel Manufacturing
  • Mining, Construction & Civil Engineering Machinery Wholesaling
  • Non-Metallic Mineral Product Manufacturing
  • Ready-Mixed Concrete Manufacturing

  • Products & Services
  • Road repair and maintenance
  • Road expansion
  • New motorway and road construction
  • Airfield runway construction, extension and maintenance
  • Chart: Road & Motorway Construction Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Government agencies
  • Local authorities
  • Private developers
  • Commercial clients
  • Chart: Major Market Segmentation for the Road & Motorway Construction Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchasesWagesDepreciationUtilitiesRentMarketingOther
  • Chart: Cost Structure Benchmarking – Sector vs Road & Motorway Construction

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Road & Motorway Construction Industry

  • Industry Globalization
    Balfour Beatty Group Limited, Amey UK plc, Costain Ltd,
  • Table: Balfour Beatty Group Limited - financial performance
  • Table: Amey UK plc - financial performance
  • Table: Costain Ltd - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Road & Motorway Construction Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Road & Motorway Construction Industry
    Includes:
  • Industry Revenue (2011-2025)
  • Industry Gross Product (2011-2025)
  • Establishments (2011-2025)
  • Businesses (2011-2025)
  • Employment (2011-2025)
  • Wages (2011-2025)
  • Wages (2011-2025)
  • Purchases (2011-2025)
  • Profit (2011-2025)
  • Depreciation (2011-2025)
  • Marketing (2011-2025)
  • Rent (2011-2025)
  • Utilities (2011-2025)
  • Other (2011-2025)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Asphalt
  • A mixture of dark bituminous pitch and sand or gravel used for surfacing roads.
  • Cost-Benefit Ratio
  • The ratio between the cost of a project and the value of benefits gained. A value above 1 indicates the benefit of the project is greater than the cost, whereas below 1 suggests the opposite.
  • Private Finance Initiative (Pfi)
  • A form of public-private partnership in which a public-sector authority contracts private-sector firms to construct, operate and maintain a facility over a long period.
  • Smart Motorway
  • Motorways that increase traffic capacity by employing variable speed limits and using the hard shoulder at busy times.
  • Strategic Road Network (Srn)
  • The motorways and major trunk roads in England that are managed by Highways England, comprising of approximately 4,400 miles of road.
  • Trunk Road
  • A major road or highway that connects two or more cities, ports or airports and carries long-distance and freight traffic.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s Road & Motorway Construction market research report is a comprehensive guide to market size and growth prospects. Our industry reports offer strategic industry analysis of the factors influencing companies, including new product developments, economic, lifestyle and demographic influences, distribution and supply chain factors and pricing issues. Full analysis accompanies our data forecasts to illustrate how the market responds to emerging industry trends.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Road & Motorway Construction:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Road & Motorway Construction market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Road & Motorway Construction, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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