Construction has emerged as one of the UK’s top six fastest-growing industries, according to new data ranking sectors by growth over the past five years.
To determine the fastest-growing industries in the UK, the Booming Industries research by Approved Business Finance analysed Office for National Statistics (ONS) business population data to assess five-year average annual growth across 615 industries.
These were grouped into 19 broader industry categories by Standard Industrial Classification (SIC) codes – the system used to classify businesses according to their main economic activity.
| Industry category | Average five-year growth rate (%) |
| Electricity, gas, steam and air conditioning | +12.5% |
| Real estate | +4.2% |
| Information and communication | +3.5% |
| Human health and social work | +2.8% |
| Water, sewerage and waste management | +1.8% |
| Construction | +1.5% |
| Accommodation and food services | +1.2% |
| Professional, Scientific and Technical | +0.8% |
| Administrative and support services | +0.3% |
| Education | +0.1% |
Construction made the top six of the rankings, with an average five-year growth rate of 1.5%. The Construction Workforce Outlook forecasts further growth over the next four years, with the sector currently valued at £230 billion. In fact, the research found that Construction also ranks fourth for average five-year turnover growth, increasing by 9.64% over the same period.
In first position is electricity, gas, steam and air conditioning, which recorded a standout 12.5% average annual growth rate over five years, nearly three times that of the second-placed sector, real estate (4.2%). Given recent influences like the UK heatwave and rising energy costs, businesses and consumers are increasingly making climate-conscious decisions, which naturally supports the growth and function of this sector.
The real estate sector followed second with the aforementioned growth rate of 4.2%, and the information and communication sector placed third with a 3.5% growth rate.
Outside of the top three, other industries have still seen strong growth rates. Human health and social work saw a 2.8% increase, followed by water, sewerage and waste management at 1.8%.
On the other hand, traditional industries are facing pressure, led by mining and quarrying, which saw a decline of 4.2%, followed by financial and insurance, which saw a 2.5% decline, and manufacturing, which saw a 1.2% decline.
Commenting on the research, Mark Kozo, commercial director of Approved Finance Group, said:
“Our data shows that while some industries are expanding rapidly, growth is far from being evenly distributed across the UK economy.
“For businesses operating in growth sectors, the challenge now is turning favourable market conditions into sustainable expansion.
“Whether it is investing in new equipment, taking on additional staff, increasing stock, or moving into larger premises, growth often requires capital before the additional revenue arrives.
“For SMEs in particular, having access to the right finance at the right time can be crucial to making these opportunities happen. Rather than waiting until cash flow becomes a barrier, businesses should consider where investment could help them increase capacity and improve efficiency.
“Whether it’s new machinery or equipment, to avoid placing the full cost on existing cash reserves, asset finance can provide a way to spread the cost of essential investments while supporting continued growth.
“With the UK’s fastest-growing industries showing where demand and investment are building, businesses that can identify these opportunities earlier and have the financial flexibility to act on them may be better placed to turn industry growth into their own competitive advantage.”
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