Richard Kersley, analyst at Credit Suisse predicts house building and building materials as the most active areas for mergers.
In a list of potential deals, he identified Bellway, Bovis, and Redrow as potential targets for Persimmon. Kingspan, Weinerberger, and Travis Perkins are also expected to attract the attention of CRH, Saint-Gobain, and Holcim.
Mr Kersley said: "We expect industries will take advantage of the turmoil witnessed in the last year to increase scale at good value."
William Davies, head of European equities at Threadneedle said: "Taking over rivals and stripping out costs is a good way of boosting earnings and reducing competition. Once a wave of mergers and acquisitions starts it tends to gather momentum as companies fear that they may be left behind in the quest for growth."