The Japanese construction industry is expected to grow by 1.7% in real terms in 2024, supported by an increase in the total value of private investment on buildings and government investment in developing infrastructure for the 2025 World Exposition in Osaka. According to the Statistics Bureau of Japan, the total value of private investment on buildings grew by 2.1% year-on-year (YoY) in the first quarter of 2024. By segment, it grew by 3% in non-residential buildings and fell by 2.6% in residential buildings during the same period. Also, an increase of 3% YoY in the value of contracts received for construction during the first five months of 2024, supports the industry’s output in the short term. Despite increased investment, the industry's challenges remain heavy, owing to the shortage of skilled labour, which caused construction starts to fall by 8.1% YoY in the first five months of 2024, preceding an annual decline of 6.9% in 2023.
Over the remainder of the forecast period, the construction industry’s output is expected to record an annual average growth of 1.1% between 2025 and 2028, supported by investments in the renewable energy, manufacturing, and commercial sectors. The government aims to generate 36-38% of the power mix from renewable energy sources and to increase offshore wind capacity by 2030. Additionally, it aims to increase nuclear energy’s share in the energy mix from 7% in 2022 to 20-22% by 2030 and become carbon neutral by 2050. These goals will help support investments in the energy sector. Forecast period growth will also be supported by cross border infrastructure projects, involving the development of 500km fully automated underground transportation system from Tokyo to Osaka and improvement of digital connectivity between the US and Japan, through the development of two new subsea cables - Proa and Taihei.
Over the remainder of the forecast period, the construction industry’s output is expected to record an annual average growth of 1.1% between 2025 and 2028, supported by investments in the renewable energy, manufacturing, and commercial sectors. The government aims to generate 36-38% of the power mix from renewable energy sources and to increase offshore wind capacity by 2030. Additionally, it aims to increase nuclear energy’s share in the energy mix from 7% in 2022 to 20-22% by 2030 and become carbon neutral by 2050. These goals will help support investments in the energy sector. Forecast period growth will also be supported by cross border infrastructure projects, involving the development of 500km fully automated underground transportation system from Tokyo to Osaka and improvement of digital connectivity between the US and Japan, through the development of two new subsea cables - Proa and Taihei.
The Construction in Japan - Key Trends and Opportunities to 2028 (H2 2024) report provides detailed market analysis, information, and insights into the Japanese construction industry, including :
- The Japanese construction industry's growth prospects by market, project type and construction activity
- Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Japanese construction industry
- Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.
Scope
This report provides a comprehensive analysis of the construction industry in Japan. It provides :
- Historical (2019-2023) and forecast (2024-2028) valuations of the construction industry in Japan, featuring details of key growth drivers.
- Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) and by sub-sector
- Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors, and projected spending on projects in the existing pipeline.
- Listings of major projects, in addition to details of leading contractors and consultants
Reasons to Buy
- Identify and evaluate market opportunities using the analyst's standardized valuation and forecasting methodologies.
- Assess market growth potential at a micro-level with over 600 time-series data forecasts.
- Understand the latest industry and market trends.
- Formulate and validate strategy using the analyst's critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.
Table of Contents
1 Executive Summary2 Construction Industry: At-a-Glance6 Construction Market Data
3 Context
4 Construction Outlook
5 Key Industry Participants
7 Appendix
List of Tables
List of Figures
