DUBLIN--(BUSINESS WIRE)--The "Construction in Japan: Key Trends & Opportunities to 2022" report has been added to ResearchAndMarkets.com's offering.
Japan's construction industry regained growth momentum in 2017, with output expanding by 2.6% in real terms - up from 1.2% in 2016. This growth was supported by the government spending in restoration of damaged civil engineering facilities and flourishing tourism sector. In the 2017 supplementary budget, the government increased its spending on the restoration of damaged civil engineering facilities from JPY109.3 billion (US$1.0 billion) in 2016 to JPY290.7 billion (US$2.6 billion) in 2017.
The industry is anticipated to post a marginal growth in 2018, as a result of a decrease in building permits and generally weaker demand. Moreover, the shrinking workforce population and labor shortage is expected to hamper the industry's output growth.
Over the forecast period (2018-2022), the industry's output value is expected to be supported by the government's efforts to promote economic growth through investment in tourism, manufacturing, energy and healthcare infrastructure projects. The government's investment in developing expressways will also support the construction industry's output over the forecast period. Additionally, the construction works related to the upcoming 2020 Olympic Games are expected to drive the growth of the industry.
The industry's output growth in real terms is expected to remain fairly stable, recording a compound annual growth rate (CAGR) of 1.31% over the forecast period, compared to a CAGR of 1.29% during the review period.
- The author expects the infrastructure construction market output to record a forecast-period CAGR of 3.92% in nominal terms, supported by the government's effort to develop the country's road and airport infrastructure. In January 2018, the government announced a plan to invest JPY1.5 trillion (US$13.9 billion) on the development of the Metropolitan Inter-City Expressway and the Tokai Expressway.
- The government efforts to promote the country's tourism sector will support construction activity in the commercial construction market over the forecast period. According to the Ministry of Land, Infrastructure, Transport and Tourism, the government aims to attract 40.0 million visitors by 2020 and 60.0 million by 2030. Accordingly, in the 2018 budget, the government increased its allocation towards the tourism sector by 15.0%, going from JPY25.6 billion (US$228.2 million) in 2017 to JPY29.4 billion (US$262.1 million) in 2018.
- The government's focus on the development of the country's infrastructure ahead of the 2020 Olympic Games is expected to support growth in the Japanese construction industry over the forecast period. The total cost of construction related to the games is expected to be JPY182.2 billion (US$1.7 billion).
- To reduce carbon emissions, the government is developing renewable energy infrastructure. Under the fifth basic energy plan, the government aims to increase the share of renewable energy in the country's total energy mix from 15.6% in 2017 to 22-24.0% in 2030. Consequently, public and private sector investments in energy infrastructure development to meet the government's targets will drive the energy and utilities construction market's growth over the forecast period.
- The total construction project pipeline in Japan - as tracked by the author and including all mega projects with a value above US$25 million - stands at JPY28.0 trillion (US$249.9 billion). The pipeline, which includes all projects from pre-planning to execution, is skewed towards late-stage development projects, with 62.0% of the pipeline value being in projects in the pre-execution and execution stages as of 2018.
- Historical (2013-2017) and forecast (2018-2022) 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.
1. EXECUTIVE SUMMARY
2. CONSTRUCTION OUTLOOK: AT-A-GLANCE
3. LATEST NEWS AND INDICATORS
4. KEY DRIVERS AND RISKS
4.1. Economic Performance
4.2. Political Environment
4.4. Risk Profile
5. CONSTRUCTION OUTLOOK
5.1. All Construction
5.1.2. Project analytics
5.2. Commercial Construction
5.3. Industrial Construction
5.4. Infrastructure Construction
5.5. Energy & Utilities Construction
5.6. Institutional Construction
5.7. Residential Construction
6. KEY INDUSTRY PARTICIPANTS
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