Japan Construction Industry Report 2025: Output to Expand by 1.6% in Real Terms this Year, Supported by Increased Investments in Renewable Energy and Industrial Sectors - Forecasts to 2029 - ResearchAndMarkets.com

DUBLIN--(BUSINESS WIRE)--The "Japan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Japan to expand by 1.6% in real terms in 2025, supported by a rise in construction orders, and increased investment in the renewable energy and industrial sectors.

According to the Statistics Bureau, the total value of contracts received for construction increased by 9.1% year on year (YoY) in the first eleven months of 2024. In December 2024, the government approved the Financial Year (FY) 2025/26 Budget (April 2025 to March 2026), which includes an expenditure of JPY115.5 trillion ($822.4 billion), an increase of 2.6% compared to last year's budget allocation.

However, labour shortages, falling building construction starts, and cancellation and delays in construction projects owing to cost overruns are expected to pose a downside risk to the construction industry in the short to medium term. For instance, Nakano Sun Plaza Redevelopment project has been delayed due to rising costs, which ballooned by JPY90 billion ($640.8 million) from its original estimate of JPY263.9 billion ($1.9 billion) and was originally expected to be completed by 2028.

Over the remainder of the forecast period, the construction industry's output is expected to record an annual average growth rate of 1.2% between 2025 and 2029, supported by investments in the renewable energy, commercial, and industrial sectors in line with the government's aim to boost the country's semiconductor industry. For instance, in November 2024, the government announced an aid of JPY9.1 trillion ($65 billion) for boosting the country's semiconductor and artificial intelligence infrastructure through subsidiaries and financial incentives by 2030.

Also, in December 2024, the government announced an investment of JPY300 billion ($2.1 billion) to support the research, development, and production of the semiconductor industry, including JPY100 billion ($712 million) for the construction of local chipmaker, Rapidus, nanometer chips facility in Hokkaidoof by 2027. Growth will also be supported by the government's target of all new cars to be sold to be electric by 2035. To support this, in September 2024, the government announced its plan to allocate JPY1 trillion ($7.1 billion) as subsidiaries to support the development of electric vehicle batteries in the country by 2028.

Among the recent developments, local automotive company, Mazda, in early January 2025, announced its plan to construct a 10GWh battery production plant in Iwakuni by 2030. Also, in early January 2025, local automaker, Nissan, announced its plan to construct a JPY153.3 billion ($1.1 billion) 5GWh battery production plant in Fukuoka, spanning 150,000m2 by 2028. Over the long term, the industry's growth will be supported by the government's plan to invest JPY25.7 trillion ($200 billion) in the construction of high-speed rail lines, the doubling of existing tracks, the electrification of routes, and the upgradation of freight terminals between 2020 and 2030.

Scope

• Historical (2020-2024) and forecast (2025-2029) 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 our 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 business strategies using the analyst's critical and actionable insight
• Assess business risks, including cost, regulatory and competitive pressures
• Evaluate competitive risk and success factors

Key Topics Covered:

1 Executive Summary

2 Construction Industry: At-a-Glance

3 Context

3.1 Economic Performance

3.2 Political Environment and Policy

3.3 Demographics

3.4 Risk Profile

4 Construction Outlook

4.1 All Construction

• Outlook
• Latest news and developments
• Construction Projects Momentum Index

4.2 Commercial Construction

• Outlook
• Project analytics
• Latest news and developments

4.3 Industrial Construction

• Outlook
• Project analytics
• Latest news and developments

4.4 Infrastructure Construction

• Outlook
• Project analytics
• Latest news and developments

4.5 Energy and Utilities Construction

• Outlook
• Project analytics
• Latest news and developments

4.6 Institutional Construction

• Outlook
• Project analytics
• Latest news and developments

4.7 Residential Construction

• Outlook
• Project analytics
• Latest news and developments

5 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

For more information about this report visit https://www.researchandmarkets.com/r/866bhp

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