Japan Construction Industry Report 2025 | Output to Register an AAGR of 1.3% to 2029, Underpinned by Investments in the Transport, Electricity, and Industrial Sectors - 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 (H2 2025)" report has been added to ResearchAndMarkets.com's offering.

Construction industry in Japan to expand by 1.6% in real terms in 2025. This will be supported by a rise in construction orders, coupled with investment in the renewable energy projects.

According to the Statistics Bureau, the total value of contracts received for construction grew by 9.9% year on year (YoY) in the first five months of 2025. By segments, the total value of contracts for buildings grew by 9.3% YoY, while that for civil engineering works grew by 7% YoY during the same period.

The industry's output in 2025 will also be supported by investments as part of the recent financial year (FY) 2025-26 Budget (April 2025 to March 2026), which was passed in March 2025. The budget outlines a spending of JPY115.2 trillion ($787.9 billion) in the current financial year, reflecting a 2.3% increase from the 2024 budget allocation of JPY112.6 trillion ($781.4 billion).

Over the remainder of the forecast period, the construction industry's output is expected to record an annual average growth rate of 1.3% between 2025 and 2029. This will be underpinned by investments in the transport, electricity, and industrial sectors. The Japanese government aims to increase its renewable energy capacity, focusing on wind and solar power.

The plan is to expand offshore wind power generation to 45GW by 2040 - up from 4.6GW, as of March 2025, and solar power capacity to 150GW by 2040 - up from the existing 74GW. To support the integration of these renewable energy sources, the Japanese government is investing in battery storage systems, with the government aiming to deploy 30GW of battery storage by 2040.

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/478i89

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