Summary
Prior to the Coronavirus (COVID-19) crisis, the Japanese construction industry registered minimal growth in 2019, with the output expanding by 0.5% in real terms - up from a decline of 1.1% in the previous year. This low growth is attributed to an economic slowdown, coupled with subdued consumer and business confidence amid the consumption tax hike, a major typhoon and weak global demand. Although residential construction investments remained minimal, the construction industry’s output was supported by investments on civil engineering and non-residential buildings. In December 2019, the government launched an economic stimulus package, which includes an allocation of about JPY6 trillion (US$55 billion) on public investments, following a series of natural disasters which caused huge damages to the country’s infrastructure.
Japan’s construction industry outlook has become much gloomier amid the challenges presented by COVID-19, with its economy now expected to contract in 2020. Although the country has not enforced a strict nationwide lockdown in response to the pandemic, the construction industry was adversely hit by the temporary halt in construction work by major contractors such as the Obayashi Corporation, Taisei Corporation, Kajima Corporation and Shimizu Corporation, among others. According to the Economic and Social Research Institute (Cabinet Office, Government of Japan), the private investments on building construction declined by 7.1% year on year (YoY) in Q2 2020 - down from a decline of 2.5% in the previous quarter. In addition, the total value of contracts received for construction declined by 9.1% YoY in the first eight months of the year. This is expected to further weigh on the construction industry, and its output is forecasted to shrink by 4% in real terms this year.
The publisher expects the construction industry to stabilize and register an annual average growth of 1.2% between 2021-2024, supported by investments in the transport, renewable energy, telecommunication, and manufacturing sectors. The government plans to develop 10GW of offshore wind capacity by Fiscal Year (FY) 2030/2031, in line with its target to increase the share of renewable energy in its total power mix to 22-24% by 2030; this will attract public and private sector investments towards the renewable energy projects. Investments in manufacturing plants will be supported by the government’s focus on strengthening its supply chains and reducing the dependence on China. To achieve this, in April 2020, the government allocated JPY220 billion (US$2 billion) in subsidies to attract manufacturing companies leaving China.
This report provides detailed market analysis, information and insights into the Japanese construction industry, including -
Scope
This report provides a comprehensive analysis of the construction industry in Japan. It provides -
Reasons to Buy
Prior to the Coronavirus (COVID-19) crisis, the Japanese construction industry registered minimal growth in 2019, with the output expanding by 0.5% in real terms - up from a decline of 1.1% in the previous year. This low growth is attributed to an economic slowdown, coupled with subdued consumer and business confidence amid the consumption tax hike, a major typhoon and weak global demand. Although residential construction investments remained minimal, the construction industry’s output was supported by investments on civil engineering and non-residential buildings. In December 2019, the government launched an economic stimulus package, which includes an allocation of about JPY6 trillion (US$55 billion) on public investments, following a series of natural disasters which caused huge damages to the country’s infrastructure.
Japan’s construction industry outlook has become much gloomier amid the challenges presented by COVID-19, with its economy now expected to contract in 2020. Although the country has not enforced a strict nationwide lockdown in response to the pandemic, the construction industry was adversely hit by the temporary halt in construction work by major contractors such as the Obayashi Corporation, Taisei Corporation, Kajima Corporation and Shimizu Corporation, among others. According to the Economic and Social Research Institute (Cabinet Office, Government of Japan), the private investments on building construction declined by 7.1% year on year (YoY) in Q2 2020 - down from a decline of 2.5% in the previous quarter. In addition, the total value of contracts received for construction declined by 9.1% YoY in the first eight months of the year. This is expected to further weigh on the construction industry, and its output is forecasted to shrink by 4% in real terms this year.
The publisher expects the construction industry to stabilize and register an annual average growth of 1.2% between 2021-2024, supported by investments in the transport, renewable energy, telecommunication, and manufacturing sectors. The government plans to develop 10GW of offshore wind capacity by Fiscal Year (FY) 2030/2031, in line with its target to increase the share of renewable energy in its total power mix to 22-24% by 2030; this will attract public and private sector investments towards the renewable energy projects. Investments in manufacturing plants will be supported by the government’s focus on strengthening its supply chains and reducing the dependence on China. To achieve this, in April 2020, the government allocated JPY220 billion (US$2 billion) in subsidies to attract manufacturing companies leaving China.
This 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 (2015-2019) and forecast (2020-2024) 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 publisher'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 publisher'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
