Japan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H2 2025)

The analyst expects the 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% yearonyear (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.

The Construction in Japan - Key Trends and Opportunities to 2029 (H2 2025) 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 (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

1 Executive Summary2 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

7.1 What is this Report About?
7.2 Definitions
7.3 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: Japan, Key Economic Indicators
Table 3: Japan, Commercial Construction Output by Project Type (Real % Change), 2020-29
Table 4: Japan, Top Commercial Construction Projects by Value
Table 5: Japan, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: Japan, Top Industrial Construction Projects by Value
Table 7: Japan, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Japan, Top Infrastructure Construction Projects by Value
Table 9: Japan, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Japan, Top Energy and Utilities Construction Projects by Value
Table 11: Japan, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Japan, Top Institutional Construction Projects by Value
Table 13: Japan, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: Japan, Top Residential Construction Projects by Value
Table 15: Japan, Key Contractors
Table 16: Japan, Key Consultants
Table 17: Japan, Construction Output Value (Real, $ Million)
Table 18: Japan, Construction Output Value (Nominal, JPY Billion)
Table 19: the analyst Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions

List of Figures

Figure 1: North-East Asia, Construction Output (Real % Change), 2023-29
Figure 2: Japan, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: Japan, Risk Summary
Figure 4: Japan, Risk Regional Comparison
Figure 5: Japan, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: Japan, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 7: Japan, Total Value of Private Sector Investments on Buildings (JPY Billion)
Figure 8: Japan, Total Floor Area of Building Construction Started, % Change YoY
Figure 9: Japan, Value of Contracts Received for Construction, Nominal (JPY Billion)
Figure 10: Japan, Index of Business Confidence (2020=100)
Figure 11: Japan, Construction Projects Momentum Index
Figure 12: North-East Asia, Construction Projects Momentum Index
Figure 13: Japan, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 14: Japan, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 15: Japan, Foreign Visitor Arrivals (in Thousands)
Figure 16: Japan, Wholesale and Retail Trade, % Change YoY
Figure 17: Japan, Total Area of New Construction Starts in Wholesale and Retail Industry (Thousand m2)
Figure 18: Japan, Total Area of New Construction Starts in Accommodation and restaurant services (in thousand m2)
Figure 19: Japan, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 20: Japan, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 21: Japan, Total Area of New Construction Starts in Manufacturing Industry (in thousand m2)
Figure 22: Japan, Manufacturing Production Index (2020=100), Seasonally Adjusted
Figure 23: Japan, Overseas Machinery Orders (JPY billion)
Figure 24: Japan, New Motor Vehicle Sales (in Thousands)
Figure 25: Japan, Exports (JPY Trillion)
Figure 26: Japan, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 27: Japan, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 28: Japan, Value of Contracts Received for Civil engineering Construction (JPY Billion)
Figure 29: Japan, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 30: Japan, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: Japan, Total Area of New Construction Starts in Information and Communication Industry (Thousand m2)
Figure 32: Japan, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 33: Japan, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 34: Japan, Total Area of New Schools and Hospitals Construction Starts (Thousand m2)
Figure 35: Japan, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 36: Japan, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 37: Japan, Private Residential Investments (JPY Billion)
Figure 38: Japan, Consumer Confidence Index, Seasonally Adjusted
Figure 39: Japan, Number of New Construction Starts of Dwellings (in Thousands)
Figure 40: Japan, Existing Home Sales in Tokyo and Osaka Metropolitan Areas, % Change YoY
Figure 41: Japan, Residential Property Price Index (2010=100)
Figure 42: Japan, Total Number of Bankruptcies in Real Estate Industry
Figure 43: Japan, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 44: Japan, Headquarters of Key Consultants (% of Total Project Pipeline)

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The Construction in Japan - Key Trends and Opportunities to 2029 (H2 2025) 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

Table of Contents

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