The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q3 2026)

Summary

The analyst expects the Philippine construction industry to decline further by 8.8% in real terms in 2026, after registering a marginal real-term decline of 0.8% in 2025, owing to increased debt, high energy prices, supply chain bottlenecks, delays in securing permits for projects due to regulatory issues, and a fall in construction loans. Weaker public investment is primarily constraining the growth of the Philippine construction industry, following the flood-control scandal that surfaced in mid-2025. Subsequently, the government intensified scrutiny of public projects by implementing additional audits, checks, and procurement processes for new initiatives. This has, in turn, led to slower permitting procedures and delays in construction project funding. According to the Bangko Sentral ng Pilipinas (BSP), the Philippines' central bank, the average value of the Philippine banking system’s outstanding loans for construction fell by 6.7% year-on-year (YoY) in the first six months of 2026, following annual growth of 4.8% in 2025.

Over the remainder of the forecast period, the construction industry is expected to recover and register an average annual growth rate of 5.4% between 2027 and 2030, supported by investment in renewable energy, transport, and semiconductor projects. The government is targeting PHP6.3 trillion ($110 billion) in annual semiconductor and electronics exports by 2030 under a new roadmap introduced by the Department of Trade and Industry in mid-May 2026. The strategy aims to achieve export targets of PHP4 trillion ($70 billion) for semiconductors and PHP2.3 trillion ($40 billion) for electronics by 2030. To support these objectives, the government plans to upgrade infrastructure, streamline investment procedures, and strengthen supply chain efficiency, while addressing industry concerns regarding high electricity costs, logistics bottlenecks, and limited advanced manufacturing capacity. Growth over the forecast period will also be underpinned by the government’s goal of increasing the share of renewable energy in the total power mix from 22% in 2023 to 35% by 2030 and 50% by 2040.

The analyst’s Construction in the Philippines - Key Trends and Opportunities to 2030 (Q3 2026) report provides detailed market analysis, information, and insights into the Philippine construction industry, including:

The Philippine 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 Philippine 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 the Philippines. It provides:

Historical (2021-2025) and forecast (2026-2030) valuations of the construction industry in the Philippines, 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 Us

List of Tables

Table 1: Construction Industry Key Data
Table 2: The Philippines, Key Economic Indicators
Table 3: The Philippines, Wholesale Price Index for Construction Materials, 2018=100 (% YoY Change)
Table 4: The Philippines, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 5: The Philippines, Top Commercial Construction Projects by Value
Table 6: The Philippines, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 7: The Philippines, Top Industrial Construction Projects by Value
Table 8: The Philippines, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 9: The Philippines, Top Infrastructure Construction Projects by Value
Table 10: The Philippines, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 11: The Philippines, Top Energy and Utilities Construction Projects by Value
Table 12: The Philippines, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 13: The Philippines, Top Institutional Construction Projects by Value
Table 14: The Philippines, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 15: The Philippines, Top Residential Construction Projects by Value
Table 16: The Philippines, Key Contractors
Table 17: The Philippines, Key Consultants
Table 18: The Philippines Construction Output Value (Real, $ Million)
Table 19: The Philippines Construction Output Value (Nominal, PHP Billion)
Table 20: GlobalData Construction Market Definitions
Table 21: GlobalData Construction Market Definitions
Table 22: Ratings, Scores and Definitions

List of Figures

Figure 1: South-East Asia, Construction Output (Real % Change), 2024-30
Figure 2: The Philippines, Construction Output by Sector (Real % Change), 2024-26 and 2027-30
Figure 3: The Philippines, Risk Summary
Figure 4: The Philippines, Risk Regional Comparison
Figure 5: The Philippines, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021-30
Figure 6: The Philippines, Construction Output Value, by Sector (Real, $ Million), 2021-30
Figure 7: The Philippines, Construction Value-Add (PHP Billion, 2018 Constant Prices)
Figure 8: The Philippines, Gross Fixed Capital Formation in Construction (PHP Billion, 2018 Constant Prices)
Figure 9: The Philippines, Gross Domestic Capital Formation in Mining and Construction Machinery (PHP Million, 2018 Constant Prices)
Figure 10: The Philippines, Construction Materials and Wholesale Price Index in the National Region
Figure 11: The Philippines, Loans Outstanding for Construction (PHP Billion)
Figure 12: The Philippines, Approved Building Permits (PHP Billion)
Figure 13: The Philippines, Employment in Construction, in thousands
Figure 14: The Philippines, Total Approved Foreign Investments (Current Prices, PHP Billion)
Figure 15: The Philippines, Construction Projects Momentum Index
Figure 16: South-East Asia, Construction Projects Momentum Index
Figure 17: The Philippines, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 18: The Philippines, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 19: The Philippines, Accommodation and Food Service Activities Value-Add (PHP Billion, 2018 Constant Prices)
Figure 20: The Philippines, Loans Outstanding for Accommodation and Food Service Activities (PHP Billion)
Figure 21: The Philippines, Wholesale and Retail Trade Value-Add, at 2018 Constant Prices, % Change YoY
Figure 22: The Philippines, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 23: The Philippines, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 24: The Philippines, Mining and Quarrying Value-Add (PHP Billion, 2018 Constant Prices)
Figure 25: The Philippines, Manufacturing Value-Add (PHP Billion, 2018 Constant Prices)
Figure 26: The Philippines, Loans Outstanding for Manufacturing (PHP Billion)
Figure 27: The Philippines, Total Exports ($ Billion)
Figure 28: The Philippines, Average Capacity Utilization Rate of Manufacturing Sector (In %)
Figure 29: The Philippines, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 30: The Philippines, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 31: The Philippines, Transportation and Storage Value-Add (PHP Billion, 2018 Constant Prices)
Figure 32: The Philippines, Loans Outstanding for Transportation and Storage (PHP Billion)
Figure 33: The Philippines, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 34: The Philippines, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 35: The Philippines, Electricity Generation, Steam, Water, and Waste Management Value-Add (PHP Billion, 2018 Constant Prices)
Figure 36: The Philippines, Information and Communication Value-Add (PHP Billion, 2018 Constant Prices)
Figure 37: The Philippines, Loans Outstanding for Electricity, Gas, Steam and Air Conditioning Supply (PHP Billion)
Figure 38: The Philippines, Loans Outstanding for Water Supply, Sewerage, Waste Management and Remediation Activities (PHP Billion)
Figure 39: The Philippines, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 40: The Philippines, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 41: The Philippines, Education Value-Add (PHP Billion, 2018 Constant Prices)
Figure 42: The Philippines, Human Health and Social Work Activities Value-Add (PHP Billion, 2018 Constant Prices)
Figure 43: The Philippines, Loans Outstanding for Education (PHP Billion)
Figure 44: The Philippines, Loans Outstanding for Human Health and Social Work Activities (PHP Billion)
Figure 45: The Philippines, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 46: The Philippines, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 47: The Philippines, Real estate and Ownership of Dwellings Value-Add (PHP Billion, 2018 Constant Prices)
Figure 48: The Philippines, Loans Outstanding for Real Estate Activities (PHP Billion)
Figure 49: The Philippines, Residential Property Price Index (2019=100)
Figure 50: The Philippines, Approved Residential Building Permits (PHP Billion)
Figure 51: The Philippines, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 52: The Philippines, Headquarters of Key Consultants (% of Total Project Pipeline)

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