The Philippines Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2030 (Q1 2026)

The construction industry in Philippines is expected to decline by 1.5% in real terms in 2026, owing to delays in significant projects, a decline in foreign direct investment (FDI), and rising construction material prices. According to the Philippine Statistics Authority (PSA), total incoming foreign investment approved declined by 50.1% year-on-year (YoY) in 2025, preceded by a decline of 38.6% in 2024. The construction industry is expected to register an average annual growth rate of 6.8% between 2027 and 2030, supported by investment in renewable energy and industrial construction projects. Recently, in mid-February 2026, Meralco PowerGen Corporation (MGEN), Philippines based energy company, commenced phase two of construction works on the MTerra Solar project. The project, with an investment of PHP200 billion ($3.4 billion), will be the world's largest integrated solar and battery storage facility, spanning 3,500 hectares across Nueva Ecija and Bulacan. The first phase of the project will be completed by August 2026. The second phase of the project will be completed by 2027.

The Philippines construction industry growth over the forecast period will also be driven by the Electric Vehicle Industry Development Act (EVIDA), which is aimed at the adoption of EVs in the country by providing incentives for automobile manufacturers. According to the Electric Vehicle Association of the Philippines (EVAP), EV sales in the country are expected to reach approximately 2.5 million by 2040, up from 18,690 units in 2024.

The Construction in the Philippines - Key Trends and Opportunities to 2030 (Q1 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.

Report 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 the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: The Philippines, Key Economic Indicators
Table 3: The Philippines, Commercial Construction Output by Project Type (Real % Change), 2021-30
Table 4: The Philippines, Top Commercial Construction Projects by Value
Table 5: The Philippines, Industrial Construction Output by Project Type (Real % Change), 2021-30
Table 6: The Philippines, Top Industrial Construction Projects by Value
Table 7: The Philippines, Infrastructure Construction Output by Project Type (Real % Change), 2021-30
Table 8: The Philippines, Top Infrastructure Construction Projects by Value
Table 9: The Philippines, Energy and Utilities Construction Output by Project Type (Real % Change), 2021-30
Table 10: The Philippines, Top Energy and Utilities Construction Projects by Value
Table 11: The Philippines, Institutional Construction Output by Project Type (Real % Change), 2021-30
Table 12: The Philippines, Top Institutional Construction Projects by Value
Table 13: The Philippines, Residential Construction Output by Project Type (Real % Change), 2021-30
Table 14: The Philippines, Top Residential Construction Projects by Value
Table 15: The Philippines, Key Contractors
Table 16: The Philippines, Key Consultants
Table 17: The Philippines Construction Output Value (Real, $ Million)
Table 18: The Philippines Construction Output Value (Nominal, PHP Billion)
Table 19: the analyst Construction Market Definitions
Table 20: the analyst Construction Market Definitions
Table 21: 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 Retail Price Index in the National Capital Region (2012=100)
Figure 11: The Philippines, Loans Outstanding for Construction (PHP Billion)
Figure 12: The Philippines, Approved Building Permits (PHP Billion)
Figure 13: The Philippines, Total Approved Foreign Investments (Current Prices, PHP Billion)
Figure 14: The Philippines, Construction Projects Momentum Index
Figure 15: South-East Asia, Construction Projects Momentum Index
Figure 16: The Philippines, Commercial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 17: The Philippines, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 18: The Philippines, Accommodation and Food Service Activities Value-Add (PHP Billion, 2018 Constant Prices)
Figure 19: The Philippines, Loans Outstanding for Accommodation and Food Service Activities (PHP Billion)
Figure 20: The Philippines, Wholesale and Retail Trade Value-Add, at 2018 Constant Prices, % Change YoY
Figure 21: The Philippines, Industrial Construction Output by Project Type (Real, $ Million), 2021-30
Figure 22: The Philippines, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 23: The Philippines, Mining and Quarrying Value-Add (PHP Billion, 2018 Constant Prices)
Figure 24: The Philippines, Manufacturing Value-Add (PHP Billion, 2018 Constant Prices)
Figure 25: The Philippines, Loans Outstanding for Manufacturing (PHP Billion)
Figure 26: The Philippines, Total Exports ($ Billion)
Figure 27: The Philippines, Infrastructure Construction Output by Project Type (Real, $ Million), 2021-30
Figure 28: The Philippines, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: The Philippines, Transportation and Storage Value-Add (PHP Billion, 2018 Constant Prices)
Figure 30: The Philippines, Loans Outstanding for Transportation and Storage (PHP Billion)
Figure 31: The Philippines, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021-30
Figure 32: The Philippines, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 33: The Philippines, Electricity Generation, Steam, Water, and Waste Management Value-Add (PHP Billion, 2018 Constant Prices)
Figure 34: The Philippines, Information and Communication Value-Add (PHP Billion, 2018 Constant Prices)
Figure 35: The Philippines, Loans Outstanding for Electricity, Gas, Steam and Air-Conditioning Supply (PHP Billion)
Figure 36: The Philippines, Institutional Construction Output by Project Type (Real, $ Million), 2021-30
Figure 37: The Philippines, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 38: The Philippines, Education Value-Add (PHP Billion, 2018 Constant Prices)
Figure 39: The Philippines, Human Health and Social Work Activities Value-Add (PHP Billion, 2018 Constant Prices)
Figure 40: The Philippines, Loans Outstanding for Education (PHP Billion)
Figure 41: The Philippines, Loans Outstanding for Human Health and Social Work Activities (PHP Billion)
Figure 42: The Philippines, Residential Construction Output by Project Type (Real, $ Million), 2021-30
Figure 43: The Philippines, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 44: The Philippines, Real estate and Ownership of Dwellings Value-Add (PHP Billion, 2018 Constant Prices)
Figure 45: The Philippines, Loans Outstanding for Real Estate Activities (PHP Billion)
Figure 46: The Philippines, Residential Property Price Index (2019=100)
Figure 47: The Philippines, Approved Residential Building Permits (PHP Billion)
Figure 48: The Philippines, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 49: The Philippines, Headquarters of Key Consultants (% of Total Project Pipeline)

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Report Scope

This report provides a comprehensive analysis of the construction industry in the Philippines. It provides:

Reasons to Buy

Table of Contents

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