The construction industry in Taiwan is estimated to have expanded by 4.8% in real terms in 2025, supported by a marked improvement in export and manufacturing activities, coupled with investments in transport infrastructure projects. According to Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS), the construction industry’s value-add grew by 3% year-on-year (YoY) in Q3 2025, preceded by YoY growth of 6.5% in Q2 and 5.4% in Q1 2025. Growth in 2025 is also estimated to have been supported by investments as part of the special budget that was announced in April 2025, to help industries - including construction-related sectors - to cope with the challenges due to the uncertainty around the tariff war between the US and its trading partners. It included a TWD88 billion ($2.8 billion) support package to help companies and industries affected by the US tariffs, especially electronics, information technology, steel, machinery, auto parts, building materials, and agriculture. Of the total, TWD70 billion ($2.2 billion) was allocated for manufacturing (including loan interest reductions, tax breaks, and research and development support, and TWD18 billion ($564.1 million) for agriculture (loans and subsidies). Additionally, the announced aid package includes another TWD200 billion ($6.3 billion) for trade financing for exporters.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth rate of 4.2% from 2027 to 2029, supported by investments in office buildings, housing, renewable energy and transport infrastructure. In mid-December 2025, the Taiwanese electronics manufacturer Foxconn announced its plan to construct its new headquarters in Kaohsiung, southern Taiwan. It involves a total investment of TWD15.9 billion ($509.9 million). The project will feature an office building and a residential tower. It will include software and battery cell research spaces along with an electric vehicle technology centre. Construction works are scheduled to commence in 2027, before reaching its completion in 2033. In a boost to the rail infrastructure,iIn October 2025, the Executive Yuan approved the first phase of Tainan monorail Blue Line project. Phase 1 involves construction of 8.4km section of the Blue Line monorail in Tainan, north of Kaohsiung. It involves a total valuation of TWD32.7 billion ($1 billion). Of the total, the central government will contribute TWD19.3 billion ($604.8 million) and the city council will fund TWD13.4 billion ($419.9 million). The first phase involves construction of 10 elevated stations. Construction works are scheduled to commence by the end of 2026 and are scheduled to be completed by 2032. This is part of the overall project of 27.3km Monorail Blue Line project, which involves a total valuation of TWD84.1 billion ($3 billion). The overall construction work is set to be completed by the end of 2035. In July 2025, the Central government has approved the Ministry of Transportation and Communications’ TWD98.4 billion ($3 billion) dual carriageway project, known as the Kaoping Second Expressway. This 22.6km route will link the cities of Kaohsiung and Pingtung, providing a new high-speed connection to National Highway 3 in the southwest of the island. Construction is set to commence in 2026, and the expressway is set to become operation in 2032.
Over the remainder of the forecast period, the construction industry is expected to register an average annual growth rate of 4.2% from 2027 to 2029, supported by investments in office buildings, housing, renewable energy and transport infrastructure. In mid-December 2025, the Taiwanese electronics manufacturer Foxconn announced its plan to construct its new headquarters in Kaohsiung, southern Taiwan. It involves a total investment of TWD15.9 billion ($509.9 million). The project will feature an office building and a residential tower. It will include software and battery cell research spaces along with an electric vehicle technology centre. Construction works are scheduled to commence in 2027, before reaching its completion in 2033. In a boost to the rail infrastructure,iIn October 2025, the Executive Yuan approved the first phase of Tainan monorail Blue Line project. Phase 1 involves construction of 8.4km section of the Blue Line monorail in Tainan, north of Kaohsiung. It involves a total valuation of TWD32.7 billion ($1 billion). Of the total, the central government will contribute TWD19.3 billion ($604.8 million) and the city council will fund TWD13.4 billion ($419.9 million). The first phase involves construction of 10 elevated stations. Construction works are scheduled to commence by the end of 2026 and are scheduled to be completed by 2032. This is part of the overall project of 27.3km Monorail Blue Line project, which involves a total valuation of TWD84.1 billion ($3 billion). The overall construction work is set to be completed by the end of 2035. In July 2025, the Central government has approved the Ministry of Transportation and Communications’ TWD98.4 billion ($3 billion) dual carriageway project, known as the Kaoping Second Expressway. This 22.6km route will link the cities of Kaohsiung and Pingtung, providing a new high-speed connection to National Highway 3 in the southwest of the island. Construction is set to commence in 2026, and the expressway is set to become operation in 2032.
The Construction in Taiwan - Country Briefing (H2 2025) report provides detailed market analysis, information, and insights into the Taiwanese construction industry, including:
- The Taiwanese 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 Taiwanese 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 Taiwan. It provides:
- Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Taiwan, 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
Table of Contents
1. Executive Summary2. Construction Industry: At-a-Glance3. Latest news and developments4. Project analytics5. Construction Market Data6. Risk Profile
7. Appendix
List of Tables
List of Figures
