Japan Construction Market Report and Forecast 2025-2034

The Japan construction market size reached nearly USD 602.86 Billion in 2024. The market is projected to grow at a CAGR of 3.00% between 2025 and 2034 to reach a value of around USD 810.19 Billion by 2034.

Key Trends in the Market

Construction refers to a process of forming objects, systems, or large structures. Construction involves the establishment of a strong foundation on which a small or large building is formed.

• The flourishing energy and utilities sector in Japan is driving investments towards building power facilities and renewable energy units. Meanwhile, the thriving commercial construction sector, owing to the increasing footfall of tourists and the surging number of offices, is further boosting the Japan construction market growth.
• Robust infrastructure development activities in Japan, coupled with the rapid development of institutions, healthcare facilities, and aged care facilities, among others, are adding to the market growth.
• Over the forecast period, the anticipated increase in population, the surge in the number of working professionals, and the thriving manufacturing sector are likely to be some of the crucial Japan construction market trends. Moreover, the deployment of innovative digital technologies, such as AI, robotics, virtual reality, and BIM, among others, to accelerate the workflow and enhance the efficiency of construction projects is further bolstering the market growth.

Market Segmentation

The report titled “Japan Construction Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by Sector

• Residential
• Commercial
• Industrial
• Infrastructure (Transportation)
• Energy and Utilities
• Institutional
• Others

Market Breakup by Participants

• Contractors
• Consultants

Market Share by Sector

The residential sector accounts for a significant portion of the Japan construction market share. This can be attributed to the surging construction of homes across urban areas of Japan. In addition, rising disposable incomes and rapid urbanisation across the country are fuelling the segment’s growth.

Meanwhile, growing efforts by the Japanese government to counter the increasing prevalence of natural disasters, such as earthquakes, are boosting the emphasis on the development of resilient infrastructure while fuelling the renovation and remodelling of commercial and industrial buildings.

Market Share by Participants

As per the Japan construction market analysis, contractors are likely to witness a healthy growth in the forecast period. The strong foothold of leading contractors in the country, such as Obayashi Corp, Taisei Corp, and Sumitomo Mitsui Construction Co Ltd., among others, is driving the growth of this segment.

Meanwhile, the steady economic growth is boosting the demand for construction consultants in the country, which is likely to accelerate the Japan construction market demand in the coming years.

Competitive Landscape

The comprehensive report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis. The report gives a detailed analysis of the key players in the Japan construction market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

Kajima Corporation

Kajima Corporation is a company which offers services related to civil engineering, design and construction, research and development of structures, and environmental technologies, among others. It was founded in 1840 and is headquartered in Tokyo, Japan.

Obayashi Corporation

Obayashi Corporation is a leading construction company which provides services related to domestic construction, overseas construction, green energy, and real estate development, among others. It was established in 1892 and is headquartered in Tokyo, Japan.

Shimizu Corporation

Shimizu Corporation is a renowned company which has a core expertise in construction services. It also provides solutions such as real estate development and life cycle valuation. The company was founded in 1804 and is headquartered in Tokyo, Japan.

Other market players include Nippon Koei Co., Ltd., Takenaka Corporation, Sumitomo Mitsui Construction Co., Ltd., Zenitaka Corporation, Daiwa House Industry Co., Ltd., Toshiba Plant Systems and Services Corporation, and Mori Building Co., Ltd., among others.