Australia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q2 2025)

The analyst expects the Australian construction industry to grow by 3.8% in real terms in 2025, supported by an improvement in the transport infrastructure sector, coupled with investments in the development of manufacturing, housing, and renewable energy projects. In March 2025, the federal government unveiled the Fiscal Year (FY) 2025-26 Budget, under which general government expenditure is expected to increase from AUD762.8 billion ($504 billion) in FY2024-25 to AUD785.7 billion ($519.1 billion) in FY2025-26, before averaging AUD846.3 billion ($559.2 billion) from FY2026-27 to FY2028-29. However, rising insolvencies in the construction industry are estimated to have weighed on the industry’s output in the short to medium term, with the total number of companies that have undergone insolvency appointments within the construction industry growing by 35.5% YoY in the first six months of 2025, following an annual increase of 18.9% in 2024, according to the Australian Securities and Investments Commission (ASIC).

Over the remainder of the forecast period, The analyst expects the Australian construction industry to grow at an average annual rate of 3% from 2026 to 2029, supported by public and private sector investments in housing and transport infrastructure projects. Growth in the industry over the forecast period will also be supported by the Northern Australia Action Plan (2024-29), launched in November 2024, with an investment of AUD30 billion ($19.8 billion), which outlines an aim to improve affordable housing and transport infrastructure in Queensland, Western Australia, and the Northern Territory by 2029.

The Construction in Australia - Key Trends and Opportunities by State and Territory to 2029 (Q2 2025) report provides detailed market analysis, information, and insights into the Australian construction industry, including:

The Australian 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 Australian 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 Australia. It provides:

Historical (2020-2024) and forecast (2025-2029) valuations of the construction industry in Australia, 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 Construction Outlook - States and Territories

5.1 New South Wales
5.2 Victoria
5.3 Queensland
5.4 South Australia
5.5 Western Australia
5.6 Tasmania
5.7 Northern Territory
5.8 Australian Capital Territory

6 Key Industry Participants

6.1 Contractors
6.2 Consultants

7 Construction Market Data

8 Appendix

8.1 What is this Report About?
8.2 Definitions
8.3 CRI Methodology

About the Analyst
Contact the Publisher

List of Tables

Table 1: Construction Industry Key Data
Table 2: Australia, Key Economic Indicators
Table 3: Australia, Commercial Construction Output by Project Type (Real % Change), 2020-29
Table 4: Australia, Top Commercial Construction Projects by Value
Table 5: Australia, Industrial Construction Output by Project Type (Real % Change), 2020-29
Table 6: Australia, Top Industrial Construction Projects by Value
Table 7: Australia, Infrastructure Construction Output by Project Type (Real % Change), 2020-29
Table 8: Australia, Top Infrastructure Construction Projects by Value
Table 9: Australia, Energy and Utilities Construction Output by Project Type (Real % Change), 2020-29
Table 10: Australia, Top Energy and Utilities Construction Projects by Value
Table 11: Australia, Institutional Construction Output by Project Type (Real % Change), 2020-29
Table 12: Australia, Top Institutional Construction Projects by Value
Table 13: Australia, Residential Construction Output by Project Type (Real % Change), 2020-29
Table 14: Australia, Top Residential Construction Projects by Value
Table 15: Australia, Key Contractors
Table 16: Australia, Key Consultants
Table 17: Australia, Construction Output Value (Real, $ Million)
Table 18: Australia, Construction Output Value (Nominal, AUD Million)
Table 19: New South Wales, Construction Output Value (Real, $ Million)
Table 20: New South Wales, Construction Output Value (Nominal, AUD Million)
Table 21: Victoria, Construction Output Value (Real, $ Million)
Table 22: Victoria, Construction Output Value (Nominal, AUD Million)
Table 23: Queensland, Construction Output Value (Real, $ Million)
Table 24: Queensland, Construction Output Value (Nominal, AUD Million)
Table 25: South Australia, Construction Output Value (Real, $ Million)
Table 26: South Australia, Construction Output Value (Nominal, AUD Million)
Table 27: Western Australia, Construction Output Value (Real, $ Million)
Table 28: Western Australia, Construction Output Value (Nominal, AUD Million)
Table 29: Tasmania, Construction Output Value (Real, $ Million)
Table 30: Tasmania, Construction Output Value (Nominal, AUD Million)
Table 31: Northern Territory, Construction Output Value (Real, $ Million)
Table 32: Northern Territory, Construction Output Value (Nominal, AUD Million)
Table 33: Australia Capital Territory, Construction Output Value (Real, $ Million)
Table 34: Australia Capital Territory, Construction Output Value (Nominal, AUD Million)
Table 35: the analyst Construction Market Definitions
Table 36: Risk Dimensions
Table 37: Ratings, Scores and Definitions

List of Figures

Figure 1: Australasia, Construction Output (Real % Change), 2023-29
Figure 2: Australia, Construction Output by Sector (Real % Change), 2023-25 and 2026-29
Figure 3: Australia, Risk Summary
Figure 4: Australia, Risk Regional Comparison
Figure 5: Australia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2020-29
Figure 6: Australia, Construction Output Value, by Sector (Real, $ Million), 2020-29
Figure 7: Australia, Total Value of Construction Work Done, AUD Billion Chain Volume Measure
Figure 8: Australia, Total Value of Building Construction Works Done, % Change YoY
Figure 9: Australia, Private Gross Fixed Capital Formation, Seasonally Adjusted Chain Volume Measures (AUD Billion, % Change YoY)
Figure 10: Australia, Construction Industry Jobs, in Thousands
Figure 11: Australia, Construction Wage Price Index, 2008-2009 = 100, Hourly Pay (Excluding Bonuses)
Figure 12: Australia, Construction Projects Momentum Index
Figure 13: Australasia, Construction Projects Momentum Index
Figure 14: Australia, Commercial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 15: Australia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 16: Australia, Nominal Value of Commercial Buildings Approved (AUD Million)
Figure 17: Australia, Short-Term Visitor Arrivals, in Thousands
Figure 18: Australia, Retail Trade Turnover (AUD Billion, Seasonally Adjusted)
Figure 19: Australia, Industrial Construction Output by Project Type (Real, $ Million), 2020-29
Figure 20: Australia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
Figure 21: Australia, Nominal Value of Buildings Approved for Factories and Other Secondary Production Buildings (AUD Million)
Figure 22: Australia, Total Value of Mineral Exploration (AUD Million)
Figure 23: Australia, Total Exports, Current Prices, (AUD Billion)
Figure 24: Australia, Number of New Vehicle Sales
Figure 25: Australia, Infrastructure Construction Output by Project Type (Real, $ Million), 2020-29
Figure 26: Australia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
Figure 27: Australia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2020-29
Figure 28: Australia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
Figure 29: Australia, Total Value of Petroleum Exploration (AUD Million)
Figure 30: Australia, Total Value of Natural Gas Exports (in AUD Million)
Figure 31: Australia, Institutional Construction Output by Project Type (Real, $ Million), 2020-29
Figure 32: Australia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
Figure 33: Australia, Institutional Building Approvals (AUD Million)
Figure 34: Australia, Residential Construction Output by Project Type (Real, $ Million), 2020-29
Figure 35: Australia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
Figure 36: Australia, Total New Housing Loan Commitment (AUD Billion)
Figure 37: Australia, Total Value of Residential Building Construction Work Done, AUD Billion Chain Volume Measure
Figure 38: Australia, Total Number of Dwelling Units Approved
Figure 39: Australia, Value of Owner Occupier First Home Buyer Loan Commitments (% Change YoY)
Figure 40: Australia, Headquarters of Key Contractors (% of Total Project Pipeline)
Figure 41: Australia, Headquarters of Key Consultants (% of Total Project Pipeline)

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Scope

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

Reasons to Buy

Table of Contents

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