Homeownership provides financial and emotional security and often represents an individual or family's most significant investment. House Construction industry contractors build single-unit (detached) dwellings or renovate and repair existing houses. Australia's solid population growth underpins the industry's performance. Still, a long-term shift in housing preferences towards constructing high-density apartments and townhouses has eroded revenue. House construction surged to a record peak in 2021-22 despite the pandemic restrictions and supply chain blockages impeding progress on construction projects. Homebuyers responded to record-low mortgage interest rates, favourable bank lending practices and the stimulus from the Federal Government's HomeBuilder scheme by unprecedented investment in new single-unit house construction and home renovations. As the housing market heated up, builders faced challenges juggling heavy workloads while dealing with supply bottlenecks, skill shortages and rising costs. The industry's revenue performance has taken a hit in recent years as housing investment slumped following the hike in mortgage interest rates as the RBA lifted official cash rates to quell inflation. Meanwhile, the HomeBuilder scheme wound down with the completion of funded projects. Industry revenue is expected to fall by 2.9% in 2024-25 and decline at an annualised 1.5% over the five years through 2024-25 to $76.1 billion. The industry's profit margins have suffered, partly reflecting the supply chain disruptions during the housing boom stemming from the COVID-19 restrictions. These bottlenecks delayed construction projects and inflated input prices for building materials, fuel, capital equipment and skilled labour. Fixed-price contracts and escalating input costs have pushed many homebuilders to the brink. Mounting population pressure and some easing in mortgage interest rates will support the moderate recovery in the industry's performance. Homebuilders may also derive some support from a commitment to construct 1.0 million new homes under the National Housing Accord. Still, much of the focus of residential building construction will shift towards high-density apartment and townhouse developments rather than single-unit houses. Industry revenue is forecast to climb at an annualised 1.4% to $81.6 billion through the end of 2029-30.

The Australia Data Center Construction Market report segments the industry into By Infrastructure (By Electrical Infrastructure, By Mechanical Infrastructure, General Construction), By Tier Type (Tier 1 and 2, Tier 3, Tier 4), By End User (Banking, Financial Services, and Insurance, IT and Telecommunications, Government and Defense, Healthcare, Other End Users). Get five years of historical data and forecasts for five years ahead.

Australia’s construction industry reported a gross value added of around 175 billion Australian dollars in the year ended December 2024, representing a slight increase from the previous year. The industry encompasses various segments, including building construction, heavy and civil engineering construction, as well as construction services. The state of Australia’s construction industry The construction industry is a key contributor to Australia’s economy and an employer of over 1.35 million people nationwide as of November 2024. In the country, the total value of residential construction work completed across the private and public sectors is significantly higher than that of non-residential construction work completed. Construction material shortages Recently, supply chain issues led to construction material shortages across Australia, disrupting the industry. In conjunction with rising housing demand, material prices soared, delaying new constructions and putting cost pressures on construction companies and clients alike. The producer price index of steel and timber products, such as timber board and joinery, some of Australia’s most highly demanded construction materials, soared across the country. In response to shortages and inflating prices within the sector, government agencies, departments, and key companies have been investigating the potential of recycled materials as a replacement for conventional construction materials. Reclaimed asphalt pavement, recycled glass, and crushed concrete were considered to have the largest replacement potentials within Australia’s infrastructure industry.

The Report Covers Australian Transportation Infrastructure Construction Market Report Companies, and It is Segmented by Type (roadways, Railways, Waterways, and Airlines). The Market Size and Forecasts for the Australian Transportation Infrastructure Construction Industry are Provided in Terms of Value (USD) for all the Above Segments.

From the first half of 2020 until the second half of 2021, Australia’s construction industry was disrupted due to the coronavirus pandemic. The industry had seen a steady rise in employment between 2015 and 2019, with the number of employees recovering to just over 1.27 million in 2022. As of November 2024, construction industry employment stood at approximately 1.36 million. How important is the construction industry? The construction industry plays a major economic role in Australia. The value of private sector construction was significantly higher than the value of public sector construction. Combined, these sectors cover engineering construction work, non-residential building, and residential building. Engineering construction work, which encompasses infrastructure, was the most predominant of the three. The value of residential construction work completed across Australia’s private and public sectors amounted to over 30 billion Australian dollars higher than that of non-residential construction work. Job outlook The leading occupations in Australia's construction industry were carpenters and joiners. Roles within this industry vary greatly, with many entry-level jobs not requiring a tertiary education degree. In terms of trade work, apprenticeships and traineeships were the main pathways to enter the market. While the job outlook has been relatively robust in this industry, the construction labor productivity index has been lower in recent years. On top of this, challenges faced in recent years, such as fluctuating material costs, project delays, and skilled worker shortages, could slow down growth in this industry.

Australia Data Center Construction Market was valued at USD 3.10 Billion in 2023 and is expected to reach USD 4.46 Billion by 2029 with a CAGR of 6.10% during the forecast period.

The Australia construction market reached a value of nearly USD 318.03 Billion in 2024. The market is assessed to grow at a CAGR of 3.20% during the forecast period of 2025-2034 to attain a value of around USD 435.78 Billion by 2034. The market growth can be attributed to rapid urbanisation, increasing investments in renewable energy infrastructure, the rising prevalence of natural disasters, the surging development of smart cities, and the expansion of healthcare infrastructure.

Market Size statistics on the House Construction industry in Australia

The Australian construction market, valued at $172.29 million in 2025, is projected to experience robust growth, driven by significant infrastructure development initiatives and a burgeoning residential sector fueled by population growth and urbanization. A Compound Annual Growth Rate (CAGR) of 5.0% from 2025 to 2033 indicates a substantial expansion of the market over the forecast period. Key drivers include government investments in transportation networks (roads, railways, and airports), renewable energy projects, and public building programs. Trends such as the increasing adoption of sustainable building practices, technological advancements in construction methodologies (like Building Information Modeling – BIM), and a focus on improving project efficiency and minimizing disruptions are shaping the market landscape. While potential restraints such as material price fluctuations and skilled labor shortages exist, the overall positive outlook is underpinned by consistent government support and a strong pipeline of projects across various sectors—residential, commercial, industrial, infrastructure, and energy and utilities. Major players like CPB Contractors, Lendlease, and others, are well-positioned to capitalize on these opportunities. The segmentation of the market reveals significant opportunities across all sectors. The residential segment is anticipated to lead growth, driven by increased demand for housing, particularly in major metropolitan areas. The infrastructure sector will see considerable investment, contributing significantly to overall market expansion. Commercial construction will benefit from ongoing business expansion and investment in office spaces and retail developments. The energy and utilities sector's growth will be driven by renewable energy projects and upgrading existing infrastructure to meet rising energy demands. The Industrial sector is poised for moderate growth, driven by manufacturing and logistics needs. Understanding the nuances of each sector and strategically allocating resources will be crucial for companies seeking success in the competitive Australian construction market. Recent developments include: May 2023: New office of the Indonesia-Australia partnership for Infrastructure (KIAT) was opened by the Australian ambassador to Indonesia, Penny Williams (PSM), and minister of public works and housing of the Republic of Indonesia, Basuki Hidayat., July 2022: Laing O'Rourke entered into a strategic partnership with Robotics Australia Group, a leading agency in the robotics sector in Australia. This partnership is anticipated to explore how current and emerging robotics technologies can address key challenges in the construction sector, including productivity, labor shortages, and safety., April 2022: Thiess, a CIMIC Group company, entered into a business cooperation agreement to provide mine design and engineering services to Tata Steel. As part of the deal, Thiess is expected to work with Tata Steel to provide competitive integrated business solutions to the global mining industry. Tata Steel is one of the world's most geographically diverse steel producers, offering a fully integrated steel business from mining to manufacturing to finished product marketing.. Key drivers for this market are: Government Initiatives is driving the market, Increase In Residential Sector. Potential restraints include: Government Initiatives is driving the market, Increase In Residential Sector. Notable trends are: Increase in Non-Residential and Infrastructure Construction.

The Market for Modular Construction in Australia Report is Segmented by Material Type (Concrete, Glass, Metal, Timber, and Other Material Types) and Application (Residential, Commercial, and Other Applications (Infrastructure and Industrial)). The Report Offers Market Sizes and Forecasts in Value Terms (USD) for all the Above Segments.

In financial year 2024, the labor productivity index (LPI) of the construction industry in Australia amounted to 103.97 compared to the base year of 2023.

As of February 2025, there were around 318,300 people employed in the building installation services sector of Australia's construction industry. In comparison, there were around 57,800 employees recorded in Australia's land development and site preparation services sector.

The Australian data center construction market is experiencing robust growth, projected to reach $10.60 million in 2025 and maintain a healthy Compound Annual Growth Rate (CAGR) of 4.91% from 2025 to 2033. This expansion is fueled by several key drivers. The increasing adoption of cloud computing and digital transformation initiatives across various sectors, including banking, finance, IT & telecommunications, and government, is significantly boosting demand for advanced data center infrastructure. Furthermore, the rising need for secure and reliable data storage and processing capabilities, particularly within regulated industries like healthcare and defense, is contributing to market growth. The market is segmented by infrastructure type (electrical and mechanical), tier level (Tier 1-4), and end-user industry. While the exact breakdown of market share across these segments is unavailable, it's reasonable to expect that electrical infrastructure (particularly power distribution solutions and backup systems) will command a significant share, given the critical power requirements of data centers. Similarly, Tier 3 and Tier 4 data centers, which provide higher levels of redundancy and reliability, will likely contribute substantially to the overall market value. The growth is also influenced by ongoing investments in building advanced cooling solutions to address energy efficiency and sustainability concerns within the data center environment. While potential restraints, such as economic fluctuations and supply chain disruptions, could impact the market's trajectory, the overall positive outlook remains strong given Australia's commitment to digital infrastructure development and the substantial ongoing investment from both domestic and international players. The competitive landscape includes both large international firms and established local players. While specific market share data for individual companies is not provided, the presence of companies like FDC Construction & Fitout, Icon group GmbH, and others suggests a diverse range of capabilities and service offerings catering to the varied needs of the data center construction sector. The market’s future growth hinges on continued technological innovation, government support for digital infrastructure, and ongoing investment in sustainable data center solutions. Successful companies will be those capable of delivering efficient, reliable, and environmentally conscious solutions to meet the ever-evolving demands of this dynamic market. Recent developments include: February 2024: Amazon is advancing its expansion in Australia, specifically in Melbourne and Sydney, with plans for new data centers. These centers, located in Smeaton Grange Park, will boast a combined IT capacity of 40 MW. Notably, the Turner Road site, acquired by Amazon for USD 30.18 million in March 2022, marked the company's second venture in the park. This purchase price is over four times the amount Amazon paid for the land of its existing SYD52 data center five years ago., November 2023: NextDC commenced constructing a data center in Darwin, Australia. The facility, named D1, is set to be an 8 MW data center spanning 3,000 sq. m (32,290 sq. ft) and capable of accommodating up to 1,000 racks. With the current schedule, the initial phase of the data center was projected to be operational by mid-2024, with plans for the subsequent phase to commence post-2024.. Key drivers for this market are: 4., Increasing Data Center Investments to Drive Market Growth4.; The Expansion of Major Cloud Operators and Investments to Drive Market Growth. Potential restraints include: 4., Increasing Data Center Investments to Drive Market Growth4.; The Expansion of Major Cloud Operators and Investments to Drive Market Growth. Notable trends are: Tier 3 Data Centers were Expected to Record Significant Market Share in 2023.

The Report Covers the Australian Construction Machinery Market Share and is Segmented by Application Type (material Handling, Earth Moving, and Transportation) and Machinery Type (hydraulic Excavators, Wheel Loaders, Crawler Trucks, Dump Trucks, and Motor Graders). The Report Offers Market Size and Forecasts for the Australian Construction Machinery Market in Value (in USD) for all the Above Segments.

The Australian transportation infrastructure construction industry is experiencing robust growth, projected to reach a market size of $25.80 billion in 2025 and maintain a Compound Annual Growth Rate (CAGR) exceeding 5.45% from 2025 to 2033. This expansion is fueled by several key drivers. Government initiatives focusing on upgrading existing infrastructure and developing new transportation networks, particularly in response to increasing urbanization and population growth, are significantly contributing to market expansion. Furthermore, a growing emphasis on sustainable and resilient infrastructure, incorporating green technologies and climate-change adaptation measures, is driving demand for specialized construction expertise and materials. Increased tourism and the need for efficient logistics networks further bolster industry growth. The industry is segmented across roadways, railways, waterways, and airways, with roadways currently holding the largest market share due to extensive road network development and maintenance requirements. Major players, including Scentre Group, Mirvac Group, and Lendlease, are actively shaping the market landscape through their involvement in large-scale projects. While challenges such as material cost fluctuations and skilled labor shortages exist, the long-term outlook for the Australian transportation infrastructure construction industry remains positive, driven by sustained government investment and the country's ongoing economic development. The competitive landscape is characterized by a mix of large multinational firms and established local contractors. These companies are increasingly adopting innovative construction techniques and technologies to improve efficiency, reduce project timelines, and enhance overall project outcomes. Strategic partnerships and mergers & acquisitions are also expected to play a significant role in shaping the market structure in the coming years. The industry’s future success hinges on addressing workforce development challenges to ensure a skilled workforce is available to meet the demands of the growing pipeline of infrastructure projects. Furthermore, navigating environmental regulations and ensuring sustainable practices throughout the construction lifecycle will be crucial for maintaining long-term growth and positive public perception. The ongoing government focus on infrastructure investment signals a continued period of positive growth and opportunity within this sector. This report provides a detailed analysis of the Australian transportation infrastructure construction industry, covering the period 2019-2033. With a base year of 2025 and an estimated year of 2025, this comprehensive study offers invaluable insights into market trends, key players, and future growth prospects. The report leverages extensive data from the historical period (2019-2024) and provides forecasts for the period 2025-2033. This is essential reading for investors, contractors, policymakers, and anyone seeking to understand this dynamic sector. Search terms like Australian infrastructure investment, Australian transport construction market, Inland Rail project, and Australian construction industry trends will help to maximize visibility. Recent developments include: September 2023, INLAND Rail has marked the start of construction on the 170km Stockinbingal - Parkes section in New South Wales with a launch event at Forbes station. Martinus Rail has been awarded an AUD 403.5m (USD 259.3m) contract to design and construct enhancement works on the Stockinbingal - Parkes and Albury - Illabo sections. Construction on the Inland Rail project to connect Melbourne and Brisbane with a new 1600km freight corridor through Victoria, New South Wales, and Queensland started in 2018. Inland Rail will provide an alternative to the congested coastal route through Sydney. The project involves upgrading existing lines and some new construction., May 2023, The federal government-owned Australian Rail Track Corporation (ARTC) has confirmed the will utilize ground-mounted solar arrays coupled with battery energy storage systems to power more than 80 signaling sites dotted along the rail corridor when the Inland Rail line becomes operational. Following a successful trial of a solar-powered signaling system at Coolleearlee, about 50km from Moree in northern New South Wales (NSW), ARTC has approved its use at the remaining 82 signaling sites that will likely operate along the rail corridor from Albury in the state’s south to Gowrie in southeast Queensland.. Key drivers for this market are: 4., Investments in Land Transportation Infrastructure4.; Development of shipping industry. Potential restraints include: 4., High Cost of the projects. Notable trends are: Investments in Land Transportation Infrastructure is Driving the Market.

In 2022, the revenue of the construction industry in Australia amounted to around 479 billion Australian dollars, marking a slight increase from the previous year. The country's construction industry revenue was forecasted to fluctuate in the coming years.

Market Size statistics on the Railway Track Construction industry in Australia

Expert industry market research on the Construction in Australia (2008-2031). Make better business decisions, faster with IBISWorld's industry market research reports, statistics, analysis, data, trends and forecasts.

Market Size statistics on the Water and Waste Services Infrastructure Construction industry in Australia

The value of construction activity in Australia was forecast to reach over 272 billion Australian dollars in the 2029 fiscal year. This was higher than the construction activity value in Australia as of financial year 2023, which was around 247 billion Australian dollars.