The Australia Construction Market Report is Segmented by Sector (Residential, Commercial, and Infrastructure), by Construction Type (New Construction and Renovation), by Construction Method (Conventional On-Site and More), by Investment Source (Public and Private), and by Geography (New South Wales, Victoria, and More). The Market Forecasts are Provided in Terms of Value (USD).

In 2024, the Australia Construction Market reached $322.39 bn, and is projected to surge to $523.88 bn by 2030 due to rising infrastructure investment

Divergent trends in the building and infrastructure sectors have constrained the Construction division’s performance through the end of 2024-25, with revenue expected to drop by an annualised 1.2% to $521.2 billion. Rollercoaster-like trends in the residential building market and pandemic-related supply chain disruptions have constrained the performance of homebuilders and many special construction service industries. Still, favourable trends in non-residential building construction and non-building infrastructure construction generate buoyant conditions for some Construction division segments. New house construction surged to a record peak in 2021-22, supported by the Federal Government’s HomeBuilder stimulus and record-low interest rates. Still, new house construction has plunged in recent years following the hike in mortgage interest rates as the RBA seeks to quell inflation. Many small homebuilders have hit the wall in response to intense competition, escalating input costs and plunging profit margins. Conversely, the construction of multi-unit apartments and townhouses has gradually recovered from the deep trough in 2021-22 as investors return to address the severe rental shortages in the face of mounting population pressures. Divisional revenue contracted with the 2023-24 housing slump and is expected to sink 3.2% in 2024-25. Some large prime and specialist trade contractors have derived substantial stimulus from constructing landmark road and rail developments, including the WestConnex motorway in Sydney and the Cross River Rail in Brisbane. Similarly, conditions have been strong for contractors working on non-residential building projects, particularly accelerated growth in the construction of industrial warehouses and distribution facilities. Favourable trends in the residential building market are forecast to underpin modest growth in Construction division revenue at an annualised 1.2% over the five years through 2029-30 to $554.0 billion. Many prime building and special construction contractors will benefit from an upswing in demand for constructing multi-unit dwellings and, to a lesser extent, single-unit housing and home renovations. The housing market will benefit from the initiatives under the National Housing Accord. Construction activity will remain stable in the non-residential market. At the same time, the principal constraint on the Construction division will come from the staged completion of several landmark road and rail projects.

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Australia Construction Market Size 2025-2029

The australia construction market size is forecast to increase by USD 42.1 billion at a CAGR of 3.5% between 2024 and 2029.

The market is experiencing significant shifts driven by three key factors. Firstly, the mass population shift towards urban cities is fueling a surge in demand for residential and commercial construction projects. This trend is expected to continue as more people move to urban areas in search of employment opportunities and improved infrastructure. Secondly, the adoption of dry construction techniques is gaining momentum in the Australian construction industry. Dry construction methods, such as precast concrete and modular construction, offer numerous advantages, including faster construction times, reduced labor costs, and improved sustainability. As a result, many construction companies are investing in these methods to stay competitive and meet the increasing demand for efficient and cost-effective construction solutions. However, the market is not without its challenges. The rising cost of construction materials is a significant obstacle for construction companies in Australia. Raw materials, such as steel, cement, and timber, have seen significant price increases in recent years due to various factors, including supply chain disruptions and increased demand. This trend is putting pressure on construction companies to find ways to reduce material costs while maintaining quality and efficiency. Additionally, the industry is facing regulatory challenges, with stricter building codes and environmental regulations adding complexity to construction projects and increasing costs. To navigate these challenges, construction companies must focus on innovation, efficiency, and collaboration with suppliers and regulators to find solutions that meet the evolving needs of the market.

What will be the size of the Australia Construction Market during the forecast period?

Explore in-depth regional segment analysis with market size data - historical 2019-2023 and forecasts 2025-2029 - in the full report.
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The Australian construction market is characterized by a complex regulatory environment and a focus on innovation and sustainability. Construction industry regulations ensure building codes are met, while value engineering and construction cost management help minimize expenses. Sustainable building practices, such as energy efficiency and water conservation, are increasingly prioritized. Construction innovations, including prefabricated structures, automation, drones, and 3D printing, are transforming the industry. Construction risk analysis is crucial for project completion and scheduling, with safety regulations and quality assurance essential for workforce development. Construction equipment parts and repair, as well as heavy equipment rental, are key components of project risk assessment and cost management. The skills gap in the construction workforce is a significant challenge, with AI and modular construction offering potential solutions. Construction insurance claims and project risk assessment are integral to managing unexpected events and ensuring building performance. Construction labor shortages necessitate continuous workforce development and the adoption of new technologies.

How is this market segmented?

The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD billion' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments. SectorBuilding constructionInfrastructure constructionIndustrial constructionEnd-userEngineeringResidentialNon-residentialTypeNew constructionRedevelopmentGeographyAPACAustralia

By Sector Insights

The building construction segment is estimated to witness significant growth during the forecast period.

The construction industry in Australia is marked by significant growth in both residential and commercial sectors. With an increasing population of 26.05 million people in 2022, according to World Bank Data, the demand for housing, whether single-family homes or multi-unit developments, is on the rise. Cities like Sydney and Melbourne have seen an increase in high-rise apartment projects to cater to the urban population. In commercial construction, the growing business sector fuels the demand for office and retail space. Environmental regulations play a crucial role in the industry, with a focus on sustainable practices and green building. Construction technology advances have led to innovations such as 3D modeling, construction software, and automation in heavy machinery like skid steer loaders and backhoe loaders. Construction safety is a top priority, with worksite safety regulations strictly enforced. Construction projects require substantial investment capital, from construction financing and project bidding to construction c

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 Data Center Type (Colocation, Self-Built Hyperscalers (CSPs) and More). The Market Sizes and Forecasts are Provided in Terms of Value (USD Million) for all the Above Segments.

The Australian Transportation Infrastructure Construction Market is Segmented by Type (Roadways, Railways, Airways, Ports and Inland Waterways), by Construction Type (New Construction and Renovation), by Investment Source (Public and Private), and by Geography (New South Wales, Victoria, Queensland, Western Australia, and the Rest of Australia). The Market Forecasts are Provided in Terms of Value (USD).

The Australian construction market is booming, projected to reach $172.29 billion in 2025 and grow at a CAGR of 5% until 2033. Driven by infrastructure investment, urbanization, and renewable energy projects, this report analyzes market trends, key players (Lendlease, Cimic, etc.), and sector-specific growth. Discover insights into Australia's construction sector forecast. 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: Supply chain issues and rising material costs, Rising labor costs and labor shortages. Notable trends are: Increase in Non-Residential and Infrastructure Construction.

The Australia construction market was valued at USD 190.40 Billion in 2024. The industry is expected to grow at a CAGR of 3.31% during the forecast period of 2025-2034 to attain a valuation of USD 263.69 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.

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.

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 **** million in 2022. As of *************, construction industry employment stood at approximately **** 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 ** 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.

The Australia Prefabricated Construction Market 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.

Homeownership offers both financial and emotional security and it often represents an individual's 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. Homebuilders enjoyed the surge in new house construction to a record peak in 2021-22, as investors responded to record-low mortgage interest rates, favourable bank lending practices and the stimulus from the Federal HomeBuilder scheme. As new single-unit house construction and home renovations heated up, homebuilders faced challenges juggling heavy workloads while dealing with supply bottlenecks, skill shortages and rising costs. The disruptions to the industry's supply chain during the COVID-19 pandemic and the Russia-Ukraine conflict impeded progress on construction projects and pushed many builders to the brink despite the substantial backlog of forwards orders. The industry's performance suffered a setback as housing investment declined following the hike in mortgage interest rates during 2022-23 and 2023-24, as the RBA raised official cash rates to curb inflation. At the same time, the stimulus from the HomeBuilder scheme began to wind down. Industry revenue is expected to decline at an annualised 0.3% over the five years through 2025-26 to $90.1 billion, despite marginal growth of 0.6% in the current year as investment climbs with the easing of interest rates. The industry's profit performance has also suffered from weaker housing investment and inflated input prices associated with supply chain bottlenecks and general inflationary pressures. Homebuilders on fixed-price contracts have been pushed to the edge by the escalating input costs and supply chain bottlenecks. Mounting population pressure and fairly stable mortgage interest rates, will support a moderate recovery in the industry's performance. Still, much of the focus of residential building construction will shift towards high-density apartment and townhouse developments rather than single-unit houses. Homebuilders may also derive some support from a commitment to construct 1.2 million new homes over the five years through 2028-29 under the National Housing Accord. Housing investment may also respond to the expanded enticements under the Federal Government's First Home Guarantee scheme. Industry revenue is forecast to climb at an annualised 0.3% to $91.6 billion through the end of 2030-31, driven mainly by the expansion in renovations on existing housing in response to the escalation in house prices.

Market Size statistics on the House Construction industry in Australia

In 2024, the total value of private sector construction work done across Australia amounted to approximately 144.9 billion Australian dollars. This marked the highest private sector construction work value recorded within the given period.

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

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.

The Australia data center construction market size is projected to grow at a CAGR of 6.98% between 2025 and 2034.

Australia Construction Market size was valued at USD 182 Billion in 2024 and is projected to reach USD 257 Billion by 2032, growing at a CAGR of 4.38% during the forecast period from 2025-2032.

Australia Construction Market: Definition/Overview Construction is the process of building or assembling infrastructure, buildings, or other physical structures. It involves a series of tasks that include planning, designing, and constructing according to specifications. Construction ranges from residential buildings and commercial properties to large-scale infrastructure projects like bridges, highways, and dams. The process typically requires various professionals such as architects, engineers, contractors, and laborers to ensure safety, quality, and adherence to regulations.

The Australia construction equipment market size was estimated at 24.4 thousand units in 2024 and is expected to reach 27.1 thousand units by 2030, growing at a CAGR of 1.80% during the forecast period.

Market Size statistics on the Commercial and Industrial Building Construction industry in Australia