Japan Commercial Construction Market Size (2024 - 2029)

The commercial construction market size in Japan is poised for steady growth, driven by government initiatives and significant infrastructure projects. Despite past challenges, such as the economic stagnation following the 1990s bubble and the impact of the COVID-19 pandemic, the market has shown resilience and potential for expansion. Key developments, including those related to the Osaka World Expo and major transportation projects, are expected to further stimulate market growth. The focus on urban redevelopment and infrastructure enhancement underscores the positive outlook for the market's future trajectory.

Home Market Analysis Real Estate and Construction Research Construction Research Commercial Construction Research Japan Commercial Construction Industry Market Size

Market Size of Japan Commercial Construction Industry

Japan Commercial Construction Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 6.70 %
Market Concentration Medium

Major Players

Japan Commercial Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Japan Commercial Construction Market Analysis

During the time frame of the forecast, it is expected that the market for commercial construction in Japan will register a CAGR of more than 6.7%.Even though some parts of the building industry are having trouble right now, Japan's medium- to long-term growth story is still strong.Over the upcoming four quarters, the Japanese building sector is anticipated to expand steadily.

  • Government spending and subsidies for a housing program, as well as the government's anticipated focus on significant infrastructure projects, will aid in Japan's market growth.
  • Since the economic bubble burst in the 1990s, the Japanese construction industry has been stuck for a long time. But in the last 10 years, it has started to grow again. Rebuilding efforts after the Great East Japan Earthquake in 2011 helped the area get back on its feet. The 2021 Tokyo Olympic Games served as a major demand generator in recent years. Both the Chuo Shinkansen maglev line's development and other building projects slated for the Osaka World Expo 2025 are anticipated to have a similar effect.
  • For instance, in 2022, In the "Jingumae 6-chome District Type 1 Urban Redevelopment Project," which is being constructed in Harajuku, Tokyo, Tokyu Land Corporation and Kanroku Redevelopment have stated that they will start a business there in the spring of 2024. A building with a total floor area of about 19,940 square meters, consisting of 9 floors above ground and 3 floors below ground, will be built on the site of the former Olympia Annex Building at the intersection of Omotesando and Meiji Dori, along with commercial facilities, public amenities, and railroads. Parking area, substation building, etc. The structure is expected to be finished in August 2023.
  • Even though things are calm now, the COVID-19 pandemic had a negative effect on the building industry. It caused many construction projects to temporarily stop and move more slowly. In contrast to many other countries, Japanese law did not give the government "strict" authority to impose steps, like a city-wide "lockdown," to stop the occurrence or spread of COVID-19.

Japan Commercial Construction Industry Segmentation

Buildings and other structures built for business use are referred to as "commercial construction." It consists of factories, warehouses, retail stores, office structures, and more.

The report provides a comprehensive background analysis of the Canadian facade market, covering the current market trends, restraints, technological updates, and detailed information on various segments and the competitive landscape of the industry. Additionally, the COVID-19 impact has been incorporated and considered during the study. Japan's commercial construction market is segmented by type (hospitality, office buildings, retail, institutional, and others). The report offers market size and forecasts in value (USD billion) for all the above segments.

By End-Users
Office Building Construction
Retail Construction
Hospitality Construction
Institutional Construction
Other End-Users
Need A Different Region Or Segment?
Customize Now

Japan Commercial Construction Market Size Summary

The commercial construction market in Japan is poised for significant growth over the forecast period, driven by a combination of government initiatives and major infrastructure projects. Despite challenges in certain segments of the construction industry, the medium- to long-term outlook remains robust. The government's focus on substantial infrastructure developments and housing programs, supported by financial incentives, is expected to bolster market expansion. The sector has shown resilience and recovery since the economic stagnation following the 1990s bubble burst, with key events such as the rebuilding efforts post-Great East Japan Earthquake and the Tokyo Olympic Games serving as catalysts for demand. Upcoming projects, including the Chuo Shinkansen maglev line and preparations for the Osaka World Expo 2025, are anticipated to further stimulate the market.

In addition to traditional construction projects, the renewable energy sector is gaining momentum, with ongoing developments in solar, wind, and biomass energy projects. The Japanese government's commitment to increasing the share of renewable energy in the national grid is attracting both domestic and international investors. However, the industry faces challenges such as inflation, rising material costs, and a declining workforce, which may impact growth. The involvement of foreign workers is expected to be crucial in addressing labor shortages. Prominent construction firms like TODA Corp. and Kumagai Gumi Co., Ltd. continue to dominate the market, while innovative projects, such as the proposed commercial space station by DigitalBlast, Inc., highlight the evolving landscape of Japan's construction industry.

Explore More

Japan Commercial Construction Market Size - Table of Contents

  1. 1. MARKET INSIGHTS

    1. 1.1 Current Market Scenario

    2. 1.2 Technological Trends

    3. 1.3 Government Regulations

    4. 1.4 Value Chain / Supply Chain Analysis

    5. 1.5 Overview of Commercial Construction Market in Japan

    6. 1.6 Brief on Construction Costs (average cost, office and retail space, per sq feet)

    7. 1.7 Insights into the newly office space completions (sq. feet)

    8. 1.8 Impact of COVID-19 on Japan Commercial Construction Market (Analyst View)

  2. 2. MARKET SEGMENTATION

    1. 2.1 By End-Users

      1. 2.1.1 Office Building Construction

      2. 2.1.2 Retail Construction

      3. 2.1.3 Hospitality Construction

      4. 2.1.4 Institutional Construction

      5. 2.1.5 Other End-Users

Japan Commercial Construction Market Size FAQs

The Japan Commercial Construction Market is projected to register a CAGR of 6.70% during the forecast period (2024-2029)

TODA Corp., Kumagui Gumi Co. Ltd., Konoike Construction Co. Ltd., Asanuma Corporation and ichiken Co.Ltd. are the major companies operating in the Japan Commercial Construction Market.

Japan Commercial Construction Market Report Snapshots

Japan Commercial Construction Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)