Japan Construction Market Size (2024 - 2029)

The Japan construction industry is a crucial component of the national economy, with its market size experiencing growth driven by reconstruction efforts and major events like the Tokyo Olympics. The sector has rebounded from past stagnation, supported by government investments in disaster prevention and infrastructure projects. The development of significant projects, such as the Chuo Shinkansen maglev line and preparations for the Osaka World Expo, is expected to further enhance the market's scale. Additionally, strong international demand for exports and substantial fiscal stimulus are contributing to the industry's expansion.

Market Size of Japan Construction Industry

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Japan Construction Market Summary
Study Period 2020 - 2029
Base Year For Estimation 2023
Market Size (2024) USD 609.27 Billion
Market Size (2029) USD 716.66 Billion
CAGR (2024 - 2029) 3.30 %
Market Concentration Medium

Major Players

Japan Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

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Japan Construction Market Analysis

The Japan Construction Market size is estimated at USD 609.27 billion in 2024, and is expected to reach USD 716.66 billion by 2029, growing at a CAGR of 3.30% during the forecast period (2024-2029).

  • The construction industry is an important pillar of the Japanese economy that generated around 5.5% of the gross domestic product (GDP) in 2021. Reconstruction following the Great East Japan Earthquake and the Tokyo Olympics have contributed to the industry's general rising trend over the past 10 years. While there are more than 470,000 registered construction firms in Japan, the industry is dominated by Super Zenecon, a group of five large general contractors, namely Obayashi Corporation, Tasei Corporation, Kajima Corporation, Shimizu Corporation, and Taneka Corporation. They have combined annual sales of more than JPY 1 trillion and operate in various industries, including construction, architectural design, and R&D.
  • The Japanese construction industry has recovered during the past 10 years from a period of stagnation that had lasted since the economic bubble burst in the 1990s. Recovery was aided in part by the reconstruction efforts that followed the Great East Japan Earthquake in 2011. 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.
  • The government will invest around JPY 15 trillion (USD 0.12 trillion) as part of its five-year acceleration plan for disaster prevention, mitigation, and national resilience, which is likely to boost the demand for construction work in the coming years.
  • Strong international demand for Japanese exports and the record JPY 55.7 trillion (USD 490 billion) fiscal stimulus package approved by the government are aiding the country's construction production. The government of Japan is investing JPY 774 billion (USD 6.8 billion) in the semiconductor sector, supporting growth and prioritizing the expansion of local production of next-generation semiconductors.

Japan Construction Industry Segmentation

Construction refers to building commercial, institutional, or residential infrastructures like bridges, buildings, roads, and other structures. The different materials used in modern-day construction include clay, stone, timber, brick, concrete, metals, and plastics, among others.

Japan's construction market is segmented by sector (residential, commercial, industrial, infrastructure (transportation), and energy and utilities).

The report offers the market sizes and forecasts in value (USD) for all the above segments. The report also covers the impact of COVID-19 on the market.

By Sector
Residential
Commercial
Industrial
Infrastruture (Transportation)
Energy and Utilities
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Japan Construction Market Size Summary

The Japanese construction industry plays a crucial role in the nation's economy, contributing significantly to the gross domestic product. The sector has experienced a resurgence over the past decade, recovering from a prolonged period of stagnation following the economic bubble burst in the 1990s. This recovery has been bolstered by major reconstruction efforts after the Great East Japan Earthquake and the infrastructure developments associated with the Tokyo Olympics. The industry is characterized by a large number of registered firms, with a few major players, known as Super Zenecon, dominating the market. These companies engage in various sectors, including construction and architectural design, and have substantial annual sales. The government's strategic investments in disaster prevention and national resilience, along with fiscal stimulus measures, are expected to further stimulate construction activities in the coming years.

The market landscape is fragmented, offering opportunities for small and medium-sized enterprises to thrive amid increasing government spending and upcoming large-scale projects. The Japanese government's initiatives, such as housing subsidies and tax incentives, aim to ease the financial burden of home ownership, potentially driving growth in the residential building sector. Additionally, international collaborations and infrastructure projects in regions like Southeast Asia and East Africa highlight Japan's strategic focus on global infrastructure development. The industry is also witnessing technological advancements, with partnerships aimed at developing autonomous and sustainable construction solutions. Key players in the market continue to engage in innovative projects, such as the development of next-generation nuclear reactors and zero-emission construction vehicles, indicating a forward-looking approach to industry growth and sustainability.

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Japan Construction Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

    4. 1.4 Current Market Scenario

    5. 1.5 Value Chain/Supply Chain Analysis

    6. 1.6 Technological Innovations in the Construction Sector

    7. 1.7 Government Regulations and Initiatives

    8. 1.8 Impact of COVID-19 on the Market

  2. 2. MARKET SEGMENTATION

    1. 2.1 By Sector

      1. 2.1.1 Residential

      2. 2.1.2 Commercial

      3. 2.1.3 Industrial

      4. 2.1.4 Infrastruture (Transportation)

      5. 2.1.5 Energy and Utilities

Japan Construction Market Size FAQs

The Japan Construction Market size is expected to reach USD 609.27 billion in 2024 and grow at a CAGR of 3.30% to reach USD 716.66 billion by 2029.

In 2024, the Japan Construction Market size is expected to reach USD 609.27 billion.

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