Japan Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2030 (H1 2026)

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Published: February 16, 2026 Report Code: GDCN1797MR-ST

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GlobalData expects the Japanese construction industry to grow by 1.5% in real terms in 2026, supported by an increase in the total value of construction orders received, complemented by rising tourism and non-residential construction activity. According to Japan’s Statistics Bureau, the total value of contracts received for overall construction grew by 5.3% year-on-year (YoY) in the first 10 months of 2025, while that for building activity it grew by 4.5% YoY during the same period. Growth in the construction industry will also be driven by the government’s investments under the fiscal year 2026-27 (FY2027) (April 2026 – March 2027) Budget, which was approved by the Japanese cabinet in late December 2025. The FY2027 draft budget includes a total spending of JPY122.3 trillion ($841.1 billion), with JPY39.1 trillion ($268.6 billion) for social welfare and security, JPY9 trillion ($62.2 billion) for the defense sector and another JPY6.1 trillion ($42 billion) for the maintenance and upgrade of water and sewerage infrastructure in the country. However, rising bankruptcies within the real estate market, coupled with a significant labor shortage, is expected to adversely affect the investor confidence and hinder construction activities in Japan in the short term. According to the Cabinet Office, the average Business Confidence Index fell by 2.4% YoY in the first 11 months of 2025, following a marginal annual decline of 0.2% in 2024.

However, over the forecast period, the Japanese construction industry is expected to register annual average growth of 1.2% between 2027 and 2030, supported by investments in renewable energy, transportation and industrial projects. The government of Japan is also planning to raise the renewable electricity share in Japan's total energy mix to 36%–38% by 2030, from 23% in 2023. Furthermore, it plans to achieve 40%-50% renewable energy and 20% nuclear power by 2040, along with deploying 30GW of battery storage by 2040, under Japan's seventh Strategic Energy Plan (SEP). To support the set goals, Japan is rapidly investing in floating offshore and onshore wind energy projects. In a move to attract and encourage investments in the semiconductor manufacturing sector, the Japanese government has also announced a new funding package in November 2025, which comprises JPY1 trillion ($6.9 billion) in investment and subsidies between fiscal 2026 and 2027.

GlobalData’s Construction in Japan – Key Trends and Opportunities to 2030 (H1 2026) report provides detailed market analysis, information, and insights into the Japanese construction industry, including:
• The Japanese 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 Japanese 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 Japan. It provides:

• Historical (2021–2025) and forecast (2026–2030) valuations of the construction industry in Japan, 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 GlobalData's critical and actionable insight

Assess business risks, including cost, regulatory and competitive pressures

Evaluate competitive risk and success factors

Table of Contents

1 Executive Summary

2 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 Key Industry Participants

5.1 Contractors

5.2 Consultants

6 Construction Market Data

7 Appendix

7.1 What is this Report About?

7.2 Definitions

7.3 CRI Methodology

About GlobalData

Contact Us

Table

Table 1: Construction Industry Key Data

Table 2: Japan, Key Economic Indicators

Table 3: Japan, Commercial Construction Output by Project Type (Real % Change), 2021–30

Table 4: Japan, Top Commercial Construction Projects by Value

Table 5: Japan, Industrial Construction Output by Project Type (Real % Change), 2021–30

Table 6: Japan, Top Industrial Construction Projects by Value

Table 7: Japan, Infrastructure Construction Output by Project Type (Real % Change), 2021–30

Table 8: Japan, Top Infrastructure Construction Projects by Value

Table 9: Japan, Energy and Utilities Construction Output by Project Type (Real % Change), 2021–30

Table 10: Japan, Top Energy and Utilities Construction Projects by Value

Table 11: Japan, Institutional Construction Output by Project Type (Real % Change), 2021–30

Table 12: Japan, Top Institutional Construction Projects by Value

Table 13: Japan, Residential Construction Output by Project Type (Real % Change), 2021–30

Table 14: Japan, Top Residential Construction Projects by Value

Table 15: Japan, Key Contractors

Table 16: Japan, Key Consultants

Table 17: Japan, Construction Output Value (Real, $ Million)

Table 18: Japan Construction Output Value (Nominal, JPY Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: GlobalData Construction Market Definitions

Table 21: Ratings, Scores and Definitions

Figures

Figure 1: North-East Asia, Construction Output (Real % Change), 2024–30

Figure 2: Japan, Construction Output by Sector (Real % Change), 2024–26 and 2027–30

Figure 3: Japan, Risk Summary

Figure 4: Japan, Risk Regional Comparison

Figure 5: Japan, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2021–30

Figure 6: Japan, Construction Output Value, by Sector (Real, $ Million), 2021–30

Figure 7: Japan, Total Value of Private Sector Investments on Buildings (JPY Billion)

Figure 8: Japan, Total Floor Area of Building Construction Started, % Change YoY

Figure 9: Japan, Value of Contracts Received for Construction, Nominal (JPY Billion)

Figure 10: Japan, Index of Business Confidence (2020=100)

Figure 11: Japan, Construction Projects Momentum Index

Figure 12: North-East Asia, Construction Projects Momentum Index

Figure 13: Japan, Commercial Construction Output by Project Type (Real, $ Million), 2021–30

Figure 14: Japan, Commercial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 15: Japan, Foreign Visitor Arrivals (in Thousands)

Figure 16: Japan, Wholesale and Retail Trade, % Change YoY

Figure 17: Japan, Total Area of New Construction Starts in Wholesale and Retail Industry (Thousand m2)

Figure 18: Japan, Total Area of New Construction Starts in Accommodation and restaurant services (in thousand m2)

Figure 19: Japan, Industrial Construction Output by Project Type (Real, $ Million), 2021–30

Figure 20: Japan, Industrial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 21: Japan, Total Area of New Construction Starts in Manufacturing Industry (in thousand m2)

Figure 22: Japan, Manufacturing Production Index (2020=100), Seasonally Adjusted

Figure 23: Japan, Overseas Machinery Orders (JPY billion)

Figure 24: Japan, New Motor Vehicle Sales (in Thousands)

Figure 25: Japan, Exports (JPY Trillion)

Figure 26: Japan, Infrastructure Construction Output by Project Type (Real, $ Million), 2021–30

Figure 27: Japan, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 28: Japan, Value of Contracts Received for Civil engineering Construction (JPY Billion)

Figure 29: Japan, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2021–30

Figure 30: Japan, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 31: Japan, Total Area of New Construction Starts in Information and Communication Industry (Thousand m2)

Figure 32: Japan, Institutional Construction Output by Project Type (Real, $ Million), 2021–30

Figure 33: Japan, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 34: Japan, Total Area of New Hospitals Construction Starts (Thousand m2)

Figure 35: Japan, Residential Construction Output by Project Type (Real, $ Million), 2021–30

Figure 36: Japan, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 37: Japan, Private Residential Investments (JPY Billion)

Figure 38: Japan, Consumer Confidence Index, Seasonally Adjusted

Figure 39: Japan, Number of New Construction Starts of Dwellings (in Thousands)

Figure 40: Japan, Existing Home Sales in Tokyo and Osaka Metropolitan Areas, % Change YoY

Figure 41: Japan, Residential Property Price Index (2010=100)

Figure 42: Japan, Total Number of Bankruptcies in Real Estate Industry

Figure 43: Japan, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 44: Japan, Headquarters of Key Consultants (% of Total Project Pipeline)

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