Japan Construction Market Size
|Study Period:||2019 - 2028|
|CAGR:||> 4 %|
*Disclaimer: Major Players sorted in no particular order
Need a report that reflects how COVID-19 has impacted this market and it's growth?
Japan Construction Market Analysis
The Japanese construction market is estimated to record a CAGR of greater than 4% during the forecast period (2023-2028).
- 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.
|Energy and Utilities|
Japan Construction Market Trends
This section covers the major market trends shaping the Japan Construction Market according to our research experts:
Increase in Infrastructure Developments Boosting the Market
The urban infrastructure of Japan is among the greatest in the world. Japan's strategy for infrastructure development was in response to many stages, each emphasizing the significance of striking a balance between economic growth and sustainability. In August 2022, the Japanese government ordered the construction of a new nuclear plant. Notably, the construction and development of the new nuclear plant will help the country reduce its reliance on energy imports amid the global energy crunch.
Tokyo is considering partnering with India on international infrastructure development initiatives. Joint planning, design, and implementation of infrastructure projects in nations like Nepal, where both countries are already engaged in projects, might aid New Delhi and Tokyo in maximizing their effect. India's less innovative and more affordable digital solutions are suitable for developing nations, especially those in Southeast Asia. Infrastructure development has been a priority for Japanese businesses and government agencies in East Africa, Vietnam, Indonesia, and Cambodia.
Beijing has increased its influence in the area by using infrastructural assistance due to China's Belt and Road Initiative. However, claims of "debt-trap diplomacy" have plagued Chinese sponsorship. The four-nation Quad established a working group on infrastructure since it is now a crucial aspect of the growing diplomatic rivalry in the area.
To understand key trends, Download Sample Report
Government Funding is Being Used as a Development Driver for Japan's Residential Construction Sector
The Japanese government has been providing housing subsidies to families with children for the past few years. In 2022, this tendency was anticipated to intensify. The land ministry intends to expand the lineup of measures after establishing a variety of policies and measures, such as tax incentives for individuals who take out mortgages to help with home purchases, to ease the financial burden of home ownership in Japan.
The government took action in 2021 to help families with children buy homes by providing incentives for brand-new construction. Notably, the government offered incentives for the scheme that ranged from JPY 600,000 to JPY 1,000,000 per unit. The initiative began in November 2021 after receiving financing of JPY 54.2 billion (USD 0.42 billion) under the fiscal 2021 additional budget.
The government allocated an additional JPY 60 billion (USD 0.46 billion) for the program in 2022. The government also extended the deadline from the end of October 2022 to the end of March 2023 due to the expectation that 120,000 applications will be submitted for the subsidies. Over the next 3-4 years, these government initiatives may increase the expansion of the residential building sector by reducing the demand from Japanese homebuyers.
Japan Construction Industry Overview
The market is fragmented and expected to grow during the forecast period due to the increase in construction investments and upcoming major projects in the country. However, the market provides chances for small and medium-sized businesses due to the rising government spending in the industry. During the forecast period, the Japanese construction market has the potential for expansion, which may increase market competitiveness.
The key players in the Japanese construction market are Obayashi Corp., Mitsubishi Heavy Industries Ltd, Nippon Concrete Industries, Takada Corporation, The Zenitaka Corp., Sumitomo Mitsui Construction Co. Ltd, and Toshiba Corp.
Japan Construction Market Leaders
Mitsubishi Heavy Industries Ltd
Nippon Concrete Industries
The Zenitaka Corp.
*Disclaimer: Major Players sorted in no particular order
Japan Construction Market News
October 2022: With Kansai Electric Power Co., Hokkaido Electric Power Co., Shikoku Electric Power Co., and Kyushu Electric Power Co., Mitsubishi Heavy Industries Ltd announced plans to create a next-generation nuclear reactor. At their nuclear facilities, all four utilities run Mitsubishi Heavy reactors. The five businesses will create a new form of pressurized water reactor (PWR) called an advanced light-water reactor that is thought to be safer than current types, intended to be utilized by the middle of the 2030s.
June 2022: For Obayashi Corporation, SafeAI and Siemens announced a partnership to develop a fleet of autonomous, zero-emission heavy vehicles. SafeAI and Siemens will collaborate with Obayashi Corp., a worldwide leader in construction with headquarters in Japan, to build smarter, safer, more sustainable, and more effective construction sites. Earlier in 2022, it was determined that a fleet of construction trucks owned and operated by Obayashi Corp., weighing between 45 and 65 ton, needed to be modified for autonomy and zero emissions.
May 2022: A public-private partnership designing the project has identified the engineering and construction companies that will work on the USD 1.35 billion Uinta Basin Railway, signaling the advancement of long-anticipated plans for a train in Utah. On May 13, Rio Grande Pacific Corp. stated that AECOM would present the final design aside from the tunnels for the 88-mile-long railroad. The railroad will be constructed by a joint venture between Skanska and WW Clyde, with Obayashi Corp. handling the final design and construction of the tunnels.
Japan Construction Market Report - Table of Contents
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
4.4 Current Market Scenario
4.5 Value Chain/Supply Chain Analysis
4.6 Technological Innovations in the Construction Sector
4.7 Government Regulations and Initiatives
4.8 Impact of COVID-19 on the Market
5. MARKET SEGMENTATION
5.1 By Sector
5.1.4 Infrastruture (Transportation)
5.1.5 Energy and Utilities
6. COMPETITIVE LANDSCAPE
*List Not Exhaustive
6.1 Market Concentration Overview
6.2 Company Profiles
6.2.1 Obayashi Corp.
6.2.2 Mitsubishi Heavy Industries Ltd
6.2.3 Nippon Concrete Industries
6.2.4 Takada Corporation
6.2.5 The Zenitaka Corp.
6.2.6 Sumitomo Mitsui Construction Co. Ltd
6.2.7 Kajima Corp.
6.2.8 Toshiba Corp.
6.2.9 Mori Building Co. Ltd
6.2.10 Shimizu Corp.*
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Japan Construction Market Research FAQs
What is the study period of this market?
The japan construction market is studied from 2019 - 2028.
What is the growth rate of japan construction market?
The japan construction market is growing at a CAGR of >4% over the next 5 years.
Who are the key players in japan construction market?
Obayashi Corp., Mitsubishi Heavy Industries Ltd, Nippon Concrete Industries, Takada Corporation,, The Zenitaka Corp. are the major companies operating in japan construction market.
japan construction Industry Report
Statistics for the 2023 japan construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. japan construction analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.