Japan Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

The Report Covers Japan Construction Companies and It is Segmented by Sector (Residential, Commercial, Industrial, Infrastructure (Transportation), and Energy and Utilities). The Market Sizes and Forecasts in Value (USD) for all the Above Segments.

Japan Construction Industry Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Japan Construction Market Size

Japan Construction Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Market Size (2025) USD 629.38 Billion
Market Size (2030) USD 740.31 Billion
CAGR (2025 - 2030) 3.30 %
Market Concentration Medium

Major Players

Japan Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of Japan Construction Market with other markets in Real Estate and Construction Industry

Real Estate

Construction

Japan Construction Market Analysis

The Japan Construction Market size is estimated at USD 629.38 billion in 2025, and is expected to reach USD 740.31 billion by 2030, at a CAGR of 3.3% during the forecast period (2025-2030).

  • The construction industry plays a crucial role in Japan's economy, significantly impacting both GDP and employment. In the last ten years, the sector has seen consistent growth, fueled by reconstruction efforts post the Great East Japan Earthquake, infrastructure projects tied to the Tokyo Olympics, and urban redevelopment initiatives. The market is set for further growth, bolstered by government investments in disaster resilience and sustainable infrastructure, alongside major undertakings like the Chuo Shinkansen (maglev bullet train) and the Osaka World Expo 2025.
  • A notable trend in the sector is the heightened focus on sustainability and eco-friendly construction methods. The Japanese government is championing green building standards and energy-efficient designs, especially in commercial and institutional projects. Furthermore, Japan is prioritizing the creation of smart cities, utilizing public-private partnerships (PPP) to develop sustainable and tech-forward urban areas. There's also a significant push towards renewable energy infrastructure, aligning with Japan's carbon-neutral ambitions and plans to boost offshore wind capacity by 2030.
  • However, the construction industry grapples with challenges, notably labor shortages stemming from an aging population and a dwindling workforce. This challenge is intensified by younger workers leaving the industry, leading to heightened competition for skilled labor. In response, construction firms are turning to digital solutions like Building Information Modelling (BIM), automation, and data analytics to boost productivity. The sector is also adapting to new regulations and decarbonization initiatives, prompting shifts in business operations.
  • On the financial front, the Japanese construction market remains robust, with total investments hitting an estimated 68.8 trillion yen (USD 521.63 billion) in FY 2022, and a rise to 70.3 trillion yen (USD 533.01 billion) projected for FY 2023. Even with hurdles like escalating material costs and persistent labor shortages, the market anticipates a 1.7% growth in 2024, buoyed by heightened private investments in building projects and government spending for the 2025 Osaka World Expo. From 2025 to 2028, the market is forecasted to expand at an average annual rate of 1.1%, driven by ongoing investments in renewable energy, manufacturing, and commercial construction.

Japan Construction Industry Overview

The market is fragmented and expected to grow during the forecast period due to the increase in government initiatives and commercial construction in the country. 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

  1. Obayashi Corp.

  2. Mitsubishi Heavy Industries Ltd

  3. Nippon Concrete Industries

  4. Takada Corporation,

  5. The Zenitaka Corp.

  6. *Disclaimer: Major Players sorted in no particular order
Japan Construction Market Concentration
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Japan Construction Market News

  • October 2024: Obayashi Corporation has introduced a significant architectural endeavor in 3D printing with the launch of 3dpod, marking Japan's inaugural 3D-printed building to achieve earthquake-proof status, ministerial certification, and a building permit. Led by Co Capitanio and Akito Masumura, this cutting-edge construction technique minimizes labor requirements, shortens construction timelines, and optimizes material usage, effectively tackling the issue of skilled labor shortages in remote regions. The 3dpod was crafted to adhere to Japan's stringent seismic building regulations, eschewing traditional reinforcement methods and utilizing 3D printing for all above-ground structural components. The pod features compact, multi-layered walls that integrate load-bearing structures with insulation, equipment routing, and systems for radiant heating and cooling, ensuring it matches the habitability of conventional buildings. Having garnered the esteemed 2024 International Architecture Award, this trailblazing project also functions as a public demonstration facility, assessing the durability, structural soundness, and environmental efficiency of 3D printing technology. This venture highlights the transformative potential of 3D printing in construction, especially in regions prone to earthquakes, in light of Japan's historically stringent building standards.
  • October 2024: Mitsubishi Power, a subsidiary of Mitsubishi Heavy Industries (MHI), has successfully completed a 50-megawatt (MW) woody biomass-fired power plant located in Hyuga, Miyazaki Prefecture. Developed by a consortium spearheaded by MHI, the plant was delivered on schedule as part of a comprehensive turnkey solution encompassing engineering, procurement, and construction (EPC). Operated by Hyuga Biomass Power Co., Ltd., the Hyuga Biomass Power Plant is equipped with state-of-the-art technology, including a steam turbine, circulating fluidized bed (CFB) boiler, and generator, all aimed at enhancing biomass power generation efficiency while minimizing environmental impact. The plant's special purpose company (SPC) is a joint venture among Osaka Gas, ITOCHU Corporation, Tokyo Century Corporation, and Tokyo Energy & Systems Inc. MHI provided the primary power generation equipment, while its affiliate, Mitsubishi Heavy Industries Power Environmental Solutions, contributed air quality control systems. Looking ahead, MHI Group is committed to advancing renewable energy solutions, including biomass power, to mitigate environmental impacts and support the global energy transition.
  • May 2024: Toshiba Electronic Devices & Storage Corporation celebrated the inauguration of its new 300-millimeter wafer fabrication facility for power semiconductors in Kawasaki, Japan. The facility, located at Kaga Toshiba Electronics Corporation in Ishikawa Prefecture, also includes a newly constructed office building. This development is a key achievement in Phase 1 of Toshiba's extensive multi-year investment initiative. With the installation of equipment currently in progress, Toshiba is gearing up to kick off mass production in the latter half of fiscal year 2024. Once the facility is fully operational, it will bolster Toshiba's production capacity for power semiconductors, such as MOSFETs and IGBTs, to 2.5 times its capacity in fiscal 2021. Built with a seismic isolation structure for enhanced earthquake resilience, the facility operates entirely on renewable energy sources, including solar panels, aligning with Toshiba’s Business Continuity Plan (BCP). Furthermore, the integration of artificial intelligence (AI) aims to elevate both product quality and production efficiency. Toshiba is also looking forward to securing a grant from Japan’s Ministry of Economy, Trade, and Industry, which would partially subsidize its investment in manufacturing equipment. With the rising demand for power semiconductors driven by the electrification of vehicles and the automation of industrial machinery, Toshiba's bolstered semiconductor production capabilities play a pivotal role in the global push towards carbon neutrality.

Japan Construction Market Report - Table of Contents

1. INTRODUCTION

  • 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
    • 5.1.1 Residential
    • 5.1.2 Commercial
    • 5.1.3 Industrial
    • 5.1.4 Infrastruture (Transportation)
    • 5.1.5 Energy and Utilities
  • 5.2 By Geography

6. COMPETITIVE LANDSCAPE

  • 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.*
  • *List Not Exhaustive

7. MARKET OPPORTUNITIES AND FUTURE TRENDS

8. APPENDIX

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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 Research Faqs

How big is the Japan Construction Market?

The Japan Construction Market size is expected to reach USD 629.38 billion in 2025 and grow at a CAGR of 3.30% to reach USD 740.31 billion by 2030.

What is the current Japan Construction Market size?

In 2025, the Japan Construction Market size is expected to reach USD 629.38 billion.

Who are the key players in Japan Construction Market?

Obayashi Corp., Mitsubishi Heavy Industries Ltd, Nippon Concrete Industries, Takada Corporation, and The Zenitaka Corp. are the major companies operating in the Japan Construction Market.

What years does this Japan Construction Market cover, and what was the market size in 2024?

In 2024, the Japan Construction Market size was estimated at USD 608.61 billion. The report covers the Japan Construction Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the Japan Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Japan Construction Industry Report

Statistics for the 2025 Japan Construction market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Japan Construction analysis includes a market forecast outlook for 2025 to 2030 and historical overview. Get a sample of this industry analysis as a free report PDF download.

Japan Construction Market Report Snapshots