Market Size of Japan Construction Industry
| 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
*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.
