Australia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Australia Construction Market Size, Trend Analysis by Sector (Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential) and Forecast, 2023-2027

Summary

The construction industry in Australia is expected to contract by 2.5% in real terms in 2023, owing to headwinds caused by elevated inflation and interest rates, high construction costs, labor shortages and continued weakness in the residential construction sector. Many home builders are deferring investment decisions or cancelling housing projects owing to the current headwinds in the housing sector. In May 2023, the Australian Securities and Investments Commission (ASIC) reported that builders responsible for approximately 5,200 homes - with a combined value of AUD2.2 billion ($1.5 billion) - have gone bankrupt, since 2021. For instance, the Australian home-builder Porter Davis Homes - which had 1,700 homes under construction across Victoria (1,500) and Queensland (200) - went into liquidation in March 2023.

The Australian construction industry is however expected to record an average annual growth of 3.1% from 2024 to 2027, supported by the government’s continued focus on infrastructure development, coupled with investment in the transport, housing, renewable energy, health, education, and manufacturing sectors. The federal government released its Financial Year (FY) 2023-24 (July 2023 to June 2024) Budget in May 2023. As part of the budget, the government announced that it will provide AUD15.5 billion ($10.7 billion) to support state infrastructure projects, in FY2023-2024. Some of the significant allocations include AUD8.2 billion ($5.7 billion) for road investment, AUD3.8 billion ($2.6 billion) for rail investment, and AUD817.9 million ($565.9 million) to upgrade key freight routes. The government also announced that it will increase the National Housing Finance and Investment Corporation's liability cap by AUD2 billion ($1.4 billion), to a total of AUD7.5 billion ($5.2 billion), to increase lending to community housing providers, thereby supporting the construction of more social and affordable housing projects.

This report provides detailed market analysis, information and insights into the Australian construction industry, including -

• The Australian 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 Australian 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 Australia. It provides -

• Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in Australia, 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 GlobalData's 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 strategy using GlobalData's critical and actionable insight.
• Assess business risks, including cost, regulatory and competitive pressures.
• Evaluate competitive risk and success factors.