Australia Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2028
Summary
Following annual growth of 9% in 2023, the growth of the Australian construction industry is expected to slow to 2% in real terms in 2024, owing to a decline in building permits, coupled with labour shortages, material supply constraints, and high construction costs. According to the Australian Bureau of Statistics (ABS), the average number of people employed in the construction industry fell by 1.9% last year, falling from 1.27 million in 2022 to 1.24 in 2023. Additionally, according to the Australian Securities and Investments Commission (ASIC), companies filling for insolvency within the construction industry rose by 42% in 2023, increasing from 1,793 in 2022 to 2,546.
The construction industry is expected to record an average annual growth of 2.8% from 2025 to 2028, supported by investment in the housing, renewable energy, health, education, and manufacturing sectors. Growth will also be driven by investment as part of the National Road Safety Action Plan (2023-25), which outlines the steps that the federal, state, and territorial governments will undertake to decrease road accidents and casualties. The plan focuses on nine key areas, one of which is planning and investment in infrastructure. In February 2024, the Australian government and Queensland government jointly announced a funding of AUD511.5 million ($332.8 million) for this initiative which will be used to deliver 71 projects for safety upgrades across Queensland.
Forecast-period growth in the industry will also be supported by the significant investment announced as part of several state government budgets. In its Financial Year (FY) 2023-24 (July 2023 to June 2024 Budget), the state government of Tasmania announced AUD2.2 billion ($1.4 billion) for the development of transport infrastructure over the next four years. The Tasmanian government also plans to invest AUD12.1 billion ($7.9 billion) until 2027 to upgrade healthcare infrastructure in the state. Furthermore, the Tasmanian government plan to invest AUD1.5 billion ($976 million) in the construction of 10,000 new social and affordable homes by 2032. In February 2024, the Tasmanian government announced it plans to develop an additional 2,000 more houses by 2027.
GlobalData’s Construction in Australia – Key Trends and Opportunities by State and Territory to 2028 (Q1 2024) 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.
This report provides a comprehensive analysis of the construction industry in Australia. It provides -
- Historical (2019-2023) and forecast (2024-2028) 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
- 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.
- 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 Construction Outlook – States and Territories
- 5.1 New South Wales
- 5.2 Victoria
- 5.3 Queensland
- 5.4 South Australia
- 5.5 Western Australia
- 5.6 Tasmania
- 5.7 Northern Territory
- 5.8 Australian Capital Territory
- 6 Key Industry Participants
- 6.1 Contractors
- 6.2 Consultants
- 7 Construction Market Data
- 8 Appendix
- 8.1 What is this Report About?
- 8.2 Definitions
- 8.3 CRI Methodology
- 9 About GlobalData
- 10 Contact Us
- List of Tables
- Table 1: Construction Industry Key Data
- Table 2: Australia, Key Economic Indicators
- Table 3: Australia, Commercial Construction Output by Project Type (Real % Change), 2019–28
- Table 4: Australia, Top Commercial Construction Projects by Value
- Table 5: Australia, Industrial Construction Output by Project Type (Real % Change), 2019–28
- Table 6: Australia, Top Industrial Construction Projects by Value
- Table 7: Australia, Infrastructure Construction Output by Project Type (Real % Change), 2019–28
- Table 8: Australia, Top Infrastructure Construction Projects by Value
- Table 9: Australia, Energy and Utilities Construction Output by Project Type (Real % Change), 2019–28
- Table 10: Australia, Top Energy and Utilities Construction Projects by Value
- Table 11: Australia, Institutional Construction Output by Project Type (Real % Change), 2019–28
- Table 12: Australia, Top Institutional Construction Projects by Value
- Table 13: Australia, Residential Construction Output by Project Type (Real % Change), 2019–28
- Table 14: Australia, Top Residential Construction Projects by Value
- Table 15: Australia, Key Contractors
- Table 16: Australia, Key Consultants
- Table 17: Australia, Construction Output Value (Real, $ Million)
- Table 18: Australia, Construction Output Value (Nominal, AUD Million)
- Table 19: New South Wales, Construction Output Value (Real, $ Million)
- Table 20: New South Wales, Construction Output Value (Nominal, AUD Million)
- Table 21: Victoria, Construction Output Value (Real, $ Million)
- Table 22: Victoria, Construction Output Value (Nominal, AUD Million)
- Table 23: Queensland, Construction Output Value (Real, $ Million)
- Table 24: Queensland, Construction Output Value (Nominal, AUD Million)
- Table 25: South Australia, Construction Output Value (Real, $ Million)
- Table 26: South Australia, Construction Output Value (Nominal, AUD Million)
- Table 27: Western Australia, Construction Output Value (Real, $ Million)
- Table 28: Western Australia, Construction Output Value (Nominal, AUD Million)
- Table 29: Tasmania, Construction Output Value (Real, $ Million)
- Table 30: Tasmania, Construction Output Value (Nominal, AUD Million)
- Table 31: Northern Territory, Construction Output Value (Real, $ Million)
- Table 32: Northern Territory, Construction Output Value (Nominal, AUD Million)
- Table 33: Australia Capital Territory, Construction Output Value (Real, $ Million)
- Table 34: Australia Capital Territory, Construction Output Value (Nominal, AUD Million)
- Table 35: GlobalData Construction Market Definitions
- Table 36: Risk Dimensions
- Table 37: Ratings, Scores and Definitions
- List of Figures
- Figure 1: Australasia, Construction Output (Real % Change), 2022–28
- Figure 2: Australia, Construction Output by Sector (Real % Change), 2022–24 and 2025–28
- Figure 3: Australia, Risk Summary
- Figure 4: Australia, Risk Regional Comparison
- Figure 5: Australia, Construction Output Value (Real, $ Million, 2022 Prices and Exchange Rate), 2019–28
- Figure 6: Australia, Construction Output Value, by Sector (Real, $ Million), 2019–28
- Figure 7: Australia, Total Value of Construction Work Done, AUD Billion Chain Volume Measure
- Figure 8: Australia, Total Value of Building Construction Works Done, % Change YoY
- Figure 9: Australia, Private Gross Fixed Capital Formation, Seasonally Adjusted Chain Volume Measures, in AUD Billion, % Change YoY
- Figure 10: Australia, Construction Sector Jobs, in Thousands
- Figure 11: Australia, Construction Wage Price Index, 2008-2009 = 100, Hourly Pay (Excluding Bonuses)
- Figure 12: Australia, Construction Projects Momentum Index
- Figure 13: Australasia, Construction Projects Momentum Index
- Figure 14: Australia, Commercial Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 15: Australia, Commercial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 16: Australia, Nominal Value of Commercial Buildings Approved, % Change YoY
- Figure 17: Australia, Short-Term Visitor Arrivals, in Thousands
- Figure 18: Australia, Tourism Sector Jobs, in Thousands
- Figure 19: Australia, Retail Trade Turnover (in AUD Billion), Seasonally Adjusted
- Figure 20: Australia, Industrial Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 21: Australia, Industrial Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 22: Australia, Nominal Value of Buildings Approved for Factories and Other Secondary Production Buildings, in AUD Million
- Figure 23: Australia, Total Value of Mineral Exploration (in AUD Million)
- Figure 24: Australia, Total Exports, Current Prices, (AUD Billion)
- Figure 25: Australia, Number of New Vehicle Sales
- Figure 26: Australia, Infrastructure Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 27: Australia, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 28: Australia, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 29: Australia, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 30: Australia, Total Value of Petroleum Exploration (in AUD Million)
- Figure 31: Australia, Total Value of Natural Gas Exports (in AUD Million)
- Figure 32: Australia, Institutional Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 33: Australia, Institutional Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 34: Australia, Nominal Value of Buildings Approved for Education and Health Purpose, in AUD Million
- Figure 35: Australia, Residential Construction Output by Project Type (Real, $ Million), 2019–28
- Figure 36: Australia, Residential Construction Projects Pipeline, Value by Stage ($ Million)
- Figure 37: Australia, Total Value of Residential Building Construction Work Done, AUD Billion Chain Volume Measure
- Figure 38: Australia, Total Number of Dwelling Units Approved
- Figure 39: Australia, Total New Housing Loan Commitment, In AUD Billion, % Change YoY
- Figure 40: Australia, Headquarters of Key Contractors (% of Total Project Pipeline)
- Figure 41: Australia, Headquarters of Key Consultants (% of Total Project Pipeline)
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