Australia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Australia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2023-2027

Summary

The Australian construction industry is expected to have grown by 7.8% in real terms this year, owing to government efforts to increase investment in transport and energy infrastructure projects. As part of the Financial Year (FY) 2023-24 (July 2023 to June 2024) Budget, the government allocated AUD17.5 billion ($12.1 billion) to the transport and communication sector in May 2023. Additionally, in its FY2023-24 Budget, in July 2023, the New South Wales government allocated AUD104.4 billion ($72.3 billion) for new and improved transport infrastructure. According to the Australian Bureau of Statistics (ABS), the total value of construction work done in Australia rose by 9% year-on-year (YoY) in first nine months of 2023; this was due to a 16.5% YoY rise in civil engineering works and a 3.2% YoY rise in building work done during that period.

The industry is however expected to record an average annual growth of 3.2% from 2025 to 2027, supported by the government’s continued focus on infrastructure development, coupled with investment in the housing, renewable energy, health, education, and manufacturing sectors. In August 2023, the federal government approved the construction of 1.2 million new homes over five years from 2025. To support this target, states and territories will receive incentive payments of up to AUD4.7 billion ($3.3 billion). In another positive development, in July 2023, the government announced the next phase of funding for the Local Roads and Community Infrastructure (LRCI) program, totalling AUD750 million ($519.4 million). The government is also focusing on the reduction of greenhouse gas emissions, in line with its plan to cut carbon emissions by 43% by 2030 and to net zero by 2050. It is also aiming to increase the share of renewable electricity in the energy mix from 35.9% in 2022 to 82% by 2030, by investing heavily in the renewable energy sector.

The 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.