Tuesday, 02 January 2024 12:17 GMT

Australia Construction Industry Report 2025: Output To Register An AAGR Of 3.2% Between 2026-2029, Supported By PPI In Energy Infrastructure And Housing Projects


(MENAFN- GlobeNewsWire - Nasdaq) The Australian construction industry is poised for growth, driven by investments in housing, transport, and energy infrastructure. Key opportunities include renewable energy projects aligned with government emissions goals and robust public-private partnerships enhancing sector resilience amidst rising costs and labor shortages.

Dublin, Nov. 06, 2025 (GLOBE NEWSWIRE) -- The "Australia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q3 2025)" report has been added to ResearchAndMarkets's offering.
Australian construction industry to expand by 3.8% in real terms in 2025, supported by rising investment in housing, transport infrastructure, and renewable energy projects.

According to the Australian Bureau of Statistics (ABS), the total value of engineering construction work done in Australia grew by 6.1% year on year (YoY) in the first half of 2025 (H1 2025), while the total value of building construction work done grew by 2.1% YoY over the same period.

Growth in 2025 will also be supported by investments under the Fiscal Year (FY) 2025-26 Budget (July 2025 to June 2026), unveiled in March 2025, under which general government expenditure is expected to rise from AUD762.8 billion ($504 billion) in FY2024-25 to AUD785.7 billion ($519.1 billion) in FY2025-26, before averaging AUD846.3 billion ($559.2 billion) from FY2026-27 to FY2028-29. However, the construction industry is expected to face challenges due to rising construction insolvencies amid increasing construction costs and a shortage of skilled labor.
The Australian construction industry is expected to grow at an average annual rate of 3.2% from 2026 to 2029, supported by public and private investment in energy infrastructure and housing projects. The government's aims to generate 82% of its electricity from renewable sources and cut carbon emissions by 43% by 2030, compared with 2005 levels, will support the industry's growth over the forecast period.

In mid-September 2025, the federal government set a 2035 emissions reduction target of 62-70% below 2005 levels, advancing its long-term goal of net zero by 2050. The plan focuses on five decarbonization priorities: expanding clean electricity, electrification and efficiency, adopting clean fuels, scaling new technologies, and enhancing carbon removals.

Scope

  • Historical (2020-2024) and forecast (2025-2029) 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 our 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 business strategies using the analyst's critical and actionable insight
  • Assess business risks, including cost, regulatory and competitive pressures
  • Evaluate competitive risk and success factors

Key Topics Covered:
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
For more information about this report visit

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