Australia’s construction market, valued at USD 318.03 billion in 2024, is projected to grow at a CAGR of 3.20% to reach USD 435.78 billion by 2034. Drivers include urbanization, renewable energy investments, smart city development, and healthcare infrastructure expansion. Key trends: modular construction, sustainability, and smart technologies.
Dublin, Sept. 02, 2025 (GLOBE NEWSWIRE) — The “Australia Construction Market Size and Share Outlook – Forecast Trends and Growth Analysis Report (2025-2034)” report has been added to ResearchAndMarkets.com’s offering.
The Australia construction market reached a value of nearly USD 318.03 Billion in 2024. The market is assessed to grow at a CAGR of 3.20% during the forecast period of 2025-2034 to attain a value of around USD 435.78 Billion by 2034. The market growth can be attributed to rapid urbanisation, increasing investments in renewable energy infrastructure, the rising prevalence of natural disasters, the surging development of smart cities, and the expansion of healthcare infrastructure.
Rapid urbanisation, especially in cities like Melbourne, Perth, Brisbane, and Sydney, is surging the necessity for apartments and commercial spaces to accommodate the burgeoning population. Governments and private developers are also focusing on developing more affordable residential developments in urban areas to cater to diverse income groups. In September 2024, Housing Australia selected an initial pipeline of 185 projects to deliver over 13,700 social and affordable homes across the country.
The introduction of government initiatives aimed at boosting infrastructure is propelling the Australia construction market expansion. In May 2024, the Australian government announced its decision to invest over AUD 1 billion for the 8,500-ARTC rail network. Besides, the increasing concerns regarding housing shortages in the country are prompting both federal and state governments to develop affordable housing plans. In October 2024, the Australian government launched a low-cost housing plan to build nearly 1.2 million homes by 2030 to ease the housing shortage in the country.
Australia Construction Market Growth
The increasing prevalence of natural disasters in Australia, such as floods, bushfires, and cyclones, among others, is surging the need for the development of disaster-resistant infrastructure, such as fire-resistant buildings, flood barriers, and storm-resistant structures. This is prompting construction companies to use non-combustible materials, steel framing, fire-rated cladding, fire-resistant windows, and advanced sprinkler systems. Moreover, there is a growing integration of advanced technologies such as smart sensors and early warning systems in infrastructure and buildings to provide real-time information regarding environmental conditions and enable rapid response in the event of a disaster.
Rising investments in renewable energy infrastructure, such as solar projects, wind energy, and battery storage systems, to reduce the dependency on fossil fuels, are creating lucrative Australia construction market opportunities. In October 2024, X-ELIO announced the expansion of its Blue Grass Solar Farm, located in Queensland’s Western Downs, with the addition of a 148 MW Battery Energy Storage System. The project contributes to the Queensland Government’s plan to generate 70% of its energy needs from renewable sources by 2032 and 80% by 2035.
Australia Construction Market Trends
Modular and prefabricated construction methods are becoming increasingly popular in Australia due to their ability to reduce construction time, costs, and material waste. These methods also help minimise on-site errors and delays. As sustainability becomes a key focus in the industry, there is a rising demand for these construction methods to reduce the carbon footprint of projects. Advanced technologies like 3D printing and Building Information Modeling (BIM) are enhancing the efficiency and precision of modular construction. The demand for affordable housing is further driving the popularity of prefabricated homes, with the New South Wales government piloting modular social homes in 2024.
Sustainability is a growing priority in the Australia construction market. In 2024, the Green Building Council of Australia updated its Green Star Performance tool to meet evolving standards. The sector, contributing 18% of national emissions, is moving toward net-zero targets by 2050, with increased use of energy-efficient systems, sustainable materials like recycled steel, and low-carbon technologies. Advanced technologies are transforming the construction sector, with tools like BIM, robotics, and 3D printing improving project efficiency, safety, and precision. The use of AI and machine learning for predictive analysis and site safety is also expected to drive further growth in the market, particularly in addressing the housing shortage.
Opportunities in the Australia Construction Market
Increasing Development of Smart City Projects
The increasing development of smart cities requiring advanced transportation infrastructure, including autonomous vehicle lanes, intelligent traffic management systems, and smart roads with sensors for real-time data collection is aiding the Australia construction market expansion. Construction companies are focusing on developing smart grids, data centres, and communication infrastructure to support the rising need for digital connectivity in smart cities. With cities needing enhanced communication infrastructure, particularly fibre-optical cables and 5G networks, the construction of telecommunications infrastructure, such as telecommunication towers, data centres, and underground fibre-optic networks is increasing.
Expansion of Healthcare Infrastructure
There is a rising construction of medical research centres, hospitals, and medical office buildings amid the evolving healthcare needs and advancements in medical technology in Australia. Construction firms specialising in healthcare technology integration are increasingly developing smart hospitals equipped with automated systems, IoT-enabled devices, and data-driven patient care. Moreover, the ageing population of Australia is driving the demand for aged care facilities such as assisted living communities and nursing homes. As of June 30th, 2020, there were nearly 4.2 million older Australians (aged 65 or over), with the geriatric population comprising 16% of the overall Australian population.
Australia Construction Market Restraints
One of the major factors impeding the growth of the construction industry in Australia is the looming shortage of skilled workforce, including project managers, tradespeople, and engineers in the country, leading to construction delays. Factors like supply chain disruptions, growing transportation costs, and shortages of essential materials like steel, timber, and cement can also hinder the market.
The Australia construction industry is heavily dependent on imported building materials, exposing it to trade restrictions and currency fluctuations. Evolving regulations regarding building standards, safety, and zoning by state, federal, and local governments can increase the complexity of construction projects.
Competitive Landscape
Key players in the Australia construction market are attempting to reduce carbon emissions and integrating sustainable practices such as rainwater harvesting and solar power to meet stringent environmental standards. Australia construction companies are also adopting technologies such as drones, robotics, automation, and building information modelling (BIM) to improve construction efficiency and lower labour costs.
Laing O’Rourke Corp. Ltd.
Laing O’Rourke Corp. Ltd. is a renowned construction and engineering company that is headquartered in Dartford, England. The company delivers advanced building and infrastructure projects for its customers in the Middle East, the United Kingdom, and Australia. It aims to become a pioneer and innovator in the construction sector by 2025.
J Hutchinson Pty Ltd.
J Hutchinson Pty Ltd., founded in 1912, has established its position as a diverse and dynamic construction company in Australia. With a presence across regional and urban regions of Australia, it delivers advanced projects and has built over 7,500 projects worth more than USD 35 billion in the country since its inception.
Lendlease Corporation Limited
Lendlease Corporation Limited is a global real estate company that has been involved in delivering iconic projects like Singapore’s Paya Lebar Quarter, Sydney’s Barangaroo Precinct, and New York’s Claremont Hall. The company also provides leading design and project management services for sectors like social infrastructure, residential, and commercial.
Other Australia construction market players include Brookfield Corporation (Multiplex Constructions Pty Limited), CIMIC Group Ltd. (CPB Contractors), John Holland Group Pty Ltd., ADCO Constructions Pty Ltd., Fulton Hogan Ltd., Mirvac Limited, and Hansen Yuncken Pty Ltd., among others.
Key Topics Covered:
Executive Summary
Market Size 2024-2025
Market Growth 2025(F)-2034(F)
Key Demand Drivers
Key Players and Competitive Structure
Industry Best Practices
Recent Trends and Developments
Industry Outlook
Market Overview and Stakeholder Insights
Economic Summary
Asia Pacific Construction Market Overview
Key Industry Highlights
Asia Pacific Construction Historical Market (2018-2024)
Asia Pacific Construction Market Forecast (2025-2034)
Asia Pacific Construction Market Breakup by Country
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