Australia Construction Market by Sector, End-user, and Type - Forecast and Analysis 2024-2028

Australia Construction Market Size 2024-2028

The Australia construction market size is forecast to increase by USD 38.71 billion, at a CAGR of 3.35% between 2023 and 2028. 

The market growth analysis depends on several factors such as the rising mass population shifting toward urban cities, the rise in government expenditure on public infrastructure, and the lower interest rates in the real estate sector. Our market report examines historical data from 2018-2022, besides analyzing the current and forecasted market scenario.AECOM provides construction services for healthcare, industrial, justice, leisure, oil, gas and chemicals, sports and venues sectors. Also, Altrad Group offers this services such as extensive structural, mechanical and piping services across a range of sectors including energy, resources, defense, power generation, industrial, and utilities through AusGroup Ltd.

Market Forecasting and Size

Page Number	137
Forecast period	2024-2028
Historic period	2018 - 2022
List of Exhibits	138
Growth momentum & CAGR	Accelerate at a CAGR of 3.35
Market Growth 2024-2028	USD 38.71 billion

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Market Dynamics

Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.

Driver- Rising mass population shifting toward urban cities

The rising mass population shift toward urban cities is reshaping the landscape of these building activities, creating a surge in demand for residential, commercial, and infrastructure projects. The influx of people into urban areas is attributed to various factors, including employment opportunities, better amenities, and a higher quality of life. Urban areas, especially major cities such as Sydney, Melbourne, and Brisbane, are economic hubs with a wide range of job opportunities across finance, technology, and services sectors. 

Additionally, the commercial real estate market is also booming as a result of the urbanization trend. With more people moving to cities, the demand for office space, retail, and entertainment spaces is high. In addition, investors and developers are taking advantage of this by building modern commercial parks and mixed-use projects. Thus, such factors will drive market growth during the forecast period.

Trends- Rising adoption of dry construction techniques

Dry construction includes the use of materials, such as gypsum board, plywood, wallboard, metal supports, and stone wool, which just need to be screwed, riveted, or wrenched together and do not require additional time such as mortar to set in or harden. This significantly cuts down on the installation time, and the process is not affected by the elements of the external environment, such as moisture or rainfall. As these things make use of bolted structures or materials, they are comparatively easier to disassemble and redesign. 

Moreover, this is more advantageous for people who like to routinely renovate their houses as it is more efficient economically and saves time. In addition, the market for this will witness considerable growth in Australia as more companies and developers adopt and make this type of technique available in the construction sector in Australia. Hence, such factors are expected to drive market growth during the forecast period. 

Challenge- Rising cost of construction materials

The market is heavily dependent on material imports. However, the country is currently facing challenges due to the rising cost of materials and a shortage of manual labor, which may hinder the future growth of the market. Cement, iron, steel, and aluminum are the major raw materials used for construction. The increasing inflation and falling value of the Australian dollar have drastically increased the prices of raw materials in the country. 

Further, the implementation of several large-scale public infrastructure projects in Australia has led to a shortage of raw materials, including iron and cement. The slow process of granting quarrying licenses and the need to import more raw materials with the depreciated Australian dollar value has increased the cost of raw materials, which is expected to limit the project implementations in the short term in Australia, which will thereby restrict the market growth during the forecast period.

Market Segmentation 

Sector Segment Analysis: 

The building construction segment will account for a major share of the market's growth during the forecast period.?The Australian population is increasing, and cities are becoming denser. According to the World Bank Data, the total population in Australia in 2022 was 26,005,540, which is an increase of 1.2% from 2021. Demand for housing, whether it is a single-family home or a multi-unit development, is on the rise. 

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The building construction segment was valued at USD 104.83 billion in 2018. Commercial construction is another important sector within this segment. As the business sector continues to grow, the demand for office and retail space continues to increase. Thus, such factors under the building construction segment will drive the growth of the market during the forecast period.

End-User Analysis

Based on end-user, the market has been segmented into engineering, residential, and non-residential. The engineering?segment will account for the largest share of this segment.?Infrastructure projects such as roads, bridges, and public transportation systems are essential components of Australia's development. In the market the engineering segment is involved in projects that require specialist technical knowledge, innovative solutions, and compliance with regulatory requirements. Government agencies partner with engineering firms to develop critical infrastructure, including roads, bridges, and utilities. Further, companies in the energy, telecom, and manufacturing sectors often need engineering services to build facilities and infrastructure that meet their specific requirements. Thus, such factors under the engineering segment will drive the growth of the market during the forecast period.

Who are the Major Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

• ADCO Constructions Pty Ltd.: The company offers construction services for health, education, commercial, defense and special projects, retail, sports and leisure industries.

We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:

ALCHEMY CONSTRUCT, Arup Group Ltd., Barker Ryan Stewart, Built Holdings Pty Ltd., BY Group, Capital Construction Pty Ltd., CIMIC Group Ltd., Fulton Hogan Ltd., Grimshaw Architects LLP, GROUNDUP Construction, Inspired Built Pty Ltd., J Hutchinson Pty Ltd., John Holland Group Pty Ltd., Laing O Rourke, Lendlease Corp. Ltd., Multiplex, and TCB Building Group 

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Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.  

Segment Overview

The market analysis and report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Sector Outlook 
  • Building construction
  • Infrastructure construction
  • Industrial construction

• End-user Outlook 
  • Engineering
  • Residential
  • Non-residential

• Type Outlook
  • New construction
  • Redevelopment

Market Analyst Overview: 

The market continues to attract significant investment and drive the industry forward, fueled by technological innovation and the increasing adoption of prefabricated buildings. With a mix of residential projects and non-residential projects, the market faces capacity constraints while undertaking private non-residential construction work and commercial projects. Despite challenges such as high construction costs and rental vacancy rates, major cities like Sydney and Melbourne thrive due to robust population growth.

The Australian construction industry contributes significantly to the nation's revenue and Gross Domestic Product (GDP), with a projected annual growth rate and substantial employment opportunities. As the sector evolves, technological advancements, supported by the Australian Industry and Skills Committee and the Australian government, pave the way for smarter communities and cutting-edge technology solutions.

Prefabricated construction marvels reshape skylines, offering alternatives to traditional bricklaying and mitigating labor costs while ensuring high-quality output. Moreover, initiatives like prefabricated housing address housing affordability, catering to homeowners and renters alike. The focus on Non-Residential and Infrastructure Construction sectors, including commercial buildings and essential facilities like schools and hospitals, further underscores the market's competitiveness and sustainable sense. As the industry embraces technology and opportunities for strong growth, Australia's construction sector emerges as a game-changer in the global landscape.

Australia Construction Market Scope
Report Coverage	Details
Base year	2023
Market structure	Fragmented
YoY growth 2023-2024(%)	3.25
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	ADCO Constructions Pty Ltd., AECOM, ALCHEMY CONSTRUCT, Altrad Group, Arup Group Ltd., Barker Ryan Stewart, Built Holdings Pty Ltd., BY Group, Capital Construction Pty Ltd., CIMIC Group Ltd., Fulton Hogan Ltd., Grimshaw Architects LLP, GROUNDUP Construction, Inspired Built Pty Ltd., J Hutchinson Pty Ltd., John Holland Group Pty Ltd., Laing O Rourke, Lendlease Corp. Ltd., Multiplex, and TCB Building Group
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Market In this Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market growth and trends and its contribution to the market in focus on the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Market growth and forecasting across Australia
• A thorough market analysis and report of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market  companies

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