Australia Construction Market Report and Forecast 2024-2032

Australia Construction Market Outlook

The Australia construction market size reached approximately USD 308.17 billion in 2023. The market is assessed to grow at a CAGR of 3.2% between 2024 and 2032 to attain a value of around USD 412.97 billion by 2032.

Key Trends in the Market

Construction refers to the process of creating large structures, such as buildings, bridges, and roads, among others. The construction sector is crucial in developing optimal spaces that can connect different communities, improve the well-being of individuals, and provide employment opportunities.

• The Australia construction market demand plays a significant role in driving the development and economic growth of the country. Besides, it is a significant employer of a diverse workforce like labourers, architects, builders, and engineers, among others, as well as fosters improved economic activities in sectors like manufacturing and materials.

• The Australia construction market growth is being supported by factors such as healthy economic growth and a rising immigrant population in the country. This, coupled with increasing investments in non-residential sectors, especially commercial buildings, is positively influencing the market demand.

• One of the key Australia construction market trends includes the growing emphasis on eco-friendly and sustainable construction practices amid rising climate change concerns. Hence, construction companies in the country are increasingly adopting energy-efficient designs and using renewable energy to develop modern infrastructure that can lower energy usage, minimise waste, and promote well-being.

• The adoption of advanced technologies in construction activities in the country is propelling the Australia construction market expansion. Key players are integrating technologies such as drones, building information modelling (BIM), 3D printing, advanced analytics, and IoT, among others, to facilitate collaboration between different stakeholders, enhance productivity, improve worker safety, accurately survey construction sites, precisely track construction progress, reduce downtimes, and provide real-time alert during accidents and unsafe conditions.

Market Analysis

Based on construction type, the market is bifurcated into new constructions and renovation. By end use, the Australia construction market segmentation includes commercial, residential, institutional, and industrial. The comprehensive EMR report provides an in-depth assessment of the market based on the Porter's five forces model along with giving a SWOT analysis.

The report gives a detailed analysis of the following key players in the Australia construction market, covering their competitive landscape and latest developments like mergers, acquisitions, investments and expansion plans.

• Laing O’Rourke Corp. Ltd. 

• Brookfield Corporation (Multiplex Constructions Pty Limited) 

• J Hutchinson Pty Ltd. 

• CIMIC Group Ltd. (CPB Contractors) 

• Lendlease Corporation Limited 

• John Holland Group Pty Ltd. 

• ADCO Constructions Pty Ltd. 

• Fulton Hogan Ltd. 

• Mirvac Limited 

• Hansen Yuncken Pty Ltd. 

• Others

Market Share by Construction Type

Renovation accounts for a considerable portion of the Australia construction market share. With homeowners staying in their properties for a longer duration due to high costs associated with purchasing new houses, limited property choices, and housing affordability challenges, investments in renovating and upgrading areas such as bathrooms and kitchens are increasing.

The government is also focusing on upgrading infrastructure and public buildings to promote the economic development of the country, further fuelling the segment’s growth. In October 2023, Brisbane Airport commenced Future BNE, a UAS$ 5 billion renovation project that is aimed at upgrading international and domestic terminals, transforming aircraft parking, and constructing advanced aeromedical facilities to provide optimal facilities to the increasing number of travellers.

Market Share by End Use

As per the Australia construction market analysis, commercial construction activities are significantly increasing in the country due to the growing labour sector, rising investments in office development, and favourable interest rates. The surging construction of hotels, shopping centres, and entertainment facilities amid the robust growth of the tourism sector also favours the commercial construction market development in the country.

Besides, residential construction activities in the country are buoyed by the growing immigrant population, especially in urban areas. The rising investments in residential construction by the Australian government amid the looming housing crisis are further aiding the segment’s growth. Meanwhile, the outlook of institutional construction is expected to be favourable in the coming years, fuelled by the growing spending on sectors like healthcare and education, among others.

Competitive Landscape

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., 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 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 Highlights of the Report