Japan Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Japan Construction Market Size, Trends and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis, 2022-2026

Summary
The analyst has maintained its growth forecast for the Japanese construction industry in 2022, with the industry expected to expand by 2.5% in real terms this year, before registering an annual average growth of 0.8% from 2023 to 2026. Growth will be supported by investment in the renewable energy, telecommunication, and manufacturing sectors. The government plans to develop 10GW of offshore wind capacity by the fiscal year (FY) 2030/2031, in line with its target to increase the share of renewable energy in its total power mix to 22-24% by 2030; this is expected to attract public and private sector investment towards renewable energy projects. According to the Statistics Bureau, the total value of contracts received for construction grew by 1.1% year on year (YoY) in the first five months of 2022. In terms of segmentation, the total value of contracts of civil engineering works grew by 8.4%, while that of buildings fell by 12.7% during the same period.

In addition to the significant outlay of public funds, the government hopes to attract private capital to develop telecommunication infrastructure and deploy 5G services, coupled with its target to achieve carbon neutrality by 2050. In April 2022, SoftBank Corp. (SoftBank) announced a JPY35.1 billion ($327.9 million) social loan to fund capital expenditures exclusively for the construction of 5th generation network (5G) base stations in Japan. Furthermore, to revive the economy, which faces considerable challenges due to the uncertainty of the coronavirus (COVID-19) situation, the slowing of economic growth in China, and rising materials and energy prices, in March 2022 Japan announced a JPY1 trillion ($9.3 billion) stimulus package to cushion the impact of surging energy, commodity, and grain prices stemming from Russia’s invasion of Ukraine. Additionally, to finance measures aimed at stimulating the economy and mitigating the impact of rising prices, in July 2022 the Japanese Government announced that it plans to compile a supplementary budget worth more than JPY10 trillion ($93.4 billion), following the House of Councilors election.

The report provides detailed market analysis, information, and insights into the Japanese construction industry, including -
- The Japanese 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 Japanese 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 Japan.

It provides -
- Historical (2017-2021) and forecast (2022-2026) valuations of the construction industry in Japan, 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 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 critical and actionable insight.
- Assess business risks, including cost, regulatory and competitive pressures.
- Evaluate competitive risk and success factors.