Construction Market in Australia to Grow by USD 42.1 Billion (2025-2029), Rising Urban Migration Boosts the Market, Report with the AI Impact on Market Trends - Technavio

NEW YORK, Jan. 29, 2025 /PRNewswire/ -- Report on how AI is redefining market landscape - The construction market in australia size is estimated to grow by USD 42.1 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of 3.5% during the forecast period. Rising mass population shifting toward urban cities is driving market growth, with a trend towards rising adoption of dry construction techniques. However, rising cost of construction materials poses a challenge. Key market players include 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, Fulton Hogan Ltd., GRIMSHAW, Inspired Built Pty Ltd., J Hutchinson Pty Ltd., Laing O Rourke, Lendlease Corp. Ltd., and Multiplex.

Key insights into market evolution with AI-powered analysis. Explore trends, segmentation, and growth drivers- View Free Sample PDF

Market Driver

The Australian construction market is experiencing strong growth with a focus on both residential and non-residential projects. Residential investment and housing prices remain high, driven by population growth and dwelling demand. Capacity constraints persist, leading to increased construction activity and revenue generation. Employment statistics are positive, with opportunities in manufacturing and building, off-site production, and infrastructure construction. Technological solutions, such as digital transformation and modular systems, are game-changers in the industry. Trust and investments are key, with startups playing a role in innovation. Sustainability is a priority, with efficiency improvement and sustainable construction on the rise. Non-residential projects include commercial building, skyscraper alterations, and transportation sector developments. Labor costs and mortgage rates impact homeowners, while rental vacancy rates remain a challenge. Government-led projects and trust building are crucial for industry advancements. Infrastructure construction, efficiency enhancement, and productivity are essential for market potential. Sustainability, trust, and technology adoption are industry opportunities. Construction challenges include capacity constraints, labor costs, and sustainability. Overall, the construction market in Australia presents significant opportunities for growth and innovation. Trust, investments, and technology will continue to shape the industry landscape. 

Dry construction is a modern building technique that offers significant advantages over traditional brick-and-mortar methods. Pre-fabricated components, such as gypsum board, plywood, wallboard, metal supports, and stone wool, are used in dry construction. These materials can be easily assembled using screws, rivets, or wrenches, without the need for additional time for mortar to set or harden. This results in faster construction times compared to brick-and-mortar houses. The escalating demand for dry construction materials stems from their efficiency and convenience. Real estate developers and construction contractors can benefit from adopting dry construction techniques to meet project deadlines and reduce overall construction costs. 

Request Sample of our comprehensive report now to stay ahead in the AI-driven market evolution!

Market Challenges

• The Australian construction market faces several challenges in both residential and non-residential projects. Capacity constraints hinder construction activity, leading to delays and increased costs. Dwelling investment and housing prices remain high, while rental vacancy rates are low due to population growth. Revenue generation and employment statistics are key concerns for industry players. Digital transformation and technological solutions offer game-changers, with startups playing a significant role in off-site production and modular systems. Skyscraper alterations, mortgage approvals, and affordable rents are critical issues for homeowners and renters. Manufacturing and building efficiency improvement, sustainability, and productivity are essential for revenue growth. Labor costs, infrastructure construction, and commercial building projects require attention, along with interest rates and government-led projects in the transportation sector. Trust building, technology investments, and industry opportunities are crucial for a sustainable and productive building industry. Sustainability, efficiency enhancement, and strong growth are industry advancements that will shape the market potential.
• The Australian construction market relies significantly on imported materials, particularly cement, iron, steel, and aluminium. Current market challenges include escalating material costs and a scarcity of manual labour, which may impede the expansion of the construction sector. Major cement suppliers in Australia include CIMIC Group Ltd. And Altrad Group. The cement market is highly concentrated, with these companies dominating the industry. Regrettably, the increasing inflation and decreasing Australian dollar value have led to substantial price hikes for raw materials within the country.

Discover how AI is revolutionizing market trends- Get your access now!

Segment Overview 

This construction market in Australia report extensively covers market segmentation by

1. Sector 
• 1.1 Building construction
• 1.2 Infrastructure construction
• 1.3 Industrial construction
2. End-user 
• 2.1 Engineering
• 2.2 Residential
• 2.3 Non-residential
3. Type 
• 3.1 New construction
• 3.2 Redevelopment
4. Geography 
• 4.1 APAC

1.1 Building construction- The building construction market in Australia is driven by two key sectors: residential and commercial. With an increasing population of 26.005 million in 2022, up 1.2% from the previous year, the demand for housing is on the rise. Cities like Sydney and Melbourne are witnessing in high-rise apartment projects to accommodate urban populations. Commercial construction is another significant contributor, as the business sector grows and the demand for office and retail space increases. Notable projects, such as Barangaroo in Sydney, add economic value and shape the skylines of major cities like New South Wales, Sydney, and Melbourne. In September 2023, 44,093 building construction projects were completed, with 27,980 being new private sector houses and 15,156 dwellings in non-residential sectors. These trends will continue to fuel the growth of the construction market in Australia.

Download a Sample of our comprehensive report today to discover how AI-driven innovations are reshaping competitive dynamics

Research Analysis

The construction market in Australia is experiencing in activity, with both residential and non-residential projects underway. Capacity constraints are becoming a challenge for the industry, as construction costs continue to rise and housing prices reach new heights. Dwelling investment and rental vacancy rates are also key factors influencing the market. Population growth remains a significant driver, leading to revenue generation and annual growth rates in the double digits. Employment statistics are strong in the construction sector, with digital transformation and technological solutions playing an increasingly important role. Startups are bringing innovative prefabricated construction and off-site production methods to the table, while traditional skyscraper alterations continue to be a mainstay. Mortgages and affordable rents are major considerations for homeowners, and labor costs remain a significant factor in commercial building projects. Interest rates and mining-related engineering projects are also impacting the market, as is the transportation sector's demand for infrastructure development. Modular systems and inner-city developments are gaining popularity, offering solutions to capacity constraints and affordability concerns. Overall, the construction market in Australia is dynamic and diverse, presenting both challenges and opportunities.

Market Research Overview

The construction market in Australia is experiencing strong growth, with both residential and non-residential projects driving activity. Capacity constraints continue to challenge the industry, leading to increased focus on efficiency improvement and productivity. Dwelling investment and housing prices remain high, while construction costs and rental vacancy rates fluctuate. Population growth is a significant revenue generator, with employment statistics reflecting the industry's importance. Digital transformation and technological solutions are game-changers, with startups playing a key role in off-site production and modular systems. Skyscraper alterations, mortgage rates, and homeowners' needs also impact the market. Infrastructure construction, commercial building, and government-led projects dominate the landscape. Sustainability, sustainability, and trust building are key industry opportunities, with technology investments and industry advancements paving the way for strong growth. Despite challenges such as labor costs and interest rates, the construction industry remains a vital contributor to the Australian economy.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Sector
• Building Construction
• Infrastructure Construction
• Industrial Construction
• End-user
• Engineering
• Residential
• Non-residential
• Type
• New Construction
• Redevelopment
• Geography
• APAC

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio