Japan Construction Market
Market Statistics
Base Year: 2025
Historical Years: 2020-2025
Forecast Years: 2026-2034
Market Size in 2025: USD 652.7 Billion
Market Forecast in 2034: USD 941.3 Billion
Market Growth Rate: 4.15% (2026-2034)
According to the latest report by IMARC Group, “The Japan construction market size reached USD 652.7 Billion in 2025. Looking forward, IMARC Group expects the market to reach USD 941.3 Billion by 2034, exhibiting a growth rate (CAGR) of 4.15% during 2026-2034.”
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Japan Construction Industry Trends and Drivers:
Japan’s construction industry is successful following various infrastructure renewal projects such as urban redevelopment, disaster prevention and international event hosting. Sustained demand for infrastructure in Japan, including roads, bridges, railways, ports and airports, due to the government’s focus on replacing aging infrastructure. Large cities in particular are being redeveloped on a massive scale, as the old buildings are replaced with new ones that are earthquake resistant and have the latest energy-saving features along with other current safety codes. The experience from disasters such as earthquakes, tsunamis, and typhoons has furthered attention to building robust infrastructure and retrofitting buildings for future events, resulting in a boom in construction across the nation.
The Japan construction market is divided by Urban, Rural and Others. The country-level demand for new housing during an individual’s life is analyzed, considering factors such as household income, household types, and population aging. Growing population, urbanization rate, increase in demand of infrastructure, low penetration rate of TVOC purifiers are driving the demand for indoor air quality systems in India. Rising demand for modern and energy-efficient houses equipped with high-quality safety systems, despite shrinking population and aging in the country. The commercial sector gains from office renovations, retail construction, hospitality construction, and data center construction to meet growing digital infrastructure needs. Industrial construction includes manufacturing, logistics centers, and specialized production facilities as businesses expand and contract their operational footprints. These infrastructure and transportation initiatives — highway expansions, railway enhancements, port upgrades, and more — support regional connectivity as well as economic competitiveness. The energy and utilities segment includes power plant, transmission, and water/wastewater infrastructure, as well as those infrastructure builders with a focus on renewables given Japan’s energy transition ambitions. Prefabrication, modular construction, robotics and building information modeling (BIM) have been introduced to tackle labor shortages for numerous years while also increasing efficiency, enabling the market to keep expanding in the forecast period.
Japan Construction Market Segmentation:
The market report offers a comprehensive analysis of the segments, highlighting those with the largest Japan construction market share. It includes forecasts for the period 2026-2034 and historical data from 2020-2025 for the following segments.
Sector Insights:
- Residential
- Commercial
- Industrial
- Infrastructure (Transportation)
- Energy and Utilities
Regional Insights:
- Kanto Region
- Kinki Region
- Central/ Chubu Region
- Kyushu-Okinawa Region
- Tohoku Region
- Chugoku Region
- Hokkaido Region
- Shikoku Region
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Competitive Landscape:
The report offers an in-depth examination of the competitive landscape. It includes a thorough competitive analysis encompassing market structure, key player positioning, leading strategies for success, a competitive dashboard, and a company evaluation quadrant. Additionally, the report features detailed profiles of all major companies in the Japan construction industry.
Key Players:
- Kajima Corporation
- Mori Building Company Limited
- Nippon Concrete Industries Co. Ltd.
- Obayashi Corporation
- Shimizu Corporation
- Sumitomo Mitsui Construction Co. Ltd.
- The Zenitaka Corporation
Note: If you need specific information that is not currently within the scope of the report, we will provide it to you as a part of the customization.
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