Japan Construction Market is Expected to Reach USD 571.43 Billion by 2030

Notable increase in large-scale projects is driving the Japan construction market growth during the forecast period

The Japan Construction Market size was valued at USD 480.21 billion in 2024, and is projected to grow to USD 504.33 billion in 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 571.43 billion by 2030, with a CAGR of 2.5% from 2025 to 2030, according to new research by Next Move Strategy Consulting.

Japan’s construction sector is undergoing significant expansion, driven by a wave of large-scale developments. In 2024, major projects such as the Higashigotanda Two Chome Third District Type One Urban Redevelopment, GLP Yachiyo V, Tenjin Business Center Phase 2, Suzaka Refrigerated Showcase Manufacturing Factory, and the Kitanakadori North District B-1 District New Construction are propelling industry growth. These developments underscore the sector’s role in advancing Japan’s economic progress and infrastructure modernization.

However, regulatory complexity remains a major obstacle in the construction market. Infrastructure projects require a broad array of approvals from government agencies across local, regional, and national levels. These include compliance with zoning laws, environmental reviews, building codes, and safety regulations. Lengthy permitting processes, bureaucratic inefficiencies, and regulatory inconsistencies among jurisdictions extend project timelines and elevate costs. Sudden regulatory shifts further disrupt implementation and hinder investment momentum.

On the other hand, the construction industry is advancing through a major digital transformation, led by the widespread adoption of Building Information Modeling (BIM), which is unlocking new growth pathways. BIM supports advanced digital design, simulation, and infrastructure oversight, improving accuracy, coordination, and resource efficiency. 

Reflecting this shift, ALLPLAN launched Allplan 2024-1 in April 2024 to enhance BIM functionalities and optimize cloud-based workflows, signaling the sector’s move toward fully digital project execution. The integration of AI, IoT, and cloud technologies is also enhancing real-time collaboration, predictive maintenance, and efficient facility management.

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Several market players operating in the Japan construction industry include Obayashi Corporation, Kajima Corporation, Shimizu Corporation, Taisei Corporation, Takenaka Corporation, Haseko Corporation, Infroneer Holdings, Toda Corporation, Penta-Ocean Construction, Sumitomo Mitsui Construction, and others.

Key Insights from the Japan Construction Market Report:

• The information related to key drivers, restraints, and opportunities and their impact on the construction market trends in Japan is provided in the report.

• The value chain analysis in the market study provides a clear picture of the roles of each stakeholder.

• The report provides the Japan construction market share of key players, along with a detailed competitive analysis.