The "Japan Construction Industry Databook Series - Market Size & Forecast by Value & Volume, 40+ Market Segments Across Residential, Commercial, Industrial, Institutional, Infrastructure, City-Level Construction by Value and Cost Structure, Q4 2025 Update" report has been added to ResearchAndMarkets.com's offering.

According to the analyst, the construction market in Japan is expected to grow by 4.4% on annual basis to reach JPY 32.44 trillion in 2025.

The construction market in the country experienced robust growth during 2020-2024, achieving a CAGR of 6.9%. This upward trajectory is expected to continue, with the market forecast to grow at a CAGR of 3.5% during 2025-2029. By the end of 2029, the construction sector is projected to expand from its 2024 value of JPY 31.07 trillion to approximately JPY 38.75 trillion.

This report provides a detailed data-centric analysis of the construction sector in Japan, offering a comprehensive view of market opportunities in the building and infrastructure construction industry at the country level. With over 100+ KPIs covering growth dynamics in building and infrastructure construction, construction cost structure analysis, and analysis by key cities in the country, this databook provides a wealth of data-centric analysis with charts and tables, ensuring stakeholders are fully informed.

It offers a comprehensive analysis of market dynamics in the construction sector through a range of KPIs such as value, volume, and number of units. The building construction covers detailed segmentation over 30+ segments in residential, commercial, industrial, and institutional sectors. The analyst's research methodology is based on industry best practices. Its unbiased analysis leverages a proprietary analytics platform to offer a detailed view of emerging business and investment market opportunities.

Key Insights

Japan Residential Construction

The Japanese residential construction sector presents significant opportunities, particularly in sustainable and disaster-resilient housing developments. With government incentives supporting urban redevelopment, energy-efficient housing, and earthquake-resistant construction, developers have a strong foundation for growth. Due to Japan's aging population and urban space constraints, the demand for senior-friendly housing and compact smart homes is increasing, making innovation in residential designs a key priority.

However, land use restrictions, declining demand in rural areas, and rising construction costs pose challenges to widespread development. High real estate prices in major metropolitan areas continue to limit affordability, while labor shortages are further straining project timelines and costs. To remain competitive, developers should focus on green housing innovations, modular construction, and automation while capitalizing on government subsidies and tax incentives to offset rising costs.

Japan Commercial Construction

The commercial construction sector in Japan is undergoing a transformation driven by shifting work models and sustainability trends. The demand for traditional office spaces is declining, prompting developers to focus on smart, mixed-use, and flexible workspaces. Rising construction and rental costs present financial challenges, but government incentives and urban redevelopment policies provide opportunities for sustainable growth.

Developers should prioritize AI-driven smart office buildings and zero-carbon commercial spaces to remain competitive. The growth of hybrid work models and co-working spaces presents new avenues for commercial real estate investment. Collaboration between private firms and public initiatives will be crucial in shaping Japan's future business districts, ensuring that urban centers remain attractive for companies, employees, and investors.

Japan Institutional Construction

Japan's institutional construction sector is undergoing significant expansion, particularly in healthcare and education, with substantial government investments allocated to modernizing hospitals and academic institutions. However, high regulatory compliance costs remain challenging, making large-scale public projects expensive and time-consuming. To ensure long-term success, stakeholders must navigate these financial and administrative hurdles while leveraging new technologies such as AI and IoT-enabled smart hospitals to enhance efficiency.

Public-private partnerships (PPPs) will be critical in accelerating the development of healthcare and educational facilities, ensuring efficient project execution and cost-sharing. Developers and investors should focus on sustainable and technologically advanced institutional projects as government policies continue to support smart infrastructure growth. By integrating automation, energy efficiency, and advanced medical infrastructure, Japan's institutional construction sector can meet rising demand while optimizing costs and operational efficiency.

Japan Industrial Construction

Japan's industrial construction sector is experiencing strong growth, driven by increased semiconductor and battery manufacturing facilities investments. The TSMC semiconductor factory in Kumamoto and the development of renewable energy manufacturing hubs reflect the country's commitment to high-tech and sustainable industrial expansion. As global demand for advanced electronics and clean energy solutions rises, Japan is positioning itself as a leader in industrial innovation.

Automation and smart construction techniques are being integrated into industrial facility development to sustain growth, improve efficiency and reduce costs. The government's push for sustainability-focused industrial zones and foreign investment in high-tech manufacturing further supports long-term sector expansion. To capitalize on Japan's industrial construction boom, stakeholders should focus on leveraging automation, optimizing energy-efficient designs, and forming strategic collaborations.

Japan Infrastructure Construction

Japan's infrastructure construction sector is undergoing significant transformation, driven by the urgent need to modernize aging infrastructure and integrate sustainable and smart technologies. Major investments in high-speed rail expansion, green hydrogen transport, and next-generation construction techniques are shaping the industry's future. These initiatives align with Japan's long-term economic and environmental goals, ensuring resilience and efficiency in national infrastructure.

To capitalize on these opportunities, stakeholders must prioritize sustainability, leverage advanced construction methods such as 3D printing, and collaborate on smart infrastructure projects. Public and private sector partnerships will expedite large-scale projects, particularly transport and energy infrastructure. By focusing on innovation, regulatory efficiency, and sustainability, Japan can strengthen its global position as a leader in next-generation infrastructure development.

Report Scope: This report provides market size and forecast across 40+ construction segments for ten years from 2020-2029 in Japan

KPIs covered include the following:

• Market size by value
• Market size by volume of construction
• Number of units

Japan Economic Indicators

Japan Top Cities Construction Data

Japan Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Housing type (multi family, single family)
• Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Price point/income level (luxury, mid-tier, affordable)
• Construction stage (new construction, re-development & maintenance)

Japan Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Green building by Housing type (multi family, single family)
• Green building by Key cities (Tier - 1, Tier - 2, Tier - 3 segmentation)
• Green building by Price point/income level (luxury, mid-tier, affordable)

Japan Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office (further broken down by Grade A, Grade B, and Grade C)
• Retail (further broken down by Grade A, Grade B, and Grade C)
• Hospitality (further broken down by Grade A, Grade B, and Grade C)
• Restaurant (further broken down by Grade A, Grade B, and Grade C)
• Entertainment
• Sports facility
• Other commercial building construction
• Construction stage (new construction, re-development & maintenance)

Japan Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Office green building construction
• Retail green building construction
• Hospitality green building construction
• Restaurant green building construction
• Entertainment green building construction
• Sports facility green building construction
• Other commercial green building construction

Japan Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)

• Manufacturing Plants building construction
• Chemical & Pharmaceutical building construction
• Metal & Material Processing building construction
• Construction stage (new construction, re-development & maintenance)

Japan Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare construction
• Educational construction
• Other building construction
• Construction stage (new construction, re-development & maintenance)

Japan Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by:

• Healthcare green building construction
• Educational green building construction

Japan Infrastructure Construction Sectors: 10-year market size & forecast in value terms by:

• Marine and inland water infrastructure
• Utility system construction (oil and gas infrastructure, communication infrastructure, power infrastructure, water and sewer infrastructure)
• Transportation infrastructure (highway, street and bridge construction, railway construction, airport construction, and tunnel construction)
• Construction stage (new construction, re-development & maintenance)

Japan Green Infrastructure Construction: 10-year market size & forecast in value terms

Japan Construction Cost Structure Analysis: 10-year market size & forecast in value terms:

• Cost Analysis by Type (Material, Labour, Equipment, Others)
• By Material & Work Cost: It provides the cost outlook of material costs by type of materials used in construction (Cement, Steel, Sand, Aggregates, Bricks, Wood, Windows Glazing, Flooring, Plumbing, Electrical, Painting, Other Materials)
• By Labour Cost: It provides the cost outlook of labour costs (RCC Construction Work, Masonry and Plastering Work, Plumbing Work, Water Proofing Work, Carpentry Work, Electrical Work, Tile Fixing Work, CATV Antenna Points, Painting Work, Departmental Labour)
• By Type of Construction (New, Re-Development)
• By Material Cost: It provides the cost outlook of material costs by type of materials used in construction (Concreting Sand, Stone Aggregate, Ordinary Portland Cement, Reinforced Concrete (Grade 30 MPA), Reinforced Concrete (Grade 40 MPA), High Tensile Steel bars, Mild Steel Round Bars, Structural Steelwork, Plywood Formwork (1800*900*12mm), Clay Bricks)
• Type of Labour (Skilled vs. unskilled)

For more information about this report visit https://www.researchandmarkets.com/r/yzahjd

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