Construction Industry in Australia Size & Share Analysis – Growth Trends & Forecasts (2025 – 2030)

Australia Construction Market Analysis

The Australia Construction Market size is estimated at USD 180.90 billion in 2025, and is expected to reach USD 230.89 billion by 2030, at a CAGR of 5% during the forecast period (2025-2030).

The huge investment flowing in the industry is driving the market. Furthermore, the industry is being driven by technological innovation and demand for prefabricated buildings.

• The outlook for investment remains positive. A large pipeline of residential and non-residential projects is expected to sustain construction activity for at least the next year. However, the recent flow of data and information from the Bank’s liaison program indicate that capacity constraints have intensified in some sectors, which will limit the pace of growth in construction activity for some time. The pipeline of private non-residential construction work yet to be done increased recently, reflecting additional commercial projects. By contrast, the outlook for dwelling investment has been downgraded. Demand for new detached dwellings is expected to be soft as a further decline in established housing prices and high construction costs reduce the incentive to build new dwellings. Prospects for higher-density residential projects are brighter, as rental vacancy rates in Sydney and Melbourne have declined and the population growth recovers following the reopening of the international border.
• The Australian construction industry generates nearly 360 billion in revenue (9% of the country’s Gross Domestic Product (GDP)) and has a projected annual growth rate of 2.4%. As of November 2021, the construction industry employed approximately 1,143,600 people. It employs approximately one in 10 workers, and this constitutes 8.7% of the total workforce. According to the construction industry statistics for the five years to November 2021, employment in the industry increased by 7.3%. The Australian Industry and Skills Committee states that although employment declined in 2020 and 2021, projections indicate that it will reach 1,263,900 by 2025. However, more optimistic predictions indicate an employment growth of 6.8% by November 2025.
• The Australian government has a strong vision for developing smarter communities powered by cutting-edge technology solutions. Digital transformation has been placed at the heart of the government’s economic strategy. New technologies in the construction industry are disrupting traditional models for planning, staffing, monitoring, and delivering projects as the physical world becomes increasingly digitized. Despite the obvious benefits, the construction industry is one of the slowest in the world to adopt new technologies and has had lower productivity gains compared to other sectors, such as manufacturing. Startups play an important role in digitizing the construction business. Investors are also interested in the possibilities they offer.
• The sudden arrival of new buildings is altering the skylines. These new constructions are partially a result of prefabricated construction marvels, which allow for the production of big components off-site, shipping them to the construction site, and assembling them more quickly than would be possible with traditional bricklaying or other methods. Prefabrication combines manufacturing and building, resulting in a solution that combines the advantages of lower labor costs with high-quality output because the majority of prefabricated structures are created off-site in a tightly regulated environment. The knock-on impact of prefabrication may result in reduced mortgages, more homeowners, and reasonably priced rents by minimizing the cost of labor, materials, and site hours.