Japan Construction Market Forecast to Reach 621.83 Bn by 2030, Driven by Residential and Infrastructure Growth

Mordor Intelligence has published a new report on the Japan Construction Market, offering a comprehensive analysis of trends, growth drivers, and future projections.

Japan Construction Market Outlook

The Japan Construction Market size stands at USD 528.4 billion in 2025 and is forecast to reach USD 621.83 billion by 2030, translating into a 3.31% CAGR. This growth is driven by steady demand in residential, commercial, and infrastructure projects. Analysts note that the Japan construction market share is increasingly influenced by both domestic and international players, who contribute to the modernization of urban spaces and the expansion of transport and industrial facilities.

Report overview: https://www.mordorintelligence.com/industry-reports/japan-construction-market?utm_source=openpr

Key Trends in the Japan Construction Market

1. Rising Demand in Residential Construction

Urban migration and the replacement of aging buildings continue to drive growth in residential construction. This trend ensures steady activity in housing projects across major cities.

2. Expansion in Commercial Construction Projects

The commercial segment is growing to support office spaces, retail developments, and technological hubs, reflecting Japan's evolving business and urban landscape.

3. Focus on Sustainability and Energy Efficiency

Green building practices, including energy-efficient materials and smart building systems, are increasingly being adopted, aligning construction with environmental standards and regulations.

4. Labor Shortages and Mechanization in Construction

Persistent workforce challenges are pushing the industry toward mechanization and automation, improving productivity and reducing the impact of labor shortages on project timelines and costs.

Check out more details and stay updated with the latest industry trends, including the Japanese version for localized insights: https://www.mordorintelligence.com/ja/industry-reports/japan-construction-market?utm_source=openpr

Segmentation in Japan Construction Market

By Sector:

Residential:

Apartments/Condominiums

Villas/Landed Houses

Commercial:

Office

Retail

Industrial and Logistics

Others

Infrastructure:

Transportation Infrastructure (Roadways, Railways, Airways, Others)

Energy & Utilities

Others

By Construction Type:

New Construction

Renovation

By Construction Method:

Conventional On-Site

Modern Methods of Construction (Prefabricated, Modular, etc.)

By Investment Source:

Public

Private

By Geography:

Hokkaido

Tohoku

Kanto (Tokyo)

Chubu (Nagoya)

Kansai (Osaka)

Rest of Japan

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Key Players in the Japan Construction Market

Obayashi Corporation: A leading general contractor in Japan, specializing in large-scale infrastructure, commercial, and residential projects both domestically and internationally.

Kajima Corporation: Known for its expertise in engineering, construction, and project management, Kajima handles major urban and industrial developments across Japan.

Shimizu Corporation: Offers comprehensive construction services, including civil engineering, building, and real estate development, with a strong focus on sustainable practices.

Taisei Corporation: A major construction firm engaged in infrastructure, commercial, and residential projects, recognized for innovative building technologies and urban development solutions.

Takenaka Corporation: Provides construction, architectural design, and engineering services, with a reputation for high-quality commercial and cultural projects.

Explore more insights on Japan Construction Market competitive landscape: https://www.mordorintelligence.com/industry-reports/japan-construction-market/companies?utm_source=openpr

Conclusion

The Japan Construction Market is poised for steady growth, driven by urbanization, infrastructure development, and the increasing focus on energy-efficient construction solutions. With residential, commercial, and public projects expanding, both domestic and international stakeholders have numerous opportunities to engage in this evolving market.

Get the latest industry insights on Japan Construction Market: https://www.mordorintelligence.com/industry-reports/japan-construction-market?utm_source=openpr

Industry Related Reports:

Japan Commercial Construction Market

The Japan Commercial Construction Market is valued at USD 107.06 billion in 2025 and is expected to reach USD 123.55 billion by 2030, growing at a CAGR of 2.91% during the forecast period. The market growth is driven by increasing demand for office spaces, retail centers, and technological hubs, along with rising urbanization and modernization of commercial infrastructure across major cities.

Get more insights: https://www.mordorintelligence.com/industry-reports/japan-commercial-construction-market?utm_source=openpr

Japan Transportation Infrastructure Construction Market

The Japan Transportation Infrastructure Construction Market is estimated at USD 122.30 billion in 2025 and is projected to reach USD 157.58 billion by 2030, at a CAGR of 5.2%. Market growth is supported by ongoing investments in roadways, railways, and airports, alongside government initiatives to modernize transportation networks and improve connectivity across urban and regional areas.

Get more insights: https://www.mordorintelligence.com/industry-reports/japan-transportation-infrastructure-construction-market?utm_source=openpr

Japan Residential Construction Market

The Japan Residential Construction Market is valued at USD 170.57 billion in 2025 and is projected to reach USD 203.56 billion by 2030, growing at a CAGR of 3.60%. The market is driven by rising demand for apartments and villas due to urban migration, replacement of aging homes, and increasing focus on energy-efficient and sustainable residential building practices.

Get more insights: https://www.mordorintelligence.com/industry-reports/japan-residential-construction-market?utm_source=openpr

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This release was published on openPR.