Cover Image
Market Research Report

Japan Construction Market - Growth, Trends, and Forecast (2020 - 2025)

Published by Mordor Intelligence LLP Product code 937898
Published Content info 120 Pages
Delivery time: 2-3 business days
Price
Back to Top
Japan Construction Market - Growth, Trends, and Forecast (2020 - 2025)
Published: May 1, 2020 Content info: 120 Pages
Description

The Japan Construction Market is estimated to grow at a CAGR of approximately 5% during the forecast period.

Construction investments at nominal prices were on a declining trend after reaching a peak of 84 trillion yen in fiscal 1992 and fell to half of this peak (42 trillion JPY) in fiscal 2010. Since then, they have been on a recovery trend due to such factors as the recovery from the Great East Japan Earthquake. Construction investments in fiscal 2017 amounted to 56.0 trillion yen at nominal prices, up 4.6% compared to the previous fiscal year; they totaled 52.0 trillion JPY at constant fiscal 2011 prices, up 2.5% from the previous fiscal year. A breakdown of construction investment shows that building construction totaled 30.4 trillion JPY (up 4.8% from the previous fiscal year), while civil engineering works amounted to 25.6 trillion yen (up 4.3%). In terms of public and private construction investment in fiscal 2017, the public investment amounted to 23.0 trillion yen (up 2.9% from the previous fiscal year), while private investment totaled 33.0 trillion yen (up 5.7%). Public investment accounted for 41.1% of total construction investment, while private investment accounted for 58.9%.

The number of new constructions starts of dwellings (in the case of apartment buildings, the number of apartment units was counted) in 2018 was 0.94 million housing units (down 2.3% from the previous year), representing a decrease for the second consecutive year. When compared according to owner-occupant relations, the number of housing units built for sale increased; however, this was because the number of owned housing units and the number of housing units for rent decreased.

Key Market Trends

Increase in construction investments:

In the fiscal year 2017, the total construction investments in Japan amounted to around 56 trillion Japanese yen, with building construction accounting for over half of investment. Private investments into construction projects had been growing gradually following the Great East Japan Earthquake, with private building construction investments accounting for almost half of the total construction investments in fiscal 2017. As of March 2018, 20% of tunnels, 32% of water sluices and river dikes and 17% of port seawalls were built between the 1960s and 1970s. Their average age, therefore, is 50 years. The cost to restore all this infrastructure during the next 40 years comes to 547 trillion yen (USD 5 trillion), the equivalent of five years of the national budget. Tokyo, which is preparing for the 2020 Olympics with a massive infrastructure programme. Then there are the smaller cities and rural areas that are forced to cope with obsolete infrastructure that urgently needs investment.

Increase in Value of Contracts:

The value of orders for building constructions received by 50 major constructors in Japan from the fiscal year 2009 to 2018. In the fiscal year 2018, the order value amounted to approximately 11.1 trillion Japanese yen, up from about 7.3 trillion yen in fiscal 2009. Large redevelopment projects that have been announced this year to dispel the myth of a post-2020 slump include the new Mori development, which will be Japan's tallest skyscraper. In recent years, the upturn of Japan's construction market has been mainly fueled by projects related to the 2020 Tokyo Olympics, including the stadiums as well as e.g. the move of the Tsukiji fish market and the complete redevelopment of the area surrounding Shibuya Station to accommodate and channel the expected influx of visitors accordingly.

Competitive Landscape

The report covers the major players operating in the Japan Construction Market. The market is fragmented, and the market is expected to grow during the forecast period due to the increase in the construction investments and up-coming major projects in the country and other few factors are driving the market.

Reasons to Purchase this report:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Table of Contents
Product Code: 69337

Table of Contents

1 INTRODUCTION

  • 1.1 Study Deliverables
  • 1.2 Study Assumptions
  • 1.3 Scope of the Study

2 RESEARCH METHODOLOGY

3 EXECUTIVE SUMMARY

4 MARKET DYNAMICS

  • 4.1 Market Overview
  • 4.2 Market Drivers
  • 4.3 Market Restraints
  • 4.4 Value Chain / Supply Chain Analysis
  • 4.5 Porters 5 Force Analysis
    • 4.5.1 Threat of New Entrants
    • 4.5.2 Bargaining Power of Buyers/Consumers
    • 4.5.3 Bargaining Power of Suppliers
    • 4.5.4 Threat of Substitute Products
    • 4.5.5 Intensity of Competitive Rivalry
  • 4.6 Market Insights
    • 4.6.1 Current Economic and Construction Market Scenario
    • 4.6.2 Technological Innovations in the Construction Sector
    • 4.6.3 Impact of Government Regulations and Initiatives on the Industry
    • 4.6.4 Impact of COVID - 19 on the market

5 MARKET SEGMENTATION

  • 5.1 By Sector
    • 5.1.1 Residential
    • 5.1.2 Commercial
    • 5.1.3 Industrial
    • 5.1.4 Infrastruture (Transportation)
    • 5.1.5 Energy and Utilities

6 COMPETITIVE LANDSCAPE

  • 6.1 Vendor Market Share
  • 6.2 Mergers & Acquisitions
  • 6.3 Company Profiles
    • 6.3.1 DAIWA HOUSE INDUSTRY CO., LTD.
    • 6.3.2 SEKISUI HOUSE, LTD.
    • 6.3.3 OBAYASHI CORPORATION
    • 6.3.4 KAJIMA CORPORATION
    • 6.3.5 SHIMIZU CORPORATION
    • 6.3.6 TAISEI CORPORATION
    • 6.3.7 TAKENAKA CORPORATION
    • 6.3.8 SUMITOMO FORESTRY CO., LTD.
    • 6.3.9 HASEKO CORPORATION
    • 6.3.10 JGC HOLDINGS CORPORATION

7 MARKET OPPORTUNITIES AND FUTURE TRENDS

8 APPENDIX

Back to Top