Australia Construction Industry Report 2025: Output to Grow at AAGR of 3.3% Between 2026-2029 Following Growth of 3.8% in 2025, Driven by PPI in Transport, Data Centers, Renewable Energy and Housing
Dublin, Feb. 03, 2026 (GLOBE NEWSWIRE) -- The "Australia Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (Q4 2025)" report has been added to ResearchAndMarkets.com's offering.
Australian construction industry to grow in real terms by 3.8% in 2025, supported by investments in the transport, housing, manufacturing, and renewable energy projects.
According to the Australian Bureau of Statistics (ABS), the total value of construction work done in Australia grew by 3.1% year on year (YoY) in Q3 2025, preceded by YoY growth of 4.3% in Q2 and 3.2% in Q1 2025. Moreover, the construction industry is expected to continue to grow in 2026 supported by investments under the Mid-Year Economic and Fiscal Outlook (MYEFO) for Fiscal Year (FY) 2025-26 (from July 1st 2025, to June 30th 2026), unveiled by the Federal Government in mid-December 2025. General Government expenditure is estimated to increase from AUD785.7 billion ($519.1 billion) as part of Budget for FY2025-26 (released in March 2025) to AUD809.2 billion ($534.7 billion) under MYEFO for FY2025-26, before averaging at AUD856.8 billion ($559.2 billion) from FY2026-27 to FY2028-29.
The analyst expects the Australian construction industry is expected to grow at an average annual rate of 3.3% from 2026 to 2029, supported by public and private investments in transport, data centers, renewable energy and housing projects. In October 2025, Australian based computer hardware company, Firmus Technologies partnered with Australian data center company, Commonwealth Data Centers (CDC Data Centers) and American technology company, Nvidia for the construction of an Artificial Intelligence (AI) data center each in Adelaide, Canberra, Perth and Sydney.
It involves a total cost of AUD73.3 billion ($48.4 billion) with the construction works set to come to an end by 2028. Growth in the industry over the forecast period will also be supported by the Northern Australia Action Plan (2024-29), launched in November 2024, with an investment of AUD30 billion ($19.8 billion), which outlines an aim to improve affordable housing and transport infrastructure in Queensland, Western Australia, and the Northern Territory by 2029.
Report Scope
Reasons to Buy
Key Topics Covered:
1 Executive Summary
2 Construction Industry: At-a-Glance
3 Context
3.1 Economic Performance
3.2 Political Environment and Policy
3.3 Demographics
3.4 Risk Profile
4 Construction Outlook
4.1 All Construction
4.2 Commercial Construction
4.3 Industrial Construction
4.4 Infrastructure Construction
4.5 Energy and Utilities Construction
4.6 Institutional Construction
4.7 Residential Construction
5 Construction Outlook - States and Territories
5.1 New South Wales
5.2 Victoria
5.3 Queensland
5.4 South Australia
5.5 Western Australia
5.6 Tasmania
5.7 Northern Territory
5.8 Australian Capital Territory
6 Key Industry Participants
6.1 Contractors
6.2 Consultants
7 Construction Market Data
8 Appendix
For more information about this report visit https://www.researchandmarkets.com/r/gmbocs
About ResearchAndMarkets.com
ResearchAndMarkets.com is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends.