Construction in Australia: Market Size, Businesses & Forecast 2026

The Australian construction industry is a vital economic sector involved in building infrastructure, residential, and commercial properties. It contributed approximately A$366.3 billion to GDP in 2022-23, representing about 6.3% of Australia's total GDP (ABS). The industry is experiencing moderate growth driven by infrastructure investments and population increases, though it faces challenges from supply chain disruptions and skilled labor shortages.

Industry snapshot

Key public data points

Historical & forecast

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What does the Construction in Australia industry cover?

The Australian construction industry encompasses all activities related to building and infrastructure development, including residential, commercial, and civil construction projects. It includes new construction, renovations, repairs, and maintenance of buildings and infrastructure, as well as related professional services like architecture and engineering.

• •The industry accounts for approximately 9.2% of total employment in Australia as of 2022 (Australian Bureau of Statistics)
• •Construction is Australia's fourth largest industry by industry value added (ABS Australian Industry 2022-23)

Who operates in the industry and how is it structured?

The construction industry in Australia features a mix of large multinational firms and smaller local operators across residential, commercial, and infrastructure segments. The market is moderately concentrated in the heavy construction and infrastructure sectors while being more fragmented in residential building.

• •Over 350,000 businesses operate in the Australian construction sector, with approximately 96% employing fewer than 20 people (ABS Business Characteristics Survey 2021-22)
• •The industry generates approximately A$366.3 billion in industry value added annually (ABS Australian Industry 2022-23)

What drives demand in the industry?

Demand in the Australian construction sector is primarily driven by population growth, housing needs, infrastructure investments, and government stimulus measures. The ongoing housing shortage and major infrastructure projects across the country continue to support industry activity.

• •Australia's population grew by 2.0% in 2022-23, continuing to drive housing demand (ABS Population Projections)
• •The Australian Government committed A$120 billion for infrastructure projects under the Infrastructure Investment Program (Department of Infrastructure, Transport, Regional Development and Communications 2023)

Who are the notable companies in the industry?

The Australian construction market features several dominant players across different segments, including foreign multinationals with significant local operations and established Australian firms. These companies undertake major infrastructure, commercial, and residential projects across the country.

• •John Laing Group - UK-based infrastructure and construction company with major Australian operations
• •Lendlease - Australian multinational construction, property, and infrastructure company
• •Cimic Group - Australian construction, mining, and infrastructure services company
• •CPB Contractors - Australian construction company with major government contracts

What are the recent trends and outlook?

Recent trends in the Australian construction industry include increased focus on sustainable construction practices, digital adoption (BIM and project management software), and modular construction techniques. The industry is recovering from pandemic disruptions while adapting to new building materials and methods.

• •The Australian Government's National Construction Code was updated in 2022 to emphasize energy efficiency and sustainability (National Construction Code 2022)
• •Construction materials costs increased by 14.3% in 2022-23 due to global supply chain pressures (ABS Price Indexes)

How is the industry regulated?

The Australian construction industry is regulated through various federal, state, and territory legislation covering building standards, occupational health and safety, environmental requirements, and industry licensing. Compliance with these regulations is mandatory for all industry participants.

• •Work Health and Safety Act 2011 (WHS) establishes safety requirements across all Australian jurisdictions
• •Building Code of Australia sets technical standards for building construction (National Construction Council 2022)

Government, statistical and trade sources used for this Claight analysis.

• ABS Australian Industry 2022-23 ·
• ABS Population Projections ·
• Department of Infrastructure, Transport, Regional Development and Communications 2023 ·
• ABS Business Characteristics Survey 2021-22 ·
• National Construction Code 2022 ·
• ABS Price Indexes 2022-23