Construction in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: August 2024
ANZSIC ERevenue
$494.8bn
Past 5-Year Growth
Profit
$XX.Xbn
Employees
1m
Businesses
396k
Wages
$XX.Xbn
Construction in Australia industry analysis
Divergent trends in the building and infrastructure sectors have constrained the Construction division’s performance through the end of 2024-25, with revenue expected to drop an annualised 2.2% to $494.8 billion. Rollercoaster-like trends in the residential building market and pandemic-related supply chain disruptions have constrained the residential building sector’s performance and most special construction services industries. Still, favourable trends in non-residential building construction and non-building infrastructure construction generate buoyant conditions for some Construction division segments.
Trends and Insights
- Surging transport and energy infrastructure construction has partially offset an ongoing slump in residential building activity. Public-private partnership funding has paved the way for landmark road and rail infrastructure projects.
- House construction and renovation activity peaked in 2021-22 on the back of low mortgage interest rates and government stimulus. House construction has slumped following a recent mortgage interest rate hike and weaker government subsidies.
- New South Wales is home to much of the nation’s construction activity. The state has above-average levels of transport infrastructure, apartment and commercial building construction.
- Franchise operations for house construction and trade services, like plumbing and painting, have intensified competition. Franchises can provide management systems, design, marketing and procurement economies of scale.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 2.2 % over the past five years, to reach an estimated $494.8bn in 2024.
Trends and Insights
The Construction division's rollercoaster ride reflects the residential building performance
- Home builders and construction service contractors like bricklayers and carpenters enjoyed a peak in single-unit house construction in 2021-22, driven by record-low mortgage interest rates and the Federal Government's HomeBuilder stimulus.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Population pressures are set to drive accelerated growth in multi-unit dwelling construction
- The Construction division’s performance will strengthen in response to an upswing in apartment and townhouse construction to meet rising population pressures as net migration returns to pre-pandemic levels thanks to intensified international student, tourist and immigrant inflows.
Biggest companies in the Construction in Australia
| Company | Market Share (%)
2025 | Revenue ($m)
2025 |
|---|---|---|
CIMIC | 7,985.7 | |
Downer | 4,610.9 | |
John Holland | 3,652.6 |
To view the market share and analysis for all 6 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Heavy industry and civil engineering construction, Residential building construction and Non-residential building construction. Heavy industry and civil engineering construction is the largest segment of the Construction in Australia.
Trends and Insights
Rising interest rates and weaker subsidies are driving down residential building construction
- The residential building segment includes the construction and major renovation of single-unit houses, multi-unit apartments and townhouses. Constructing residential buildings has contracted as a share of the Construction division's revenue.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- Hardware Wholesaling in Australia
- Consumer Goods Retailing in Australia
- Architectural Services in Australia
- Engineering Consulting in Australia
International industries
- Construction in the US
- Construction in Germany
- Building Construction in China
Table of Contents
About this industry
Industry definition
Construction firms primarily construct buildings, roads, railroads, harbour or river works, transmission lines, pipelines and oil refineries. These firms are also involved in civil engineering and irrigation projects, and construct water, gas, electricity and sewerage infrastructure. Some construction firms also carry out repairs and renovations, prepare mine sites, install utilities, and take part in demolitions and excavations.
What's included in this industry?
General constructionConstruction trade servicesInstallation trade servicesResidential constructionNon-residential constructionSite preparation and other constructionBuilding completion servicesBuilding structure servicesHeavy industry and non-building constructionCompanies
CIMICDownerJohn HollandPurchase this report to view all 6 major companies in this industry.
Related Terms
NON-RESIDENTIAL BUILDINGRESIDENTIAL BUILDINGCONSTRUCTION SERVICESWET HIRE DRY HIRE PERSONAL PROTECTIVE EQUIPMENT (PPE)Industry Code
ANZSIC E - Construction in Australia
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Surging transport and energy infrastructure construction has partially offset an ongoing slump in residential building activity. Public-private partnership funding has paved ...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
House construction and renovation activity peaked in 2021-22 on the back of low mortgage interest rates and government stimulus. House construction has slumped following a re...
In this chapter
- Products & Services
- Major Markets
Key metrics
- Largest market segment and value in 2024
- Product innovation level
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
New South Wales is home to much of the nation’s construction activity. The state has above-average levels of transport infrastructure, apartment and commercial building const...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each region
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each region in 2024
- Number and share of revenue each region accounts for in 2024
- Number and share of wages each region accounts for in 2024
- Number and share of employees in each region in 2024
Detailed analysis
- Geographic spread of the industry across Asia Pacific, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Franchise operations for house construction and trade services, like plumbing and painting, have intensified competition. Franchises can provide management systems, design, m...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
The Construction division has no companies that account for 5.0% or more of divisional revenue. The division mainly comprises small-scale contractors that service narrow regi...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of CIMIC's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Downer's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of John Holland's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for 3 additional companies
Detailed analysis
- Description and key data for CIMIC, and factors influencing its performance in the industry
- Description and key data for Downer, and factors influencing its performance in the industry
- Description and key data for John Holland, and factors influencing its performance in the industry
- Description, key data and performance trends for 3 additional companies
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Building licences, trade qualifications and construction standards are required in most construction industries. The National Construction Code sets out technical design and ...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Supply chain disruptions and domestic inflationary pressures have raised material and equipment prices and increased purchase costs. Contractors with fixed-price contracts fa...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in Australia include:
- Australian Bureau of Statistics
- Australian Taxation Office
- Australian Securities & Investments Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Construction industry in Australia in 2024?
The market size of the Construction industry in Australia is $494.8bn in 2024.
How many businesses are there in the Construction in Australia industry in 2024?
There are 396k businesses in the Construction industry in Australia, which has declined at a CAGR of 0.0 % between 2019 and 2024.
Has the Construction industry in Australia grown or declined over the past 5 years?
The market size of the Construction industry in Australia has been declining at a CAGR of 2.2 % between 2019 and 2024.
What is the forecast growth of the Construction industry in Australia over the next 5 years?
Over the next five years, the Construction industry in Australia is expected to grow.
What are the biggest companies in the Construction market in Australia?
The biggest companies operating in the Construction market in Australia are CIMIC, Downer and John Holland
What does the Construction in Australia include?
General construction and Construction trade services are part of the Construction industry.
Which companies have the highest market share in the Construction in Australia?
The company holding the most market share in Australia is CIMIC.
How competitive is the Construction industry in Australia?
The level of competition is high and steady in the Construction industry in Australia.
