DUBLIN–(BUSINESS WIRE)–The “Japan Construction Industry Databook Series – Market Size & Forecast by Value and Volume (area and units) across 40+ Market Segments in Residential, Commercial, Industrial, Institutional, Infrastructure Construction and City Level Construction by Value , Q4 2022 Update” report has been added to ResearchAndMarkets.com’s offering.
Japan’s construction industry in is expected to grow by 5.0% to reach JPY 33,946 billion in 2022.
Despite near-term challenges in certain construction sectors, medium to long term growth story in Japan remains intact. The construction industry in Japan is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 4.1% during 2022-2026. The construction output in the country is expected to reach JPY 39,927.0 billion by 2026.
Globally, the rising material costs and inflation rates have put pressure on the construction sector, and Japan is no different. Moreover, the country is also facing growing concerns around the availability of skilled laborers, much like the global trend. As the country deals with the shrinking workforce, foreign workers are expected to play a significant role over the next three to four years in driving construction activities and market growth in Japan.
With mega infrastructure projects expected to keep coming on the government’s agenda from the short to medium-term perspective, government spending along with subsidies for a housing program in the country will support the market growth. Overall, PayNXT360 maintains a steady growth outlook for the construction industry from the medium to long-term perspective in Japan while expecting the sector to bear the brunt of rising material prices and inflation in the short term.
Foreign workers are expected to become a crucial driving force for the growth of the Japanese construction industry
The shortage of foreign workers because of strict border controls imposed by the government in the wake of the Covid-19 outbreak has resulted in delays for construction projects. Notably, in the Japanese construction industry, which has been plagued by the shortage of skilled laborers – a consequence of the aging population in Japan, foreign workers play a crucial role.
According to Kajima Group, on any given day, approximately 150,000 to 160,000 construction workers are working around the country, of which 1% are foreign workers. As new mega construction projects are undertaken by the country over the next three to four years, foreign workers will become even more important. As a result of this, the Japanese government is working on establishing a more effective legal framework for accepting skilled foreign workers into the country.
The publisher expects that construction workers from Vietnam and other ASEAN countries will become a driving force for the Japanese construction industry over the next three to four years.
Government subsidies to boost the growth of the residential construction market in Japan
Over the last few years, the Japanese government has been offering financial assistance for child-rearing families to acquire housing. This trend is expected to continue further in 2022.
After introducing a range of policies and steps, such as tax credits for those who take out mortgages to assist home purchases, the land ministry is planning to expand the lineup of measures to further alleviate the financial burden of home acquisition in Japan. In 2021, the government took steps to assist child-rearing families in acquiring houses through subsidies for new homes.
Notably, under the program, the ministry provided subsidies ranging from 600,000 yen to 1 million yen per unit. The program, which kicked off in November 2021 after securing 54.2 billion yen in funding under the fiscal 2021 extra budget, the government has set aside another 60 billion yen in 2022. Notably, the government is anticipating a total of 120,000 applications for the subsidies and has extended the deadline from the end of October 2022 to the end of March 2023.
The publisher expects these government programs to boost the growth of the residential construction market by alleviating the demand among Japanese homebuyers over the next three to four years.
Spending on infrastructure projects to keep assisting the construction industry growth in Japan
With a lot of key infrastructure construction projects expected to be initiated by the Japanese government over the next three to four years, investment in the sector is projected to increase. In 2022, the government has already initiated some key projects.
In August 2022, the Japanese government ordered the construction of a new nuclear plant. Notably, the construction and development of the new nuclear plant will help the country reduce its reliance on energy imports amid the global energy crunch.
The spending on the development and construction of these key infrastructure projects is expected to keep supporting the industry growth over the next three to four years in the country.
Scope
Market Data and Insights: This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2016-2025 in Japan.
KPIs covered include the following:
Japan Top Cities Construction Data
Japan Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
Japan Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
Japan Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
Japan Green Infrastructure Construction: 10- year market size & forecast in value terms
For more information about this report visit https://www.researchandmarkets.com/r/e135mn
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