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Published On: Fri, Nov 10th, 2017

Construction in Japan Leads Opportunities to 2021

New construction projects in IndiaIn real terms, the Japanese construction industry registered positive growth during the review period (2012–2016). Construction activity slowed during 2014–2015 as the economy suffered a technical recession, which affected business confidence. However, the economy gradually recovered in 2016, driven by strong global demand and improvements in the country’s export trade. This accelerated the pace of public and private sector investment in construction projects.

Over the forecast period (2017–2021), the industry is expected to expand slowly due to factors such as high public debt and deflation. However, government efforts to revitalize the economy by focusing on infrastructure development are expected to provide momentum to the construction industry’s growth.

The Olympic Games, to be hosted by Japan in 2020, are expected to be a key driver of the industry’s expansion over the forecast period. The government estimates that JPY898.8 billion (US$8.4 billion) is required to develop games-related infrastructure by 2020. Infrastructure construction is expected to be the fastest-growing market in the industry over the forecast period, registering a nominal CAGR of 3.29%, backed by the government’s effort to develop the transport infrastructure in order to improve regional connectivity during the 2020 games.

© 2014 Media N Press Communications. All Rights Reserved.
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