Building commercial, institutional, or residential infrastructure, such as bridges, buildings, roads, and other structures, is referred to as construction. Clay, stone, lumber, brick, concrete, metals, and polymers are among the materials utilized in modern construction. The process of constructing or assembling structures, systems, or infrastructure such as buildings, roads, bridges, and other physical structures is referred to as construction. It entails a variety of operations, including project design, planning, financing, and execution, as well as project management and maintenance.
Japan Construction Market Driving Factors and Challenges
Several factors have contributed to the growth of the Japanese construction industry. The Japanese government has made significant investments in infrastructure development, such as transportation systems and energy projects, resulting in an increase in demand for construction services. Japan's aging population has created a need for more healthcare facilities and senior living places. Furthermore, the government has encouraged immigration, which has increased demand for new housing developments.
Japan has hosted a number of significant international events, including the Olympics and World Cup. These events necessitate substantial investment in infrastructure development, particularly construction projects, which has boosted the sector. The building sector in Japan is well-known for its outstanding technological breakthroughs. Building Information Modelling (BIM) and prefabrication, for example, have boosted efficiency and decreased costs in construction projects. Japan's population is heavily urbanized, with over 90% residing in cities. As cities expand, so does the desire for new housing developments and commercial areas.
While the Japanese construction market is expanding, it is also facing several challenges, including a labour shortage. Because of an aging workforce and a reduction in the number of younger workers entering the business, Japan's construction industry is facing a labour crisis. This scarcity can result in project delays, increased costs, and a drop in work quality. In Japan, the construction sector is very competitive, with numerous companies competing for a limited number of projects. This might result in pricing pressure and decreased profitability for businesses. Natural catastrophes such as earthquakes, typhoons, and floods can cause considerable damage to construction projects and disrupt the industry in Japan.
Impact of COVID-19 on Japan Construction Market
The COVID-19 pandemic has had a number of effects on the Japanese construction market. The pandemic has disrupted supply networks, leading in delays and shortages of construction materials and equipment. As a result, construction projects have been delayed and expenses have risen. The epidemic has caused financial instability for many businesses and individuals, leading to a drop in investment in new construction projects. The pandemic has also generated worries about worker health and safety on construction sites, where workers must work in close proximity to one another.
This has resulted in enhanced safety standards and additional expenditures associated with adopting these protocols. Due to the epidemic, several public construction projects, like as the construction of new sports facilities for the Tokyo Olympics, were postponed, resulting in increased expenses and subsequent delays. As many businesses have shifted to remote work as a result of the pandemic, demand for certain types of construction projects, particularly commercial and office buildings, has decreased.
Japan Construction Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Mitsubishi Heavy Industries Ltd, Nippon Concrete Industries, Obayashi Corp., Takada Corporation, The Zenitaka Corp.
Japan Construction Market Segmentation:
By Sector: Based on Sector, Japan Construction Market is segmented as; Commercial, Energy and Utilities, Industrial, Infrastructure, Residential.
By Region: This report also provides the data for key regional segments of Chubu, Chugoku, Hokkaido, Kansai, Kanto, Kyushu, Shikoku, Tohoku.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.