Australia Architectural, Engineering, and Construction (AEC) Market Outlook Report - Market Size, Share Analysis and Forecast (2025-2034)

Australia Architectural, Engineering, and Construction (AEC) Market Trends

Government investments in infrastructure are enhancing construction opportunities in the Australia architectural, engineering, and construction (AEC) market, with growing demand for sustainable, energy-efficient buildings. The rapid population growth is driving urban development, creating a need for both residential and commercial spaces, bolstered by policy measures and funding. The 2024-25 Budget reveals that road and rail infrastructure projects represent most of the Australian Government's funding, with road investments accounting for 58% (AUD 40.4 billion) and rail projects 40% (AUD 27.9 billion).

Technological innovations such as Building Information Modelling (BIM) are improving project design and execution, influencing revenue in Australia’s architectural, engineering, and construction (AEC) market. The country’s skilled workforce of engineers, architects, and construction professionals ensures the delivery of high-quality, innovative results. Growth in the mining, energy, and resource sectors, combined with the rising demand for smart cities, continues to generate new construction opportunities.

Australia Architectural, Engineering, and Construction (AEC) Market Growth

Significant investments in transport infrastructure, such as roads, rail, and public transport, are driving demand for the Australia architectural, engineering, and construction (AEC) market. Access to high-quality building materials ensures the creation of safe, durable structures, while public-private partnerships encourage large-scale infrastructure projects. Despite economic challenges, the AEC sector has shown resilience. Rail accounts for 49% of Australia's domestic freight, with iron ore and coal comprising 80%. The government is investing USD 180.1 million to improve safety at regional rail crossings. Major projects like Inland Rail aim to maintain and expand the freight network.

The expanding tourism sector is increasing the demand for hospitality and leisure developments, influencing the Australia architectural, engineering, and construction (AEC) market dynamics and trends. Regional infrastructure projects are stimulating local economies, opening new construction opportunities. The industry is also heavily focused on sustainability and global environmental goals, with international collaborations in construction technology playing a key role.

Australia Architectural, Engineering, and Construction (AEC) Market Insights

• The 12.4% increase in non-residential buildings, reaching USD 4.92 billion in January 2024, according to the Australian Bureau of Statistics, demonstrates a growing demand for commercial and infrastructure projects. This growth benefits the AEC market by spurring investment in office spaces, retail, and industrial facilities, fostering economic development and job creation.
• Australia’s building and construction sector manages over USD 162 billion worth of projects annually, contributing approximately 10% to GDP, as per the industry reports. This significant contribution strengthens the AEC market by driving substantial economic activity, creating jobs, and encouraging further investment, thus boosting Australia’s overall economic growth.
• The Australian Bureau of Statistics reports a 19.4% rise in new residential construction, reaching USD 7.14 billion in January 2024. This surge enhances the AEC market by meeting housing demand, stimulating investment in residential projects, and supporting the nation’s growth in urbanisation, infrastructure, and sustainability.

Australia Architectural, Engineering, and Construction (AEC) Market Drivers

Sustainability and Green Building Practices

The demand for eco-friendly and energy-efficient construction has been increasing in Australia, driving growth of the Australia architectural, engineering, and construction (AEC) market. Sustainable practices, such as using recycled materials and energy-efficient designs, are becoming essential. Green building certifications like Green Star and NABERS are gaining popularity, encouraging AEC projects to reduce carbon footprints and operating costs. In 2023/24, over 1,000 projects received Green Star certification, marking a significant shift towards sustainability in the sector. Government policies, global collaboration, and innovation have been key in accelerating progress, improving energy efficiency and reducing emissions.

Technological Integration

The use of advanced technologies such as Building Information Modelling (BIM), Artificial Intelligence (AI), and robotics is becoming a significant trend in the Australia architectural, engineering, and construction (AEC) market. These technologies enhance design accuracy, streamline construction processes, and improve project management. The rise of smart cities and integrated technologies is also creating more connected and efficient urban environments. In April 2025, Cemex Ventures launched the third edition of Leaplab, an acceleration programme for start-ups aiming to innovate the construction industry. Six companies participated, focusing on sustainability, efficiency, and productivity, with opportunities for commercial agreements and strategic investments.

Opportunities in the Australia Architectural, Engineering, and Construction (AEC) Market

The growth of the Australia architectural, engineering, and construction (AEC) market is being driven by the growing demand to address the nation's housing affordability issues. Government initiatives focus on increasing affordable housing for low to medium-income families. These measures are encouraging AEC firms to design cost-effective, sustainable, and high-quality housing projects. The Australian Government’s 2025-26 budget aims to unlock housing supply, with a target of 1.2 million new homes over five years. This includes funding for 55,000 social and affordable homes, improving planning and infrastructure, and providing AUD 1.5 billion for housing support initiatives.

Market Restraints

The Australia architectural, engineering, and construction (AEC) market faces significant challenges, including skilled labour shortages, high construction costs due to rising material prices and inflation, and complex regulatory compliance. Economic uncertainty, supply chain disruptions, and pressure to adopt sustainable practices further hinder growth.

Additionally, project delays, financing difficulties, and barriers to technological adoption, alongside political instability, create further obstacles. These constraints require innovative strategies, workforce development, and efficiency improvements to maintain market growth and address these pressing issues within the sector.

Australia Architectural, Engineering, and Construction (AEC) Market Share

Market Analysis by Segment

According to the Australia architectural, engineering, and construction (AEC) market analysis, architecture significantly influences the built environment, promoting innovation in design, sustainability, and functionality. Architects create spaces that are aesthetically pleasing, sustainable, and functional, enhancing livability and addressing various needs. They also improve energy efficiency and lead projects integrating new technologies, benefiting urban development and environmental objectives. In August 2024, the Australian Institute of Architects launched an anonymous survey, encouraging members to share their experiences with AI in architecture. The results were intended to inform support services, professional development, advocacy, and the industry's strategic responses to AI.

Engineering professionals in Australia's AEC market ensure the structural integrity, safety, and performance of buildings and infrastructure. They design, analyse, and optimise systems, enhancing resource efficiency. Their contributions support the development of resilient infrastructure, meeting current and future demands and fostering long-term economic growth.

The construction sector is crucial in delivering large-scale infrastructure and commercial projects, which significantly impact the Australia architectural, engineering, and construction (AEC) market revenue. Construction companies stimulate economic growth by creating jobs and advancing the nation’s infrastructure. They ensure projects are delivered on time and within budget, embracing new building technologies, improving material quality, and adhering to environmental standards, driving urbanisation and industrial development. In November 2023, the MPavilion 10, designed by Tadao Ando, opened in Melbourne's Queen Victoria Gardens. This marked Ando's first project in Australia, featuring a large canopy, reflecting pool, and artistic installations, aiming to provide a sensory, harmonious experience for visitors.

Market Analysis by Investment Source

According to the Australia architectural, engineering, and construction (AEC) industry, the public sector plays a pivotal role in driving essential infrastructure projects such as roads, schools, and hospitals. These initiatives enhance public services, create large-scale development opportunities, stimulate economic growth, and generate employment. Government funding and policy support also promote sustainable building practices, which boost long-term value and strengthen the nation’s resilience to environmental and economic challenges. In November 2024, the Western Australian government revealed a USD 21.6 million investment to expand the construction workforce, including funding 175 apprenticeships and offering a USD 10,000 incentive to attract qualified workers to the state.

The private sector injects innovation, efficiency, and competition into Australia’s AEC market, investing in commercial, residential, and industrial developments that foster urban growth. Private companies lead the way in adopting advanced technologies, speeding up construction processes, and improving design quality. Their focus on profitability ensures cost-effective solutions, boosting market dynamism and creating employment opportunities.

Public-Private Partnerships (PPPs) leverage the strengths of both the public and private sectors to efficiently deliver large-scale infrastructure projects, offering more opportunities in the Australia architectural, engineering, and construction (AEC) market. By sharing risks and resources, PPPs guarantee that high-quality projects are completed on time and within budget, addressing funding gaps, accelerating development, and promoting long-term economic benefits while ensuring fiscal responsibility. In January 2025, Sojitz Corporation acquired a stake in Capella Capital, an infrastructure developer and financial advisor. This AUD 470 million acquisition aimed to bolster Sojitz’s infrastructure capabilities in Australia, focusing on energy, social, and transportation sectors, with projects including hospitals and transport systems.

Australia Architectural, Engineering, and Construction (AEC) Market Regional Insights

New South Wales Architectural, Engineering, and Construction (AEC) Market Overview

New South Wales' AEC market benefits from a strong infrastructure demand, supported by government investments and urban development projects, fostering growth in construction, engineering, and architectural design services. In 2021, warehouse construction accounted for 73% of all industrial building approvals in New South Wales, with a total value of USD 2.1 billion, as reported by the NSW Government.

Queensland Architectural, Engineering, and Construction (AEC) Market Trends

Queensland's AEC market is driven by sustainable construction trends and residential development, with a focus on eco-friendly projects. The state's expansion in tourism and infrastructure enhances market opportunities. In the first quarter of 2024, detached house construction increased by 3.5%, according to data from the Housing Industry Association (HIA).

Western Australia Architectural, Engineering, and Construction (AEC) Market Dynamics

Western Australia's AEC market thrives on mining, energy, and infrastructure projects. A strong demand for engineering and construction services in remote regions stimulates growth, especially with resource-based industries driving sector demand. In 2023, the state saw 40,293 new housing commencements, reflecting adaptations to market conditions, as reported by the Australian Bureau of Statistics (ABS).

Competitive Landscape

The Australia architectural, engineering, and construction (AEC) market key players undertake significant infrastructure and building developments across sectors such as transport, healthcare, and energy. They are known for prioritising innovation, digital engineering, and off-site construction, and are widely recognised for their engineering expertise, project delivery capabilities, and sustainability-focused practices.

Key Industry Players

Laing O’Rourke Corp. Ltd.: Laing O’Rourke is a multinational construction and engineering firm headquartered in Sydney, Australia, and originally founded in the United Kingdom in 1978. The company delivers major infrastructure and building projects across sectors, including transport, health, and energy, with a strong focus on innovation, off-site manufacturing, and digital engineering technologies.

Brookfield Corporation (Multiplex Constructions Pty Limited): Multiplex, established in 1962 and headquartered in Sydney, Australia, is a premier global construction company operating under Brookfield Corporation. Known for delivering large-scale commercial and residential developments, Multiplex combines strong project management expertise with innovative building solutions, contributing significantly to Australia’s urban skylines and infrastructure landscapes.

J Hutchinson Pty Ltd. (Hutchies): Founded in 1912, J Hutchinson Pty Ltd- commonly known as Hutchies—is Australia’s largest privately-owned construction company, headquartered in Brisbane, Australia. The firm specialises in diverse projects across residential, commercial, and civil sectors. With a people-first culture and a national footprint, Hutchies is renowned for reliability, local engagement, and sustainable practices.

CIMIC Group Ltd. (CPB Contractors): CIMIC Group Ltd., established in 1949 and headquartered in Sydney, Australia, owns CPB Contractors- its primary construction arm. The company operates across Australia and Asia-Pacific, delivering complex infrastructure projects in transport, defence, resources, and energy. CIMIC is recognised for its engineering excellence, major project delivery, and commitment to sustainability and innovation.

Other key players in the Australia architectural, engineering, and construction (AEC) market report are Lendlease Corporation Limited, John Holland Group Pty Ltd., ADCO Constructions Pty Ltd., Fulton Hogan Ltd., Mirvac Limited, and Hansen Yuncken Pty Ltd., among others.

Recent Developments

January 2025

Dr Michael Mossman and Professor Donald McNeill launched an online survey as part of their research project, Indigenising the Built Environment in Australia. Funded by a USD 1.4 million ARC grant, it evaluated First Nations-focused criteria in the 2021 National Standard of Competency for Architects.

December 2024

Charles Darwin University launched a Bachelor of Architectural Design to develop architects equipped for Northern Australia’s unique climate. The course aimed to address Darwin’s tropical and cyclone-prone conditions, promote sustainability, and reduce reliance on southern professionals. A Master’s program was also planned to support local architectural education and industry needs.