Institutional Building Construction in Australia - Market Research Report (2014-2029)
Melbourne, Australia
Last Updated: June 2024
ANZSIC E3022Revenue
$29.5bn
Past 5-Year Growth
Profit
$X.Xbn
Employees
31,851
Businesses
5,745
Wages
$X.Xbn
Institutional Building Construction in Australia industry analysis
Institutional builders have faced mixed conditions in the past few years, but robust population growth since emerging from pandemic restrictions and favourable public and private investment trends have underpinned constant work. Government departments and agencies fund most institutional building construction, and the public sector is the dominant funding source for educational and healthcare buildings. Still, the private sector is an essential and growing funding source for constructing healthcare buildings, aged-care facilities and religious buildings. Most governments have trimmed budgetary spending over the past decade by promoting private equity involvement in public building stock through public-private partnerships (PPPs).
Trends and Insights
- Institutional building construction is surging to new heights on the back of robust investment in educational and healthcare buildings. Solid population growth underpins the requirement for healthcare, education, aged-care, childcare and public order buildings.
- Constructing educational buildings is the cornerstone of industry activity and includes buildings like schools, universities, kindergartens, libraries and museums. Activity in this market is steadily increasing on the back of private funding and Federal Government initiatives.
- New South Wales is home to the largest share of institutional buildings, closely aligning with its one-third share of the national population and economy. Most construction is concentrated in Sydney, including major universities, hospitals, law courts, libraries and museums.
- Industry competition is intense among small-to-medium-scale contractors vying for work in narrow regional markets. More than price, industry businesses compete based on quality, efficiency and timeliness.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has grown at a CAGR of 1.3 % over the past five years, to reach an estimated $29.5bn in 2024.
Trends and Insights
A growing population supports demand for constructing institutional buildings
- Australia's population and its changing demographic profile regarding location and age have been the primary factors underpinning an expansion in institutional building construction through 2023-24.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Australia's ageing population will drive solid growth in construction activity
- Growth in Australia's population and changes to the demographic structure will underpin the industry’s long-term performance. Solid population growth projected for the coming years will drive public and private investment in most types of institutional buildings.
Biggest companies in the Institutional Building Construction in Australia
| Company | Market Share (%)
2024 | Revenue ($m)
2024 |
|---|---|---|
Multiplex | 916.5 | |
CIMIC | 620.0 | |
LendLease | 593.0 |
To view the market share and analysis for all 4 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 Educational buildings, Healthcare buildings and Aged-care buildings. Educational buildings is the largest segment of the Institutional Building Construction in Australia.
Trends and Insights
Constructing educational buildings is the cornerstone of industry activity
- The principal source of industry revenue is constructing educational buildings, including schools, colleges, universities, kindergartens, libraries, museums, art galleries, research laboratories and theological colleges.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- There are no industries to display.
Complementors
- House Construction in Australia
- Multi-Unit Apartment and Townhouse Construction in Australia
- Professional Services in Australia
- Commercial and Industrial Building Construction in Australia
International industries
- Municipal Building Construction in the US
- Hospital Construction in the US
- Municipal Building Construction in Canada
- Institutional Building Construction in New Zealand
- Commercial Building Construction in the UK
Table of Contents
About this industry
Industry definition
Industry companies construct institutional non-residential buildings, such as hospitals, schools, museums, law courts, prisons and places of religious worship. These institutions are generally operated on a not-for-profit basis. The industry also includes firms that carry out alterations, additions, renovations or general repairs for institutional buildings.
What's included in this industry?
Healthcare buildingsMiscellaneous buildingsAged-care buildingsEducational buildingsReligious buildingsCompanies
MultiplexCIMICLendLeasePurchase this report to view all 4 major companies in this industry.
Related Terms
NABERSWET HIRE DRY HIREIndustry Code
ANZSIC 3020 - Institutional Building 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
Institutional building construction is surging to new heights on the back of robust investment in educational and healthcare buildings. Solid population growth underpins the ...
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
Constructing educational buildings is the cornerstone of industry activity and includes buildings like schools, universities, kindergartens, libraries and museums. Activity i...
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 the largest share of institutional buildings, closely aligning with its one-third share of the national population and economy. Most construction i...
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
Industry competition is intense among small-to-medium-scale contractors vying for work in narrow regional markets. More than price, industry businesses compete based on quali...
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 industry has no major companies. However, the industry contains some of the country's largest building companies and is less fragmented than most industries in the Constr...
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 Multiplex's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of CIMIC's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of LendLease's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of revenue, market share and profit margin trend for one additional company
Detailed analysis
- Description and key data for Multiplex, and factors influencing its performance in the industry
- Description and key data for CIMIC, and factors influencing its performance in the industry
- Description and key data for LendLease, and factors influencing its performance in the industry
- Description, key data and performance trends for one additional company
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
Long-term trends in Australia's population growth drive public investment in institutional buildings. Shifts in net migration and Australia’s birth rate fuel population growt...
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 have inflated input prices and raised industry purchase costs. Disruptions to the industry's supply chain during the COVID-19 pandemic and in respons...
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 Institutional Building Construction industry in Australia in 2024?
The market size of the Institutional Building Construction industry in Australia is $29.5bn in 2024.
How many businesses are there in the Institutional Building Construction in Australia industry in 2024?
There are 5,745 businesses in the Institutional Building Construction industry in Australia, which has grown at a CAGR of 1.3 % between 2019 and 2024.
Has the Institutional Building Construction industry in Australia grown or declined over the past 5 years?
The market size of the Institutional Building Construction industry in Australia has been growing at a CAGR of 1.3 % between 2019 and 2024.
What is the forecast growth of the Institutional Building Construction industry in Australia over the next 5 years?
Over the next five years, the Institutional Building Construction industry in Australia is expected to grow.
What are the biggest companies in the Institutional Building Construction market in Australia?
The biggest companies operating in the Institutional Building Construction market in Australia are Multiplex, CIMIC and LendLease
What does the Institutional Building Construction in Australia include?
Healthcare buildings and Miscellaneous buildings are part of the Institutional Building Construction industry.
Which companies have the highest market share in the Institutional Building Construction in Australia?
The company holding the most market share in Australia is Multiplex.
How competitive is the Institutional Building Construction industry in Australia?
The level of competition is high and increasing in the Institutional Building Construction industry in Australia.
