Australia’s construction industry is set for strong momentum in the coming years, with real growth of 3.8% forecast for 2025, according to Markets&Research. Transport infrastructure upgrades, along with rising investment in housing, manufacturing, and renewable energy, are key drivers. Between 2026 and 2029, the sector is expected to expand at an average annual rate of 3%, supported by both public and private funding.
The Oxford Economics Group reports that major engineering works rose 4.7% year-on-year in late 2024, reaching $36.5 billion. Looking ahead, activity is forecast to grow by 7.6% in FY2025, hitting $144.5 billion, with government-backed transport infrastructure spending projected to peak at $39.2 billion.
Among the landmark projects fueling this growth is Melbourne’s West Gate Tunnel Project, where Sarens, a global leader in heavy lifting and engineered transport, played a key role. Working with CPB & John Holland JV, Sarens transported and installed two 600-ton tunnel portals using advanced modular transporters and lifting systems. The project, completed in 2023, included the deployment of two 4,000-ton tunnel boring machines that excavated 4 km under the Maribyrnong River and surrounding suburbs.
Complementing such initiatives, the Northern Australia Action Plan—announced in November 2024 with AUD 30 billion in funding—aims to improve affordable housing and transport infrastructure across Queensland and the Northern Territory by 2029.
Together, these investments reinforce Australia’s position as a hub for innovation and sustainable growth in construction and civil infrastructure.
