No.3789
Contech (Construction Technology) Market in Japan: Key Research Findings 2025
Contech Market Size Estimated to Have Grown by 11.7% YoY in FY2023 to 184,540 Million Yen
Yano Research Institute (the President, Takashi Mizukoshi) surveyed the domestic contech market and found out the market trend, the trend of market players, and the market outlook.
Market Overview
The contech market in the construction sector in this research includes construction software solutions (on-premises + cloud), except for those for civil engineering. It does not include construction hardware that is used directly on construction sites, such as construction machinery, robots, automation technologies, remote control operation technologies, drone technologies, etc.
The domestic contech market based on vendor revenue is estimated at 184,540 million yen in FY2023, up 11.7% year on year. The market has only a 10-year history, which was started by some startups when they released their drawing management applications around 2015. Therefore, the market is in the initial or early growth stage, waiting for a further expansion period.
Noteworthy Topics
Although Contech in the Construction Sector is a Distributed Market, Some Companies in Each Market Segment Are Increasing Their Presence
The contech market in the construction sector has the characteristics of becoming a huge market when each market segment converges.
Just like the construction industry, the contech market is a distributed market with no dominant player holding an overwhelming market share. However, some companies have begun to increase their presence and expand their market share when considering construction work management, material procurement/worker dispatch, etc. by each sector, although none can be said to be overwhelming others. These market players may drive the market expansion in each market segment in the future.
Future Outlook
The growth factors of the contech market are: First, the market is in its initial or early growth stage, waiting for a full-fledged expansion period.
Second, while the demand for construction is expected to remain stable, the construction industry faces structural challenges such as severe labor shortage and lower labor productivity than other industries. Therefore, there is a strong need for digital transformation and enormous room for its implementation.
The CAGR of the contech market from FY2023 to FY2030 is 7.4%, and the domestic market size is expected to expand to 304,270 million yen by FY2030.
Research Outline
2.Research Object： Leading companies involved in contech.
3.Research Methogology： Face-to-face interviews (including online) by expert researchers, and literature research.
What is the Contech Market?
Contech is a combination of “construction” and “technology” and refers to business support services using ICT that make the work more effective, efficient, and convenient for companies in the construction industry.
The contech market in this research includes construction software solutions (on-premises + cloud), except for those for civil engineering, which includes the following, from sales to construction and delivery of the building, with the market size calculated based on the vendor sales:
1) sales, 2) design, 3) VR/AR, 4) cost accumulation/estimation, 5) material procurement/ construction company or personnel dispatch, 6) construction work management, and 7) ERP.
＜Products and Services in the Market＞
Construction software solutions (on-premises + cloud), except for those for civil engineering, which includes sales, design, VR/AR, cost accumulation/estimation, material procurement/ construction company or personnel dispatch, construction work management, and ERP
Published Report
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