Taiwan Construction Market to Expand by 3.1% in 2025

Strategic Insights -

The construction industry in Taiwan is projected to experience a robust growth rate of 3.1% in real terms in 2025, fueled by investments in leisure and hospitality, energy, and transport infrastructure projects. According to Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS), the construction industry's value-add grew by 1.9% year on year (YoY) in Q4 2024, preceded by YoY growth of 2.8% in Q3 and 2.8% in Q2 2024. The Ministry of the Interior (MoI) reported a 5.1% increase in the floor area of construction licenses issued in the first three months of 2025, reaching 8.9 million m2, up from 7.9 million m2 in the same period last year. This growth is expected to be sustained over the remainder of the forecast period, with an average annual growth rate of 4.1% from 2026 to 2029.

Key Takeaways:

  • The construction industry in Taiwan is expected to expand by 3.1% in real terms in 2025, driven by investment in leisure and hospitality, energy, and transport infrastructure projects.
  • The industry's value-add grew by 1.9% YoY in Q4 2024, preceded by YoY growth of 2.8% in Q3 and 2.8% in Q2 2024, according to Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS).
  • The Ministry of the Interior (MoI) reported a 5.1% increase in the floor area of construction licenses issued in the first three months of 2025, reaching 8.9 million m2, up from 7.9 million m2 in the same period last year.
  • NMDC Energy, a UAE-based energy and marine services company, was awarded an engineering, procurement, and construction (EPC) contract by the local Taiwan Power Company (Taipower) for the Tung-Hsiao Power Plant 2nd Stage Renewal Project, valued at TWD36.3 billion ($1.1 billion).
  • The Executive Yuan, the executive branch of the government of the Republic of China (Taiwan), approved a five-year, TWD5.5 billion ($172.9 million) plan to strengthen eight key railway bridges in Taiwan against earthquakes and floods.
  • The construction industry in Taiwan is expected to register an average annual growth rate of 4.1% from 2026 to 2029, supported by investments in the renewable energy and transport infrastructure sectors.

Statistics:

  • The construction industry in Taiwan is expected to expand by 3.1% in real terms in 2025.
  • The industry's value-add grew by 1.9% YoY in Q4 2024.
  • The floor area of construction licenses issued increased by 5.1% in the first three months of 2025, reaching 8.9 million m2.
  • The Tung-Hsiao Power Plant 2nd Stage Renewal Project is valued at TWD36.3 billion ($1.1 billion).
  • The Executive Yuan's five-year plan to strengthen eight key railway bridges in Taiwan has a budget of TWD5.5 billion ($172.9 million).
  • The construction industry in Taiwan is expected to register an average annual growth rate of 4.1% from 2026 to 2029.

Sources:

  • DUBLIN: Research and Markets, "Taiwan Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market Analysis to 2029 (H1 2025)"
  • Taiwan's Directorate General of Budget, Accounting and Statistics (DGBAS)
  • Ministry of the Interior (MoI)
  • NMDC Energy
  • Taiwan Power Company (Taipower)
  • Executive Yuan, the executive branch of the government of the Republic of China (Taiwan)
  • Ministry of Transportation and Communications (MOTC)