Infrastructure Australia is pleased to publish its 2025 Infrastructure Market Capacity Report, the fifth edition since the series began in 2021.

This year’s report reveals a significant turnaround in national infrastructure investment, with the five-year Major Public Infrastructure Pipeline increasing by $29 billion to reach $242 billion—the highest level since the agency began tracking nationwide government infrastructure investment five years ago.

The growth is largely driven by government investment in energy transmission and housing projects, as governments double down in a bid to meet their housing and net zero targets.

Meanwhile, worker shortages and stagnating productivity across the construction sector present a significant challenge to project delivery. 

The report recommends investing in innovations that can boost productivity and efficiency in the long run.  For instance, governments could incentivise the market to trial productivity-enhancing innovations such as Modern Methods of Construction which can then be scaled.

It also recommends the development of consistent nationwide training programs to upskill workers in these innovations.