Australasia accounts for 3.6% of the global industrial pipeline and is the second smallest market globally. With investments in the manufacturing, mining and chemical sectors, the Australian industrial sector’s output is expected to rise. In August 2025, the Australian government launched the AUD500m ($330.4m) Battery Breakthrough Initiative (BBI), to help position the nation as a major player in the global battery manufacturing sector.
Announced in the FY2024–2025 Budget that was released in May 2024, going forward the programme will accept applications through the Australian Renewable Energy Agency (ARENA). This initiative will offer capital grants and production incentives to Australian businesses, to address the critical gaps in domestic manufacturing capability.
In another recent boost to the industry’s output, in mid-September 2025 the government announced that it will invest $726.8m to help develop a low-carbon fuels industry. The funding will be provided in the form of competitive grants and will be available through the new 10-year Clean Fuels Program. Through this programme, the government will grant funds to Australian companies producing biomass-based sustainable aviation fuel (SAF) and e-fuels from green hydrogen. According estimates from the state-owned Clean Energy Finance Corporation (CEFC), Australia’s low-carbon liquid fuel industry could be worth $23.8bn by 2050, if advanced farming practices are paired with affordable renewable energy. GlobalData is currently tracking industrial construction projects in Australasia with a total value of $191.6bn, which includes projects from announcement to execution stages. The overall pipeline in the region includes the construction of storage units, production units, transmission lines, installation of machinery and installation of safety and security systems. Construction is skewed towards the early stage, with projects in the pre-planning and planning stage accounting for 67.4% of projects, totalling $129.2bn. If all projects move ahead as planned, spending may peak at $56.8bn in 2027.
Private sector accounts for 94% of the industrial construction project pipeline by value, followed by 3.8% by the public sector and 2.2% by public-private partnerships.
Sustainable growth
The industrial construction sector is estimated to grow by 1.2% in real terms in 2025, before recording an average annual growth rate of 2.7% between 2026 and 2029, supported by investments in manufacturing and in metal and material processing plants. The metal and material processing segment, which accounts for the largest share of the industrial construction sector (83.7% in 2024), is expected to benefit from the country’s Critical Minerals Production Tax Incentive (CMPTI), passed in February 2025.
This incentive provides a 10% refundable tax offset on costs related to the processing and refining of 31 critical minerals. Among recent developments, in August 2025, HAMR Energy, an Australia-based low-carbon fuels company, announced plans to develop the country’s first large scale methanol-to-sustainable aviation fuel (SAF) plant, with an estimated investment of $462.5–528.6m, with South Australia and Victoria identified as prime locations.
In July 2025, Veolia, a France-based utilities company, signed a contract worth $561.6m to construct and operate a new materials recycling facility (MRF) in the Australian Capital Territory under a 20-year agreement. Furthermore, growth in mining and manufacturing over the forecast period will be supported by government budget allocations. As part of the FY2025–2026 budget, the mining and manufacturing sector received $3.6bn for 2025–26, projected to rise to $4.4bn in 2028–29.
