Australia’s five year Major Public Infrastructure Pipeline increased by $29 billion in 2025 to reach $242 billion, the highest level since Infrastructure Australia began tracking investment five years ago.
The investment pipeline is included in Infrastructure Australia’s 2025 Infrastructure Market Capacity Report, and shows that growth has largely been 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.
Utilities, such as energy transmission projects, are leading the pipeline’s growth with investment projected to more than double to $36 billion over the next five years. While building projects, including social housing, are expected to rise $6 billion to $77 billion. Transport projects continue to account for more than half the total pipeline at $129 billion.
Infrastructure Australia Chief Executive Officer Adam Copp said, “The pipeline shows governments are doubling down on energy transmission and housing projects in a bid to meet their targets, while continuing to deliver the major transport projects we need to enable Australia’s productivity and liveability for decades to come”.
Although the pipeline is at a record high, the report tracks national demand to build across more than $1 trillion of government and private investment against the market’s capacity to deliver on that demand in terms of workers and materials.
Worker shortages and stagnating productivity across the construction sector present a significant challenge to project delivery.
Copp commented “This added demand will not come without challenges for the market – productivity growth remains sluggish, while worker shortages present a significant risk to the delivery of projects.”
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.
Infrastructure Australia’s report projects the industry is currently short of 141,000 workers needed to deliver the five-year Major Public Infrastructure Pipeline.
These shortages could have acute impacts for regional areas, with ten regions across New South Wales, Tasmania and Queensland forecast to see public investment rise by at least 200%. In some regions, investment injections are significantly higher.
“Our analysis shows public and private sector ambitions to deliver renewable energy projects – transmission lines, solar, wind, and pumped hydro projects – are estimated to total $163 billion over the next five years, a significant proportion of which would be driven into our regions,” Copp said.
“With community buy-in, this mammoth investment presents a once-in-a-generation opportunity for these regions – but to unlock it effectively and ensure we have the people power to do the job, we need to turn the page on three decades of stagnating productivity in construction. We need to do more with less.”
These challenges aren’t unique to Australia, and there is inspiration to be taken from how other countries are tackling them, Copp said.
“One of our key recommendations is for governments to incentivise the market to trial productivity-enhancing innovations such as Modern Methods of Construction, which can then be scaled, just like the United Kingdom, United States, and Singapore have done.
“We’re also recommending the development of consistent nationwide training programs to upskill workers in these innovations.
“We need to start investing in innovation rather than fixating on delivering at the lowest possible cost.”
Infrastructure Australia, the nation’s independent infrastructure adviser, has been analysing supply and demand across the infrastructure sector annually since 2020 at the request of the Prime Minister and the nation’s Premiers and Chief Ministers.
