Australia's Infrastructure Pipeline has grown $29 billion over the past year to reach $242 billion

November 25, 2025

Infrastructure Australia’s latest report reveals a growing infrastructure pipeline and increasing demand for workers.

Growing government investment in energy and housing projects has injected tens of billions into Australia’s major infrastructure pipeline – reversing a two-year decline and intensifying demand for workers, Infrastructure Australia has found.

Infrastructure Australia’s 2025 Infrastructure Market Capacity Report reveals the nation’s five-year Major Public Infrastructure Pipeline has grown $29 billion over the past year to reach $242 billion – its highest level since the agency began tracking nationwide government infrastructure investment five years ago.

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.

Australia’s Major Public Infrastructure Pipeline is $242 billion across the five years from financial years 2024–25 to 2028–29 (‘five-year outlook’), up 14% compared with the projection of 12 months earlier for the corresponding outlook period 2023–24 to 2027–28.
Transport infrastructure investment is projected at $129 billion and remains the largest expenditure category, accounting for 53% of the Major Public Infrastructure Pipeline. This is a $3 billion (2%) increase on the previous year’s outlook and quite steady.
Labour remains the most critical delivery risk. After a brief easing in 2024, shortages are projected to surge and could reach 300,000 workers by 2027. Regional areas will be hardest hit, with shortages forecast to quadruple between 2025 and 2027.
Utilities investment has more than doubled to $36 billion (15%), reflecting the addition of several large transmission projects.
The slow progress on privately funded renewable energy projects from planning to delivery continue to delay the anticipated ramp up in demand for resources into the future, creating uncertainty and slowing workforce investment.

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.

“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,” Infrastructure Australia CEO Adam Copp said.

“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.”

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 NSW, Tasmania and Queensland forecast to see public investment rise by at least 200 per cent. 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,” Mr 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, Mr 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 UK, US, 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.

Read the 2025 Infrastructure Market Capacity Report at  www.infrastructureaustralia.gov.au/2025-infrastructure-market-capacity-report.

Source: © Infrastructure Australia 2025.