Chicago, Oct. 20, 2025 (GLOBE NEWSWIRE) -- The Japan temporary scaffolding market was valued at US$ 5.62 billion in 2024 and is expected to reach US$ 10.44 billion by 2033, growing at a CAGR of 5.90% during the forecast period 2025–2033.
A massive infusion of public capital into national infrastructure is the primary driver of current demand. The government's National Resilience Plan has a staggering JPY 20 trillion (USD 137.9 billion) allocation. A predictable pipeline for contractors is therefore assured. Furthermore, the Ministry of Land, Infrastructure, Transport and Tourism allocated over 6 trillion yen for public works in its recent fiscal year budget. Such funding directly stimulates urban modernization projects. The ongoing Tokyo Outer Ring Road (Gaikan Expressway) expansion project, for instance, spans a length of 85 kilometers, linking major highways and requiring extensive scaffolding solutions.
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The wave of investment in the temporary scaffolding market t is materializing in large-scale urban redevelopment projects across Japan. In Tokyo, the Uchisaiwaicho 1-Chome District Redevelopment project, which commenced in Q3 2024, involves a mixed-use complex with a floor area of 1,100,000m². A structure of that magnitude will feature four distinct towers on a 6.5-hectare plot of land. Concurrently, Tokyo's Nishi-Azabu 3-chome Northeast District Urban Redevelopment will create a 200-meter high, 54-story mixed-use complex with a total floor area of 96,826m². Beyond Tokyo, a new five-story logistics center in Osaka, the DPL Osaka Nanko I, will add 85,799.87m² of floor space, while the Sendai City Main Government Building Redevelopment entails a 15-story building with a 65,000m² floor area. The sheer scale of these projects underpins the vigorous health of the market.
Key Findings in Japan Temporary Scaffolding Market
| Market Forecast (2033) | US$ 10.44 Billion |
| CAGR | 5.90% |
| By Model | Rental Company Owns Materials, Outsources Labor (56.36%) |
| By Scale | Mid to Large Scale (59.03%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Major Events and Digital Infrastructure Create Concentrated Scaffolding Demand Hotspots
Major international events are creating significant, concentrated surges in construction activity, giving a push to the temporary scaffolding market growth. Preparations for the upcoming 2025 World Expo in Osaka are a prime example. A total investment by government and businesses for Expo 2025 is an impressive ¥280 billion. In anticipation of increased visitor traffic for the event, the Grand Green Osaka project, a 24-hectare civic development near Osaka Station, already opened in September 2024. These event-driven projects require rapid, large-scale deployment of temporary structures, directly benefiting the Japan temporary scaffolding market.
Simultaneously, Japan's digital transformation is fueling a massive construction boom in data centers. Amazon Web Services announced plans in January 2024 to invest an additional $15.5 billion to expand its data center portfolio. Not to be outdone, Microsoft is investing an additional $2.9 billion to expand its capacity. Further investment comes from CapitaLand, which announced an over $700 million investment in February 2024 for its first data center in Osaka. Adding to the momentum, Asia Pacific Land is making a $2 billion investment into multiple data center projects in Fukuoka Prefecture. In March 2025, Mitsui & Co. is investing 18 billion yen in a Kanagawa Prefecture project. Specific projects include the 16,500m² AirTrunk OSK1 Data Center and the four-story, 19,693m² CyrusOne KEP OSK1 facility, all demanding specialized scaffolding.
Critical Labor Shortages Reshape Operational Strategies Within the Scaffolding Sector
The construction industry is grappling with a severe and intensifying labor shortage in the temporary scaffolding market. In 2024, the total number of employed individuals in Japan reached a record-high 67.81 million. Despite a healthy overall job market, the construction sector saw its workforce decrease by 60,000 people. Its workforce now stands at just 4.77 million in 2024. A new law that took effect in April 2024 further compounds the issue, restricting overtime for construction workers to 720 hours per year. These pressures are forcing companies to seek greater efficiency.
The demographic shift towards an aging population exacerbates the labor challenge significantly. As of January 2024, the employment of people aged 65 and above has doubled from previous decades, now totaling more than 9 million individuals. A reliance on an older workforce presents long-term sustainability issues for physically demanding sectors. These labor dynamics are a critical factor influencing operational decisions and technology adoption within the Japan temporary scaffolding market, pushing firms toward systems that require fewer man-hours for assembly and dismantling.
Industry Bankruptcies And Workforce Demographics Signal A Shifting Market Landscape
The immense pressure from labor shortages and other economic factors is leading to financial distress for many companies. The number of bankruptcies in the construction industry specifically related to labor shortages grew to 180 in 2024. Overall, bankruptcies among Japanese construction firms reached 1,924 companies in 2024, a notable 10-year high. These figures reveal a market undergoing significant consolidation and stress, creating both risks and opportunities for stable players in the Japan temporary scaffolding market.
A closer look at the data shows the distress is widespread across company sizes. A total of 1,083 bankruptcies were among small companies with debts between 10 million and 50 million yen. However, the number of bankruptcies for companies with debts of 1 billion yen or more than doubled to 21 in 2024. Subcontractors, a category that includes many scaffolding providers, saw bankruptcies rise to 736 in 2024. Meanwhile, broader workforce statistics from July 2024 show total employment at 67.95 million, comprised of 37.22 million men and 30.74 million women, highlighting the national demographic context for the industry's struggles.
Competitive Rental Market Adapts With Pricing Strategies and Digital Transformation
In response to market pressures and high demand, key players are adjusting their business models. The equipment rental segment, which is crucial to the Japan temporary scaffolding market, is seeing significant changes. Leading rental companies like Kanamoto and Nikken Corporation began strategically increasing their rental fees for construction equipment in 2024. This move reflects the high utilization rates and the increasing operational costs associated with labor and materials, signaling a shift in market pricing power.
Beyond simple price adjustments, digitalization is becoming a key competitive differentiator. Forward-thinking companies are leveraging technology to improve service delivery and operational efficiency. Nikken Corporation, for example, is actively promoting online ordering for its extensive portfolio of rental products. The company is also using Electronic Data Interchange (EDI) for invoicing in 2024. Such digital initiatives help streamline processes, reduce administrative overhead, and provide a better customer experience, setting a new standard for service in the industry.
Supply Chain Dynamics and Material Costs Influence Scaffolding Market Stability
The cost and availability of raw materials are fundamental factors influencing the market. In 2024, the production of equipment for scaffolding, shuttering, and propping in Japan was estimated at 959,000 tons. The total consumption of such equipment was forecast to reach 1 million tons in 2024, indicating a market where demand slightly outstrips domestic production, necessitating imports and careful supply chain management within the Japan temporary scaffolding market.
The financial metrics of the supply chain underscore its importance. The revenue of the market for this essential equipment soared to an impressive $1.8 billion in 2024. On the import side, which helps fill the consumption gap, the average import price for scaffolding equipment in 2024 amounted to $2,128 per ton. These figures highlight the significant capital flowing through the supply chain and demonstrate how fluctuations in global steel and aluminum prices can directly impact project costs and supplier profitability.
Innovative Technology and Advanced Systems Redefine Scaffolding Efficiency and Safety
Technological adoption is rapidly becoming a cornerstone of modern construction in the temporary scaffolding market. The integration of digital tools and advanced systems is revolutionizing how scaffolding is planned, managed, and utilized. Leading construction firm Obayashi Corporation reported a remarkable 30% reduction in assembly time on recent projects as of 2024 by using advanced modular scaffolding systems. This demonstrates a clear and quantifiable benefit of moving away from traditional methods, directly addressing the industry's labor productivity challenges.
The innovation extends beyond efficiency to encompass enhanced safety, a paramount concern in the Japan temporary scaffolding market. Companies like Nisso Industries now incorporate IoT-enabled safety sensors that monitor the structural integrity of their scaffolds in real-time. This technology provides an unprecedented layer of on-site security and data. Looking ahead, projections for 2026 suggest that over 50% of scaffolding systems will incorporate IoT sensors for real-time monitoring, signaling a major technological shift that will define the next phase of the industry's evolution.
Stringent Safety Regulations and Evolving Standards Drive Demand for Premium Scaffolding
Japan's stringent regulatory environment continues to shape demand for high-quality scaffolding across the Japan temporary scaffolding market. Worker safety remains a top priority, reflected in detailed industry statistics. During the first half of 2024, the total number of fatalities across all industries was 299, with construction fatalities unfortunately seeing an increase. In contrast, the number of injuries in the construction industry resulting in four or more days of leave saw a decrease during the same period. The total of such injuries across all industries was 54,134.
Regulatory frameworks are continuously evolving to enhance safety and project management standards. In a significant development, the 'General Conditions for Design Work and Supervision' were amended in August 2024. These changes directly impact how contractors plan and execute projects, including the selection and management of temporary structures. Such rigorous standards compel construction firms to invest in advanced, compliant scaffolding systems, thereby driving demand for premium products in the Japan temporary scaffolding market.
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Regional Development and Disaster Resilience Shape Long-Term Scaffolding Market Opportunities
Construction activity and scaffolding demand are highly concentrated in Japan’s major metropolitan centers. The Kanto region, which includes Tokyo, accounts for approximately 45% of the market share. A recent report noted that urban redevelopment projects in Tokyo's 23 wards have doubled in the past decade, fueling sustained demand into 2024. Furthermore, in June 2024, the government announced support for smart city demonstration projects in 13 key regions: Chiyoda Ward, Minato Ward, Koto Ward, Ota Ward, Osaka City, Okazaki City, Yokkaichi City, Aizuwakamatsu City, Keihanna Region, Kakogawa City, Susami Township, Higashi Hiroshima City, and Takamatsu City. Of these, 5 regions were designated for early implementation, focusing development in these areas.
A growing focus on disaster resilience is set to create long-term demand in the temporary scaffolding market. The 2024 Noto Peninsula earthquake resulted in over 240 disaster-related deaths, reinforcing the urgent need for seismic-resistant construction. In response, the government opened a preparatory office in November 2024 to establish a new national disaster management agency. The new agency will be modeled on the U.S. FEMA, which has over 7,000 employees, a stark contrast to the current Cabinet Office disaster management division staff of around 110. The government plans to substantially increase the division's staff in fiscal year 2025, with the new agency planned to be fully established by fiscal year 2026. Considering global economic losses from natural disasters in 2024 amounted to USD 320 billion, this focus on resilience will drive retrofitting and reconstruction activities, securing future growth for the Japan temporary scaffolding market.
Japan Temporary Scaffolding Market Major Players:
- SANKYO Corporation / SEVEN ASHIBA
- KYC Machine Industry
- Shinwa
- Sugiko Group Holdings Co., Ltd .
- Daisan Co. Ltd .
- Heiwa Giken Co., Ltd.
- Other Prominent Players
Key Market Segmentation:
By Model
- Independent tobi (own materials + labor)
- Rental company owns materials, outsources labor
- Rental company owns materials + in-house labor
By Scale
- Small Scale Projects
- Mid- to Large-scale projects
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