INFRASTRUCTURE AUSTRALIA RELEASES 2025 REPORT
19 Nov 2025
Infrastructure Australia has released the 2025 Infrastructure Market Capacity Report, providing the industry with a clear picture of the state of national infrastructure investment.
This year's report reveals a remarkable turnaround in national infrastructure investment. It shows the Australian, state and territory governments have injected almost $30 billion into the national infrastructure pipeline over the past year, taking the five-year Major Public Infrastructure Pipeline to an unprecedented $242 billion.
That's the highest level since Infrastructure Australia (IA) began tracking market capacity five years ago - a research program commenced back in 2020, at the request of the Prime Minister, Premiers and Chief Ministers, as National Cabinet recognised the need to track supply and demand in what was an increasingly hot infrastructure market.
Five years later, the IA research program now tracks demand to build across almost 100 percent of the market, capturing more than $1 trillion of government and private investment.
As the Australian Government's independent advisor for nationally-significant infrastructure, IA's focus is on the Major Public Infrastructure Pipeline (MPIP), which accounts for about a quarter of total infrastructure expenditure and covers publicly-funded infrastructure projects valued over $100 million in NSW, Victoria, Queensland and Western Australia, and over $50 million in South Australia, the ACT, the NT and Tasmania.
Taking a closer look at the MPIP, there is a significant uptick in investment being driven primarily by energy transmission and housing projects, as governments double down in a bid to meet housing and net zero targets. Investment in utilities, particularly energy transmission projects, is at the forefront, expected to more than double to $36 billion over the next five years.
Building projects, which includes social housing, are projected to rise by $6 billion to $77 billion, while transport projects continue to account for more than half of the total pipeline at $129 billion.
These are, of course, the projects we need to enable Australia's productivity and liveability for decades to come, but the added demand brings challenges for the market.
