Market Size of India Construction Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | 6.00 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Indian Construction Market Analysis
The size of India Construction market is around USD 639 billion in the current year and is anticipated to register a CAGR of over 6% during the forecast period.
- Top property developers are planning launches of plots close to major cities as they seek to exploit a surge in demand in this segment during the pandemic.Post-Covid, Indians have realized the need for bigger spaces and, more importantly, open spaces. Naturally plotted houses have more open & breathable spaces, compared to an apartment.
- Increase in population is demanding more space for accommodation, especially in tier 1 cities. To fulfill the demand, construction activities have been increased by both government bodies and private sector companies. In India, government is also emphasizing on the development of rural areas. These are the key factors that have been fueling the growth of the construction market.
- The commercial real estate sub-sector is positioned for development as people return to workplaces and businesses adapt to hybrid working arrangements. As more companies send their workers back to work, there is a gradual rise in the need for commercial office space.
- In Hyderabad, the plotted development has uniformly developed along the Outer Ring Road and is also growing along the major highways. Currently, the southern zone of Hyderabad witnesses' maximum traction for the residential land segment along the proposed Pharma City Corridor and international airport.The upcoming metro will enhance the connectivity of this part with the central and western zones. Micro markets such as Kothur, Shadnagar, and Maheshawaramhave taken the lead in demand for residential land in this zone. The rising interest in residential plots in Hyderabad in visible in the growth in land prices which have registered a 21 percent increase in prices after the pandemic which is the highest compared to the top-8 cities is also driving the construction market.
Indian Construction Industry Segmentation
Construction is the installation, maintenance, and repair of buildings and other stationary structures, as well as the construction of roadways and service facilities that form fundamental components of structures and are required for their operation.
The Indian Construction Market is segmented by Sector (Commercial Construction, Residential Construction, Industrial Construction, Infrastructure (Transportation) Construction, and Energy and Utility Construction). The report offers market size and forecasts for the Indian construction market in value (USD billion) for all the above segments.
| By Sector | |
| Commercial Construction | |
| Residential Construction | |
| Industrial Construction | |
| Infrastructure (Transportation) Construction | |
| Energy and Utilities Construction |
India Construction Market Size Summary
The construction industry in India is experiencing significant growth, driven by increased demand for residential and commercial spaces, particularly in tier 1 cities. The post-pandemic shift towards larger and more open living spaces has fueled interest in plotted developments, which offer more breathable environments compared to traditional apartments. This trend is supported by government initiatives aimed at enhancing infrastructure in both urban and rural areas. The commercial real estate sector is also poised for expansion as businesses adapt to hybrid work models, increasing the demand for office spaces. Key urban centers like Hyderabad are witnessing a surge in residential land demand, supported by infrastructure developments such as metro connectivity, which further boosts the construction market.
Government programs like Sagarmala and Bharatmala are set to enhance India's transportation infrastructure, focusing on port modernization and highway efficiency, respectively. The expansion of the national highway network and the development of greenfield airports are part of a broader strategy to improve connectivity and support economic growth. The construction sector is a major recipient of foreign direct investment, reflecting its importance in the national economy. Despite the competitive landscape, with major players dominating the market, there are opportunities for smaller firms to thrive, particularly with the increasing government investment. The market's growth trajectory is expected to continue, driven by both public and private sector initiatives, making it a dynamic and promising sector for the foreseeable future.
India Construction Market Size - Table of Contents
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1. MARKET INSIGHTS
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1.1 Current Economic and Construction Market Scenario
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1.2 Technological Innovations in the Construction Sector
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1.3 Insights into Supply Chain/Value Chain Analysis
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1.4 Impact of Government Regulations and Initiatives on the Industry
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1.5 Review and Commentary on the Extent of Government Infrastructure Development Schemes
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1.6 Comparison of Key Industry Metrics of India with Other Countries
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1.7 Comparison of Construction Cost Metrics of India with Other Countries
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1.8 Impact of COVID-19 on the Market
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2. MARKET SEGMENTATION
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2.1 By Sector
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2.1.1 Commercial Construction
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2.1.2 Residential Construction
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2.1.3 Industrial Construction
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2.1.4 Infrastructure (Transportation) Construction
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2.1.5 Energy and Utilities Construction
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India Construction Market Size FAQs
What is the current India Construction Market size?
The India Construction Market is projected to register a CAGR of greater than 6% during the forecast period (2024-2029)
Who are the key players in India Construction Market?
L&T, Megha Engineering & Infrastructures Limited, Tata Projects, KEC International Limited and Shapoorji Pallonji Co. Pvt. Ltd. are the major companies operating in the India Construction Market.
