India’s Construction Market By Real Estate (Residential and Commercial), By Infrastructure (Utilities and Transport) - Trends, Analysis and Forecast till 2034

India Construction Market Size was valued at USD 640.2 Billion in 2024 and is projected to grow at a CAGR of 6.2%to reach USD 1107.76 Billion by 2034.

After the agriculture, the construction is the second largest economic activity in India. Highest employability of the sector is because of chain of forward and backward linkages that the sector has with other sectors of the economy. It provides impetus to other manufacturing sectors such as bitumen, cement, steel and iron, bricks, tiles, paints, chemicals and among others. A unit rise in expenditure in construction sector has a multiplier effect on other sectors with a capacity to generate five times highest income. Construction sector involved broad spectrum of activities involving design & planning to actual construction.

Rise in focus on affordable housing segment

“Housing for All” scheme is launched by the government for the identified 305 towns and cities all over the nine states for implementation of its ambitious. Under these scheme initiative of the central government, titled “Pradhan Mantri Awas Yojana” which was launched in June 2015. Due to the slowdown in demand and inventory pile-up for residential units with high ticket sizes and the Government’s push for developers and affordable housing are focusing on introducing units in the affordable segment and also mid-income housing which are typically below the ticket size of INR 10 Million.

Rise in road network

In the world, India road network is the second largest. Since 1991, India’s road network has increased by 2.4 times more from the year 2016 when economic reforms were started. Amongst overall road network, national highways are modernized form of road network is another propelling factor for the growth of the target market.

Downturn in economy

Downturn in economy discourages the investment in for infrastructure and development thus acting as a restraining factor for the construction market. Environmental rules and regulations developed by UNEP India, insufficient funds, complex loading, complex structural geometry, and unavailability of quality of raw materials, such as sand are some of the factors that limit the growth of the construction market.

The India’s construction market is segmented based on real estate, infrastructure, and region.

On the basis of real estate, the India’s construction market is segmented into residential and commercial. On the basis of infrastructure, the target market is classified into utilities and transportation.

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study, has segmented the India’s construction market report based on real estate, and infrastructure:

India’s Construction Market, By Real Estate:

• Residential
• Commercial

India’s Construction Market, By Infrastructure:

• Utilities
• Transportation

The key players operating the India’s construction market includes IVRCL Ltd, Hindustan Construction Co Ltd, Supreme Infrastructure Ltd, IRB Infrastructure Developers, J Kumar Infraprojects Ltd., Ratnagiri Gas and Power Ltd., State Electricity Boards, Power Grid Corporation of India, Tata Power, and Reliance Infrastructure. Prominent players operating in the target market are focusing on the strategic partnerships as well as launching of the products in order to gain competitive edge in the target market.

• In March 2023, L&T signs a memorandum of understanding with Odisha-based non-profit organization SLS Trust to set up a vocational training center at Badampahar in  Mayurbanj district of Odisha. The facility will include classrooms, state-of-the-art simulators, and work locations for hands-on training and housing for students.
• In November 2022, MEIL builds Mongolia's first Greenfield refinery in Telangana. Megha Engineering & Infrastructure Limited (MEIL) has received a Letter of Award (LOA) for the Mongolia Refinery Project, which includes the construction of Mongolia's first oil refinery. MEIL will build EPC-2 (Open State Unit, Utilities and Outdoor Venue, Plant) and EPC-3 (Captive Power Plant) in Mongolia at a cost of $790 million. Engineers India Limited is the project management consultant for this G2G collaborative project. This project is a part of the “Development Partnership Management” initiative of the Ministry of External Affairs, Government of India.

• IVRCL Ltd.
• Hindustan Construction Co Ltd.
• Supreme Infrastructure Ltd.
• IRB Infrastructure Developers
• J Kumar Infra projects Ltd.
• Ratnagiri Gas and Power Ltd.
• State Electricity Boards
• Power Grid Corporation of India
• Tata Power
• Reliance Infrastructure