India Cement Market Size, Share, By Type (Blended Cement, End User, and Region - Trends, Analysis, and Forecast till 2035

• By 2035, the market is expected to achieve a valuation of USD 882.7 Million Tons.
• In 2024, the India cement market size was worth USD 441.2 Million Tons.
• The industry is experiencing a steady annual growth rate of 7.9%.

Indian cement encompasses a wide range of companies involved in the production of various types of cement for construction purposes. The target market is a vital component of the country's construction and infrastructure development landscape. As one of the largest cement markets globally, it is projected to grow significantly driven by the increasing urbanization, government initiatives, and robust demand from various sectors.

For Instance, in October 2024, India's cement sector is witnessing renewed interest in mergers and acquisitions, with Ambuja Cements announcing plans to acquire a 47% stake in Orient Cement for $451 million. This deal marks the latest in a series of major transactions in the industry, driven by intense competition between Gautam Adani's conglomerate and UltraTech Cement, as both companies aim to capitalize on anticipated infrastructure spending.

Key Takeaways:

• South India held the largest share of the market in 2024 due to their abundant limestone reserves and competitive market dynamics across this region.
• West India is expected to be the fastest-growing market during the forecast period as the strategic geographical position of this region facilitates efficient distribution and export activities, supporting its growth in the cement industry.
• By type, the blended cement segment is expected to account for the largest share of the India cement market in the upcoming years. The growth is attributed to the increasing focus on sustainability has prompted the Indian cement industry to adopt blended cement as a means to lower carbon emissions.

Key Drivers of Target Market:

Rising Infrastructure Development is Expected to Boost Market Growth

India's ambitious infrastructure projects, including the Bharatmala and Sagarmala initiatives, and urban development schemes such as Smart Cities and affordable housing programs, are boosting cement demand significantly.

• For Instance, in October 2024, Adani Cement has announced an investment of Rs 1,600 crore to establish a new cement grinding unit in Warisaliganj, Bihar. The 6 million tonnes per annum (MTPA) facility will enhance the production capacity of Adani Cement, reinforcing its commitment to sustainable infrastructure development in Bihar and across India.

Government Initiatives is Expected to Boost Market Expansion

Government support for eco-friendly construction practices is pushing companies to innovate, which includes using alternative fuels and waste materials in cement production.

• For Instance, in September 2024, UltraTech Cement will deploy 500 electric trucks and 1,000 LNG/CNG vehicles in the coming years, cutting transport-related carbon emissions by 680 tons annually. Currently, it operates over 390 CNG and 50 LNG trucks. UltraTech aims to increase its green energy usage to 85% by 2030 and expand its production capacity to 200 million tons.

Restraints:

Environmental Regulations to Hamper the Focused Market Growth

Manufacturer’s faces difficulties as there are strict environmental laws designed to lower carbon emissions from the production of cement. It might be necessary to make large expense in cleaner technology in order to comply with these rules.

• Counterbalance Statements: Environmental restrictions force cement manufacturers to meet strict standards but they also encourages business innovation. Advanced technologies, such as carbon capture, utilization and storage are being adopted by companies more as they improve sustainability and operational efficiency while also adhering to rules.

Opportunities & Market Trends:

Sustainable Cement Solutions: 

• Growing environmental awareness and regulatory pressures are pushing the industry toward sustainable practices. There is a significant factor for companies that invest in eco-friendly cement formulations and alternative materials, such as fly ash and slag-based cements which is expected to boost the target market growth in future. 
• For instance, in October 2024, CRH is leading the transition to smarter, more sustainable construction and the Sustainable Building Materials accelerator targets promising Seed-, Series A- and Series B-stage companies in the construction technology and climate tech space with market-ready products. The program aims to identify innovative materials and applications to lower emissions, reduce waste and improve energy use, further leveraging CRH’s extensive network and expertise to drive forward innovative and sustainable solutions for the built environment. 

The India cement market is classified into type, end-user, and region.

Type:

India cement systems market by type is categorized into blended cement, fiber cement, ordinary Portland cement, white cement, and other. The blended cement is expected to dominate over the forecast period as the high demand for blended cement in various applications, including residential and commercial construction due to its weather-resistant and durable properties.

• For Instance, in January 2024, Unique Cement Industries Ltd (UCIL) has launched a new blended cement, Dhalai Special Cement. The blended cement, which is being released to the domestic market, offers 25% more sturdiness compared to PCC cements, according to the company, making it particularly suitable for casting roofs, floors, columns and beams. 

End-User:

India cement systems market by end-user is categorized into residential, commercial, infrastructure, institutional, and industrial. The residential segment is expected to dominate over the forecast period as it is driven by increasing urbanization and government initiatives, which is aimed at affordable housing and a robust demand for residential construction that includes apartments and individual homes.

• For Instance, in November 2024, APAC investors invested USD 1.33 billion in India’s real estate sector between January and September 2024, according to article published by Business Standard Private Ltd. The share of APAC countries in overall investments in India’s real estate stood at 28%. Overall, Indian real estate received institutional investments of USD 4.7 billion during the same period. Foreign investments accounted for about 69% of this amount, with investors from Singapore and the U.S. contributing equally at 21% each.

Country:

Geographically, the market is studied across North India, South India, West India, and East India.

South India: The South India holds largest share in target market due to the significant infrastructure investments and urban development initiatives. The region is witnessing extensive projects in transportation, including highways and metro systems, alongside residential and commercial construction.    

• For instance, in May 2024, Dalmia Bharat Limited (DBL) has unveiled a new cement mill at its Ariyalur plant in Tamil Nadu, increasing its production capacity by 1 million tons. This Rs.204 crore investment boosts DBL’s total capacity to 45.6 million tons, reinforcing its market position in Southern India. This move is part of Dalmia Bharat’s broader strategy to reach a capacity of 110-130 million tons by 2031.

West India: West India is considered as fastest-growing region in target market as it is characterized by significant growth and demand driven by various factors, including rapid urbanization, robust infrastructure development, and a thriving real estate sector.

India Cement Market Report Scope:

Segmentation:

By Type:

• Blended Cement
• Fibre Cement
• Ordinary Portland Cement
• White Cement
• Other   

By End-User:

• Residential
• Commercial
• Infrastructure
• Institutional
• Industrial 

The key players operating in the India cement market include UltraTech Cement Ltd., Ambuja Cements Ltd., and ACC Limited, among others. Major companies are leveraging various strategies to enhance their market share, including mergers and acquisitions, partnerships, and new product launches. The presence of both large players and smaller regional companies contributes to a competitive environment that fosters innovation and diversification within the industry.    

For instance, in March 2024, ACC and Ambuja Cements' Geoclean has launched two new facilities for sustainable waste management. The Ambuja Marwar pre-processing and co-processing facility in Rajasthan can convert 220,000t/yr of refuse into alternative fuel, while the ACC Jamul co-processing facility will process an additional 120,000t/yr.

List of Key Players in the Market:

• UltraTech Cement Ltd.
• Ambuja Cements Ltd.
• ACC Limited
• Shree Cement Ltd.
• Dalmia Bharat Ltd.
• J.K. Cement Ltd.
• Ramco Cements Ltd.
• Nuvoco Vistas Corp Ltd.
• India Cements Ltd.
• JK Lakshmi Cement Ltd.
• Star Cement Ltd.
• Orient Cement Ltd.
• Heidelberg Cement India Ltd.
• Sagar Cements Ltd.
• Birla Corporation Limited    

• In August 2024, Thailand-based producer Shera announced that its upcoming fibre cement plant in Mabalacat, Pampanga, has reached 60% completion and is on schedule to commence commercial operations by January 2025. The plant will be the company’s first production facility outside Thailand, capable of producing 0.24Mt/yr of fibre cement. The Mabalacat facility will also export to Taiwan, South Korea and parts of North Asia and Oceania and will create jobs for up to 150 people.
• In March 2024, Everest Industries is constructing a fibre cement boards and wall panels plant in Chamarajanagar district, Karnataka, with an investment of USD 22.6 million. The new facility, located on an 8.09 hectare plot in the Kellambali-Badanaguppe industrial area, will be operational later in March 2024. It will produce 72,000Mt/yr of fibre cement boards and 19,000Mt/yr of Rapicon wall panels. The company specializes in the production of fibre cement boards.
• In September 2023, Nuvoco Vistas has launched Duraguard Microfibre Cement, a fibre reinforced cement. The cement’s clinker is 48%-52% tricalcium silicate, with low tricalcium aluminate, and contains electrostatically precipitated dry fly ash. The producer says that it offers enhanced bonding, crack resistance, strength and durability, and reduced permeability, and a smoother surface finish, compared with ordinary Portland cement (OPC).
• In September 2023, NCL Industries Ltd, a formidable player in the building and construction materials industry proudly announces the launch of two game-changing cement brands, Nagarjuna Cement Visistha and SteelKrete.

Analyst View:

India cement market is expected to expand more in the upcoming years driven by the combination of environmental concerns, economic reforms, and infrastructural needs, which makes it a major player in the world's cement production and consumption.

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