India Construction Market Size, Trend Analysis by Sector, Competitive Landscape and Forecast to 2027

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India Construction Market Report Overview

The India construction market size was $701.7 billion in 2022. The market is projected to achieve an AAGR of more than 5% during 2024-2027. The growth is attributed to the surging investments in the transport, electricity, housing, and industrial sectors. Furthermore, programs such as the Atmanirbhar Bharat and Pradhan Mantri Gati Shakti National Master Plan will boost the development of domestic industries, micro, small, and medium enterprises (MSMEs) in India.

India Construction Market Outlook, 2022-2027 ($ Billion)India Construction Market1
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The India construction market research report offers a comprehensive understanding of project types and construction activities in the country. It analyzes the mega-project pipeline, focusing on development stages, participants, and listings of major projects in the pipeline. The market report further discusses the key sectors in the construction market and their growth drivers. Along with reviewing the details of the construction projects, our analysts have elaborated on emerging trends and assessed key risks and opportunities that will influence the Indian construction market growth in the coming years.

Market Size (2022) $701.7 billion
AAGR (2024-2027) >5%
Forecast Period 2023-2027
Historical Period 2018-2022
Key Sectors ·        Residential Construction

·        Energy and Utilities Construction

·        Infrastructure Construction

·        Industrial Construction

·        Commercial Construction

·        Institutional Construction

Key Contractors ·        Larsen & Toubro Ltd

·        Hindustan Construction Co Ltd

·        Shapoorji Pallonji & Co Pvt Ltd

·        NCC Ltd

·        Megha Engineering and Infrastructure Ltd

Key Consultants ·        RITES Ltd

·        Engineers India Ltd

·        Aarvee Associates Architects Engineers & Consultants Pvt Ltd

·        RATP Group

·        AECOM

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India Construction Market Segmentation by Sectors

Residential construction was the leading sector in the India construction market in 2022

The key sectors in the Indian construction market are commercial construction, industrial construction, infrastructure construction, energy and utilities construction, institutional construction, and residential construction. In 2022, the residential construction sector was followed by infrastructure construction.

Residential construction: The project types in this sector include single-family housing and multi-family housing. India’s rising urbanization and population, and government initiatives to address the housing deficit will support the sector growth during the forecast period.
Infrastructure construction: The project types in this sector include rail infrastructure, road infrastructure, and other infrastructure projects. Investments to develop transport infrastructure, particularly rail and road infrastructure, during the forecast period will support the sector’s growth.

Energy and utilities construction: The project types in this sector include electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure. Investments in renewable energy, water, and telecommunication infrastructure projects will drive the sector growth between 2024 and 2027.

Commercial construction: The project types in this sector include leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail buildings, and other commercial construction. Expansion of tourism and travel business activities, coupled with the construction of leisure and hospitality, retail, office and data center building projects, will drive the commercial sector’s growth over the forecast period.

Industrial construction: The project types in this sector include chemical and pharmaceutical plants, manufacturing plants, metal and material production and processing plants, and waste processing plants. A rebound in manufacturing and export activity, coupled with the government’s aim of attracting foreign direct investment (FDI) in the manufacturing sector by 2028 will drive the sector’s growth during the forecast period.

Institutional construction: The project types in this sector include educational buildings, healthcare buildings, institutional buildings, research facilities, and religious buildings. Investments in the development of healthcare and educational building projects will fuel the growth of this sector in the coming years.

India Construction Market Analysis by Sectors, 2022 (%)

India Construction Market Analysis by Sectors, 2022 (%)

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India Construction Market - Competitive Landscape

Larsen & Toubro Ltd emerged as the leading contractor and RITES Ltd as the leading consultant in the India construction market in 2022

A few of the leading contractors in the India construction market are:

  • Larsen & Toubro Ltd
  • Hindustan Construction Co Ltd
  • Shapoorji Pallonji & Co Pvt Ltd
  • NCC Ltd
  • Megha Engineering and Infrastructure Ltd

Domestic contractors account for most of the project pipeline in the India construction market. Firms based in Japan are the dominant contractors.

India Construction Market Analysis by Contractors, 2022 (%)

India Construction Market Analysis by Contractors, 2022 (%)

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A few of the leading consultants in the India construction market are:

  • RITES Ltd
  • Engineers India Ltd
  • Aarvee Associates Architects Engineers & Consultants Pvt Ltd
  • RATP Group
  • AECOM

Consultants with headquarters within India are involved in most of the project pipeline by value. Firms based in the US are involved in the majority of the project pipeline.

India Construction Market Analysis by Consultants, 2022 (%)

India Construction Market Analysis by Consultants, 2022 (%)

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India Construction Market – Latest Developments

  • In November 2023, India’s renewable energy ministry secretary reaffirmed that the country would achieve its target (announced in April 2023) of holding 50GW of renewable energy capacity bids annually from FY2023-24 to FY2027-28.
  • In October 2023, Indian Railways proposed a INR4.2 trillion ($52.4 billion) mega plan for multi-tracking seven high density corridors. This program, which will be implemented over a period of ten years from FY2024-25 to FY2033-34, involves the doubling and laying of third and fourth lines on different stretches of these corridors, depending on their passenger and freight volume.

Segments Covered in the Report

India Construction Sectors Outlook (Value, $ Billion, 2018-2027)

  • Commercial Construction
  • Industrial Construction
  • Infrastructure Construction
  • Energy and Utilities Construction
  • Institutional Construction
  • Residential Construction

Scope

This report provides:

  • A comprehensive analysis of the construction industry in India.
  • Historical and forecast valuations of the construction industry in India, featuring details of key growth drivers.
  • Segmentation by sector and by sub-sector.
  • Analysis of the mega-project pipeline, including breakdowns by development stage across all sectors and projected spending on projects in the existing pipeline.
  • Listings of major projects, in addition to details of leading contractors and consultants.

Reasons to Buy

  • Identify and evaluate market opportunities using GlobalData’s standardized valuation and forecasting methodologies.
  • Assess market growth potential at a micro-level with over 600 time-series data forecasts.
  • Understand the latest industry and market trends.
  • Formulate and validate strategy using GlobalData’s critical and actionable insight.
  • Assess business risks, including cost, regulatory, and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

  • 1. Executive Summary
  • 2. Construction Industry: At-a-Glance
  • 3. Context

    • 3.1. Economic Performance
    • 3.2. Political Environment and Policy
    • 3.3. Demographics
    • 3.4. Risk Profile

  • 4. Construction Outlook

    • 4.1. All Construction

      • 4.1.1. Outlook
      • 4.1.2. Latest news and developments
      • 4.1.3. Construction Projects Momentum Index

    • 4.2. Commercial Construction

      • 4.2.1. Outlook
      • 4.2.2. Project analytics
      • 4.2.3. Latest news and developments

    • 4.3. Industrial Construction

      • 4.3.1. Outlook
      • 4.3.2. Project analytics
      • 4.3.3. Latest news and developments

    • 4.4. Infrastructure Construction

      • 4.4.1. Outlook
      • 4.4.2. Project analytics
      • 4.4.3. Latest news and developments

    • 4.5. Energy and Utilities Construction

      • 4.5.1. Outlook
      • 4.5.2. Project analytics
      • 4.5.3. Latest news and developments

    • 4.6. Institutional Construction

      • 4.6.1. Outlook
      • 4.6.2. Project analytics
      • 4.6.3. Latest news and developments

    • 4.7. Residential Construction

      • 4.7.1. Outlook
      • 4.7.2. Project analytics
      • 4.7.3. Latest news and developments

  • 5. Key Industry Participants

    • 5.1. Contractors
    • 5.2. Consultants

  • 6. Construction Market Data
  • 7. Appendix

    • 7.1. What is this Report About?
    • 7.2. Definitions
    • 7.3. CRI Methodology

  • 8. About GlobalData
  • 9. Contact Us

Table

Table 1: Construction Industry Key Data

Table 2: India, Key Economic Indicators

Table 3: India, Commercial Construction Output by Project Type (Real % Change), 2018–27

Table 4: India, Top Commercial Construction Projects by Value

Table 5: India, Industrial Construction Output by Project Type (Real % Change), 2018–27

Table 6: India, Top Industrial Construction Projects by Value

Table 7: India, Infrastructure Construction Output by Project Type (Real % Change), 2018–27

Table 8: India, Top Infrastructure Construction Projects by Value

Table 9: India, Energy and Utilities Construction Output by Project Type (Real % Change), 2018–27

Table 10: India, Top Energy and Utilities Construction Projects by Value

Table 11: India, Institutional Construction Output by Project Type (Real % Change), 2018–27

Table 12: India, Top Institutional Construction Projects by Value

Table 13: India, Residential Construction Output by Project Type (Real % Change), 2018–27

Table 14: India, Top Residential Construction Projects by Value

Table 15: India, Key Contractors

Table 16: India, Key Consultants

Table 17: India, Construction Output Value (Real, $ Million)

Table 18: India, Construction Output Value (Nominal, INR Billion)

Table 19: GlobalData Construction Market Definitions

Table 20: Risk Dimensions

Table 21: Ratings, Scores and Definitions

Figures

Figure 1: South Asia, Construction Output (Real % Change), 2021–27

Figure 2: India, Construction Output by Sector (Real % Change), 2021–23 and 2024–27

Figure 3: India, Risk Summary

Figure 4: India, Risk Regional Comparison

Figure 5: India, Construction Output Value (Real, $ Million, 2017 Prices and Exchange Rate), 2018–27

Figure 6: India, Construction Output Value, by Sector (Real, $ Million), 2018–27

Figure 7: India, Construction Value Add (Constant 2011–12 Prices, INR Billion)

Figure 8: India, Gross Fixed Capital Formation (Constant 2011–12 Prices, INR Billion)

Figure 9: India, Total Number of Projects in the Pipeline According to Implementation Status

Figure 10: India, Total Number of Projects in The Pipeline According to Implementation Status

Figure 11: India, Cement Production, In Million Tonnes (MT)

Figure 12: India, Construction Projects Momentum Index

Figure 13: South Asia, Construction Projects Momentum Index

Figure 14: India, Commercial Construction Output by Project Type (Real, $ Million), 2018–27

Figure 15: India, Commercial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 16: India, Trade, Hotels, Transport, and Communication Sector Value Add (Constant 2011–12 Prices, INR Billion)

Figure 17: India, Industrial Construction Output by Project Type (Real, $ Million), 2018–27

Figure 18: India, Industrial Construction Projects Pipeline, Value by Stage ($ Million)

Figure 19: India, Manufacturing Value Add (Constant 2011–12 Prices, INR Billion)

Figure 20: India, Industrial and Manufacturing Production Index (2011–12 Base Prices)

Figure 21: India, Total Exports (INR Billion)

Figure 22: India, Infrastructure Construction Output by Project Type (Real, $ Million), 2018–27

Figure 23: India, Infrastructure Construction Projects Pipeline, Value by Stage ($ Million)

Figure 24: India, Total Road Network Widened, Upgraded and Strengthened, In Km

Figure 25: India, Energy and Utilities Construction Output by Project Type (Real, $ Million), 2018–27

Figure 26: India, Energy and Utilities Construction Projects Pipeline, Value by Stage ($ Million)

Figure 27: India, Electricity, Gas, and Water Services Value Add (Constant 2011–12 Prices, INR Billion)

Figure 28: India, Total Electricity Generation, In Billion Units (BU)

Figure 29: India, New Installed Power Capacity, In MW

Figure 30: India, Institutional Construction Output by Project Type (Real, $ Million), 2018–27

Figure 31: India, Institutional Construction Projects Pipeline, Value by Stage ($ Million)

Figure 32: India, Public Administration, Defense and Other Services Value Add (INR Million, 2007 Constant Prices)

Figure 33: India, Residential Construction Output by Project Type (Real, $ Million), 2018–27

Figure 34: India, Residential Construction Projects Pipeline, Value by Stage ($ Million)

Figure 35: India, Financial, Real Estate, and Professional Services Value Add (Constant 2011–12 Prices, INR Billion)

Figure 36: India, Hedonic Property Price Index

Figure 37: India, Headquarters of Key Contractors (% of Total Project Pipeline)

Figure 38: India, Headquarters of Key Consultants (% of Total Project Pipeline)

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