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)
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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 (%)
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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 (%)
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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 (%)
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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
Table
Figures
Frequently asked questions
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What was the India construction market size in 2022?
The construction market size in India was $701.7 billion in 2022.
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What will the India construction market growth rate be during the forecast period?
The construction market in India is projected to achieve an AAGR of more than 5% during 2024-2027.
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Which was the leading sector in the India construction market in 2022?
Residential construction was the leading sector in the India construction market in 2022.
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Which are the leading contractors in the India construction market?
The leading contractors in the India construction market are Larsen & Toubro Ltd, Hindustan Construction Co Ltd, Shapoorji Pallonji & Co Pvt Ltd, NCC Ltd, and Megha Engineering and Infrastructure Ltd among others.
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Which are the leading consultants in the India construction market?
The leading consultants in the India construction market are RITES Ltd, Engineers India Ltd, Aarvee Associates Architects Engineers & Consultants Pvt Ltd, RATP Group, AECOM among others.
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