Construction Industry in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Indian Construction Industry 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.

Construction Industry in India Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Indian Construction Market Size

India Construction Market Summary
Study Period 2020 - 2030
Base Year For Estimation 2024
Forecast Data Period 2025 - 2030
Historical Data Period 2020 - 2023
CAGR 6.00 %
Market Concentration Low

Major Players

India Construction Market Major Players

*Disclaimer: Major Players sorted in no particular order

Compare market size and growth of India Construction Market with other markets in Real Estate and Construction Industry

Real Estate

Construction

Indian Construction Market Analysis

The India Construction Market is expected to register a CAGR of greater than 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 Overview

The Indian construction market is highly competitive, owing to the presence of major local and international players. However, the market holds opportunities for small and medium players due to increasing government investments in the sector. The Indian construction market presents opportunities for growth during the forecast period, which is expected to further drive market competition. Large players are competing with each other for a large share of the Indian construction market. This makes it hard to see any consolidation in the market.

Indian Construction Market Leaders

  1. L&T

  2. Megha Engineering & Infrastructures Limited

  3. Tata Projects

  4. KEC International Limited

  5. Shapoorji Pallonji Co. Pvt. Ltd.

  6. *Disclaimer: Major Players sorted in no particular order
India Construction Market Concentration
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Indian Construction Market News

  • March 2023: L&T has inked an MoU with Odisha-based non-profit SLS Trust for setting up a Skill Training Hub at Badampahar in Odisha's Mayurbanj district. This facility will comprise classrooms, state-of-the-art simulators, yards for practical training, and residential accommodation for the trainees.
  • November 2022: MEIL is building Mongolia's first greenfield oil refinery in Telangana. Megha Engineering & Infrastructures 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 Art Units, Utilities & Offsites, Plant Buildings) and his EPC-3 (Captive Power Plants) in Mongolia at a cost of US$790 million. Engineers India Limited is the project management consultant for this G2G partnership project. The project is part of the 'Development Partnership Management' initiative of the Ministry of External Affairs, Government of India.

Indian Construction Market Report - Table of Contents

1. INTRODUCTION

  • 1.1 Study Assumptions
  • 1.2 Scope of the Study

2. RESEARCH METHODOLOGY

  • 2.1 Analysis Methodology
  • 2.2 Research Phases

3. EXECUTIVE SUMMARY

4. MARKET INSIGHTS

  • 4.1 Current Economic and Construction Market Scenario
  • 4.2 Technological Innovations in the Construction Sector
  • 4.3 Insights into Supply Chain/Value Chain Analysis
  • 4.4 Impact of Government Regulations and Initiatives on the Industry
  • 4.5 Review and Commentary on the Extent of Government Infrastructure Development Schemes
  • 4.6 Comparison of Key Industry Metrics of India with Other Countries
  • 4.7 Comparison of Construction Cost Metrics of India with Other Countries
  • 4.8 Impact of COVID-19 on the Market

5. MARKET DYNAMICS

  • 5.1 Drivers
  • 5.2 Restraints
  • 5.3 Opportunities
  • 5.4 Porter's Five Forces Analysis
    • 5.4.1 Bargaining Power of Suppliers
    • 5.4.2 Bargaining Power of Consumers/Buyers
    • 5.4.3 Threat of New Entrants
    • 5.4.4 Threat of Substitute Products
    • 5.4.5 Intensity of Competitive Rivalry

6. MARKET SEGMENTATION

  • 6.1 By Sector
    • 6.1.1 Commercial Construction
    • 6.1.2 Residential Construction
    • 6.1.3 Industrial Construction
    • 6.1.4 Infrastructure (Transportation) Construction
    • 6.1.5 Energy and Utilities Construction

7. COMPETITIVE LANDSCAPE

  • 7.1 Market Concentration Overview
  • 7.2 Company Profiles
    • 7.2.1 L&T
    • 7.2.2 Megha Engineering & Infrastructures Limited
    • 7.2.3 Shapoorji Pallonji Co. Pvt. Ltd
    • 7.2.4 Tata Projects
    • 7.2.5 KEC International Limited
    • 7.2.6 Afcons Infrastructure Ltd
    • 7.2.7 Dilip Buildcon Limited
    • 7.2.8 Hindustan Construction Co. Ltd
    • 7.2.9 NCC Limited
    • 7.2.10 Lodha Group*
  • *List Not Exhaustive

8. MARKET OPPORTUNITIES AND FUTURE TRENDS

9. MAJOR INFRASTRUCTURE DEVELOPMENT PROJECTS (PROJECT DESCRIPTION, VALUE, LOCATION, SECTOR, CONTRACTORS)

  • 9.1 Existing Infrastructure
  • 9.2 Ongoing Projects
  • 9.3 Upcoming Projects

10. APPENDIX

11. DISCLAIMER

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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
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Indian Construction Market Research 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 (2025-2030)

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.

What years does this India Construction Market cover?

The report covers the India Construction Market historical market size for years: 2020, 2021, 2022, 2023 and 2024. The report also forecasts the India Construction Market size for years: 2025, 2026, 2027, 2028, 2029 and 2030.

Construction in India Industry Report

The Indian construction market is experiencing robust growth, driven by significant investments and government initiatives aimed at enhancing sectors such as commercial, industrial, infrastructure, energy and utilities, institutional, and residential construction. This surge is fueled by the need to support increasing urbanization and population growth, with each sector catering to specific project types from hotels and industrial parks to educational buildings and extensive transportation projects.

The commercial construction sector in India benefits from a boom in tourism and business activities, while the industrial construction sector thrives on strong manufacturing activities. Infrastructure development in the construction industry in India is propelled by both public and private investments in transportation, whereas the energy and utilities construction sector is set for growth with a focus on renewable energy and achieving energy independence. Residential construction in India is also on the rise, supported by government efforts to mitigate housing deficits.

The competitive landscape of the construction market in India features a diverse mix of domestic contractors and consultants. For detailed statistics, market share, size, and revenue growth insights into the construction sector in India, access a comprehensive market forecast and historical overview from Mordor Intelligence™ Industry Reports, available as a free report PDF download. The industry outlook remains positive, with promising market growth and a clear market forecast. Industry reports and market data indicate a strong upward trend. Market segmentation reveals diverse opportunities across various sectors, supported by industry statistics and market analysis.

Research companies and industry research provide in-depth industry analysis and valuable industry information, contributing to a comprehensive industry overview. The market review highlights key market leaders and their contributions to market value. Industry trends and market predictions suggest sustained growth, with industry sales and industry size reflecting the expanding scope of the market. The report example and report pdf offer detailed insights, while the market outlook and market overview provide a holistic view of the industry's future trajectory.

Market trends continue to evolve, driven by the growth rate and industry growth. The industry forecast anticipates continued expansion, supported by strong market data and market forecast. The industry profile pdf and industry report pdf offer valuable resources for understanding the market dynamics. Overall, the construction market in India is poised for significant growth, with promising opportunities across all sectors.

Construction Market in India Report Snapshots