India Ready Mix Concrete Market SIZE & SHARE ANALYSIS - GROWTH TRENDS & FORECASTS UP TO 2030

India Ready Mix Concrete Market Analysis

The India Ready Mix Concrete Market size is estimated at 248.76 million Cubic meters in 2024, and is expected to reach 373.26 million Cubic meters by 2030, growing at a CAGR of 7.00% during the forecast period (2024-2030).

India's ready mix concrete industry has established itself as a significant player in the Asia-Pacific region, holding a 6.24% market share in 2022. The sector's growth is driven by rapid urbanization and infrastructure modernization initiatives, with the government allocating substantial investments toward urban development. A prime example is the Smart City Mission, which has earmarked USD 24.3 billion for enhancing urban living standards and infrastructure development. The industry is witnessing a transformation in construction methodologies, with increasing adoption of automated batching plants and quality control systems to ensure consistent product quality and reduce wastage.

The supply chain dynamics of the concrete industry are evolving, with vertical integration becoming increasingly prevalent among major players. Companies are establishing in-house production facilities for aggregates and investing in modern transit mixers equipped with GPS-based fleet tracking systems. This integration has helped manufacturers maintain better control over raw material quality and delivery timelines. The industry is witnessing significant technological advancements in concrete technology and delivery systems, with manufacturers incorporating digital solutions for real-time monitoring and quality control.

The retail infrastructure landscape is undergoing a substantial transformation, with approximately 60 shopping malls boasting a cumulative retail space of 23.25 million square feet planned across India's top seven cities between 2023 and 2025. This development is complemented by the emergence of multi-story warehouses to support the growing e-commerce sector's express delivery requirements. The industry is also seeing increased adoption of sustainable practices, with manufacturers focusing on eco-friendly concrete solutions and waste reduction initiatives.

Urbanization continues to be a major growth catalyst, with projections indicating that 40% of India's population will reside in urban centers by 2030. This demographic shift is driving the need for modern construction solutions and efficient building practices. The industry is responding through investments in research and development, particularly in areas such as high-performance concrete and specialized admixtures. Manufacturers are also focusing on developing region-specific products that account for local climate conditions and construction requirements, while maintaining compliance with national and international quality standards. The ready mix concrete market size in India is poised for substantial growth, driven by these demographic and technological trends.

India Ready Mix Concrete Market Trends

India’s Grade A office market is expected to reach 1.2 billion sq. ft by 2030 and is likely to drive the demand for the commercial construction sector

• In 2022, India's new commercial floor area saw a 6.2% volume growth compared to 2021. The retail sector, particularly in the top seven cities (Delhi NCR, Bangalore, Hyderabad, Mumbai, Pune, Chennai, and Kolkata), witnessed robust demand, adding over 2.6 million sq. ft of mall space, a 27% increase from 2021. Looking ahead to 2023, the sector's new floor area is expected to surge by 38 million sq. ft, driven by a surge in foreign direct investment (FDI) fueling the need for new offices, retail outlets, and other facilities. Notably, the FDI equity inflow for construction development in 2023 was projected to hit USD 96 million.
• In 2020, India's commercial new floor area plummeted by 68.3% in volume compared to 2019. This decline was primarily due to a nationwide lockdown imposed by the government, which disrupted ongoing projects, strained supply chains, and impacted labor availability. However, as restrictions eased in 2021, the country witnessed a significant rebound, with the new floor area surging by approximately 526 million sq. ft. Additionally, 2021 saw a notable uptick in green building initiatives, with around 55% of commercial projects embracing sustainability, further bolstering the demand for the sector.
• Looking ahead to 2030, India's commercial new floor area is projected to hit 358 million sq. ft, a significant jump from 2023. This surge drives a growing appetite for shopping malls, office spaces, and other commercial facilities. For instance, India's Grade A office market in the top seven cities is set to expand to 1 billion sq. ft by 2026 and further to 1.2 billion sq. ft by 2030. Consequently, the country's commercial new floor area is poised to witness a robust CAGR of 5.26% during the forecast period.

Rise in demand for housing units and increasing real estate sector to boost residential sector demand

• In 2022, India witnessed a 9.4% growth in residential floor area, outpacing the previous year. The demand for housing in the country surged, with the top seven cities (Delhi NCR, Bangalore, Hyderabad, Mumbai, Pune, Chennai, and Kolkata) collectively adding approximately 402,000 new units, marking a 44% increase from 2021. In Q1 2023, housing sales in these cities reached 1.14 lakh units, a staggering jump of over 99,500 units from the previous year. Consequently, it was projected that the residential new floor area in India would expand by approximately 71 million sq. ft in 2023 compared to 2022.
• In 2020, the residential sector in India faced a setback, witnessing a 6.25% decline in new floor area compared to the previous year. This decline was attributed to the nationwide lockdown, disruptions in the supply chain, labor shortages, reduced construction productivity, and a dip in foreign investments. However, in 2021, the Indian residential real estate market rebounded, adding around 163,000 new residential units across the top seven cities. This surge translated into a significant increase of about 649 million sq. ft in the residential sector's new floor area in 2021 compared to 2020.
• Looking ahead, the residential sector in India is poised to exhibit a CAGR of 2.95% in terms of volume from 2023 to 2030. This growth can be attributed to sustained housing demand, increased investments, and favorable government policies. Notably, by 2030, it is projected that over 40% of India's population will reside in urban areas, driving a demand for approximately 25 million additional affordable housing units. Furthermore, by 2030, the residential real estate market is expected to hit 1.5 million units in key cities, further fueling the demand in the sector.

OTHER KEY INDUSTRY TRENDS COVERED IN THE REPORT

Segment Analysis: End Use Sector

Commercial Segment in India Ready Mix Concrete Market

The commercial segment has emerged as the dominant force in India's ready mix concrete market, commanding approximately 31% of the total market share in 2024. This leadership position is primarily driven by rapid urbanization and substantial foreign direct investments (FDI) in the commercial real estate sector. The segment's growth is further bolstered by the robust expansion of Grade A office markets across India's major metropolitan areas, coupled with the increasing adoption of ready-mix concrete in significant commercial building projects. The country is witnessing a surge in shopping mall construction, with approximately 60 new malls expected to be operational across seven major cities by 2025, adding over 23 million square feet of retail space. Additionally, the rise of e-commerce and express delivery services is fueling demand for multi-story warehouses, contributing significantly to the segment's market dominance.

Industrial and Institutional Segment in India Ready Mix Concrete Market

The industrial and institutional segment is demonstrating remarkable growth potential in the Indian ready mix concrete market, with a projected growth rate of approximately 7% from 2024 to 2029. This robust growth trajectory is primarily driven by India's emergence as a pivotal manufacturing hub, supported by government initiatives and increasing foreign investments. The segment's expansion is further accelerated by escalating geopolitical tensions, which have prompted several multinational corporations, including Apple, Foxconn, Boeing, and Thrasio, to relocate their manufacturing units to India. The government's emphasis on renewable energy projects, particularly in solar, wind, and hydropower sectors, is creating additional demand for ready-mix concrete in industrial construction. The segment's growth is also supported by significant investments in educational institutions, research facilities, and the rapid expansion of warehousing infrastructure across major industrial corridors.

Remaining Segments in End Use Sector

The infrastructure and residential segments continue to play vital roles in shaping the Indian ready mix concrete market. The infrastructure segment benefits from government initiatives like the National Infrastructure Pipeline and significant investments in transportation networks, including roads, highways, and airports. Meanwhile, the residential segment is driven by urbanization trends and government housing initiatives like the Pradhan Mantri Awas Yojana, which aims to provide affordable housing to millions of Indians. Both segments are experiencing steady growth, supported by technological advancements in construction methods and increasing awareness about the benefits of ready-mix concrete over traditional on-site mixing methods.

Segment Analysis: Product

Transit Mixed Segment in India Ready Mix Concrete Market

Transit mixed concrete, also known as dry-batched concrete, maintains its dominant position in India's ready mix concrete market, commanding approximately 71% market share in 2024. This substantial market presence is primarily attributed to its cost-effectiveness and widespread adoption across both residential and commercial construction sectors. The segment's popularity stems from its simplified production process, where raw materials are directly charged into truck mixers, eliminating the need for additional concrete admixture and reducing overall concrete costs. This makes it particularly attractive to contractors and construction professionals working on various projects across India. The segment's strong performance is further supported by robust demand from the residential sector, which remains the largest consumer of transit mixed concrete, driven by ongoing urbanization and government housing initiatives.

Shrink Mixed Segment in India Ready Mix Concrete Market

The shrink mixed concrete segment is emerging as the most dynamic segment in India's ready mix concrete market, demonstrating remarkable growth potential through 2024-2029. This growth trajectory is primarily driven by increasing infrastructure development projects and rising demand from both commercial and residential construction sectors. The segment's appeal lies in its unique production method that combines the advantages of both central mix and transit mix approaches, offering optimal operation efficiency and increased delivery capacity. The segment's growth is further bolstered by its increasing adoption in major infrastructure projects, particularly in urban areas where construction efficiency and quality control are paramount. The versatility of shrink mixed concrete, coupled with its ability to maintain consistent quality during transportation, makes it increasingly preferred for complex construction projects requiring precise concrete specifications.

Remaining Segments in Product Segmentation

The central mixed segment, also known as wet batch or pre-mix plants, plays a crucial role in India's ready mix concrete market, particularly in infrastructure projects requiring high-quality concrete. This segment distinguishes itself through enhanced concrete consistency and superior quality control capabilities compared to other mixing methods. Central mixed concrete's significance is particularly evident in large-scale construction projects where precision and uniformity are essential. The segment's value proposition centers on its ability to deliver consistently high-quality concrete, making it indispensable for projects with stringent quality requirements and specific performance criteria. Additionally, the role of concrete mixing plant and concrete mixing equipment is pivotal in ensuring the quality and efficiency of the central mixed segment.

Free With This Report

We provide a complimentary and exhaustive set of data points on global and regional metrics that present the fundamental structure of the industry. Presented in the form of 24+ free charts, the section covers rare data on newly built floor area, infrastructural spending, and existing construction floor area across residential, commercial, industrial and institutional sectors.