Market Trends of India Roofing Industry
Increasing Construction Activities to Bolster the Growth of the Roofing Industry in India
One of the primary reasons driving market expansion in India is the movement in consumer preferences away from traditional roofing materials and toward more reliable product varieties as income levels rise. Polycarbonate roofing sheets are also gaining popularity because they are simple to install in industrial and large-scale commercial structures, are weather-resistant, and come in a variety of textures and styles, all with low maintenance costs. In the next 2-3 years, India is expected to become the third-largest building market. With demand increasing last year, there is a lot of potential in this industry. Government initiatives, such as "Make in India" and "Smart Cities Mission," have encouraged investment in manufacturing and smart city projects, respectively, leading to more construction activities.
India's attractiveness as a destination for foreign investment has led to FDI inflows into various sectors, including real estate and construction. According to the Department for Promotion of Industry and Internal Trade, Foreign Direct Investment (FDI) in the construction development (townships, housing, built-up infrastructure, and construction development projects) and construction (infrastructure) activity sectors totaled USD 26.17 billion and USD 26.30 billion, respectively, between April 2000 and December 2021. In the fiscal year (FY) 2021, infrastructure-related operations accounted for approximately 13% of overall FDI inflows of USD 81.72 billion. Furthermore, India is quickly becoming a popular destination for foreign investment in the industrial sector. When compared to the previous fiscal year, FDI equity inflows into the manufacturing sector surged by 76% in FY 2021-22 (USD 21.34 billion).
Growth in Residential Construction in India
India has been witnessing a considerable influx of people moving from rural to urban areas in search of better economic opportunities and improved living standards. This urbanization trend has driven the demand for housing in cities and towns, leading to increased residential construction. The Indian government has launched various initiatives and schemes to promote affordable housing for low and middle-income groups. Programs such as Pradhan Mantri Awas Yojana (PMAY) have incentivized the construction of affordable housing projects, leading to increased development in this segment.
Over the next few years, the major market for roofing is expected to be residential buildings. This segment is expected to grow as disposable income levels rise, new housing projects improve, and the demand for renovation/reroofing increases. The sector has seen a remarkable rebound in construction activity in recent years, particularly in commercial and office areas. Global expenditures in essential projects such as healthcare infrastructure, public transportation, civil construction, institutional complexes, and warehousing are also expected to boost demand. The non-residential market is expected to see an increase in demand for metal, roof coatings, and single-ply membranes. This appears to be the most profitable category for roofing materials.
