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India Construction Market Size, Trends, and Forecasts by Sector - Commercial, Industrial, Infrastructure, Energy and Utilities, Institutional and Residential Market, 2023-2027

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    Report

  • 49 Pages
  • December 2023
  • Region: India
  • GlobalData
  • ID: 5782610
The construction industry in India is expected to have expanded by 9.6% in real terms in 2023, owing to the government’s continued focus on infrastructure development, coupled with the ongoing housing boom in the country, amid rising household incomes, a severe housing shortage in big cities, and strong population growth. According to the Ministry of Statistics and Program Implementation (MoSPI), the total gross fixed capital formation (GFCF) in India rose by 9.3% year-on-year (YoY) in the first nine months of 2023, while the construction industry’s value add grew by 10.5% YoY over the same period. As part of the financial year (FY) 2023-24 (April 2023 to March 2024) budget unveiled in February 2023, the government increased its allocation for capital expenditure by 37.4%, compared to the revised estimates of the FY2022/2023 Budget, to INR10 trillion ($124.8 billion).

Over the remainder of the forecast period, between 2024 and 2027, the Indian construction industry is expected to register an average annual growth of 5.9%, supported by investment in the transport, electricity, housing, and industrial sectors. According to the Infrastructure and Project Monitoring Division (IPMD) of the MoSPI, as of November 1st, 2023, it was managing a pipeline of 1,788 projects with an anticipated completion cost of INR29.1 trillion ($362.8 billion). Of the total, projects in the road transport and highway sector account for the highest number of projects in the pipeline, equivalent to 55.6%; this is followed by railways (13.8%), petroleum (8.7%), coal (7%), power (5.5%), and water resources (2.3%). Forecast period growth will also be supported by the government’s aim to increase renewable energy capacity from 145.2GW in 2021 to 500GW by 2030, have renewable energy account for at least 50% of its energy requirements by 2030, reduce carbon emissions by one billion tons by 2030, and reach net zero by the end of 2070. 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. The government had already floated bids for approximately 27GW of renewable energy capacity from April to October 2023, with bids for the remaining 23GW of capacity planned to be called before April 2024. The government is also encouraging the adoption of rooftop solar to meet its renewable energy targets.

The report provides detailed market analysis, information and insights into the Indian construction industry, including:

  • The Indian construction industry's growth prospects by market, project type and construction activity
  • Critical insight into the impact of industry trends and issues, as well as an analysis of key risks and opportunities in the Indian construction industry
  • Analysis of the mega-project pipeline, focusing on development stages and participants, in addition to listings of major projects in the pipeline.

Scope

This report provides a comprehensive analysis of the construction industry in India. It provides -
  • Historical (2018-2022) and forecast (2023-2027) valuations of the construction industry in India, featuring details of key growth drivers.
  • Segmentation by sector (commercial, industrial, infrastructure, energy and utilities, institutional and residential) 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 the 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 the critical and actionable insight.
  • Assess business risks, including cost, regulatory and competitive pressures.
  • Evaluate competitive risk and success factors.

Table of Contents

1 Executive Summary2 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
  • Outlook
  • Latest news and developments
  • Construction Projects Momentum Index
4.2 Commercial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.3 Industrial Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.4 Infrastructure Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.5 Energy and Utilities Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.6 Institutional Construction
  • Outlook
  • Project analytics
  • Latest news and developments
4.7 Residential Construction
  • Outlook
  • Project analytics
  • 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
  • About the Publisher
  • Contact the Publisher
List of Tables
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: Construction Market Definitions
Table 20: Risk Dimensions
Table 21: Ratings, Scores and Definitions
List of 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)