Indian Construction Market Report and Forecast 2025-2034

The Indian construction market reached USD 687.38 Billion in 2024. The market is projected to grow at a CAGR of 8.60% between 2025 and 2034, reaching almost USD 1.56 trillion by 2034.

Indian Construction Market Growth

The Indian government’s focus on boosting socio-economic development has led to initiatives like the Parvatmala project, under which the construction of bridges in major pilgrimage sites in Uttarakhand has received a big boost. Moreover, major metropolitan cities like Mumbai are also expected to attract investments worth $60 billion over the next 5-7 years in major infrastructure development projects that can boost connectivity between the mainland and the island region of Mumbai and turn the city into a major IT hub.

Roadway development projects are expected to ease the problem of traffic congestion in Mumbai, as the city has 2000 cars for each km of road . The expansion of the luxury real estate sector in India, driven by the increasing demand for premium living spaces is expected to drive the market development in the coming years.

Rising infrastructural investments have spurred the demand for TMT (thermos-mechanically treated) bars which are durable, earthquake-resistant, and high-strength building reinforcement materials. TMT bars accounted for nearly 42% of India’s overall steel production in 2023. The development of advanced construction technologies and sustainable infrastructure is expected to drive the demand for cost-effective TMT bars and rods over the forecast period.

Indian Construction Industry Segmentation

Indian Construction Market Report and Forecast 2025-2034 offers a detailed analysis of the market based on the following segments:

Market Breakup by End-Use

• Commercial
• Medical and Healthcare
• Retail
• Sports
• Others
• Residential
• Industrial
• Infrastructure

Market Breakup by Region

• North India
• East and Central India
• West India
• South India

Indian Construction Market Share

Based on end-use, the market is divided into commercial, residential, industrial, and infrastructure. Though all market segments are expected to witness substantial growth in the forecast period, the infrastructure segment is expected to account for a major market share in the coming years. This is because of increasing government investments in the sector, which are aimed at attracting new businesses and boosting economic growth.

Leading Companies in the Indian Construction Market

The report provides a detailed analysis of the following key players in the market, covering their competitive landscape and latest developments like mergers and acquisitions, investments, and capacity expansion.

• Larsen & Toubro Limited
• Reliance Infrastructure Ltd.
• Punj Lloyd Limited
• Shapoorji Pallonji Co. Pvt. Ltd
• GMR Infrastructure Limited
• Tata Projects
• Gammon India Limited.
• KEC International Limited
• Welspun Group
• Others

Major players in the market are adopting innovative technologies like BIM and AI to enhance the efficiency of construction activities.