India Construction Market by Type (Renovation, and New Construction), by Construction Method (Traditional, Prefabricated/Modular, 3D-Printed, and Green/Sustainable), by Contractor Type (Large Contractor, Medium Contractor, and Small Contractor), and Sector (Real Estate, Commercial, Infrastructure, Industrial) – Industry Trends and Forecast, 2025–2030
Industry: Construction & Manufacturing | Publish Date: 05-Jun-2025 | No of Pages: 84 | No. of Tables: 117 | No. of Figures: 62 | Format: PDF | Report Code : CM2218
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India Construction Industry Overview
The India Construction Market size was valued at USD 1.04 trillion in 2024, and is projected to grow to USD 1.21 trillion by 2025. Additionally, the industry is expected to continue its growth trajectory, reaching USD 2.13 trillion by 2030, with a CAGR of 12.1% from 2025 to 2030.
This market is expanding rapidly, supported by strong government-backed initiatives such as the National Investment Pipeline and major infrastructure projects like the Mumbai–Ahmedabad High-Speed Rail and Chennai–Bengaluru Expressway.
The sector is further propelled by a growing emphasis on sustainable and smart infrastructure, with substantial investments in metro rail expansion, affordable green housing, and renewable energy.
While regulatory complexities and bureaucratic inefficiencies pose challenges by delaying projects and increasing costs, the integration of digital technologies like BIM, AI, and IoT is creating new growth opportunities through enhanced design precision, collaboration, and operational efficiency.
Government-Backed Initiatives Drive the India Construction Market Growth
India construction market is witnessing robust expansion, largely fueled by extensive government-led programs aimed at infrastructure development and urban modernization. The National Investment Pipeline (NIP), extended through 2030, has earmarked substantial funding for key sectors such as renewable energy, roads and highways, urban infrastructure, and railways.
Major developments include the Mumbai–Ahmedabad High-Speed Rail project, which is advancing with support from Japan and is slated for completion by 2028, and the Chennai–Bengaluru Expressway, expected to be completed by 2025. These efforts are further supported by the 2024 Union Budget, which has significantly boosted infrastructure spending. Together, these initiatives propel market growth through increased urbanization and population-driven demand.
Surge in Sustainable and Smart Infrastructure Boosts India Construction Market Demand
India construction market is also experiencing accelerated growth due to a rising focus on sustainable and smart infrastructure projects, aligned with global climate targets and technological innovation.
The updated National Investment Pipeline emphasizes green and digital infrastructure, with USD 471 million allocated for 50 GW of solar and wind energy projects and USD 200 million dedicated to smart city initiatives integrating IoT and AI-based systems in 2024–2025. Among notable projects is the USD 12 billion expansion of 15 metro rail networks across cities such as Delhi, Bengaluru, and Hyderabad, featuring energy-efficient infrastructure.
Additionally, the USD 5 billion PM Awas Yojana Urban 2.0, launched in 2024, aims to deliver 10 million affordable and eco-friendly homes by 2027. These advancements are reinforcing India’s commitment to sustainable urban growth and continue to play a pivotal role in driving the construction market expansion.
Regulatory Challenges Impede the India Construction Market Expansion
In the Indian construction sector, navigating regulatory complexities presents significant barriers to market growth. Infrastructure projects often encounter hurdles due to the intricate network of government regulations and permitting procedures.
Infrastructure initiatives require obtaining numerous permits and approvals from governmental bodies at various levels, including local, regional, and national. These mandates involve strict adherence to zoning regulations, environmental assessments, building codes, safety standards, and other regulatory requirements.
The protracted process of acquiring permits, bureaucratic inefficiencies, and regulatory disparities among jurisdictions can significantly prolong project timelines and escalate costs. Moreover, fluctuations in regulations or unexpected policy changes can disrupt ongoing projects and deter potential investments.
Integration of Digitalization and BIM Presents Lucrative Opportunity for India Construction Market Trends
The construction industry is experiencing a profound digital shift, fueled by the growing implementation of Building Information Modeling (BIM), which is unlocking new growth opportunities. BIM enables advanced digital design, simulation, and infrastructure management, leading to greater accuracy, improved collaboration, and optimized resource use.
Demonstrating this shift, ALLPLAN introduced Allplan 2024-1 in April 2024 to bolster BIM functionality and support seamless cloud-based workflows, highlighting the industry's transition toward end-to-end digital project delivery. Additionally, the integration of AI, IoT, and cloud technologies is enhancing real-time communication, predictive upkeep, and streamlined facility operations.
Competitive Landscape
The key players operating in the India construction industry include Larsen & Toubro Limited, Tata Projects Limited, Reliance Infrastructure Limited, Shapoorji Pallonji Engineering & Construction, Hindustan Construction Company Limited, GMR Group, Afcons Infrastructure Limited, NCC Limited, Gammon India Ltd, Simplex Infrastructures Ltd, Mahindra Lifespace Developers Ltd, Man Infra Construction Limited, Adani Group, Sunteck Realty, PSP Projects Limited, and others.
India Construction Market Key Segments
By Type
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Renovation
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New Construction
By Construction Method
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Traditional Construction
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Prefabricated/Modular Construction
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3D-Printed Construction
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Green/Sustainable Construction
By Type of Contractor
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Large Contractor
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Medium Contractor
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Small Contractor
By Sector
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Real Estate
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Residential
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Affordable
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Luxury
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Commercial
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Retail Buildings
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Office Buildings
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Hospitality
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Healthcare Facilities
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Educational Institutes
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Entertainment Ventures
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-
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Infrastructure
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Transportation
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Airport
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Port
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Rail
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Road
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Water and Wastewater
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Energy
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Telecommunication
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Industrial
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Manufacturing Plant
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Warehouses
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Power Plants
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Oil Refineries
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Chemical Plants
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Key Players
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Larsen & Toubro Limited
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Tata Projects Limited
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Reliance Infrastructure Limited
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Shapoorji Pallonji Engineering & Construction
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Hindustan Construction Company Limited
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GMR Group
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Afcons Infrastructure Limited
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NCC Limited
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Gammon India Ltd
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Simplex Infrastructures Ltd
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Mahindra Lifespace Developers Ltd
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Man Infra Construction Limited
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Adani Group
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Sunteck Realty
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PSP Projects Limited
REPORT SCOPE AND SEGMENTATION:
|
Parameters |
Details |
|
Market Size in 2024 |
USD 1.04 Trillion |
|
Revenue Forecast in 2030 |
USD 2.13 Trillion |
|
Growth Rate |
CAGR of 12.1% from 2025 to 2030 |
|
Analysis Period |
2024–2030 |
|
Base Year Considered |
2024 |
|
Forecast Period |
2025–2030 |
|
Market Size Estimation |
Trillion (USD) |
|
Growth Factors |
|
|
Companies Profiled |
15 |
|
Market Share |
Available for 10 companies |
|
Customization Scope |
Free customization (equivalent up to 80 working hours of analysts) after purchase. Addition or alteration to country, regional, and segment scope. |
|
Pricing and Purchase Options |
Avail customized purchase options to meet your exact research needs. |
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