India Construction Market Share Analysis, Industry Trends, Statistics and Growth Forecasts (2026-2031) | Public CapEx and Renewable EPC Propel Market to USD 1.10 Trillion

Dublin, Nov. 13, 2026 (GLOBE NEWSWIRE) -- "India Construction - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.

The India construction market size is projected to increase from USD 0.74 trillion in 2025 and USD 0.79 trillion in 2026 to USD 1.10 trillion by 2031. The market is expected to register a CAGR of 6.87% from 2026 to 2031, supported by front-loaded government expenditure, expanding private capital pools, renewable-energy development, urban infrastructure upgrades, and sustained demand for residential and commercial properties.

Public Infrastructure Spending Strengthens Market Growth

India's Union Budget 2025-26 allocated USD 133.3 billion to transport, logistics, and power corridors, representing a 10.2% year-on-year increase. This investment is intended to accelerate the completion of National Infrastructure Pipeline projects through 2028. Highway awards reached 8,500 kilometers in FY 2024-25, with 60% following the hybrid annuity model to distribute revenue risk between public and private participants.

Construction activity is also reflected in a 9.2% rise in cement dispatches during the first nine months of FY 2025-26. Progress on Dedicated Freight Corridor projects is reducing rail transit times and improving supply-chain efficiency for automotive and electronics manufacturing clusters. In addition, price-escalation clauses are now included in 85% of National Highways Authority of India contracts, helping contractors manage raw-material price volatility.

Renewable-Energy Expansion Drives Utility EPC Demand

India added 70 GW of solar and wind capacity in 2025, supporting its target of reaching 500 GW of renewable-energy capacity by 2030. Solar Energy Corporation of India auctions cleared 40 GW at an average tariff of INR 2.45/kWh, improving project bankability. Rajasthan and Gujarat accounted for 45% of newly installed solar capacity due to favorable irradiation levels and land-availability policies.

Offshore-wind seabed leases totaling 10 GW were awarded off Gujarat and Tamil Nadu, with construction scheduled to begin in 2027. Power Grid Corporation also secured USD 2.16 billion in high-voltage transmission awards. These developments are generating demand for utility engineering, procurement, and construction services, grid infrastructure, offshore-wind foundations, and specialized heavy-civil capabilities.

Imported Material Costs Pressure Contractor Margins

Imported bitumen prices rose 18% year-on-year during H1 2025 following Middle-East supply disruptions and rupee depreciation. The increase contributed to margin compression of 200-300 basis points on fixed-price contracts. Steel rebar prices also fluctuated between USD 650 and USD 735 per ton amid coking-coal volatility.

Contractors are responding by signing 12-18-month supply agreements with domestic mills and adopting structural steel optimization software to reduce material requirements. The Ministry of Road Transport and Highways has approved polymer-modified and recycled asphalt for 30% of new carriageways, supporting efforts to reduce import dependence. Other constraints include land-acquisition litigation associated with Bharatmala 2.0, while growth opportunities are emerging from UIDF-backed Tier-2/3 urban infrastructure projects and defense-corridor supplier parks.

Infrastructure and Residential Construction Outlook

Infrastructure construction is projected to grow at a CAGR of 9.49% through 2031. Transportation corridors and renewable-energy assets generated USD 25.2 billion in EPC orders during 2025, driven by highway awards and new solar-wind capacity. Defense-corridor investments are also supporting the development of avionics laboratories, composites foundries, and supplier parks. Private developers are responding with mixed-use projects near planned expressways, creating opportunities for townships and logistics hubs.

Residential construction accounted for 44.68% of the India construction market in 2025. Although residential starts softened as average home-loan rates reached 9.1%, ready-to-move properties in Tier-2 cities benefited from USD 5.76 billion in Pradhan Mantri Awas Yojana subsidies. Apartments represented three-quarters of residential activity, while villas and plotted developments remained concentrated in locations such as Bengaluru's Whitefield and Pune's Hinjewadi, where land costs are 30-40% lower than in core central business districts.

Developers announced 320 million ft of residential launches in 2025, with 70% priced below the USD 96,000 threshold associated with affordable-housing incentives. As mortgage rates stabilize, mid-income housing launches are expected to increase, supported by digital sales platforms and shorter construction cycles enabled by modular methods.

Renovation and Green Building Upgrades Gain Momentum

New construction represented 76.88% of market value in 2025, supported by highways, metro systems, power infrastructure, and township developments. Renovation activity, however, is forecast to expand at a CAGR of 7.96% as older buildings in Mumbai and Delhi undergo LEED and GRIHA upgrades.

The Indian Green Building Council recorded 45 million ft of retrofit certifications in 2025, up 35% year-on-year. Building owners are investing in low-emissivity glass, upgraded HVAC systems, seismic dampers, and energy-efficiency improvements. Municipal Smart-City grants totaling USD 720 million are also supporting heritage precinct renovations and public-space improvements. These trends are expected to create a more balanced mix of new construction and climate-aligned refurbishment across India through 2031.

Key Topics Covered

1 Introduction
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study

2 Research Methodology

3 Executive Summary

4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Front-loaded FY26 infrastructure capex surge (NIP, Gati Shakti)
4.2.2 UIDF-backed Tier-2/3 urban infrastructure projects
4.2.3 500 GW renewable-energy target fueling utility EPC boom
4.2.4 Defense-corridor investments catalyzing supplier-park construction
4.2.5 State-level data-centre incentive corridors in emerging cities
4.2.6 REIT-led demand for Grade-A warehousing & flex workspaces
4.3 Market Restraints
4.3.1 Rising land-acquisition litigation under Bharatmala 2.0
4.3.2 Volatile imported bitumen & metal prices compressing margins
4.3.3 Sand-mining moratoria driven by water-table depletion
4.3.4 ESG-linked lending compliance burden on mid-tier contractors
4.4 Value / Supply-Chain Analysis
4.4.1 Overview
4.4.2 Real Estate Developers and Contractors - Key Quantitative and Qualitative Insights
4.4.3 Architectural and Engineering Companies - Key Quantitative and Qualitative Insights
4.4.4 Building Material and Equipment Companies - Key Quantitative and Qualitative Insights
4.5 Government Initiatives & Vision
4.6 Regulatory Landscape
4.7 Technological Outlook
4.8 Industry Attractiveness - Porter's Five Force Analysis
4.8.1 Bargaining Power of Suppliers
4.8.2 Bargaining Power of Consumers
4.8.3 Threat of New Entrants
4.8.4 Threat of Substitutes
4.8.5 Intensity of Competitive Rivalry
4.9 Pricing (Construction Materials) and Construction Cost (Materials, Labour, Equipment) Analysis
4.10 Comparison of Key Industry Metrics of India with Other Countries
4.11 Key Upcoming/Ongoing Projects (with a focus on Mega Projects)

5 Market Size & Growth Forecasts (Value, In USD Billion)
5.1 By Sector
5.1.1 Residential
5.1.1.1 Apartments/Condominiums
5.1.1.2 Villas/Landed Houses
5.1.2 Commercial
5.1.2.1 Office
5.1.2.2 Retail
5.1.2.3 Industrial and Logistics
5.1.2.4 Others
5.1.3 Infrastructure
5.1.3.1 Transportation Infrastructure (Roadways, Railways, Airways, others)
5.1.3.2 Energy & Utilities
5.1.3.3 Others
5.2 By Construction Type
5.2.1 New Construction
5.2.2 Renovation
5.3 By Construction Method
5.3.1 Conventional On-Site
5.3.2 Modern Methods of Construction (Prefabricated, Modular, etc)
5.4 By Investment Source
5.4.1 Public
5.4.2 Private
5.5 By Region
5.5.1 North India
5.5.2 South India
5.5.3 West India
5.5.4 East India
5.5.5 Central India

6 Competitive Landscape
6.1 Market Concentration
6.2 Strategic Moves
6.3 Market Share Analysis
6.4 Company Profiles (includes Global level Overview, Market level overview, Core Segments, Financials as available, Strategic Information, Products & Services, and Recent Developments)
6.4.1 Larsen & Toubro (L&T)
6.4.2 Megha Engineering & Infrastructures
6.4.3 Shapoorji Pallonji
6.4.4 Tata Projects
6.4.5 KEC International
6.4.6 Afcons Infrastructure
6.4.7 Dilip Buildcon
6.4.8 Hindustan Construction Company
6.4.9 NCC Limited
6.4.10 Lodha Group
6.4.11 Sobha Ltd
6.4.12 Godrej Properties
6.4.13 Oberoi Realty
6.4.14 Ashoka Buildcon
6.4.15 IRB Infrastructure Developers
6.4.16 Adani Realty
6.4.17 GMR Infrastructure
6.4.18 JMC Projects
6.4.19 Punj Lloyd
6.4.20 Essar Projects
6.4.21 Reliance Infrastructure

7 Market Opportunities & Future Outlook
7.1 White-space & Unmet-need Assessment
7.2 Emerging Opportunities in Smart-City & Transit-Oriented Development
7.3 Circular-economy Construction Materials

For more information about this report visit https://www.researchandmarkets.com/r/ggeuqa

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