Infrastructure development market was US$ 224 billion in 2019
This sector contributes 9% to India’s GDP and employs 51 million people
The CAGR is estimated to be a steady 15.7% till 2024
55% to the Steel industry, 15% to the Paint industry and 30% to the Glass industry
Industry’s revenue is estimated to reach US$ 5 billion
The construction industry is the second largest industry in India after agriculture. It is expected to emerge as the third-largest in the world by 2025. The industry can be segmented into real estate and urban development. Residential and office space, retail, hotels and leisure parks constitute the former while water supply, sanitation, public transport, schools, and healthcare constitute the latter.
In 2020, Indian real estate attracted institutional investments worth US$ 5 billion. The CAGR of the Indian Construction Engineering industry is estimated to be a steady 15.7% by 2024. The demand for commercial space has shot through the roof in recent times with economic expansion and spurt in business activities, with the annual absorption of constructed offices having crossed 42 million square ft.
The Construction Industry contributes 55% to the Steel industry, 15% to the Paint industry and 30% to the Glass industry. A growing economy and the demand for housing is expected to trigger a notable growth in the Construction Technology (ConTech) industry as well.
By 2025 the Construction equipment industry’s revenue is estimated to reach US$ 5 billion.
Headquartered in New Delhi, the Coalition for Disaster Resilient Infrastructure (CDRI) is a platform that aims to promote the resilience of new and existing infrastructure systems to climate and disaster risks, while supporting sustainable development. It was launched by India in 2019 at the UN Climate Change Summit. Composed of 20 nations plus the EU, CDRI involves the public and private sector to achieve its goals.
Recognizing the exponential growth that lies on the horizon for the construction industry, the government and the industry stakeholders have been pushing hard to increase the floorspace for growth:
India’s ConTech startups are developing rapidly to innovate every phase of the real estate and construction value chain. As a result, the Indian startup community creates a strong ecosystem. Startups are working on alternative building solutions, such as honeycomb-styled panels. They are far cheaper in production than bricks but have similar stability in urban housing. In this solution, a paper honeycomb core is sandwiched between two concrete face panels to make a new age construction material. The construction is faster than traditional building techniques, the building is waterproof and soundproof, it is thermally isolated, and the panels are extremely light. An alternative way of construction is building with 3D printing technologies which have proved to be cost and time effective.
Based on a stable foundation of institutional support, an ever-expanding economy and strong forward and backward linkages, the Indian construction industry is an enormous edifice that houses numerous sectors. With new floors being added every other day, new windows of opportunity remain open to anyone who chooses to enter it.