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Economic development

Indian Construction Market to Reach USD 1.56 Trillion by 2034

Strategic Insights

— 2 min read

The Indian construction market has shown significant growth, driven by government initiatives and increasing demand for infrastructure development. The market size reached USD 687.38 Billion in 2024 and is expected to grow at a CAGR of 8.60% between 2025 and 2034, reaching almost USD 1.56 trillion by 2034. Major metropolitan cities like Mumbai are expected to attract investments worth $60 billion over the next 5-7 years in major infrastructure development projects. The expansion of the luxury real estate sector in India, driven by the increasing demand for premium living spaces, is also expected to drive the market development in the coming years.

Key Takeaways:

  • The Indian government's focus on boosting socio-economic development has led to initiatives like the Parvatmala project, which has boosted the construction of bridges in major pilgrimage sites in Uttarakhand.
  • Major metropolitan cities like Mumbai are expected to attract investments worth $60 billion over the next 5-7 years in major infrastructure development projects.
  • 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.
  • 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.
  • TMT bars accounted for nearly 42% of India's overall steel production in 2023.
  • The infrastructure segment is expected to account for a major market share in the coming years, driven by increasing government investments in the sector.
  • Major players in the market, such as Larsen & Toubro Limited, Reliance Infrastructure Ltd., and Punj Lloyd Limited, are adopting innovative technologies like BIM and AI to enhance the efficiency of construction activities.
  • The Indian construction market is expected to witness major growth in the forecast period, driven by government initiatives, increasing demand for infrastructure development, and the expansion of the luxury real estate sector.

Statistics:

  • The Indian construction market size reached USD 687.38 Billion in 2024.
  • The market is projected to grow at a CAGR of 8.60% between 2025 and 2034.
  • The market is expected to reach almost USD 1.56 trillion by 2034.
  • TMT bars accounted for nearly 42% of India's overall steel production in 2023.
  • The infrastructure segment is expected to account for a major market share in the coming years, driven by increasing government investments in the sector.

Sources:

  • The Indian Construction Market Report and Forecast 2025-2034, published by ResearchAndMarkets.com
  • ResearchAndMarkets.com is the world's leading source for international market research reports and market data.
  • (Source: GlobeNewswire)

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