The Indian Construction And Building Materials Industry
The construction industry of India is one of the important indicators of the development as it helps in creating investment opportunities across different related sectors. The construction industry shares around 8.2% market share and has contributed the estimated US $131 billion to the national GDP at factor cost in the year 2012-2018. The construction industry is labor-intensive, includes indirect jobs, and employs to approx. 49.5 million people. The construction sector is anticipated to play a very powerful role in economic growth. Moreover, producing a structure that adds to productivity and quality of life.
Building Material Market Analysis
The building material industry ranks second in employing the country, after agriculture. The construction industry not only employs a large number of people but also contributes significantly to the nation’s economy. In India, the industry of building material is expected to record a CAGR of 15.7% and reach $ 738.5 billion by 2022. Major development is expected in co-related sectors, and it will lead to the growth of the building materials industry by 10% in the year 2022. A few of the areas that will see a positive increase are social infrastructure, educational institutions, hospitals, government accommodation, and defense infrastructure and water resources. Moreover, high investment in the industry is also one of the key factors that will contribute to the growth of building materials. Many international investors have been taking an interest in the Indian infrastructure space. Globally, the building material market is anticipated to grow at a CAGR of 4.78% in the forecasted period from 2020-2027.
Market Dynamics of the Industry
The construction aggregates industry holds for a significant share of the construction material market during 2018. Moreover, the cement industry will be accounting for the highest share of this market in the upcoming period and the reason is that cement is one of the major ingredients for mass constriction like buildings, civil works, and industrial estates. The production of cement is significantly high and it is known as the most important commodity in growing economies. The construction of almost 250 airports across the globe in the upcoming 2 to 3 years by the Airport Authority of India is one promising aspect. To build new terminals and to expand the capacity of the current ones an amount of $3.2 billion has been allocated. The metro rail projects that are worth over $7.7 billion are underway, in which approx. 28 projects are ongoing or under construction, in India and more such projects are expected to emerge. The projects on monorails are also being developed in some states like Chennai, Thiruvananthapuram, Bengaluru, Pune, Thane, Delhi, Port Blair, Dehradun, Chandigarh, etc. All of this shows a clear picture of the development of the construction and building material industry.
Upcoming Growth of Construction Materials
The infrastructure sector is anticipated to add 15% to the Indian economy by the year 2030, and that will take India to the path of becoming the 3rd largest construction market globally in the forecasted years. All recent policy reforms such as GST, RERA, Benaim Act, REIT, steps to reduce approval delays, etc. are only going to strengthen the future of the construction industry.
The project report by NPCS “Construction & Building Materials Projects” will help you identify commercial opportunities in Building Materials by analyzing trends and co-development deals. Not only this it will also help in knowing Market Surveys and Studies, Preparation of Techno-Economic Feasibility Reports, Identification and Selection of Plant and Machinery, Manufacturing Process, and a lot more. The report has been a great help for the people not only from Indian but worldwide, many engineers, project consultants & industrial consultancy firms have taken help from this report to analyze the market.