Dublin, Jan. 11, 2024 (GLOBE NEWSWIRE) -- The "India Construction Industry Databook Series - Market Size & Forecast by Value and Volume (area and units), Q2 2023 Update" report has been added to ResearchAndMarkets.com's offering.
The construction industry in India is expected to grow steadily over the next four quarters. The growth momentum is expected to continue over the forecast period, recording a CAGR of 10% during 2023-2027. The construction output in India is expected to reach INR 67,504.1 billion by 2027.
The construction market in India has been on the path of accelerated growth over the last few quarters. The increase in government infrastructure spending coupled with the growth in commercial construction projects has aided the market growth in India. The trend is projected to further in Q1 2024, as the national government enhanced the capital expenditure by 33% to INR 10 trillion in its 2023-24 budget.
The Indian construction market is also experiencing a strong influx of investment in the data center space. Several leading domestic and global giants have announced significant investment in the segment, as the demand for data centers continues to grow amid rapid digitalization. The residential construction space is also projected to record robust growth amid rising income levels and demand for better living conditions. Overall, the publisher maintains a steady growth period for the Indian construction market over the next three to four years.
Data center projects are expected to take center stage in the growing commercial construction market in India
The ongoing digitalization across different industry verticals has resulted in a strong demand for data centers over the last few years. This trend is projected to further continue from the short to medium-term perspective in India. As a result, investment in new data center construction projects is expected to increase substantially over the next three to four years.
NTT, the Japanese tech conglomerate, revealed that the firm is planning to enhance its data center capacity by 70% by the end of fiscal year 2024. This would mean that the firm is looking to double the count of its Indian locations. Currently, it has data center facilities in 16 locations across India. This includes cities like Mumbai, Delhi, and Bengaluru. Going forward, the firm is planning to undertake new facilities in Tier II cities of India.
Apart from these global players, Indian conglomerates like Adani Group and Reliance Industries have also announced investment in the space in 2023. Going forward, the publisher expects more such project launches in the Indian market, thereby aiding the growth of the commercial construction sector.
Infrastructure spending will continue to aid construction industry growth in Q1 2024
The investment across various infrastructure projects has been rising consistently over the last few years. The current government, led by Narendra Modi, has emphasized the importance of infrastructure to drive economic growth.
Under the Pradhan Mantri Gati Shakti scheme, more than 100 big-ticket infrastructure projects are being examined. Indian Railways is at the forefront with 44 significant projects valued at over INR 6 trillion, closely trailed by the Ministry of Road Transport and Highways, which is overseeing 43 projects totaling nearly INR 4 trillion.
As per the data compiled by the Department of Promotion of Industry and Internal Trade, a comprehensive assessment is underway for 107 infrastructure initiatives aimed at tracking their advancement and execution. These projects encompass vital areas such as energy corridors, connectivity enhancements, and railway sector developments, among others.
With infrastructure spending expected to further increase over the next three to four years, the publisher maintains a robust growth outlook for the Indian construction market from the short to medium-term perspective.
The surge in construction material prices will put pressure on construction projects from the short-term perspective
In India, the prices of raw materials required in construction activities have gone significantly over the last 12 months. Steel, cement, copper, and electrical goods are among the raw materials that have experienced a surge in prices.
The price of steel, which cost about INR 58,000 per metric ton for about five months, has gone upwards of INR 70,000. Cement prices have also increased to the range of INR 360 to INR 390 per bag, from about INR 300 a year ago. The surge in prices has affected construction activities, especially in the state of Punjab and Tamil Nadu. With the prices expected to maintain their upward levels from the short-term perspective, the publisher expects further pressure on construction projects in India in Q1 2024.
This market intelligence report provides a detailed view of market opportunities in the building and infrastructure construction industry at country level. With over 100+ KPIs, covering growth dynamics in building construction, infrastructure construction, construction cost structure analysis and analysis by key cities in India, this databook offering primarily provides data-centric analysis with charts and tables.
- Market Dynamics by Value, Volume, and No. of Units: Provides a comprehensive data-centric view of size and structure, industry dynamics, and end market opportunities in the building and infrastructure construction industry in India.
- Residential Construction Outlook: Provides market analysis by type of construction, development stage, price point, and key cities. KPIs include value, volume and number of units.
- Commercial Construction Outlook: Provides construction outlook by value and volume across office buildings, retail buildings, hospitality buildings, restaurant buildings, and sports facilities.
- Institutional Construction Outlook: Provides construction outlook by value and volume across manufacturing plant buildings, metal & material processing buildings, chemical & pharmaceutical buildings.
- Industrial Construction Outlook: Provides construction outlook by value and volume across manufacturing plants, educational buildings.
- Infrastructure Construction Outlook: Provides growth dynamics and market analysis by three key sections such as marine and inland, utility system and transport infrastructure construction.
- City Level Analysis: Provides outlook of top 10 cities in India by construction value.
- Construction Cost Structure Analysis: Provides outlook of different construction cost like material, labour, equipment, and others costs by construction value. At granular level, this module provides in detail material cost analysis by type of materials and labour cost by type of work by construction value.
Market Data and Insights:
This report provides market size and forecast across 40+ construction segments for a period of 10 years from 2018-2027 in India.
KPIs covered include the following:
- Market size by value
- Market size by volume of construction
- Number of units
- India Economic Indicators
- India Top Cities Construction Data
- India Residential Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Residential Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Commercial Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Commercial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Industrial Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units)
- India Institutional Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Institutional Green Building Construction Coverage: 10-year market size & forecast in value and volume (area and units) terms by
- India Infrastructure Construction Sectors: 10- year market size & forecast in value terms by
- India Green Infrastructure Construction: 10- year market size & forecast in value terms
- India Construction Cost Structure Analysis: 10- year market size & forecast in value terms
For more information about this report visit https://www.researchandmarkets.com/r/uqew23
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