Construction

The global construction industry is one of the most basic industries propelling economic growth and infrastructure development across the globe, with continued growth powered by urbanization, population rise, and investment in infrastructure by the government. Invest India states that in 2024–25 fiscal year, the government raised its capital outlay by 11.1% to $133 billion, or 3.4% of GDP. This investment will fuel growth in the construction industry and facilitate the creation of new-age infrastructure in the country. India's economic output contribution from this sector is estimated to be $1 trillion by the year 2030. This large market includes key subsegments such as construction equipment, construction materials, construction tech, and prefabricated construction, each catering to critical needs across residential, commercial, industrial, and infrastructure development projects around the world.

The construction equipment segment reflects high growth prospects, with the market for construction equipment rentals at USD 147.4 billion in 2024 and expected to reflect a 6.2% CAGR between 2025 and 2034 due to exorbitant purchase prices for construction machines. Technology integration is developing significantly, with the smart construction equipment market achieved USD 19.2 billion in 2023 and projected to reach a CAGR of 12.8% between 2024 and 2032 based on the rapid increase in construction activities in emerging nations across the world. Niche segments exhibit considerable growth, with construction equipment aftermarket reaching above USD 25 billion in 2022 and anticipated to achieve 4% CAGR during the period 2023-2032 due to an increase in government expenditure for infrastructure.

The prefabricated building sector presents outstanding innovation and future growth prospects, with the modular & prefabricated construction industry worth USD 155.3 billion in 2023 and projected to register a CAGR of 5.7% from 2024 to 2032, as a result of the surge in demand for economical housing and raising overseas investments for healthcare & commercial infrastructure development. Supporting materials infrastructure reflects appreciable growth, with building materials market reaching USD 824.4 billion in 2023 and expected to grow at a CAGR of 6.2% between 2024 and 2032, driven by urbanization & population growth.

Some of the key drivers of the market are high-speed urbanization that is driving demand for commercial and residential infrastructure, government expenditures on social infrastructure, energy, and transport projects, and technological innovations such as Building Information Modeling (BIM), IoT sensors, and automation to boost project efficiency. New construction methodologies, such as modularization, and prefabrication, are being adopted since they reduce cost, increase efficiency, and reduce waste. The sector will benefit from moving toward sustainability and making an important contribution by adopting sustainable building materials and energy-efficient design & construction principles, as well as sustainability activity reporting; sustainability reporting and performance are currently concerns for all construction sub-categories, as most relevant to climate neutrality.