The New Face of Global Growth In Construction Market- “India”
The construction industry is being tested like never before by a slew of concerns that, when combined, have the ability to fundamentally alter the way the industry operates. A combination of sustainability regulations, cost challenges, skills scarcity, digitalization, and the entry of a new breed of player appears ready to change construction enterprises in the coming years.
But even among these challenges, there is one name that has shown quite promising results. And, if you are guessing India, then you are on the right track.
While most other businesses have changed dramatically in the previous few decades. While everyone has experienced the advantages of the process and product advances, the Engineering & Construction industry has also been successfully embracing the most recent technology advancements, and its labor productivity has grown as a result.
A Fabulous Forecast For India
CONSTRUCTION is a huge industry.
The sector will account for 14.7% of total world economic output by 2030. But who are the major contributors? According to a recent report, Global Construction 2030, the amount of concrete production will increase by 85% to $15.5 trillion globally by 2030, with three nations - China, the United States, and India - leading the way and accounting for 57% of total global growth.
But for India, it’s one step ahead. Why? Because of the following reasons.
Over the next 15 years, the Indian construction market will develop faster than China's & other countries.
Despite its size, China's superpower will see a historic low in building growth in 2016. This is advantageous for India.
India will provide a new engine of global development for building in developing economies, rising nearly twice as fast as China and the United States.
The Big Boys Of Construction are back in town!
Despite the impact of Covid restrictions and lockdowns on construction activity, India saw 45 million square feet of new supply this year, with 36 million square feet coming from tier I cities and 8.9 million square feet coming from tier II and III cities. In 2021, the 3PL and e-commerce sectors, which accounted for 62 % of total absorption in 2020, will continue to drive warehouse demand, followed by the manufacturing sector, which will account for 14 %.
The construction industry received more than USD 1.5 billion in investments in 2021, making it the second-highest receiver of such money after the office sector. Because of its strong growth potential and regular returns, this asset class has remained attractive.
Because of the presence of big local and foreign firms, the Indian construction business is highly competitive. However, due to increased government investment in the sector, the market presents opportunities for small and medium-sized players.
During the projected period, the Indian construction market offers prospects for expansion, which is likely to fuel market competitiveness. Large firms fighting for a considerable share leave the Indian construction sector devoid of discernible degrees of consolidation.
What are the most important sectors in the Indian construction market?
Commercial construction, industrial construction, infrastructure construction, energy, and utility construction, institutional construction, and residential construction are the primary sectors in the India construction industry.
India's commercial construction market
The commercial construction projects pipeline in India covers all projects from pre-planning through completion, however, it is biased toward early-stage projects. A portion of the pipeline also comprises mixed-use complexes with commercial and residential components.
Leisure and hospitality buildings, office buildings, outdoor leisure facilities, retail structures, and other commercial development are examples of project types in this sector.
India's industrial construction market
The pipeline of industrial construction projects in India comprises all projects from pre-planning through implementation. The industry, however, is weighted toward early-stage enterprises. Chemical and pharmaceutical facilities, manufacturing plants, metal, and material production, processing plants, and waste processing plants are examples of project types in this industry.
India's infrastructure construction market
In India, the pipeline of infrastructure projects encompasses all initiatives from pre-planning through implementation, with a preference for early-stage projects. Rail infrastructure, road infrastructure, and other infrastructure projects are examples of project types in this industry.
India's energy and utilities construction market
Projects in the Indian energy and utility industry cover all stages of planning and execution. The industry, however, is weighted toward early-stage enterprises. Electricity and power, oil and gas, telecommunications, sewage infrastructure, and water infrastructure are all project categories in this industry.
The institutional construction market in India
The pipeline of institutional building projects in India covers all projects from pre-planning through execution, however, it is biased toward early-stage projects. Educational buildings, hospital buildings, institutional structures, research facilities, and religious buildings are examples of project types in this sector.
India's residential construction market
The continuum of residential mega-projects comprises all projects from pre-planning through implementation. However, late-stage initiatives dominate the market. This sector includes both single-family and multi-family housing projects.
Our Final Thoughts!
India is the fastest growing construction industry (increasing at nearly double the pace of any other country) and is expected to spend a record USD $13 trillion on construction and infrastructure by 2030.
"Just to meet India's housing needs, 31,000 houses must be created every day for the next 14 years."
The country's large and fast-growing population is driving up housing & other infrastructural demand. To keep up, 31,000 new homes & 100+ infrastructural facilities must be created every day for the next 14 years.
So, let’s buckle up!