Ken Research forecasts India’s construction materials market to reach $44.4bn by 2025, driven by infrastructure spending, urbanisation, and a transition towards eco-friendly products, with further growth expected through 2031 as industry modernises.
Ken Research has put the value of India’s construction materials market at $44.4bn in 2025, saying the sector is being propelled by infrastructure spending, housing programmes, urban expansion and a shift towards lower-carbon building products.
The Delhi-based research firm said the market could rise to about $64.5bn by 2031, implying compound annual growth of 6.43%. It added that ready-mix concrete, precast systems, specialty chemicals and blended cement are likely to take a bigger share of demand as the industry becomes more organised and technically advanced.
That outlook broadly matches other industry assessments. IMARC Group estimates the wider building materials market at $44.4bn in 2025, with growth supported by urbanisation and construction activity. IBEF has said India’s cement demand is expected to climb 6% to 7% in FY25, while industry output could approach 490 million tonnes in FY26, helped by infrastructure and housing projects.
Ken Research said public investment remains a central driver, pointing to a Union budget allocation of Rs 11.21 lakh crore for infrastructure in FY26, as well as housing schemes such as PMAY-U 2.0 and PMAY-G. It also highlighted the industry’s green transition, noting rising use of fly ash, slag and other alternative inputs as producers try to cut clinker use and carbon intensity.
The report said India had about 700 MTPA of installed cement capacity in March 2025, with output of 453 million tonnes in FY25 and another 150 million to 160 million tonnes of capacity additions expected over FY25-FY28. Ken Research said those additions will sharpen competition but also create opportunities for companies with scale, logistics strength and access to regional distribution networks.
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