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India's Building Materials Market to Double to $100 Billion by 2030

India's building materials market is forecast to nearly double, reaching approximately $100 billion by 2030 from a $57 billion base in FY25. This growth, at a 10-12% CAGR, is fueled by sectors like fast-moving electrical goods, paints, and tiles, which benefit from grid upgrades and export competitiveness. The furniture fittings segment is the fastest-growing, expected to double in size by FY30. Despite strong growth, consumption in India remains below global benchmarks, indicating significant potential for future expansion.

Key Points: India Building Materials Market to Hit $100B by 2030

  • Market to reach $100B by 2030
  • Fast-moving electrical goods lead growth
  • Furniture fittings segment to double
  • Tiles hold 15% of global exports
2 min read

India's building materials market likely to almost double to $100 billion by 2030

India's building materials market is projected to nearly double to $100 billion by 2030, driven by real estate, consumption, and organized sector growth.

"Building materials sit at the intersection of India's key growth engines-real estate and consumption. - Koushik Bhattacharyya"

New Delhi, Feb 25

India's building materials market is expected to reach around $100 billion by 2030, driven by a robust 10-12 per cent compound annual growth rate over the next five years, from a $57 billion base in FY25, a report said on Wednesday.

The report from investment bank Avendus Capital said that fast moving electrical goods represent the largest opportunity, with wires and cables expected to grow at mid‑teens CAGR supported by grid upgrades, data centres, electric vehicle infrastructure and electronics manufacturing.

Paints and coatings are among the most organised and profitable segments, with 14-19 per cent EBITDA margins, while tiles and bathware benefit from export competitiveness, the report further said.

Indian tiles and bathware have around 15 per cent share of global tile exports by volume, underpinned by product sophistication, while wood panels are witnessing rising Medium Density Fibreboard (MDF) penetration from 20 per cent in FY20 to 30 per cent in FY25, with projections of around 45 per cent by FY30.

The surge in the wood panel market is driven by modularisation and shorter replacement cycles. Furniture fittings and architectural hardware is also undergoing a structural shift toward localised manufacturing, aided by backward integration and tighter regulatory norms.

Furniture fittings and architectural hardware, the fastest growing segment in the building materials market, including hinges, drawer systems, kitchen systems, are expected to nearly double from Rs 250 billion in FY25 to Rs 500 billion by FY30 on a 14-16 per cent CAGR.

Plastic pipes, fittings and tanks are seeing accelerated consolidation, with organised share reaching around 70 per cent, the report added.

"Building materials sit at the intersection of India's key growth engines-real estate and consumption. As consumers increasingly view homes as long‑term lifestyle assets rather than functional setups, we are witnessing increased spending on branded, higher‑quality products," said Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital.

Despite these trends, consumption of building materials in India remains structurally low compared to global benchmarks, leaving meaningful headroom for long-term expansion, he added.

- IANS

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Reader Comments

P
Priya S
While the numbers look impressive, I hope this growth is inclusive and sustainable. We need to ensure the manufacturing boom doesn't come at the cost of the environment. Also, will these 'branded products' remain affordable for the common middle-class homebuyer?
R
Rohit P
The part about tiles and bathware having 15% of global exports is something to be proud of! Our ceramic industry in Morbi is world-class. This growth will create so many jobs in Gujarat and across the country. Great for skilled workers and engineers.
S
Sarah B
Interesting read. The shift towards MDF wood panels and modular furniture is very evident in urban centers like Bangalore and Hyderabad. The demand for modern kitchen systems and fittings is huge as more people opt for furnished apartments.
K
Karthik V
Consolidation in plastic pipes is a good sign. It means better quality standards and less leakage issues! Remember the problems with cheap pipes a decade ago? This organised growth is better for everyone, from builder to end-user.
M
Michael C
The report mentions consumption is still low vs global benchmarks. That's the real opportunity. As incomes rise and urbanisation continues, this sector could outperform these projections. A key area for investors to watch.
N
Nisha Z
Accha hai!

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