This article examines India’s building materials industry, set to generate a substantial revenue of US$160.90 billion in 2024. Despite challenges related to streamlining and disruption, key players like Tata and innovative startups like Growder actively contribute to the sector’s growth, aligning with evolving consumer preferences for sustainable and high-quality homes.

The building materials industry is currently witnessing rapid growth, driven by several key factors. According to a report by Fortune Business Insights, the global construction materials market is expected to grow from US$1,320.01 billion in 2023 to US$1,729.62 billion by 2030, with a compound annual growth rate (CAGR) of 3.9%. This substantial growth can be primarily attributed to the thriving residential and commercial real estate sectors, which are significantly boosting the demand for building materials. 

One of the major driving forces behind this growth is the increasing global population and the consequent rise in demand for housing projects. Additionally, there is a growing preference for homes that are both aesthetically pleasing and environmentally friendly. This shift in consumer preferences is leading to a rise in demand for premium flooring and eco-friendly materials, thus driving the adoption of sustainable construction practices. As urbanisation and population growth continue to escalate, along with the urgent need for infrastructure development, the construction materials market is playing a critical role in meeting these rising demands. Despite the industry’s impressive growth, it faces challenges such as fluctuating raw material prices and stringent environmental regulations. 

The Asia Pacific region has emerged as a dominant force in the global construction materials market, boasting a substantial market share. This dominance is fueled by various factors, including the region’s large population, rapid urbanisation rates, and extensive infrastructure development initiatives. In Skyquest’s report, it is stated that countries such as China, India, and Japan are witnessing remarkable growth in their construction sectors, which is further driving the demand for construction materials. Moreover, increased investments in residential, commercial, and industrial construction projects, coupled with government initiatives aimed at enhancing infrastructure development, continue to bolster the Asia Pacific region’s position in the global market.

Indian building materials industry overview

India’s building materials industry is experiencing rapid growth on the global stage, driven by various factors. According to Statista, the Hardware & Building Materials market in India is poised to generate a substantial revenue of US$160.90 billion in 2024, with a projected steady annual growth rate of 1.64% (CAGR 2024-2028). Key players like Tata are actively promoting industry growth through their contributions to the sector. However, the industry faces challenges related to streamlining and disruption, leading to the emergence of new startups aimed at addressing these issues. One such startup from Surat is Growder Technovations, a B2B e-commerce platform for all building materials and decor products online, offering prominent services in the digital platform arena.

Several factors contribute to the industry’s rapid expansion. One such factor is the evolving consumer preferences, with a rising demand for sustainable housing and high-quality aesthetic homes. The expansion of the electrical market, supported by modernised electric infrastructure and a focus on energy efficiency, is another significant driver. Additionally, there is a growing demand for premium and high-end flooring products, reflecting the preferences of design-conscious consumers.

The industry is also experiencing material shifts in doors and windows, propelled by the growth in affordable housing and the adoption of green buildings. Moreover, the adoption of smart electronic systems, providing easy access and connectivity, is on the rise due to security concerns. These factors collectively position India’s building materials sector as a significant player in the global market, poised for continued growth and development.

Emerging trends in flooring

The emerging demand for premium and high-end flooring products is reshaping the building materials market in India. As consumers become more design-conscious and seek homes with superior aesthetics, there is a growing preference for high-quality flooring materials. This trend is driving manufacturers to innovate and offer a wide range of flooring options to cater to diverse consumer preferences.

Material shifts in doors and windows

Material shifts in doors and windows are also influencing the building materials market in India. The growth in affordable housing and the adoption of green building practices have led to a greater emphasis on energy-efficient doors and windows. Manufacturers are responding to this demand by developing eco-friendly materials and designs that meet the requirements of green buildings while offering durability and aesthetic appeal.

Expansion of electricals

The expansion of India’s electricals market is a key driver of growth in the building materials industry, supported by modernised electric infrastructure and a strong emphasis on energy efficiency. This trend has led to a growing demand for electrical products and components in residential, commercial, and industrial construction projects. In parallel, the adoption of smart electronic systems is significantly contributing to the market’s growth. These systems, which provide easy access and connectivity, are increasingly popular in both residential and commercial buildings. Smart home technologies, including automated lighting, heating, and security systems, not only offer convenience but also enhance energy efficiency and improve overall living standards.

Growder’s role in contributing to the building materials industry

Growder is a leading B2B e-commerce platform serving the building materials and decor products industry in India. Established to streamline the industry, Growder provides easy accessibility to legitimate products from verified manufacturers and retailers, ensuring a trustworthy marketplace. The platform facilitates seamless connections between manufacturers and retailers, enabling them to conduct business efficiently. With a wide range of products and a pan-India presence, Growder caters to the rapidly growing building materials industry. It serves as a vital platform for connecting manufacturers and retailers across the country, encompassing both large and small-scale enterprises. By providing a reliable platform for businesses to connect and transact, Growder contributes to the industry’s growth and development, driving economic progress across the country.