Key trends shaping India's US$45b building products market

India's building products industry is evolving with trends in eco-friendly and sustainable materials, smart systems, and modern living preferences.

In brief

• Increasing demand for modern, aesthetic, and sustainable building products is reshaping India's building materials market.
• Growth of India's electricals market is propelled by urbanization, energy efficiency initiatives, and modernized electric infrastructure.
• Consumer preferences, such as for premium flooring materials, eco-friendly and designer sanitaryware and smart electronic systems, are transforming the Indian building products market.

The building products market in India is on the cusp of rapid expansion, driven by a confluence of factors such as infrastructure and real-estate development in India, urbanization, technological innovation, and increasing consumer awareness. The government's strong emphasis on housing and infrastructure, coupled with the rising aspirations of consumers, is creating significant opportunities for both domestic and international building products manufacturers in the sector. There are several key aspects contributing to the growth of this sector, which has a market size of about US$45 billion in India.

Shortened renovation cycles and demand for eco-friendly products in the paints and coatings segment

The paints and construction chemicals segment is set to be a major driver of demand in the Indian building products market. Much of the demand is due to rising rural penetration and increasing consumer focus on aesthetics. As builders and homeowners seek ways to refresh and renovate spaces more efficiently, the demand for paints and coatings has surged.

Furthermore, there is a growing preference for eco-friendly products, leading to the adoption of volatile organic and water-based solutions. This shift aligns with the broader global trend towards sustainability. Innovations in admixtures, bio-based adhesives, and water-repellent sealing technologies are also expected to shape the market's future.

Expansion of electricals market due to modernized electric infrastructure with emphasis on energy efficiency

The electricals segment ranks as the second largest in the Indian building products market, and its growth is underpinned by several key factors. Government initiatives and schemes aimed at promoting energy efficiency and expanding access to electricity in rural areas have boosted demand for electrical products.

Urbanization and a strong emphasis on sustainability are also driving growth. As cities grow and modernize their electrical infrastructure, there is a significant opportunity for companies in the construction sector in India to provide innovative and energy-efficient solutions.

Emerging demand for premium and high-end flooring products due to design conscious consumer preferences

A significant share of Indian consumers is looking for low-maintenance and durable products. While changing consumer preferences are leading to a growth in the demand for premium and design-conscious products, to meet these demands, there is a preference for high-end building materials and products such as natural stone, solid wood, and imported tiles. In addition, India's status as a leading producer and exporter of ceramic tiles, due to its cost advantages, is expected to drive growth in this segment, supported by the ‘China-plus one’ strategy.

Demand for eco-friendly and designer sanitary products to promote water conservation and safe sanitation

Plastic pipes have the highest share in the plumbing and sanitary segment, largely due to their advantages over traditional metal pipes. Government schemes to provide water and growing awareness of water conservation and sustainability are contributing to the increasing adoption of water-saving fixtures, smart plumbing solutions, and eco-friendly products.

Additionally, building products such as designer sanitaryware, faucets, advanced drainage systems, and green plumbing systems are becoming increasingly popular. These trends highlight the demand for modern and stylish solutions that prioritize water conservation, hygiene, sustainability, and aesthetic appeal.

Shift to superior wood panel alternatives

The wood panels market is benefiting from a shift towards modern and sustainable living in India. Consumers are increasingly accepting superior alternatives to traditional plywood. Rising disposable incomes, shorter renovation cycles, and a preference for better design and aesthetic value are driving demand for wood panels in the construction industry.

These panels are used across various applications, including furniture, wall paneling, false ceilings, and flooring solutions in residential buildings, office spaces, and the growing hospitality sector. The versatility and cost-efficiency of laminates are contributing to the growth of this segment.

Material shifts in doors and windows due to growth in affordable housing and adoption of green buildings

Growth in affordable housing segment in India is driving the demand for cost-effective and durable products. Increasing consumer spending and sustainability demand are driving innovations in doors, windows, and hardware market.          

Consumer awareness about green building products and sustainability is leading to a shift in product preferences. Key product trends include uPVC doors and windows for durability and thermal insulation, energy-efficient glass for improved insulation, aluminum frames for sleek designs, impact-resistant options for extreme weather conditions, and soundproof solutions for noise reduction.

Growth of metal roofing for improved functionality, energy efficiency and aesthetics

Shift in roofing trends is driven by a focus on improved functionality, energy efficiency, environmental consciousness, and aesthetics. Metal roofing is gaining traction in the Indian building products market, as it replaces asbestos sheets, particularly in pre-engineered building solutions. Key product trends in the roofing market include the rise of metal roofing, solar roofing systems, cool roofing options, and eco-friendly materials.

Innovation such as lightweight materials for roofing solutions, solar roof tiles and insulated roofing styles are aligning with the consumer preferences and gaining traction. These trends highlight the industry's commitment to longevity, energy efficiency, environmental consciousness, and meeting diverse customer needs.

Adoption of smart electronic systems providing easy access and connectivity due to security concerns

The growing reliance on tech-based solutions for security demands is fueling the adoption of electronic systems in buildings. This is in addition to advancements in technology and government regulations, which are driving the demand for electronic security systems.

Industries and individuals are increasingly investing in surveillance, access control, and alarm systems to address security threats. The market's growth is further driven by the availability of more affordable and advanced digital security solutions.

These key segments discussed highlight the opportunities both domestic and international companies can leverage and thus actively contribute to India's journey toward modernization and sustainable development in the construction industry.