India’s building materials market is projected to hit approximately $100 billion by 2030, driven by a strong 10–12 per cent compound annual growth rate over the next five years from a $57 billion base in FY25, as per a report by investment bank Avendus Capital. The report highlights that fast-moving electrical goods, particularly wires and cables, are poised for growth at a mid-teens CAGR due to grid upgrades, data centers, electric vehicle infrastructure, and electronics manufacturing.
Paints and coatings emerge as one of the most organized and profitable segments, boasting 14–19 per cent EBITDA margins. Additionally, tiles and bathware benefit from export competitiveness, with Indian products holding a 15 per cent share of global tile exports by volume, supported by product sophistication.
The wood panels sector is experiencing a rise in Medium Density Fibreboard (MDF) penetration, expected to increase from 20 per cent in FY20 to 30 per cent in FY25 and potentially reaching around 45 per cent by FY30. This growth is fueled by modularization and shorter replacement cycles. Furniture fittings and architectural hardware are witnessing a shift towards localized manufacturing, driven by backward integration and stricter regulatory norms.
Furniture fittings and architectural hardware, the fastest-growing segment in the building materials market, are anticipated to nearly double from Rs 250 billion in FY25 to Rs 500 billion by FY30, with a 14–16 per cent CAGR. Moreover, the plastic pipes, fittings, and tanks sector is undergoing accelerated consolidation, with organized share expected to reach approximately 70 per cent.
Koushik Bhattacharyya, Managing Director and Head of Industrials Investment Banking at Avendus Capital, noted, “Building materials lie at the crossroads of India’s key growth drivers—real estate and consumption. With a shift towards viewing homes as long-term lifestyle assets, there is a growing inclination towards spending on branded, higher-quality products.” Despite these positive trends, the consumption of building materials in India remains relatively low compared to global standards, indicating significant room for long-term expansion.
