Mumbai: India has emerged as the second-largest single country contributor to global construction growth between 2020 and 2030, according to a new report released on Tuesday.
The report from Foundamental, a Berlin-based venture capital firm, said that India and China together account for nearly 40 per cent of global construction growth over the period.
Global capital expenditure is becoming increasingly concentrated in five countries: India, China, the United States, Germany and France, it said.
“India accounts for the second-largest share of global construction growth by volume between 2020 and 2030, at 14.1 per cent, behind only China at 26.1 per cent and ahead of the United States at 11.1 per cent,” said Shubhankar Bhattacharya, Co-Founder and General Partner at Foundamental.
Global construction spending reached $15.97 trillion in 2024 and is projected to grow to $19.86 trillion by 2028, a compound annual growth rate (CAGR) of 5.6 per cent.
Within that total, infrastructure is the fastest-growing major construction segment globally, expanding at a CAGR of 5.1 per cent between 2020 and 2025.
In India, the pace is markedly higher: the country’s infrastructure market is forecast to grow at around 8 per cent annually through the end of the decade, well above the global rate.
The report also notes that global gross fixed capital formation has grown roughly 30-fold since 1960, with that investment becoming increasingly concentrated among a handful of major economies.
“Global construction spending has already surpassed previous forecasts and is creating new opportunities across infrastructure, industrial facilities, energy systems, transportation networks and digital infrastructure,” said Bhattacharya.
The report forecasts the global data centre construction market will double by 2030 compared with 2018 levels, driven by artificial intelligence and cloud computing, making data centre infrastructure one of the fastest-growing construction segments through 2030. “Data centre construction could add between 10 per cent and 15 per cent to the global construction market by 2030,” said Bhattacharya.
The report said India is positioned to benefit from multiple long-term growth trends at once, including infrastructure expansion, industrial development, the energy transition, digital transformation and urbanisation.
(IANS)
