Report Overview

The rising trend in industrialization, the expansion of commercial construction, and growing demand for cement from the construction industry are projected to propel the expansion of the India cement market during the forecast period between 2023 and 2029.

India Cement Market - Industry Trends & Forecast Report, 2029

India cement market size was estimated at USD 26.85 billion in 2022. During the forecast period between 2023 and 2029, the size of India cement market is projected to grow at a CAGR of 9.05% reaching a value of USD 49.24 billion by 2029. Major growth drivers for the India cement market include the growing need from construction and infrastructure sectors and rising governmental initiatives and investments in expansive infrastructure ventures encompassing highways, railways, airports, and public edifices. Positive real estate trends drive construction demand, influenced by a growing population's need for housing, education, and healthcare infrastructure. Advancements in sustainable cement formulations and environmental awareness further shape demand. In India, affordable cement prices contribute to increasing consumption, particularly in rural housing. The industrial sector's recovery post-COVID-19 is a pivotal demand driver, supporting a promising long-term outlook. Investments from international players, including Lafarge-Holcim, Heidelberg Cement, and Vicat, and abundant raw materials, such as limestone and coal, fortify India's position as a thriving hub for cement production. Government policies, exemplified by the development of smart cities, further boost the industry. Also, In October 2021, Prime Minister, Mr. Narendra Modi, launched the 'PM Gati Shakti - National Master Plan (NMP)' for multimodal connectivity. Gati Shakti aims to create a world-class, seamless multimodal transport network in India. This significant initiative is expected to have a substantial impact on the India cement market. The surge in industrialization and commercial construction, along with the implementation of Gati Shakti, will further boost the demand for cement in the future. As industrial operations expand and the need for well-equipped facilities increases, coupled with the growth of commercial spaces, the cement market is expected for significant growth.

India Cement Market – Overview

Cement stands as a vital adhesive material extensively applied in both construction and engineering contexts. It primarily comprises calcium, silicon, aluminum, and iron oxides, intricately synthesized through the intricate chemical process known as calcination, which involves subjecting limestone and clay to high-temperature conditions. This procedure yields clinker, which is subsequently finely pulverized to yield the powdered substance recognized as cement. Its significance lies in its central role in the creation of concrete, the most universally employed construction material on a global scale. Upon mixing with water, cement initiates a chemical reaction known as hydration, leading to the formation of a paste that effectively binds various aggregates, such as sand and gravel. Cement, however, extends its utility beyond concrete and finds application in the production of mortars for masonry, rendering, and plastering, among other uses. India stands as the world's second-largest cement producer, representing more than 8% of the global installed capacity. This prominence underscores the substantial growth potential within India's infrastructure and construction sector, where the cement industry is expected to reap significant benefits.

India Cement Market

Growth Drivers

Surge in Industrialization and Commercial Constructions

The expanding operations of industries have led to a significant increase in the requirement for modern, well-equipped industrial facilities. Furthermore, the presence of multinational corporations and the growth of domestic businesses have reinforced the demand for commercial spaces. These spaces encompass various purposes, including corporate offices and retail outlets, and the necessity for well-planned and highly functional structures has grown substantially. This demand is not limited to metropolitan areas but has extended to smaller cities and towns, where there is a notable surge in commercial and industrial activities. Cement, serving as the fundamental construction material, plays a pivotal role in these undertakings. Industrial facilities rely on cement for their robust flooring, structural components, and machinery foundations, while commercial spaces value cement for its durability and adaptability to a variety of architectural designs.

Restraints

Stringent Regulations on Carbon Emissions

Strick regulations pertaining to carbon emissions from cement manufacturing plants are crucial for mitigating environmental impact and ensuring sustainability. However, these regulations can concurrently impede the growth of the India cement market. Compliance with these regulations often necessitates substantial investments in cleaner and more efficient technologies, resulting in increased production costs. This can challenge cement manufacturers in maintaining competitive pricing. Also, stringent emission limits may lead to operational delays and reduced production capacities, subsequently affecting the supply chain. While these regulations are pivotal for environmental responsibility, they present obstacles to the industry's expansion, demanding a delicate balance between ecological concerns and market dynamics.

Impact of COVID-19 on India Cement Market

COVID-19 pandemic adversely affected the India cement market. Lockdowns and restrictions disrupted construction activities, leading to a temporary drop in demand. The closure of industrial units and logistics challenges hampered cement production and distribution. Additionally, the uncertainty surrounding the economy and construction projects led to delays and cancellations. Despite these challenges, the government's push for infrastructure development and the gradual resumption of construction activities gradually revitalized the market. With stringent safety measures in place, the India cement market has since recovered, regaining its growth trajectory and meeting the demands of the construction and infrastructure sectors.

India Cement Market

Segmental Coverage

India Cement Market – By Type

Based on type, the India cement market is bifurcated into Blended and Portland segments. The Portland type cement segment holds a higher share in the India cement market. It can be attributed to its suitability for a wide array of applications, spanning from residential and commercial buildings to infrastructure projects and industrial sites. Its inherent strength, capacity to set and harden underwater, and compatibility with various supplementary materials render it a favored choice for construction experts and engineers worldwide. The extensive range of Portland cement variations, encompassing Type I, Type II, Type III, and Type V, customized to specific needs such as rapid setting or sulfate resistance, further underscores its adaptability. The consistent demand for Portland cement is upheld by its established track record, dependable qualities, and adherence to construction standards. Additionally, its widespread availability is reinforced by the extensive distribution networks and manufacturing capacities of global cement companies. As the construction industry continually advances, Portland cement's enduring legacy plays a central role in shaping the physical landscapes of cities and nations.

India Cement Market – By End User

On the basis of end user, the India cement market is divided into Residential, Commercial, and Infrastructure segments. The residential segment holds the highest share in the India cement market by end user. As populations expand, urbanization accelerates, and economic conditions improve, the need for housing rises. Cement, a crucial element in building robust structures, plays a pivotal role in residential construction. It ensures the structural strength and longevity of homes, from foundations to roofing. Its versatility enables various architectural designs, including single family homes, high-rise apartments, and sustainable housing. In earthquake-prone areas, cement's durability and seismic resistance ensure safety. Additionally, cement's thermal mass properties contribute to energy-efficient designs. As economies grow and living standards improve, there is a heightened demand for modern, aesthetically pleasing, and technologically advanced residential spaces

India Cement Market – By Region

Regionally, the India cement market is divided into North India, South India, East India, and West India. South India region dominates the India cement market during the forecast period. India boasts a collective count of 210 substantial cement facilities, with a notable 77 situated in the states of Andhra Pradesh, Rajasthan, and Tamil Nadu. The southern part of India holds the lion's share, hosting nearly 32% of the country's total cement production capacity. North India accounts for 20%, Central India for 13%, West India for 15%, and the eastern part accommodates the remaining 20%. Rapid urbanization, robust infrastructure development, and a flourishing real estate sector have heightened the demand for cement in this region. Government-backed initiatives, favorable economic conditions, and the presence of various industries further contribute to its dominance. The region's ability to sustain construction activities year-round, thanks to its favorable climate, and its port connectivity for raw material imports bolster South India's position as a cement market leader.

Competitive Landscape

Major players operating in the India cement market include Ambuja Cements Ltd, Birla Corporation Limited (MP Birla Group), Dalmia Bharat Limited, Deccan Cement Limited, India Cements Ltd, JK Lakshmi Cement Ltd, Orient Cement Ltd, Shree Cement Limited, The Ramco Cements Limited, and UltraTech Cement Limited. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Development

• In May 2023 - Dalmia Cement (Bharat) introduced Dalmia Supreme cement, a type of Portland pozzolana cement (PPC), to the Eastern India market.

• In April 2023 - Dalmia Bharat's wholly-owned subsidiary, Dalmia Cement (Bharat), initiated commercial production at its second cement line located at Bokaro, Jharkhand Cement Works 2 (JCW2).

• In April 2023 - UltraTech Cement completed an enhancement project for its grinding plant in Patliputra, Bihar. The upgrade, with an annual capacity of 2.2 million tons (MT), has increased the total unit capacity to 4.7 MT per year.

• In September 2022 – Adani Group, an India-based conglomerate, completed the acquisition of Ambuja Cements and its subsidiary ACC Ltd for USD 6.4 billion. Adani purchased both Ambuja Cements and ACC Ltd from Holcim Group. 

Scope of the Report

By Type

• Blended

• Portland

By End User

• Residential

• Commercial

• Infrastructure

By Region

• North India

• South India

• East India

• West India