According to Future Market Insights (FMI), India’s construction chemical industry is poised for remarkable expansion, surging from USD 4.88 billion in 2025 to USD 17.33 billion by 2035, registering a robust CAGR of 13.4%. This acceleration underscores India’s pivotal role in the global construction chemicals landscape, influencing material supply and innovation trends across APAC, Europe, the USA, and Saudi Arabia.
The industry’s trajectory is shaped by urbanization, smart infrastructure, and sustainable construction practices that prioritize performance and environmental compliance. The ongoing wave of infrastructure projects — including Bharatmala Pariyojana, Smart Cities Mission, and Pradhan Mantri Awas Yojana (PMAY) — continues to drive long-term demand for waterproofing, admixture, adhesive, and coating solutions in India’s rapidly transforming urban centers.
A Data-Driven Growth Outlook
- Industry Value (2025): USD 4.88 billion
- Projected Value (2035): USD 17.33 billion
- Forecast CAGR (2025–2035): 13.4%
- Leading Product Segment (2025): Plaster – 33.9% market share
- Key Application Segment: Infrastructure – 64.1% market share
FMI’s semi-annual update shows a continued momentum through 2035, with growth rates of 13.9% in H1 and 12.9% in H2. This steady performance is driven by rapid industrialization, public-private partnerships, and green construction policies.
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Infrastructure and Urbanization Power Market Expansion
Infrastructure remains the backbone of India’s construction chemical industry, projected to command over 64% of the market in 2025. Mega-projects like the Delhi-Mumbai Industrial Corridor (DMIC) and Sagarmala have fueled the adoption of admixtures, protective coatings, and waterproofing systems that enhance durability and service life.
Government allocations through the National Infrastructure Pipeline (NIP), worth USD 1.4 trillion, and the Make in India initiative have further intensified demand. India’s construction sector, contributing nearly 9% to the national GDP, has evolved into one of the largest global consumers of high-performance building chemicals.
Plaster and Waterproofing Compounds Lead Product Demand
The plaster segment, accounting for 33.9% of total market share, is expected to remain dominant due to its widespread use in wall finishing and surface protection. Demand for polymer-modified and high-durability plasters is surging in both residential and commercial projects.
Moreover, waterproofing and repair compounds are witnessing accelerated adoption in metro rail expansions and smart housing initiatives. With cities like Mumbai, Pune, and Bengaluru expanding their high-rise and commercial infrastructure, chemical solutions designed for longevity and performance are becoming indispensable.
Regional Insights Across India
- East India – Expected to register the fastest CAGR of 14.2%, fueled by industrialization and the development of new mines and plants in Odisha and Jharkhand.
- South India – Forecast at 13.6% CAGR, supported by infrastructure expansion in Bengaluru, Chennai, and Hyderabad.
- North India – Set to grow at 13.4% CAGR, led by affordable housing projects and expressway development.
- West India – Recording 12.9% CAGR, driven by high-rise construction, metro systems, and commercial projects in Mumbai, Pune, and Ahmedabad.
The Bharatmala Pariyojana and National Highway Development Project (NHDP) are key enablers of chemical consumption, with India’s highway construction averaging over 10,000 km annually, despite recent global disruptions.
Technology, Sustainability, and R&D Define the Next Decade
Manufacturers are rapidly modernizing production facilities, introducing low-VOC, bio-based, and nano-enhanced construction chemicals to meet global green standards. Digitalization is reshaping supply chains, enabling real-time formulation customization and reducing project lead times.
Companies are increasingly launching premixed and ready-to-apply products to improve site efficiency and minimize waste. Research in cement chemistry, polymeric coatings, and energy-efficient materials is strengthening India’s position as a regional innovation hub.
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Tier-wise Market Structure
- Tier 1 Leaders (40–50% Market Share): High-capacity manufacturers with revenues above USD 45 million, offering comprehensive portfolios across infrastructure and housing applications.
- Tier 2 Enterprises: Mid-sized firms with revenues between USD 5–45 million, providing regional expertise and advanced technology integration.
- Tier 3 Local Producers: Small-scale firms catering to specialized regional needs, contributing to localized employment and niche innovation.
Key Industry Developments
- May 2024: Fosroc India inaugurated an integrated construction chemical plant in Hyderabad to strengthen distribution in South and Central India.
- June 2023: Pidilite Industries Ltd. launched dual JV production units in Gujarat under Tenax Pidilite Pvt Ltd and Pidilite Litokol Pvt Ltd.
- March 2023: Nippon Paint India entered the construction chemicals market, expanding its diversified coatings portfolio.
- December 2023: Saint-Gobain acquired Menkol Industries Pvt. Ltd., a move reinforcing its position in India’s waterproofing systems sector.
Global Ripple Effects: From India to APAC, Europe, USA & Saudi Arabia
India’s rapid advancements in the construction chemical industry are reshaping global material flows and sustainability trends.
- APAC: Regional supply chains benefit from India’s scaling chemical production, lowering dependency on imports from Japan and China.
- Europe: Indian exports are complementing eco-friendly construction movements under the EU Green Deal, with low-carbon admixtures gaining traction.
- USA: The growing trade in specialty chemicals aligns with America’s infrastructure modernization and energy-efficient building mandates.
- Saudi Arabia: India’s chemical expertise supports Vision 2030’s megaprojects, including NEOM and The Line, where high-performance construction materials are vital.
Import Dependency and Strategic Self-Reliance
India’s reliance on imported raw materials and specialized formulations remains a key challenge. However, recent policy incentives and R&D investments aim to reduce dependency by localizing raw material production and encouraging technology transfers through strategic partnerships.
Domestic production is expected to rise steadily, with Indian manufacturers focusing on formulation innovation, green technology, and process optimization to meet global benchmarks.
About Future Market Insights (FMI)
Future Market Insights, Inc. (FMI) is an ESOMAR-certified, ISO 9001:2015 market research and consulting organization, trusted by Fortune 500 clients and global enterprises. With operations in the U.S., UK, India, and Dubai, FMI provides data-backed insights and strategic intelligence across 30+ industries and 1200 markets worldwide.
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