India Transportation Infrastructure Construction Market - Growth, Trends, COVID-19 Impact, and Forecast (2022-2027)

The India Transportation Infrastructure Construction Market is Segmented by Type (Roadways, Railways, Airports and Ports, and Inland Waterways) and Application (Urban and Rural). The report offers market size and forecast in value (USD billion) for all the above segments.

Market Snapshot

India Transportation Infrastructure Construction Market Size
Study Period: 2018-2027
Base Year: 2021
CAGR: 4 %

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Market Overview

The Indian transportation infrastructure construction market is expected to grow from USD 32.02 billion in 2021 to USD 40 billion in 2027, at a CAGR of 4%. This growth can be attributed to the increasing population and the increasing need for the road, railway, and air transport.

Due to COVID-19 lockdowns and labor unavailability, the transport infrastructure construction market was impacted. Many construction projects were stopped to ensure the safety of the workers. Supply chains, plants, equipment, and workforce were hugely impacted. However, the sector is recovering and focusing on developments.

The transport infrastructure sector is of utmost importance in driving the Indian economy. Therefore, it enjoys a great deal of focus from the government in the form of initiatives and policies that aim for the country's massive development. In the Union Budget 2021, the Indian government allocated USD 32.02 billion to enhance transport infrastructure.

The Rail Land Development Authority (RLDA) will invite Request for Quote (RFQ) and Request for Proposal (RFP) for the developers to enter the bidding process for the redevelopment of the New Delhi Railway Station. The authority conducted a stakeholder engagement meeting, where nine qualified global and leading national companies participated. The project has attracted the interest of national and international stakeholders.

An inland waterway transport project will be developed on Mizoram's Khawthlangtuipui-Tuichwng rivers, stretched across 23 km. It will cater to the needs of southern districts in Mizoram. The central government sanctioned USD 0.8 million out of the total USD 2.9 million. More inland waterway projects are underway in Mizoram.

Scope of the Report

The transport infrastructure construction market includes many activities associated with the construction of roads, railways, airports, and other related infrastructure. The Indian transportation infrastructure construction market is segmented by application and mode. By application, the market is segmented into urban and rural. By mode, the market is segmented into roadways, railways, airways and ports, and inland waterways. The report offers market size and forecast in value (USD billion) for all the above segments.

By Application
Urban
Rural
By Mode
Roadways
Railways
Airways
Ports and Inland Waterways

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Key Market Trends

Increasing Need for Highway Infrastructure

An efficient transportation network is a must for the country’s economic growth. A good transportation network reduces the freight cost and provides easy accessibility of resources.

Highways are a major part of India's transportation network. However, they are inadequate as per the country's needs. It is important to have a high density of highway networks compared to the country's population. India lags in this regard. However, the Indian government's policies to improve the road network can be a major opportunity for the companies engaged in constructing transport infrastructure.

The Indian government's Bharatmala Prayojna, an ambitious project to connect the entire country through a network of highways, may drive the demand in the market in the coming years. It is a road and highway project that aims to build highways from Maharashtra, Gujarat, Rajasthan, Punjab, and Haryana and then cover the entire string of Himalayan territories. India's largest infrastructure program envisioned in 2017 aims to build 34,800 km of National Highway Corridors that will connect 600+ districts.

In July 2021, the Ministry of Road Transport and Highways granted a 162-km road highway project worth USD 350 million. This road highway is a part of the economic corridor under Bharatmala Prayojna. It aims to connect Andra Pradesh and Telangana via a robust road infrastructure network.

India Transportation Infrastructure Construction Market Share

Growing Awareness and Importance of Waterway Infrastructure

Waterways are the cheapest mode of transportation. India has 116 rivers, which could provide a network of 35,000 km. The cost of logistics in India is 18% of the total production cost, while in China, it is 8-10%. Waterways cover 47% of the total transportation in China, while it is 3.5% in India. Improvement in the waterway infrastructure could significantly reduce the logistics cost for India.

Thus, India declared 111 of its rivers as national waterways in 2016. By 2020, 22 of these waterways were operationalized. This number is expected to increase in the coming years. India's 111 national waterway's cargo handling capacity was 55 MT in 2017-18, which became 72 MT in 2018-19. The Inland Waterways Authority of India seeks to raise this cargo handling capacity to 100 MT by 2021-2022.

In March 2021, the government announced the Sagarmala project focused on the country's seaports. It is a USD 82-billion project to be implemented through 2035. About 574 projects have been identified under the Sagarmala project for implementation. The project aims to use the economic potential of India by harnessing the 7,500 km long coastline of the country. The project also seeks to boost the infrastructure for transporting goods to and from the ports in an efficient way.

India Transportation Infrastructure Construction Market Growth

Competitive Landscape

The Indian transportation infrastructure construction market is highly competitive with several national and international players. It is expected to show steady growth during the forecast period due to the increasing amount of government investments in the sector. There is always room for small players to enter the market due to several projects on the line. Some of the key players in the market include Larsen & Toubro Limited, Meil, TATA Projects, Shapoorji Pallonji, and KEC International Limited.

Recent Developments

In September 2021, TATA Projects Limited, one of India's fastest-growing infrastructure companies, secured an order of INR 2,100 crore for Phase 1 of the Chennai Peripheral Ring Road Project (Northern Port Access Road).

This project will connect Ennore port with Thatchur on AH-45. This six-laned project has a total length of 25.38 km, including a 1.4 km bridge over the Buckingham canal. There are 26 structures in the project that include eight major bridges, eight minor bridges, two roads over bridges, seven vehicle over-pass/under-pass, and one interchange. It includes 29.38 km of drains and 41.88 km of retaining wall. This project is targeted for completion in three years.

In March 2022, the Railway SBU of L&T Construction's Transportation Infrastructure IC secured an order for Engineering, Procurement, and Construction (EPC) of 25 kV overhead electrification, signaling, and telecommunication and associated works for 547 RKM/678 TKM railway lines of Northeast Frontier Railway. IRCON International LTD gave this order.

The project is a part of the central government's "Mission Electrification" initiative, which seeks to electrify the Indian railway network to lower the carbon footprint and reduce the expenditure on diesel.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

    1. 2.1 Analysis Methodology

    2. 2.2 Research Phases

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS AND INSIGHTS

    1. 4.1 Market Overview

    2. 4.2 Market Dynamics

      1. 4.2.1 Drivers

      2. 4.2.2 Restraints

      3. 4.2.3 Opportunities

    3. 4.3 Value Chain/Supply Chain Analysis

    4. 4.4 Industry Policies and Regulations

    5. 4.5 Technological Developments in the Sector

    6. 4.6 Industry Attaractiveness - Porter's Five Forces Analysis

    7. 4.7 Impact of COVID-19 on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Application

      1. 5.1.1 Urban

      2. 5.1.2 Rural

    2. 5.2 By Mode

      1. 5.2.1 Roadways

      2. 5.2.2 Railways

      3. 5.2.3 Airways

      4. 5.2.4 Ports and Inland Waterways

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Market Concentration Overview

    2. 6.2 Company Profiles

      1. 6.2.1 TATA Projects

      2. 6.2.2 Larsen & Toubro Limited

      3. 6.2.3 KEC International Limited

      4. 6.2.4 Shapoorji Pallonji

      5. 6.2.5 Meil

      6. 6.2.6 IRB Infrastructure Developers Ltd

      7. 6.2.7 Eagle Infra India Ltd

      8. 6.2.8 Reliance Infrastructure Limited*

    3. *List Not Exhaustive
  7. 7. FUTURE OF THE MARKET

  8. 8. DISCLAIMER

**Subject to Availability

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Frequently Asked Questions

The India Transportation Infrastructure Construction Market market is studied from 2018 - 2027.

The India Transportation Infrastructure Construction Market is growing at a CAGR of 4% over the next 5 years.

Larsen & Toubro Limited, Meil, TATA Projects, Shapoorji Pallonji, KEC International Limited are the major companies operating in India Transportation Infrastructure Construction Market.

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