India’s Building Materials Market Presents USD 100 Billion Opportunity by 2030: Avendus Capital

Avendus Capital has released its latest report on the Indian building materials sector, analysing growth across six high-value segments, including fast-moving electrical goods (FMEG), paints and coatings, tiles and bathware, wood panels, plastic pipes, fittings and tanks, and furniture fittings and architectural hardware. The report projects India’s building materials market to reach approximately USD 100 billion by 2030, driven by a robust 10–12% CAGR over the next five years, up from USD 57 billion in FY25.

According to the report, FMEG represent the largest and most dynamic opportunity, with wires and cables expected to grow at a mid-teens CAGR, supported by grid upgrades, data centres, EV infrastructure, and electronics manufacturing. Plastic pipes, fittings and tanks is seeing accelerated consolidation, with organized share reaching ~70%, while paints and coatings, among the most organized and profitable segments (14–19% EBITDA margins), is witnessing the entry of large industrial players, accelerating innovation and premiumization.

Tiles and bathware continues to benefit from India’s emergence as a global export hub, with a ~15% share of global tile exports by volume, underpinned by product sophistication, while wood panels is witnessing rising MDF penetration (from 20% in FY20 to 30% in FY25, with projections of ~45% by FY30), driven by modularization and shorter replacement cycles. Furniture fittings and architectural hardware is also undergoing a structural shift toward localized manufacturing, aided by backward integration and tighter regulatory norms.

Koushik Bhattacharyya, Managing Director and Head, Industrials Investment Banking, Avendus Capital said, “Building materials sit at the intersection of India’s key growth engines—real estate and consumption. As consumers increasingly view homes as long-term lifestyle assets rather than functional setups, we are witnessing increased spending on branded, higher-quality products. Despite these trends, consumption of building materials in India remains structurally low compared to global benchmarks, leaving meaningful headroom for long-term expansion. For a sector that remains materially underpenetrated – with per-capita consumption less than one-third of global averages – we find the opportunity for investment and consolidation compelling.”

The report reveals that building materials are increasingly serving as a direct proxy to ride tailwinds in India’s real estate, infrastructure, consumption and B2B manufacturing. To track this transformation, the report includes the Avendus Building Materials Index (ABMI), a market-cap-weighted basket of leading listed companies. Over the past decade, ABMI has delivered a 28% CAGR, outperforming major Indian benchmark indices.