India Roads and Highways Sector Market 2028 – Trends, Opportunities & Forecast

The India Roads and Highways Sector Market is anticipated to grow at a robust rate in the forecast period, 2024-2028. Several government plans  towards urbanization as well as smart city plans are the major factors propelling the market growth in the forecast period. For instance, India has the world's second-largest road network, with a total length of 5.89 million kilometers (kms). The overall road network in India is 6.37 million kilometers, including national and state highways, as well as urban and rural roads, making it the world's second largest investor. National Highways (NH) make up 2% of the overall road network and handle more than 40% of total traffic.

In the highway sector, India has a well-developed framework for Public-Private Partnerships (PPP). The Asian Development Bank placed India at the top in terms of PPP operational maturity and identified it as a mature market for PPPs.  Additionally, the length of NHs has increased by more than 50% in the last seven years, from 91,287 km in April 2014 to 1,40,152 km presently.   Highway Construction increased from 12 Km Per Day in 2014–15 to 37 Km Per Day in 2020–21.

Driving Forces behind India Roads and Highways Sector

Increasing automobile sector in India is propelling the growth of the market. For instance, Automobile production (including passenger vehicles, three-wheelers, two-wheelers, and four-wheelers) totaled 22,933,230 units in 2022.

After China, India has the world's second biggest population. By a wide margin, these two countries top the list of the most populated countries. This is noteworthy in terms of surface area, as 400 people live in one square kilometer. Therefore, there is a significant demand for roads and highways from other nations.

India is focusing on “Housing for All” Plan, and government is planning more development projects, such as “Make in India.” The requirement of highways and roads has been increasing rapidly. Due to which the market is anticipated to grow with a high CAGR in 2018-2028. For instance, between April 2000 and September 2022, FDI in the construction  sector (townships, housing, highways, roads built-up infrastructure, and construction development projects) and infrastructure activities made USD26.24 billion and USD28.96 billion investments. Owing to which the market is likely to grow at a rapid pace in the forecast period.

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Government Investments & Initiatives Towards Development of Roads and Highways Sector

For instance, The Indian government expended USD1.48 billion in September 2021 to upgrade road infrastructure in Punjab, Haryana, and Rajasthan. In 2021, the Indian government authorized road projects totaling USD13.48 billion in Jammu and Kashmir. The number of national roads in the state has also increased.

However, in Budget 2022-23, the government set an ambitious goal of building the National Highway network by 25,000 kilometers over the fiscal year. The Ministry of Roads and Highways' main goal is to build 2 lakh kilometers of national highway network by 2025. The government plans to build 65,000 kilometers of national roads by 2022 at a cost of Rs. 5.35 lakh crore (USD 741.51 billion).

The government announced restrictions to increase road safety in October 2021, including restricted driving hours for commercial truck drivers and a demand to install sleep detection devices in commercial vehicles. These investments and rising infrastructure development in the nation are the factors driving the market growth in the forecast period.

In the upcoming ten years, hundreds of new cities must be built. Urban freight demand is expected to grow by 140% during the next ten years. 50% of all logistics costs in the expanding e-commerce supply chains in India are incurred by final-mile freight transportation in the nation's cities. By 2022, India is anticipated to overtake China as the third-largest market for building worldwide. By 2025, it is predicted that the Indian logistics market will reach 320 billion USD. Spending on water supply, transportation, and urban infrastructure is expected to drive the overall infrastructure capex growth over the FY21–26 period.

Bharatmala Pariyojana Driving the Market Growth

The Bharatmala  Pariyojana, which was announced in 2021, intends to create around 65,000 km of national and economic corridors, border and coastal roads, and motorways to improve the efficiency of existing highway infrastructure. The initiative is expected to offer 4-lane connection to 550 districts, build 50 economic corridors totaling around 26,000 km, boost vehicular speed by 20-25%, cut supply chain costs by 5-6%, and strengthen the NH network to transport 70-80% of total road traffic.

Moreover, the government released a notification in October 2021, regarding subsidies under the Vehicle Scrapping Policy (effective from April 2022) to encourage vehicle owners to abandon obsolete cars with higher fuel consumption expenses.

The government initiated a conversion project for 15 main roads in the Agartala smart city in October 2021. The project would convert these roads to weather-resistant roadways, further contributing to the market growth.

Smart Road investments in India

With increased urbanization, greenhouse gas (GHG) emissions are increasing, adding to an expanding carbon footprint and requiring the use of clean and sustainable technologies for intelligent mobility. Smart transportation management systems use digital sensors that can capture and record data in the event of a landslide, inclement weather, or traffic congestion, and can show predictions and alerts on LED screens throughout states and national roadways. Companies are focusing towards smart roads for instance, in October 20, 2021 - T.net, an EIT Digital portfolio firm, launched Smart Road 4.0, an innovative technology capable of dramatically enhancing mobility and road safety in a smart road, an area in which connected cars send and receive data over a network of intelligent sensors.

As part of one of the most significant transformations in India's road transportation business, the NHAI has gone 'Fully Digital,' launching a unique cloud-based and AI-powered Big Data Analytics platform - Data Lake and Project Management Software. NHAI's full project management workflow has been converted from manual to online portal-based, with comprehensive project execution activities such as 'workflow with timeliness’ and 'alarm mechanism' established. Owing the to this latest developments in region market is expected to grow future.

Recent Developments

• The Indian government released the Gati Shakti-National Master Plan, which would assist in leading a comprehensive and integrated infrastructure development, creating massive job possibilities in the country. The Gati Shakti initiative in India has compiled a list of 81 high-impact projects, with road infrastructure projects ranking first. The Delhi-Mumbai motorway (1,350 kilometers), the Amritsar-Jamnagar motorway (1,257 kilometers), and the Saharanpur-Dehradun motorway are among the significant highway projects (210 kilometers). The major goal of this initiative is a speedier approval procedure that may be done through the Gati shakti portal and has entirely computerized the approval process.
• The road transportation network has expanded significantly during the last five years. The Government of India has budgeted more than USD 0.13 million to the Ministry of Road Transport and Highways (MoRTH) as an allocation for fiscal year 2021-22. Furthermore, the government has designated numerous economic corridors that would play an enabler role in altering India's economy to expand to USD 5 trillion by 2025. The sector's significance is further demonstrated by the fact that it accounts for about 18% of the National Infrastructure Pipeline. Many state governments have also examined creating important transportation corridors as a spur for economic growth.
• The Ministry of Road Transport and Highways has been given Rs. 199,107.71 crore (USD 26.04 billion) in the Union Budget 2022-23.
• TATA Projects Ltd, one of India's fastest-growing infrastructure businesses, received an order for USD254.2 million for Phase 1 of the Chennai Peripheral Ring Road Project in September 2021.
• On AH-45, this project will connect Ennore port with Thatchur. This six-lane project is 25.38 km long in total, including a 1.4 km bridge across the Buckingham canal. The project consists of 26 structures, including eight major bridges, eight minor bridges, two highways over bridges, seven vehicle over-pass/under-passes, and one interchange. It has 29.38 kilometers of drainage and 41.88 km of retaining wall. This project is expected to be completed in three years.

Market Segmentation

The India Roads and Highways Sector Market is divided into type, region and competitive landscape. Based on Type, the market is segmented into Roads, Highways & Expressways. Based on Region, the market is separated into North, West, South, East.

Market player

Major players operating in India Roads and Highways Sector Market are Reliance Infrastructure Limited, GMR Infrastructure Limited, NCC Limited, IRB Infrastructure Developers Ltd, Simplex Infrastructure Limited, Dilip Buildcon, Sadbhav Engineering Limited, Hindustan Construction Company Ltd, MEP, Infrastructure Developers Limited, L&T Infrastructure Development Projects Limited, NHIDCL.

Report Scope:

In this report, India Roads and Highways Sector Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

India Roads and Highways Sector Market, By Type:

• Roads
• Highways & Expressways

 India Roads and Highways Sector Market, By Region:

• West
•  North
• South
• East

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in India Roads and Highways Sector Market.

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Table of Content

1. Sector Overview

1.1.  Market Definition

1.2.  Scope of the Market

1.3.  Markets Covered

1.4.  Years Considered for Study

1.5.  Key Market Segmentations

2. Research Methodology

2.1.  Objective of the Study

2.2.  Baseline Methodology

2.3.  Key Industry Partners

2.4.  Major Association and Secondary Sources

2.5.  Forecasting Methodology

2.6.  Data Triangulation & Validation

2.7.  Assumptions and Limitations

3. Impact of COVID-19 on India Roads and Highways Sector Market
4. Executive Summary
5. Voice of Customers

5.1.  Brand Awareness

5.2.  Factors Considered while Selecting Vendor

5.3.  Key Satisfaction Level

5.4.  Major Challenges Faced

6. India Roads & Highways Market Outlook

6.1.  Industry Structure & Stakeholders

6.2.  Market Size & Forecast

6.2.1.    By Value & By Length

6.3.  Market Share & Forecast

6.3.1.    By Type (Roads, Highways & Expressways)

6.3.2.    By Region (North, East, South & West)

6.3.3.    By Company (2022)

6.4.  Market Attractiveness Index

6.4.1.    By Type

6.4.2.    By Region

7. India Highways Market Outlook

7.1.  Market Size & Forecast

7.1.1.    By Value & By Length

7.2.  Market Share & Forecast

7.2.1.    By Type (State Highways Vs. National Highways)

7.2.2.    By Region (North, East, South & West)

7.3.  India National Highways Market Outlook

7.3.1.    Market Size & Forecast

7.3.1.1.        By Value & By Length

7.3.2.    Market Share & Forecast

7.3.2.1.        By Region (North, East, South & West)

7.4.  India State Highways Market Outlook

7.4.1.    Market Size & Forecast

7.4.1.1.        By Value & By Length

7.4.2.    Market Share & Forecast

7.4.2.1.        By Region (North, East, South & West)

8. India Expressways Market Outlook

8.1.  Market Size & Forecast

8.1.1.    By Value & By Length

8.2.  Market Share & Forecast

8.2.1.    By Region (North, East, South & West)

9. India Roads Market Outlook

9.1.  Market Size & Forecast

9.1.1.    By Value & By Length

9.2.  Market Share & Forecast

9.2.1.    By Region (North, East, South & West)

10. Market Dynamics

10.1.             Drivers

10.2.             Challenges

11. Market Trends & Developments
12. Smart City Outlook
13. Toll Collection Mechanism
14. Construction Material Analysis
15. Upcoming Mega Projects in India
16. Policy & Regulatory Landscape
17. India Economic Profile
18. Company Profiles

18.1.             Reliance Infrastructure Limited

18.1.1. Business Overview

18.1.2. Key Revenue and Financials (If Available)

18.1.3. Recent Developments

18.1.4. Key Personnel

18.1.5. Key Product/Services

18.2.             GMR Infrastructure Limited

18.2.1. Key Revenue and Financials (If Available)

18.2.2. Recent Developments

18.2.3. Key Personnel

18.2.4. Key Product/Services

18.3.             NCC Limited

18.3.1. Key Revenue and Financials (If Available)

18.3.2. Recent Developments

18.3.3. Key Personnel

18.3.4. Key Product/Services

18.4.             IRB Infrastructure Developers Ltd.

18.4.1. Key Revenue and Financials (If Available)

18.4.2. Recent Developments

18.4.3. Key Personnel

18.4.4. Key Product/Services

18.5.             Simplex Infrastructure Limited

18.5.1. Key Revenue and Financials (If Available)

18.5.2. Recent Developments

18.5.3. Key Personnel

18.5.4. Key Product/Services

18.6.             Dilip Buildcon

18.6.1. Key Revenue and Financials (If Available)

18.6.2. Recent Developments

18.6.3. Key Personnel

18.6.4. Key Product/Services

18.7.             Sadbhav Engineering Limited

18.7.1. Key Revenue and Financials (If Available)

18.7.2. Recent Developments

18.7.3. Key Personnel

18.7.4. Key Product/Services

18.8.             Hindustan Construction Company Ltd.

18.8.1. Key Revenue and Financials (If Available)

18.8.2. Recent Developments

18.8.3. Key Personnel

18.8.4. Key Product/Services

18.9.             MEP Infrastructure Developers Limited

18.9.1. Key Revenue and Financials (If Available)

18.9.2. Recent Developments

18.9.3. Key Personnel

18.9.4. Key Product/Services

18.10.               L&T Infrastructure Development Projects Limited

18.10.1.               Key Revenue and Financials (If Available)

18.10.2.               Recent Developments

18.10.3.               Key Personnel

18.10.4.               Key Product/Services

18.11.           NHIDCL

18.11.1.           Key Revenue and Financials (If Available)

18.11.2.           Recent Developments

18.11.3.           Key Personnel

18.11.4.           Key Product/Services

19. Strategic Recommendations