India’s future homes to blend smart living and sustainable materials with the industry set to reach US$166 billion by FY2030: Deloitte India Report
- 86 percent of consumers prefer branded outlets or experience centres for major purchases, with many willing to pay extra for eco-friendly, customised and trusted materials
- The building materials market alone will witness a 9.6 percent increase from US$105 billion in FY2025 to US$166 billion in FY2030
- Government schemes such as UJALA and UIDF are expected to accelerate infrastructure and housing in Tier-2 and Tier-3 cities, boosting demand for high-quality materials
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National, 16 September 2025 – As India marches towards the US$5 trillion economy goal, the residential construction industry which grew at 6.8 percent during FY2024–25 is poised to reach a staggering US$350 billion by 2030, according to a report by Deloitte India titled Building beyond basics: Innovations transforming India’s living spaces that spotlights India’s changing consumer behaviour with respect to living spaces, household and electricals consumption.
The report highlights that nearly half of home-related purchases are motivated by lifestyle upgrades or product obsolescence, while price ranks lower (25 percent) compared with quality, sustainability and overall purchase experience. 86 percent of consumers prefer branded outlets or experience centres for high-involvement purchases, and many are willing to pay more for eco-friendly, customised and branded materials.
The growth is further buoyed by government programmes such as the Pradhan Mantri Awas Yojana, which has already delivered over 28 million homes and allocated US$130.57 billion in the 2021–24 funding.
The surge is not merely quantitative; it reflects a qualitative transformation in how Indian households conceive their living spaces. Rising disposable incomes and a burgeoning middle class are driving a “premiumisation” wave, where consumers favour high-performance, low maintenance products such as engineered wood panels, vinyl flooring and decorative paints.
Simultaneously, sustainability and smart home technologies are becoming non-negotiable preferences. The smart home market alone has posted a CAGR of approximately 30 percent between 2025 and 2030, fuelling demand for AI-enabled electrical devices, sensor integrated lighting and energy efficient roofing solutions.
“India’s construction and building materials industry is at an inflection point, one where aspirations, technology and sustainability converge to reshape the way we live. The building materials market alone will witness a 9.6 percent increase from US$105 billion in FY2025 to US$166 billion in FY2030. As rising incomes and urbanisation fuel demand for smarter and greener living spaces, the sector is no longer about homes alone, but about experiences, lifestyles and future-ready communities. The brands that can anticipate these shifts, innovate with purpose and embed sustainability at scale will not just ride this growth wave, they willset the benchmarks for India’s journey to a US$350 billion market.”
- Praveen Govindu, Partner, Deloitte India
The domestic electricals industry is moving rapidly towards branded players, with its market share projected to rise from 76 percent in 2023 to 82 percent by 2027. The home security market, spanning smart locks, cameras and hazard prevention devices, is growing at 18 percent CAGR to reach US$4.4 billion by FY30. Meanwhile, the flooring market is expected to expand at ~8.6 percent CAGR, touching US$16.2 billion by FY30. Alongside paints and furniture, these segments are emerging as key drivers of India’s home and household sector. Additionally, schemes such as Unnat Jyoti by Affordable LEDs for All (UJALA) and the Urban Infrastructure Development Fund (UIDF) are set to strengthen infrastructure and housing in Tier-2 and Tier-3 cities, driving demand for modern, high-quality materials.
While India cements its position as the world’s fastest-growing major economy, the home and household sector will remain a vital contributor to housing, urban development and lifestyle transformation. The future will favour companies that combine technology, sustainability and consumer empathy to create value across the ecosystem.
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Deloitte Shared Services India LLP
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