India Tiles Market Outlook to 2028

India Tiles Market Overview

• The India Tiles Market was valued at USD 5.6 billion, and has been driven by rapid urbanization, infrastructure development, and growing consumer preferences for aesthetically pleasing interiors. A five-year historical analysis reveals strong demand from both the residential and commercial sectors, as well as government-led initiatives for affordable housing schemes and infrastructure expansion projects, further supporting market growth.
• The market dominance in India is heavily concentrated in cities such as Morbi, Gujarat, which has earned the reputation of being the worlds second-largest tile manufacturing cluster. The prominence of Morbi stems from its large-scale manufacturing capabilities, state-of-the-art technology adoption, and proximity to key raw materials like clay and feldspar.
• The Pradhan Mantri Awas Yojana continues to drive demand for construction materials, including tiles, for rural housing, emphasizing the use of durable materials like tiles. A government initiative could promote local tile production, targeting an increase in market share by 2025, enhancing rural employment and supporting sustainable housing development. This initiative, which aims to provide housing for all by 2025, has led to an increase in demand for affordable and mid-range tiles.

India Tiles Market Segmentation

• By Product Type: The market is segmented by product type into ceramic tiles, vitrified tiles, porcelain tiles, mosaic tiles, and natural stone tiles. Ceramic tiles have established a dominant market share, attributed to their affordability, wide range of designs, and ease of maintenance. The increasing use of ceramic tiles in residential construction, particularly for flooring and walls, has reinforced its position as the preferred choice among consumers.

• By Application: The market is also segmented by application into residential, commercial, and industrial. The residential segment dominates the market due to the robust demand for tiles in new housing projects and home renovations. The Indian government's push towards affordable housing through schemes like Pradhan Mantri Awas Yojana has led to an increase in the demand for tiles for flooring, walls, and bathroom fittings.

India Tiles Market Competitive Landscape

The market is characterized by a mix of established domestic players and global brands that continue to shape the market through their product offerings, innovation, and distribution strategies. The competitive landscape is led by players from Gujarat and other parts of the country.

India Tiles Market Analysis

Market Growth Drivers

• Increase in Government Housing Schemes: Indias building products market, valued at USD 45 billion, is driven by increasing demand for sustainable and premium products. Rising consumer interest in eco-friendly materials and modern designs, along with expanding infrastructure projects, are pushing demand for advanced products like natural stone and imported tiles. Government initiatives in infrastructure development and affordable housing schemes are further accelerating this trend
• Infrastructure Expansion in Tier-II and Tier-III Cities: Indias growing focus on developing Tier-II and Tier-III cities is creating a huge demand for construction materials, including tiles. India's infrastructure development is a key growth driver, supported by initiatives like the National Infrastructure Pipeline, which encompasses projects worth INR 111 lakh crore. The government has increased its budget allocation for infrastructure. The construction of new malls, educational institutions, and public infrastructure.
• Eco-Friendly Manufacturing Initiatives: India is witnessing a growing demand for eco-friendly tiles as sustainability becomes a key focus in the construction sector. In 2024, around 30% of manufacturers in India have adopted green manufacturing practices, using recycled materials and energy-efficient production methods. This shift is driven by stringent government regulations such as the National Green Tribunal (NGT) norms, which promote sustainable practices in manufacturing.

Market Challenges

• Rising Energy Costs: Energy costs for tile production in India have increased, with the cost of electricity and natural gas rising in 2024. Tile manufacturing is energy-intensive, and the increase in energy prices has pushed up the cost of production. Many manufacturers are finding it difficult to absorb these rising costs, which could impact their competitiveness, especially against cheaper imports from countries like China.
• Labor Shortages: A shortage of skilled labor in Indias construction and tile manufacturing sectors continues to hinder productivity. In 2024, the National Skill Development Corporation (NSDC) reported a gap of 300,000 skilled workers in the tile installation and manufacturing sectors. The lack of adequate vocational training programs in this field means that the industry is struggling to meet growing demand efficiently.

India Tiles Market Future Outlook

Over the next five years, the India Tiles industry is expected to witness steady growth, driven by increasing construction activities, both in residential and commercial sectors. Urbanization, government initiatives like Smart Cities Mission, and growing consumer preferences for premium, eco-friendly tiles are anticipated to shape the market's future trajectory.

Future Market Opportunities

• Increased Demand for Sustainable Tiles: Over the next five years, the Indian tile sector will see a growing demand for sustainable and eco-friendly products. The governments emphasis on sustainability, as reflected in the National Action Plan on Climate Change, will push manufacturers to adopt cleaner technologies and use recycled materials.
• Adoption of 3D Printing Technology: Over the next five years, 3D printing technology will become more prevalent in the Indian tile industry. By 2029, several leading manufacturers are expected to adopt this technology to produce highly customizable and intricate tile designs. The adoption of 3D printing will allow manufacturers to offer more personalized products to consumers, catering to the growing demand for bespoke designs in both residential and commercial spaces.