Government Projects Fueling the Growth of Construction Equipment Market in India– 6Wresearch
India has globally become one of the key potential markets for construction equipment. Construction market contributed nearly 7% to the India’s GDP and further estimated to acquire 8% by the end of 2015. Further, by 2025, India’s construction market is expected to emerge as the third largest in the world, which would exhibit huge demand for construction equipment in the coming years.
In overall construction market, government vertical is the leading revenue generating segment; led by various public infrastructure projects. Although, during 2012-14, construction market in India registered sluggish growth owing to low confidence amongst investors resulting in delay in construction projects coupled with clearance issues and land acquisition delays, thus affecting overall demand for construction equipment. On the contrary, early 2015 period posted positive growth in construction market, which created the demand for these equipment.
According to 6Wresearch, India Construction Equipment Market volume sales to record 131 thousand units by 2022. In India’s construction equipment market, international players have collaborated with several Indian companies to offer their products in the Indian market. Some of the key companies involved are namely- Tata-Hitachi, L&T-Komatsu, Ammann-Apollo, etc.
India’s Construction Equipment Market is an import driven market, especially in higher-tonnage load capacity segment. Although, some of the construction equipment are assembled and manufactured in India as well.
According to Rajat Kharbanda, Senior Research Analyst, Research and Consulting, 6Wresearch, “In India’s Construction Equipment Market, construction vehicle segment accounted for largest revenue share, followed by earthmoving equipment, concrete equipment and material handling. Government of India’s ‘Make in India’ campaign, 100 ‘Smart Cities’ project and ‘Housing for All’ scheme covered in over 300 cities would provide necessary boost to the demand for construction equipment in the years to come”.
“In addition, growing industrialization, commercial hubs, construction and expansion of roads, flyovers, metros, airports, railways, and highways across the country would spur the market for construction equipment in India,” Rajat further added.
According to Akash Shukla, Research Associate, Research and Consulting, 6Wresearch, “After construction application, mining & quarrying is another prime application for construction equipment in India. With the growth in mining sector, the demand for earthmoving, construction and material handling equipment would increase through the forecast period”.
“Additionally, mining sector is expected to register growth owing to removal of restrictions on 204 coal blocks imposed by the Supreme Court of India. Until April 2015, 67 coal blocks were allocated via auction,” Akash concluded.
“India Construction Equipment Market (2016–2022)” provides in-depth analysis with 115 figures and 12 tables covered in 180+ pages. The report estimates and forecast overall India Construction Equipment Market by revenue, by equipment type such as material handling, earthmoving, concrete equipment and construction vehicle segment. The report also gives insights on price trends, market trends, competitive landscape, company profiles, players market share, market drivers and restraints.
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