Govt-Real Estate spending drives market
The Construction Equipment Market in India expected to expand at a compound annual growth rate (CAGR) of ~7% till 2023, up from its 2017 value of Rs.210 billion.
This is the conclusion of a report “The Construction Equipment Market in India 2018-2023”, released by ResearchAndMarkets on 21 Mar 2019.
Construction equipment includes machines such as derricks, hoists, material handling equipment, platforms, runways, safeguards, protective devices, cranes, and equipment used for other onsite work.
The sector’s growth is attributed to a surge in investments in the infrastructure sector, and growth of the real estate sector.
Based on the category of equipment, the market is segmented into earth moving equipment, concrete equipment, material handling equipment, road construction equipment, and material processing equipment.
Clearance of mining and construction (road building and real estate) projects in recent years have led the earth moving segment to occupy a major share of the construction equipment market, followed by concrete equipment, and material handling equipment.
Market Trends-Drivers
The Ministry of Road Transport and Highways has implemented its Value Engineering Program’, which directs constructors to use innovative technologies, materials, and equipment that can reduce the overall project cost and adverse effect on the environment.
The Indian government has recently invested in the infrastructure sector. Substantial investment in the development of infrastructure in India is supposed to increase the demand for different kinds of construction equipment.
The real estate market in India is expected to expand at a CAGR of ~11.54%, to ~Rs.12,0104.2 billion by 2020, from ~Rs.7004.34 billion in 2015. The demand for construction equipment is increasing considerably in India due to the growth of the real estate market.
But there are market challenges. Stringent regulations, along with increasing environmental concerns delay approvals for real estate projects in India.
This, in turn, increases the overall budget of projects while slowing down the processes. Heavy equipment is rented and lie unused for months. As a result, in India, the revenue of the construction equipment market is limited.
The secondary market for used construction equipment is yet to develop. This prevents the resale of equipment, which in turn reduces the overall revenue of the secondary construction equipment market.
Market leaders are Bharat Earth Movers Ltd, Escorts Ltd, Gujarat Apollo Industries Ltd, Hercules Hoists Ltd, JCB India Pvt Ltd, L&T Construction & Mining Machinery, Triton Valves Ltd, Universal Construction Machinery and Equipment and Volvo Construction Equipment India. fiinews.com
