Govt’s multi-billion-dollar programmes driving market growth in 2022-28
India construction equipment market is expected to grow at a CAGR of 8.9% during 2022-2028, driven by demand from multi-billion-dollar government investments in infrastructure development, growth in renewable energy and the mining industries, according to an industry report.
Driving the demand is surge in infrastructure development projects across India such as Delhi-Mumbai Trade Corridor (US$90 billion), Gujarat International Finance Tec-City (US$20 billion), Chennai Metro Rail (US$14.9 billion) and Diamond Quadrilateral (US$13 billion), said the report by ResearchandMarkets on 23 May 2022.
The market growth is also benefiting from Indian Railway’s infrastructure investment of US$715.4 billion by 2030, added the report “India Construction Equipment Market – Strategic Assessment & Forecast 2022-2028”.
The Indian energy sector is expected to offer an investment opportunity by US$300 billion over the next 10 years, it added, backing the strong CAGR projection.
Further, the communication sector had allocated US$5.36 billion to develop the post and telecommunications departments in 2020-21.
Real estate sector in India is also a big investor with investment estimates of US$1 trillion by 2030. As per the projected growth trends during the pre-COVID-19 era, the sector’s contribution was likely to rise to 13% of India’s GDP by 2025.
As per ICRA estimates, Indian companies are expected to raise US$48 billion through infrastructure and real estate investment trusts in 2022.
According to ICEMA, apart from COVID-19 related supply chain disruptions, the construction equipment industry is facing abnormal increase in steel prices since July 2020.
In 2022, demand for steel is expected to increase by 17% to 110 million tonnes, driven by rising construction activities.
JCB is the leading manufacturer of Backhoe loaders in India. ACE is India’s leading material handling and construction equipment manufacturing company with a majority market share in hydraulic cranes, mobile cranes and tower cranes segment.
India is the largest market for Backhoe loaders in the world. The equipment is highly flexible, cheaper, and can operate on muddy and uneven surfaces, making it extremely popular in the Indian construction market.
Various civil engineering works and smart city projects prompt demand for mini excavators in the market. The real estate and affordable housing projects support the demand for large towers and fixed cranes in the Indian market.
The infrastructure investment in 2021 and the national infrastructure development plan drive the construction industry growth. The government’s focus on renewable energy resources for power generation will attract significant FDI inflows in 2021.
The surge in commodities prices and rise in demand for coal and iron ore in the market supports the country’s mining industry growth. And government initiatives of Make in India as well as Amtanirbar Bharat encourage the development of manufacturing sectors, said the report.
Key Vendors: Caterpillar, Komatsu, Volvo Construction Equipment, JCB, XCMG, SANY, Hyundai Construction Equipment, TATA Hitachi, Liebherr, Kobelco, Zoomlion Heavy Industry Science & Technology Co Ltd, L&T Construction & Mining Machinery and Action Construction Equipment Limited.
Distributor Profile: V Enterprises, OMCME, GS Sethi & Sons, MM Brothers, Gainwell Commosales Pvt Ltd and Encore. fiinews.com
