India Construction Equipment (CE) Market Research Report: Forecast (2023-2028)

Market Definition

Construction equipment is specially designed machinery that carries out heavy-duty operations in the construction sector with high efficiency & in minimal time. The most common varieties of construction equipment include excavators, loaders, bulldozers, skid steer loaders, motor graders, crawler loaders, trenchers, dump trucks, cranes, forklifts, tippers, road rollers, & diesel generators, among others

Market Insights & Analysis: India Construction Equipment (CE) Market (2023-28)

The India Construction Equipment (CE) Market is projected to grow at a CAGR of around 25% during the forecast period, i.e., 2023-28. Currently, India is the third-largest construction equipment market after China and USA and is expected to achieve the second place by 2030. Such anticipation is backed by the government’s ambitious infrastructure development plans like National Monetisation Pipeline, Gatishakti, and the establishment of the National Bank for Financing Infrastructure and Development, announced in the recent past. With already exporting to 110 countries, the Indian Construction Industry is likely to thrive through these initiatives.

Further, numerous civil engineering and smart city projects are already hinting at the market expansion with the large-scale adoption of mini excavators. Other than this, the strengthening real estate enabling pocket-friendly housing projects is prompting more construction activities in the future, thereby directly influencing market growth. Further, with the government emphasizing renewable energy resources for power generation, there has been a clear forecast for substantial FDI inflow in the coming years. Likewise, a swift surge in coal and iron ore sales accompanied by inflating commodities prices is expected to push the country's mining industry. In the same vein, government initiatives like Atmanirbhar Bharat and Make in India further prompt the manufacturing sector growth. These aspects altogether are likely to influence the construction market positively in the coming years.

Market Dynamics

Key Trends: Advent of Advanced Technologies in the Construction Sector

The rapid inclusion of advanced technologies in the CE space has put forth a suitable stage for the market players to showcase their potential in terms of innovative equipment. As such, the deployment of electronics and telematics has enhanced efficiency, while ongoing developments in hydraulics have reduced power losses, facilitating much higher value for the users. All this can be attributed to the escalating environmental concerns that have called for eco-friendly engine developments in order to lower emissions. Further, since the construction equipment industry worldwide is already embracing electro-mobility and autonomous solutions with the inclusion of technologies like IoT, virtual reality, and self-learning machines, India shall also witness such technological changes in the forthcoming years.

Growth Opportunities: Leveraging the Rental Industry

With massive machines being deployed by rental companies each year, Equipment rental in the CE industry has witnessed a rapid surge in the past few years. Despite this, India’s rental market, being fragmented and unstructured, is still restricted at the local level. However, numerous attractive financing options for rental equipment bring forth the opportunity for investors and manufacturers. Keeping their eyes on the market trends and actively participating in global exhibitions for the construction equipment industry like Excon, 2021 a 5-DAY hosted by India. Such events enable market players to showcase class-leading product solutions that exhibit innovation in design, performance, efficiency, and safety, including the integration of digital technology in our products.

Market Segmentation

Based on Type of Equipment:

• Earthmoving

• Backhoe Loader
• Excavator
• Wheel & other loaders
• Motor Grader

• Material Handling

• Pick & Carry Cranes
• Crusher & Screener
• Compactors

• Road & Highways

• Compactors
• Pavers

Among all, Earthmoving equipment acquired the largest market share, followed by material handling and road & highway equipment in the historical period. This achievement attributes to the wide adoption of excavators and backhoe loaders, having registered the fastest growth in recent years and is likely to drive the market during the forecast period. The rapidly growing renewable energy sector, paired with the mining industry, is the primary factor backing the growth of backhoe loaders and excavators across the country. In fact, India is the largest market for backhoe loaders worldwide.

With its higher flexibility & affordability, and the ability to operate on uneven and muddy surfaces, the equipment has gained traction in the Indian market. Besides, the active participation of the government towards infrastructural upgradation and the strong presence of construction giants, such as JCB, one of the prominent manufacturers of backhoe loaders, and ACE, the leading material handling and construction equipment manufacturer across India, has further ignited the sales of this equipment. On the other hand, burgeoning real estate and budget-friendly housing projects have stimulated the need for large towers and fixed cranes in the Indian market, thereby bolstering industry expansion.

Recent Developments in the India Construction Equipment (CE) Market

• In October 2022, JCB India unveiled three new excavators for infrastructure & mining, and quarrying applications at Udaipur. These machines will be built at JCB India’s cutting-edge factory in Pune and will then enter the global market. The new series comprises JCBNXT 225LC M, JCB315LC HD, and the JCB385LC and is suitable for arduous and challenging operating conditions in India.

Gain a Competitive Edge with Our India Construction Equipment (CE) Market Report

1. India Construction Equipment (CE) Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
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