India Construction Equipment (CE)

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

By Type of Equipment (Earthmoving (Backhoe Loader, Excavator, Wheel & other loaders, Motor Grader), Material Handling (Pick & Carry Cranes, Crusher & Screener, Compactors), Road & Highways (Compactors Read more

  • Buildings, Construction, Metals & Mining
  • Nov 2022
  • 98
  • BM10211

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

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.

Report Coverage Details
Study Period Historical Data: 2018-21
Base Year: 2022
Forecast Period: 2023-28
CAGR (2023-2028) 25%
Region Covered North, East, West, South
Key Companies Profiled Action Construction Equipment Ltd., CASE New Holland Construction Equipment India Pvt Ltd, Caterpillar, Escorts Ltd., Hyundai Construction Equipment India Pvt. Ltd, JCB India Limited, L&T Construction, Tata Hitachi Construction Machinery Company Pvt Ltd, Others.
Unit Denominations USD Million/Billion

 

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.

Key Trends in the India Construction Equipment (CE) Market

  • 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.

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

  • Hyundai Construction Equipment India, a construction and earthmoving equipment manufacturer, signed a Memorandum of Understanding with Karnataka Bank. With this partnership, the bank seeks to provide loans at competitive interest rates for the purchase of a wide range of pieces of equipment from the product line of Hyundai Construction Equipments India.
  • 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.

Market Dynamics

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.

Key Questions Answered in the Market Research Report:

  1. What are the overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares) of the India Construction Equipment (CE) Market?
  2. What are the region-wise industry size, growth drivers, and challenges?
  3. What are the key innovations, opportunities, current & future trends, and regulations in the India Construction Equipment (CE) Market?
  4. Who are the key competitors, their key strengths & weaknesses, and how do they perform in the India Construction Equipment (CE) Market based on the competitive benchmarking matrix?
  5. What are the key results derived from surveys conducted during the India Construction Equipment (CE) Market study?

Frequently Asked Questions

A. The India Construction Equipment (CE) Market is projected to grow at a CAGR of around 25% during 2023-28.

A. Government’s ambitious infrastructure development plans paired with numerous civil engineering and smart city projects drives the India Construction Equipment (CE) Market during 2023-28.

A. The leading players in the market are Action Construction Equipment Ltd., CASE New Holland Construction Equipment India Pvt Ltd, Caterpillar, Escorts Ltd., Hyundai Construction Equipment India Pvt. Ltd, JCB India Limited, L&T Construction, Tata Hitachi Construction Machinery Company Pvt Ltd, Others.

A. Earthmoving is anticipated to emerge as an area of remunerative opportunities for the leading players in the India Construction Equipment (CE) Market during the forecast period.

A. Advent of advanced technologies in the construction sector shaping the growth of the India Construction Equipment (CE) Market during 2023-28.

A. Leveraging the rental industry seems opportunistic to the India Construction Equipment (CE) Market through 2028.

  1. Market Segmentation
  2. Introduction
    1. Product Definition
    2. Research Process
    3. Assumptions
  3. Executive Summary
  4. India Construction Equipment (CE) Market Regulations, Standards & Certifications
  5. India Construction Equipment (CE) Market Porters Analysis
    1. Bargaining Power of Suppliers
    2. Bargaining Power of Buyers
    3. Threat of New Entrants
    4. Threat of Substitutes
    5. Degree of Competition
  6. India Construction Equipment (CE) Technical Analysis
    1. Approximate Cost of Each Equipment
    2. Life Span
    3. End User Wise Demand Share
  7. India Construction Equipment (CE) Market Trends & Insights
  8. India Construction Equipment (CE) Market Dynamics
    1. Drivers
    2. Challenges
  9. India Construction Equipment (CE) Market Profitability Analysis, 2023
    1. Cost Break-up (2019 Vs 2022)
      1. Raw Material Cost
      2. Fixed or semi-variable Cost
      3. Repair Maintenance
      4. Warranty & After Sales Costs
      5. Employee Costs
      6. Others
  10. India Construction Equipment (CE) Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type of Equipment
        1. Earthmoving
          1. Backhoe Loader
          2. Excavator
          3. Wheel & other loaders
          4. Motor Grader
        2. Material Handling
          1. Pick & Carry Cranes
          2. Crusher & Screener
          3. Compactors
        3. Road & Highways
          1. Compactors
          2. Pavers
      2. By Region
        1. East
        2. West
        3. North
        4. South
      3. By Competitors
        1. Market Share & Analysis
        2. Competition Characteristics
  11. India Earth Moving Equipment (CE) Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type of Equipment
      2. By Region
  12. India Material Handling Equipment (CE) Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type of Equipment
      2. By Region
  13. India Roads & Highways Equipment (CE) Market Outlook, 2018-2028
    1. Market Size & Analysis
      1. By Revenues (USD Million)
      2. Units Sold
    2. Market Share & Analysis
      1. By Type of Equipment
      2. By Region
  14. Competition Outlook
    1. Competition Matrix
      1. Brand Specialization
      2. Target Markets
      3. Target End Users
      4. Key Customer Analysis (Future potential end used customer if any)
      5. Supply Contract
      6. Technological Development
      7. Strategic Alliances
      8. Strategic Initiatives
    2. Company Profiles
      1. Action Construction Equipment Ltd.
      2. CASE New Holland Construction Equipment India Pvt Ltd
      3. Caterpillar
      4. Escorts Ltd.
      5. Hyundai Construction Equipment India Pvt. Ltd
      6. JCB India Limited
      7. L&T Construction
      8. Tata Hitachi Construction Machinery Company Pvt Ltd
  15. Disclaimer
India Construction Equipment (CE) Market Segmentation Slide