India Construction Equipment Market 2024-2030

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    INDIA CONSTRUCTION EQUIPMENT MARKET

     

    KEY FINDINGS

    • In 2020, India construction equipment market had ~$ 6.5 Billion turnover despite pandemics
    • The govt’s ‘vision plan 2030’  proposed an action plan to become a manufacturing and export hub for construction equipment and propel the development of world-class infrastructure in the country.
    • The construction equipment dealers are expected to hike prices by 5 – 10% in 2021 on account of new emission norms, which are to come into effect from April 2021 
    • After a 15% drop in construction equipment demand to 83,470 units in 2019, sales declined by an estimated 39 per cent in the first half of the year 2020. However, demand for construction equipment recovered at unexpected levels in the second half and monthly sales reached peak levels by November 2020
    • The domestic mining and construction equipment (MCE) industry is expected to post a volume growth of more than 20% in the calendar year 2021 
    • The infrastructure sector has become the biggest focus area for the government of India and it plans to spend US$ 1.4 trillion on infrastructure during 2019-23 for sustainable development of the country. The Government has suggested investment of Rs. 5,000,000 crores (US$ 750 billion) for railways infrastructure from 2018-30.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET – INTRODUCTION

    India is 4th largest Construction equipment market in the world, as china stands in first position, all by volume.  

     

    The infrastructure sector is enjoys intense focus from Government for initiating policies that would ensure time-bound creation of top class infrastructure in the country. Infrastructure sector includes power, bridges, dams, roads, and urban infrastructure development.

     

    Road construction activities have remained strong even in the pandemic period, and the Ministry of Road Transport and Highways (MoRTH) alone successfully completed construction of 3,951 km of roads during April-September 2020. It has achieved the construction of 21.6 km per day even during the pandemic and aims to construct a total of 11,000 km of roads in the financial year ending March 2021.

     

    According to the Department for Promotion of Industry and Internal Trade (DPIIT), FDIs in the construction development sector (townships, housing, built up infrastructure and construction development projects) and construction (infrastructure) activities stood at $ 25.78 billion and $ 17.22 billion, respectively, between April 2000 and September 2020. The logistics sector in India is growing at a CAGR of 10.5% annually and is expected to reach US$ 215 billion in 2020.

     

    Only 24% of the National Highway network in India are four lanes, therefore it has immense scope of development in roads. National highway construction growth was 15% during FY20 about 8,784 Km.

     

     

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    INDIA CONSTRUCTION EQUIPMENT MARKET DYNAMICS

    During the last six years, from 2015-16 to 2020-21, the Ministry of Road Transport and Highways (MoRTH) has sanctioned 2,115 works costing Rs 163,302 crores ($22.5 Billion) for expansion and widening of national highways in the country entrusted to state public works departments (PWDs).

     

    Apart from infrastructure, industrial development such as the construction of new factories and the expansion of capacity in steel, power, cement, fertilizers, oil refineries and other sectors will have a positive impact on the growth of construction equipment. The industrial sector is also expected to do well due to programmes such as Atmanirbhar Bharat and Make in India with support of recently announced production linked incentive (PLI) scheme.

     

    The Ministry of Road Transport and Highways (MoRTH) released a notification on October 2020 with respect of Construction Equipment Vehicles (CEVs) to holistically address the issue of safety requirements, safety of the operator and to ensure safety while such machines are running on public roads along with other vehicles, in a phased manner as provided in the notification.

     

    A strong economic recovery and postponement of the implementation of the new emission standard CEV Stage-IV applicable to wheeled construction equipment to April 1, 2021.

     

    Investments

    • India requires investment worth Rs. 50 trillion (US$ 777.73 billion) in infrastructure by 2022 to have sustainable development in the country. India is witnessing significant interest from international investors in the infrastructure space.
    • The largest deal was done by Abu Dhabi Investment Authority, Public Sector Pension Investment Board and National Investment and Infrastructure Fund as they made investment worth US$ 1.1 billion in GVK Airport Holdings Ltd.
    • The National High-Speed Rail Corporation Limited (NHSRCL) signed a contract with Larsen & Toubro (L&T) to design and construct a 237 kms long viaduct between Vapi (Maharashtra-Gujarat border village of Zaroli) and Vadodara (Gujarat). This high-speed rail corridor implementation agreement is the biggest infrastructure contract for construction and design in the country.
    • Warburg Pincus-backed logistics real estate firm, ESR India signed an agreement with the Maharashtra government to invest Rs. 4,310 crores (US$ 578.88 million) to set up 11 industrial and logistics parks around Mumbai and Pune.
    • The Union Cabinet approved Rs. 2,480 crore (US$ 337.35 million) foreign direct investments (FDIs) in ATC Telecom Infra Pvt. Ltd.

     

    Growing Public-Private-Partnerships

    • The Ministry of Road Transport and Highways signed a memorandum of understanding (MoU) on technology cooperation in the road infrastructure sector with the Federal Ministry of Climate Action, Environment, Energy, Mobility, Innovation and Technology of the Republic of Austria. The MoU aims to establish a framework for bilateral cooperation in the field of road transport, road/highway and road infrastructure.
    • The Department of Road Transport, Highways and MSMEs, inaugurated 15 Nagaland National Highway (NH) projects. These NH projects have a length of ~266 kms, including costs of ~Rs. 4127 crores (US$ 560.45 million).

     

    Mining Activity

    • The mining group under the Index of Industrial Production (IIP) stood at 109.7 for FY20, witnessing a growth of 1.7% YOY.
    • Coal India Ltd. (CIL) announced plans to invest over Rs. 1.22 lakh crore (US$ 16.5 billion) on projects related to coal evacuation, exploration, and clean coal technologies by 2023-24 to achieve 1 billion tonnes of the fuel output target.

     

    Real Estate

    • By 2040, real estate market will grow to Rs. 65,000 crores (US$ 9.30 billion) from Rs. 12,000 crores (US$ 1.72 billion) in 2019. Real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13% to the country’s GDP by 2025.
    • Real estate sector is one of the most globally recognized sectors. It comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth in the corporate environment and the demand for office space as well as urban and semi-urban accommodations.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET POWERTRAIN TRENDS

    OEM Vehicle Type No of Models Engine Supplier Engine Capacity Power Transmission
     

     

     

     

     

    JCB

    Backhoe Loader 6 Kirloskar & JCB 3.2 – 4.8L 49.5-92HP Easy Shift
    Compactors 3 Simpson & JCB 2.7 – 4.7L 45 – 114HP Hydrostatic
    Mini Excavators 3 JCB 2.2L 48HP Autoshift
    Excavators 9 Kirloskar, JCB & Cummins 3.9 – 7.2L 76 – 284HP Autoshift
    Skid Steer Loaders 3 Perkins & Kirloskar 2.2 – 3.2L 49 – 50HP Autoshift
    Super Loader 1 Kirloskar 3.2L 49.5HP Autoshift
    Telescopic Handlers 2 JCB 4.8L 76HP Mannual
    Wheeled Loaders 3 Ashok Leyland, Cummins & JCB 5.76 – 7.2L 133 – 221HP Automatic

     

    INDIA CONSTRUCTION EQUIPMENT MARKET RECENT LAUNCH

    Caterpillar, the world’s largest construction equipment maker, has introduced two next-generation machines in India. The two new products, the Cat 303 CR Mini Excavator and the Cat 120 GC Motor Grader will help Cat expand its foothold in India’s infrastructure, mining, and energy sectors.

     

    The Cat 303 Mini Hex is engineered to work in the most difficult conditions and terrain, ensuring that our customers get the job done profitably, efficiently, and safely. The Cat 120 GC motor grader is equipped with some of the industry’s most innovative features, as well as dependable performance and low ownership and operating costs.

     

    L90H and L120H Wheel Loaders are now available in India from Volvo CE, two all-new multi-talented powerhouses that guarantee great performance and value to Indian clients. The new improved H-Series Wheel Loaders from Volvo CE are up to 10% more productive and 20% more fuel efficient than the proven F Series wheel loaders.

     

    They have their own innovations and advancements that are adapted to Indian climates and markets, making them extremely versatile and dependable over time.

     

    The L90H and L120H Wheel Loaders are equipped with heavy-duty, extremely efficient Stage V engines that meet local CEV IV pollution standards, demonstrating Volvo’s unwavering commitment to the environment.

     

    JCB India, India’s premier producer of earthmoving and construction equipment, unveiled the JCB 19C-1E, the industry’s first entirely electric excavator, at Excon in Bengaluru. The JCB 19C-1E is a key component of JCB’s ‘Road to Zero’ campaign.

     

    The JCB 19C-1E is a zero-emission machine with four lithium-ion batteries that provide enough power for a full day of operation on a single charge. JCB’s 2GO system safely isolates all controls as a secondary safety system, with a strong focus on safety and productivity.

     

    It has auto-idle and auto-kick-up features that redistribute power to save battery life. The machine was released after extensive testing and validation.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET RECENT PARTNERSHIP

    In order to advertise and sell construction and mining equipment made by the OEM on its platform, iQuippo, a digital marketplace for infrastructure equipment, has formed a strategic agreement with Kobelco Construction Equipment India (Kobelco).

     

    Customers of iQuippo will be able to select from a variety of equipment made by Kobelco thanks to the non-exclusive agreement. They will also be able to purchase this equipment using finance plans from financial institutions, negotiate rates online, and get real-time offers that are tailored to their financing requirements.

     

    With the help of a partnership with the top manufacturer of construction machinery, Xuzhou Construction Machinery Group Co., Ltd. (XCMG), CanLift Equipment Ltd., a company that specializes in aerial equipment and material handling, has expanded its product line and now has the exclusive right to sell all XCMG earthmoving equipment in Ontario.

     

    With sites in Brazil, Germany, the USA, India, Uzbekistan, and China, XCMG has been in the forefront of the world’s construction machinery sector.

     

    A Memorandum of Understanding between CECE and ICEMA has been signed, expanding the two continental organizations’ collaboration. It is improving trade and collaboration between Europe and India in construction machinery. Understanding reciprocal market developments and enhancing market access and international trade are the key goals of the collaboration.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET TECHNICAL ADVANCEMENT

    The construction equipment market in India is witnessing a digital change due to IoT connectivity. Manufacturers are incorporating Internet of Things connectivity, GPS tracking, and telematics into devices. These developments enable remote diagnostics, predictive maintenance, real-time monitoring of equipment performance, and enhanced fleet management.

     

    Automation and robots are becoming more popular in the Indian construction equipment market. Excavators and bulldozers that operate autonomously are currently being developed and tested. On construction sites, this ability to operate machinery without direct human input increases productivity, efficiency, and safety.

     

    With an emphasis on sustainability and minimizing environmental effects, electric and hybrid construction equipment are gaining popularity in India. To cut emissions and increase fuel efficiency, manufacturers are creating electric versions of machinery like excavators, loaders, and cranes as well as hybrid solutions that mix electric and traditional power sources.

     

    Advanced Control Systems: Computer-aided control and guidance systems, among other advanced control systems, are helping construction equipment in India. With the help of these technologies, machine functions may be controlled precisely and automatically, enhancing accuracy and productivity in projects like excavation, grading, and paving.

     

    Telematics and Data Analytics: The Indian construction equipment sector is utilizing telematics systems and data analytics. While analytics technologies offer insights into the performance, use, and maintenance requirements of equipment, telematics enables remote monitoring and data collection. This data-driven strategy helps to increase overall efficiency, forecast maintenance needs, and optimize equipment operations.

     

    Safety features and collision avoidance technology are being incorporated into construction equipment to improve safety on Indian construction sites. Operators have better sight thanks to proximity sensors, cameras, and radar systems, which also help them spot potential dangers.

     

    The ability to operate machinery remotely from a safe distance is being built into construction equipment in India. This technology is known as augmented reality. Additionally, augmented reality (AR) technology is being used to improve equipment maintenance and operation. Directly on the operator’s field of vision, AR systems offer real-time overlays of information, such as equipment performance information or repair instructions.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET COMPETITIVE LANDSCAPE

    Cummins India is set to commence production of its state-of-the-art 4.5-litre engine system for wheeled equipment. The construction equipment vehicle (CEV) BS-IV-certified engines were approved by the International Centre for Automotive Technology (ICAT).

     

    JCB India has showcased Pothole Repair Machine developed jointly with inputs from the Central Road Research Institute (CRRI), to provide one one-stop solution for Roads and Highway maintenance.

     

    Battery management and intelligence system provider ION Energy has a strategic partnership with lithium-ion battery pack manufacturer Wamtechnik to enable a European construction maker to deploy its first electric excavator.

     

    CASE launched an advanced version of its eagle eye telematics solution developed in association with Bosch India. The new version will provide live tracking for the operating machine and will assist in Geofencing, by setting a predefined area on a map beyond which the machine will not work. This will help in alerting the user to any kind of theft or unauthorized usage of the machine along with device tempering alerts.

     

    INDIA CONSTRUCTION EQUIPMENT MARKET COMPANIES PROFILES

    Sl no Topic
    1 Market Segmentation
    2 Scope of the report
    3 Abbreviations
    4 Research Methodology
    5 Executive Summary
    6 Introduction
    7 Insights from Industry stakeholders
    8 Cost breakdown of Product by sub-components and average profit margin
    9 Disruptive innovation in the Industry
    10 Technology trends in the Industry
    11 Consumer trends in the industry
    12 Recent Production Milestones
    13 Component Manufacturing in US, EU and China
    14 COVID-19 impact on overall market
    15 COVID-19 impact on Production of components
    16 COVID-19 impact on Point of sale
    17 Market Segmentation, Dynamics and Forecast by Geography, 2024-2030
    18 Market Segmentation, Dynamics and Forecast by Product Type, 2024-2030
    19 Market Segmentation, Dynamics and Forecast by Application, 2024-2030
    20 Market Segmentation, Dynamics and Forecast by End use, 2024-2030
    21 Product installation rate by OEM, 2023
    22 Incline/Decline in Average B-2-B selling price in past 5 years
    23 Competition from substitute products
    24 Gross margin and average profitability of suppliers
    25 New product development in past 12 months
    26 M&A in past 12 months
    27 Growth strategy of leading players
    28 Market share of vendors, 2023
    29 Company Profiles
    30 Unmet needs and opportunity for new suppliers
    31 Conclusion
    32 Appendix
       
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