INDIA'S CONSTRUCTION EQUIPMENT MARKET SIZE WAS VALUED AT USD 5.2 BILLION IN 2022 AND IS ESTIMATED TO REACH USD 8.7 BILLION BY 2028, GROWING AT A CAGR OF 8.9%. AROUND 1,65,097 UNITS OF CONSTRUCTION EQUIPMENT ARE TO BE SOLD BY 2028

India Construction Equipment Market Research Report includes segments by

  • Earth Moving Equipment: Excavator, Backhoe Loader, Motor Grader, and Other Earth Moving Equipment
  • Material Handling Equipment: Crane, Forklift & Telescopic Handler, Arial Platforms (Articulated Boom Lifts, Telescopic Boom Lifts, Scissor Lifts, etc.)
  • Road Construction Equipment: Road Roller and Asphalt Paver
  • End-users: Construction, Manufacturing, Mining, and Others

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Most Exhaustive Report

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109 Pages

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14 Tables

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62 Charts

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1 Regions

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1 Countries

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19 Companies

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4 Market Segment

INDIA CONSTRUCTION EQUIPMENT MARKET REPORT SCOPE

Report Attribute Details
MARKET SIZE (2028) USD 8.7 Billion
MARKET SIZE (2022) USD 5.2 Billion
MARKET SIZE -VOLUME( 2028) 1,65,097 Units
CAGR(2021-2028) 8.9%
HISTORIC YEAR 2019-2020
BASE YEAR 2021
FORECAST YEAR 2022-2028
KEY VENDORS Caterpillar, Komatsu, Volvo, JCB, XCMG, SANY, Hyundai, TATA Hitachi, Liebherr, Kobelco, Zoomlion Heavy Industry Science & Technology Co. Ltd, L&T, and Action Construction Equipment Limited

MARKET INSIGHTS

India construction equipment market is projected to cross $ 8.7 billion by 2028, growing at a CAGR of 8.9%. The sales are expected to reach 1,65,097 units by 2028.

The growth in construction equipment is majorly driven by government investment in infrastructure, mining, and renewable energy projects. The market size is expected to reach a revenue of USD 1024 Billion by 2028.

India is one of the leading construction equipment markets in the world.

The Indian economy was adversely impacted by the COVID-19 pandemic, which led to a 7.7% contraction of GDP in 2020. However, 2021 witnessed a sharp growth of 8.9% due to high government investment in the Renewable energy sector (24%), Roads & highways (19%), Urban Infrastructure (16%), Railways (13%), and Others (28%) which includes mining, manufacturing & agriculture sectors.

According to the IMF report, the Indian economy will grow by 9.5% in 2022 and 7.1% in 2023. India has a favorable business environment, ranked 62nd in the ease of doing business index in 2020. The country has an excellent administrative setup, attractive foreign policies, young & skilled workforce. The government initiatives to ease foreign investment norms in construction, transport, and renewable energy sectors attract FDI investment. The government also offers a range of tax incentives, support services, and import duty exemptions and provides free trade zone that supports the growth of FDI inflows in the country. Services, construction, and manufacturing were some leading industries that attracted nearly ~40% of FDI inflows in 2020.

Under National Infrastructure Plan Indian Government planned to invest USD 1.4 trillion in 2021, which includes some major projects such as Delhi- Mumbai Trade Corridors (USD 90 billion), Gujarat International Finance Tec City (USD 20 billion), Chennai Metro Rail (USD 14.9 billion), Diamond Quadrilateral (USD 13 billion), Nagapattinam Oil Refinery Plant ( USD 4.2 billion), Jewar International Airport (USD 4.19 billion), Navi Mumbai International Airport (USD 2.1 billion), and Paradip Paraxylene Purified Terephthalic Acid Plant (USD 1.8 billion).

India Construction Equipment Market Size

A surge in Investment in Transport Infrastructure, Real estate & Renewable energy Projects

In 2020, the Indian government planned to develop road infrastructure and allocated USD 212.8 billion of the fund by 2030. The union budget 2020-2021 boosted the plan, and USD 24.2 billion was dispersed to transport infrastructure.

The real estate sector in India is expected to reach USD 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 firms are estimated to raise USD 48 billion through infrastructure and real estate investment trusts in 2022. The government of India's Housing for All initiative will likely bring USD 1.3 trillion in investments in the housing sector by 2025. The Pradhan Mantri Awas Yojana (Urban) [PMAY (U)] scheme is expected to push affordable housing and construction in the country and give a boost to the real estate sector. Substantial investment in the real estate sector will drive higher demand for the construction equipment market in India for renovation and new building construction activities.

The need for renewable energy supplies increased due to the measures taken by the Indian government measures to reduce fossil fuel dependency. The government aims to increase installed renewable energy capacity to 500 GW by 2030. Therefore, 45 solar parks with an aggregated capacity of 37 GW were approved in India, which included Solar Parks in Pavagada (2 GW), Kurnool (1 GW), and Bhadla-II (648 MW) in the top 5 operational solar parks of 7 GW capacity in the country. The country is focusing on becoming self-sufficient in manufacturing solar panels, which prompts the investment of USD 3.2 billion under the Atmanirbar Bharat scheme in 2022.

The rise in investments in transport infrastructure & real estate sectors is expected to drive the demand for excavators, backhoe loaders, and fixed and tower cranes.

The renewable energy projects support the demand for mini excavators and cranes in the Indian market.

Sharp Rise in Steel Prices & Shortage of Skilled labor is the significant challenges.

In 2022, steel demand is expected to increase by 17% to 110 million tonnes, driven by rising construction activities.

According to ICEMA, apart from COVID-19, related supply chain disruptions, the construction equipment industry has faced challenges due to abnormal increases in steel prices since July 2020. A sharp rise in steel prices pushes the manufacturing cost of construction equipment which can negatively impact the demand for high price equipment such as large excavators, motor graders, and cranes in the Indian market.

The skilled labor shortage poses the greatest threat to the future of construction and will continue as demand increases. The boom in demand has put pressure on the construction industry, which is currently struggling to meet the increasing demand for its services. According to job market experts and company officials, various sectors, including the Indian construction sector, are struggling to meet the rising demand for its services due to an increasing industry-wide skill shortage. Based on the Indian growth expected in the infrastructure and real estate sectors, it is likely that about 83 million persons will be employed in this sector by 2022. Due to the high impact of the COVID-19 pandemic, there is an increasing shortage of labor in this sector. Labor shortages in the construction sector will result in the delay of projects and will impact construction equipment sales and will result in decreasing demand for construction equipment in the Indian market.

Rising demand for Mini Excavators & Electric Mobility Equipment

There is a surge in redevelopment and smart city projects across the country, which triggers the demand for mini excavators due to their compact size and quality to operate in small, congested cities. Low price and high fuel efficiency are other significant factors for the popularity of Mini excavators in the Indian market.

According to the Indian Construction Equipment Manufacturers Association (ICEMA), the industry is looking at electric mobility options increasing in the Indian construction equipment industry. Demand for electric equipment for commercial use is estimated to increase 15 times in the next six months. Rising manufacturing costs due to the rise in fuel prices, raw material prices, recycling, and energy prices are also key factors contributing to the increased use of renewable energy sources. For instance, SANY launched its first electric 300ton excavator in February 2022 and is focusing on upgrading its capacity to 800 tons. In 2021, Volvo had launched Smart Construction electric mobility, a solution comprising pollution.

KEY HIGHLIGHTS IN THE REPORT

  • The earthmoving segment is the largest in the Indian construction industry, followed by material handling and road construction equipment. Excavators and Backhoe loaders were the fast-growing major construction equipment in the market in 2021. The demand for excavators and backhoe loaders will rise due to various government investments in infrastructure development, growth in renewable energy and the country's mining industries.
  • 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 & Amtanirbar Bharat encourage the development of manufacturing sectors.
  • According to the ICEMA report, India's construction equipment Industry is expected to grow by three times and become the second-largest market by 2025.

VENDOR LANDSCAPE

  • The key players in the Indian construction equipment market are JCB, L&T, Caterpillar, Volvo CE and ACE.
  • JCB, L&T, ACE, and Caterpillar accounted for ~69% of the market. JCB holds 80% of backhoe loaders markets in India.
  • Other prominent vendors are XCMG, SANY, Komatsu, Kobelco, Tata Hitachi, and Hyundai.

Frequently Asked Questions

WHAT IS THE GROWTH RATE OF THE INDIA CONSTRUCTION EQUIPMENT MARKET?

India construction equipment market size was valued at USD 658.9 billion in 2021 and is expected to grow at a CAGR of 6.65% to reach USD 1024 billion by 2028.

WHO ARE THE KEY COMPANIES IN THE INDIA CONSTRUCTION EQUIPMENT MARKET

Some of the key players include Caterpillar, Komatsu, Volvo Construction Equipment, JCB, XCMG, and SANY.

WHAT ARE THE LATEST MARKET TRENDS IN THE INDIA CONSTRUCTION EQUIPMENT MARKET?

High demand for mini excavators in the construction sector and increasing demand for electric mobility equipment in the construction industry are the latest trends in the Indian construction equipment market.

What are the major drivers in the India construction equipment market?

The Indian energy sector is expected to offer an investment opportunity of USD 300 billion over the next ten years. In 2020-2021, the communication sector had allocated USD 5.36 billion to develop the post and telecommunications departments which, in turn, is expected to fuel the growth of the market in India.

WHAT ARE THE GOVERNMENT INITIATIVES TOWARD THE INDIA CONSTRUCTION EQUIPMENT MARKET?

The Indian government planned to spend about USD 1.4 trillion worth of investment on the country’s infrastructure. These large investments across major sectors of the Indian construction industry will create an opportunity for both national and international stakeholders in the market.

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The increasing demand for construction equipment can be attributed to increased investments in infrastructure and transport and renewable energy projects. The government's focus on enhancing the share of renewable energy in India expects to drive the demand for construction equipment in the power generation industry.

Base Year: 2021 

Forecast Year: 2022-2027

Scope: The report considers the present scenario of the Indian construction equipment market and market dynamics for the forecast period 2022−2028. It covers a detailed overview of several growth enablers, restraints, and trends in the market. The study includes the volume and value sales with a segment analysis of the Indian construction equipment market.

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
  • Action Construction Equipment Limited

Distributor Profile

  • V Enterprises
  • OMCME
  • GS Sethi & Sons
  • MM Brothers
  • Gainwell Commosales Pvt. Ltd.
  • Encore

Segmentation by Earthmoving Equipment:

  • Excavator
  • Backhoe Loaders
  • Motor Graders
  • Other Earthmoving Equipment (Others loaders, Bulldozers, Trenchers)

Segmentation by Road Construction Equipment

  • Road Rollers
  • Asphalt Pavers

Segmentation by Material Handling Equipment

  • Crane
  • Forklift & Telescopic Handlers
  • Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)

Segmentation by End Users

  • Construction
  • Manufacturing
  • Mining
  • Others

Section 1 – Introduction
• Market Snapshot
• Executive Summary

Section 2 – The Market Overview

Economic Scenario, Foreign Direct Investment

Section 3 – India Construction Equipment (Type & Application)

   3.1 India Construction Equipment Market by Type (Volume & Value)
 3.1.1. Earth Moving Equipment

  1. Excavator
  2. Backhoe Loader
  3. Motor Grader
  4. Other Earth Moving Equipment (Other Loaders, Bulldozer, Trencher, etc.)

 3.1.2. Road Construction Equipment

  1. Asphalt Paver
  2. Road Roller

3.1.3.  Material Handling Equipment

  1. Crane
  2. Forklift and Telescopic Handler
  3. Aerial Platform (Articulated Boom lifts, Telescopic Boom lifts, Scissor Lifts, etc)

3.2 India Construction Equipment Market by Application (Volume & Value)

  1. Construction
  2. Mining
  3. Manufacturing
  4. Others (Power Generation and Utilities, Municipal Corporation etc)

Section 4: Market Dynamics

Market Drivers, Restraints, Trends, Key Economic Regions in India, Advantage India, FDI in India, Import/Export Trend Analysis, Supply chain, COVID-19 Impact

Section 5: Technology Development

 Advent of Technology

Section 6 – Competitive Landscape

  1. Competitive Landscape Overview
  2. Major Vendors Caterpillar India | Komatsu India | XCMG | SANY India | Hyundai Construction Machinery India | Volvo Construction Equipment India | Tata Hitachi Construction Machinery | JCB India | Liebherr | Kobelco India | L&T | ACE | Zoomlion
  3. Distributors Profile

Section 7-Quantitative Summary

Section 8 – Report Summary

  1. Key Insights
  2. Abbreviations
  3. List of Graphs
  4. List of Tables

Section 9 – Report Scope & Definition
1.   Research Methodology
2.   Market Definition, Inclusion & Exclusion

LIST OF EXHIBITS

Graph-1 India Construction Equipment Market by Volume (Unit sales) 2019–2028

Graph-2 India Construction Equipment Market by Type 2021 Volume Share (%)

Graph-3 India Construction Equipment Market by Volume 2019–2028 (Unit Sales)

Graph-4 India Construction Equipment Market by Value 2019–2028 ($ MN)

Graph-5 India Construction Equipment Market by Application 2021 (% share)

Graph-6 India Construction Equipment Market by Type 2021 (% share)

Graph-7 GDP of India Value ($ BN) 2015–2020

Graph-8 India Investments in various Sectors 2021 ($BN)

Graph-9 India Construction Equipment Market by Type 2019–2028 (Unit Sales)

Graph-10 India Construction Equipment Market by Type 2021 Volume Share (%)

Graph-11 India Construction Equipment Market by End - Users 2019–2028 (Unit Sales)

Graph-12 India Earthmoving Equipment 2019–2028 (Unit Sales)

Graph-13 India Earthmoving Equipment 2019–2028 ($MN)

Graph-14 India Excavators Market 2019–2028 (Unit Sales)

Graph-15 India Excavators Market 2019–2028 ($MN)

Graph-16 India Backhoe Loaders Market 2019–2028 (Unit Sales)

Graph-17 India Backhoe Loaders Market 2019–2028 ($ MN)

Graph-18 India Motor Graders Market 2019–2028 (Unit Sales)

Graph-19 India Motor Graders Market 2019–2028 ($ MN)

Graph-20 India Other Earthmoving Equipment 2019–2028 (Unit Sales)

Graph-21 India Other Earthmoving Equipment 2019–2028 ($ MN)

Graph-22 India Road Construction Equipment Market 2019–2028 (Unit Sales)

Graph-23 India Road Construction Equipment Market 2019–2028($ MN)

Graph-24 India Road Rollers Market 2019–2028 (Unit Sales)

Graph-25 India Road Rollers Market 2019–2028 ($ MN)

Graph-26 India Asphalt Pavers Market 2019–2028 (Unit Sales)

Graph-27 India Asphalt Pavers Market 2019–2028($ MN)

Graph-28 India Material Handling Equipment Market 2019–2028 (Unit Sales)

Graph-29 India Material Handling Equipment Market 2019–2028 ($ MN)

Graph-30 India Forklifts & Telescopic Handlers Market 2019–2028 (Unit Sales)

Graph-31 India Forklifts & Telescopic Handlers Market 2019–2028 ($ MN)

Graph-32 India Cranes Market 2019–2028 (Unit Sales)

Graph-33 India Cranes Market 2019–2028 ($ MN)

Graph-34 India Aerial Platforms Market 2019–2028 (Unit Sales)

Graph-35 India Aerial Platforms Market 2019–2028 ($ MN)

Graph-36 India Construction Equipment Market 2019–2028 (Unit Sales)

Graph-37 India Construction Equipment Market 2019–2028 ($ MN)

Graph-38 India Manufacturing Construction Equipment Market 2019–2028 (Unit Sales)

Graph-39 India Manufacturing Construction Equipment Market 2019–2028 ($ MN)

Graph-40 India Mining Construction Equipment Market 2019–2028 (Unit Sales)

Graph-41 India Mining Construction Equipment Market 2019–2028 ($MN)

Graph-42 India Others Construction Equipment Market 2019–2028 (Unit Sales)

Graph-43 India Others Construction Equipment Market 2019–2028 ($ MN)

Graph-44 FDI Inward Flow ($ BN)

Graph-45 FDI Investment in Construction Sector by value ($ MN)

Graph-46 Import Value of Construction Equipment 2019 ($ MN)

Graph-47 Export Value of Construction Equipment 2019 ($ MN)

Graph-48 Caterpillar, Revenue 2018–2020 ($ BN)

Graph-49 Caterpillar: Sales by Region (% share)

Graph-50 Caterpillar: Total Revenue by Segment 2020 ($ MN)

Graph-51 Komatsu, Net sales 2018–2020 ($ BN)

Graph-52 Komatsu: Breakdown of Net Sales by Segment 2020 ($ BN)

Graph-53 Volvo: Net sales 2016–2020 ($ BN)

Graph-54 Volvo: Sales by Region ($ MN)

Graph-55 Hyundai Construction Equipment: Revenue (2018–2020) ($ MN)

Graph-56 Tata Hitachi Construction Equipment 2018-2020 ($ MN)

Graph-57 Liebherr: Revenue 2016–2020 ($ BN)

Graph-58 Liebherr: Revenue by Segment 2020 (%Share)

Graph-59 Kobelco Net sales 2016–2020 ($ BN)

Graph-60 Zoomlion Net sales 2017-2020 ($ BN)

Graph-61 L&T Construction and Mining Machinery Revenue 2017-2021 ($ BN)

Graph-62 Action Construction Equipment 2019-2022 ($ MN)

Graph-63 Sales by Products in 2019 (%)

LIST OF TABLES

Table-1 Sectors receiving Major FDI Investments 2020(%)

Table-2 Major Countries Investing 2020 (%)

Table-3 India Construction Equipment Market by Volume 2019–2028

Table-4 India Construction Equipment by Type 2019–2018

 Table-5 India Earthmoving Equipment Market Size & Forecast by Type (Volume, Units)

Table-6 India Material Handling Equipment Market Size & Forecast by Type (Volume, Units)

Table-7 India Road Construction Equipment Market Size & Forecast by Type (Volume, Units)

Table-8 India Construction Equipment Market Size & Forecast by End-user (Units)

Table-9 India Construction Equipment Market by Value 2019–2028

Table-10 India Construction Equipment by Type 2019–2018

Table-11 India Earthmoving Equipment Market Size & Forecast by Type (Value, $ MN)

Table-12 India Road Construction Equipment Market Size & Forecast by Type (Value, $ MN)

Table-13 India Material Handling Equipment Market Size & Forecast by Type (Value, $ MN)

Table-14 India Construction Equipment Market Size & Forecast by End-user

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