29 March 2020

Table of Contents for Equipment Sphere

Equipment Sphere

Growth bound


Two separate reports on the Construction Equipment market in India have predicted busy times for the players with the current government having an infrastructure development agenda in place.


Construction Equipment Market in India, 2014, a report released by Research & Markets captures the largest segment of the overall domestic construction equipment market. Construction comprises the second largest sector within the Indian economy.


The domestic construction equipment market is expected to witness dynamic growth in the near future owing to government investments in infrastructure, coupled with the rapid expansion of the real estate sector.


The market is expected to display immense growth prospects due to the increased number of housing projects in recent years. The growth in the Indian mining industry has also translated into an exponential demand for construction equipments in India. However, scarcity of land for infrastructural development hinders the growth of the market.


The market is also facing the impact of inflation in terms of hike in prices of raw materials. High costs of crude oil push up the price of fuel which cuts into the profits of end users and leads to a reduction in the demand for equipments.  Players in the market are focusing on application of latest technologies in the manufacture of construction equipments to generate higher sales. The players are also focused on expansion and are forging technical alliances with a view to acquiring a greater share of the market. Several government and industry bodies are working towards the development of the market.


The government has also taken several initiatives to ban the import of second – hand construction equipment. Huge investments are being made in all sectors in the infrastructural space to ensure rapid market growth over the next few years.


Spanning over 199 pages, the report called “Construction Equipment Market in India, 2014” focuses on areas like  macroeconomic indicators, market overview, construction equipment segments,  product and sector wise demand, drivers and challenges, government initiatives, trends, opportunity areas, recent development, competitive landscape and strategic insights.  The companies covered under the report are: Action Construction Equipment Ltd., BEML Ltd., Brady & Morris Engineering Company Ltd., Cranex Ltd., Escorts Ltd., Greaves Cotton Ltd., Gujarat Apollo Industries Ltd., Hercules Hoists Ltd., Mukand Ltd., Sanghvi Movers Ltd., Sancia Global Infraprojects Ltd., Voltas Ltd., Caterpillar Inc., Doosan Corporation, Sany Heavy Industry Company Ltd., Terex Corporation, J C Bamford Excavators Ltd.


Meanwhile another report by Roland Berger Strategy Consultants has indicated that India's construction equipment market, though small by global standards, is extremely competitive with players operating under different strategies.


"The market is expected to grow at 12 per cent CAGR to USD 4 billion by 2017, which will be driven by infrastructure investment of  $1 trillion during the 12th Five Year Plan," the firm’s Managing Partner Wilfried Aulbur has been quoted as saying "Burgeoning real estate industry, increasing coal production and mechanisation of mining operations, will aid the growth in the country's equipment industry. India is expected to see more competition among the existing players in this segment with an aggressive growth strategy."  


For the country to grab a 10 per cent share of the global market construction equipment players would have to take strategic actions, designing and building equipment in lines with the growth requirements of the country. It would also necessitate a focused export business approach by original equipment manufacturers," Aulbur said.


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