Due to rising infrastructure development in the country, Indian Construction Equipment industry is expected to grow over 20% to 58,465 machines in 2016, said a latest report of Off-Highway Research, a global research firm of construction and agricultural equipment markets.
Sales of construction equipment in India grew over 37% in the first six months (Between January and June) of 2016 when compared to the same period last year, said its specialist consultant and market forecasting study.
The sale of construction equipment could rise during this period, as Indian government has increased its infrastructure investment, especially in road and railways and actual construction work has resumed on the ground. Last month, government has informed the Parliament that Ministry of Road Transport and Highways had approximately awarded projects worth Rs 2 lakh crore in last two years.
Off-Highway Research’s report further says, Indian Construction Equipment market has witnessed a turnaround over the last 18 months, with sales falling to a low of 47,889 units in 2014, before enjoying a small increase in last year (2015). On the back of infrastructure investment, sale of CE products is expected to surge over 20% in 2016. It is also expected to sustain market (CE) growth for the next four years, albeit at more sustainable levels, it said.
“Infrastructure development is a key economic driver and enjoys an intense government focus that should accelerate demand for construction equipment in the country. India needs an estimated investment of INR 31 trillion (US$ 465 billion) over the next five years to keep pace with its growth targets, of which over 70% would be needed for power, roads and urban infrastructure segments. The total budgeted outlay for the infrastructure sector for fiscal year ending March 2017 is INR 2.2 trillion (US$ 33 billion),” said Off-Highway Research in its report.
It is projected, sale of construction equipment likely to rise to 73,595 units in 2020, if it touches this number, and it would break previous high of 67,898 units sold in 2011.
According to report finding, Backhoe loader is extremely popular machine in India and around 24,500 units expected to be sold this year alone and it represents 42% of the market in volume terms. Off-Highway Research believes the strongest long-term growth prospects are in the crawler excavator segment in India, it is projected to double in size between 2015 and 2020 to 22,000 units per year.
Source: Information has been obtained from Off-Highway Research