The favorable regulatory norms by Indian government regarding tax benefits for infrastructure ventures is likely to fuel the construction activities in India and anticipated to increase the demand for Earthmoving equipment due to rapid growth in urban infrastructure (due to rising urban population), said the latest report from Global Market Insights.
As per the report, along with India, favorable regulatory norms for infrastructure ventures will also fuel the construction activities in Japan and South Korea and demand for Earthmoving equipment will rise in these countries too.
The Global Market Insights report estimated that the Industrial Machinery Market will grow at CAGR of 5.3% from 2016 to 2024, the market was over USD 485 billion in 2015. The report studied Industrial Machinery include Construction, Mining, Agriculture, Packaging, Food Processing and Semiconductor Manufacturing).
Heavy duty excavators are primarily implemented in heavy construction and mining industries. The rising prevalence of capacity augmentation in cement industry is forecast to catalyze the excavator market growth and thus fuel the industrial Machinery Market size over the timeframe, it said.
As the report expects, the demand for Earthmoving equipment will rise due to rapid growth in urban infrastructure in India, Thus, along with excavator other Earthmoving equipment such as Backhoe loaders, Skid steer loaders, Bulldozers, Motor Graders and others would also see the better sales during the forecast period.
A joint study of PwC-NAREDCO-APREA said, India will require an investment of USD 1 trillion over a period of next 5-7 years to meet the Infrastructure and housing demand. Due to rising urban population in India, a huge housing would require meeting the demand. The urban development under Smart City projects and various urban transport infrastructures like metro rail projects are undergoing in many cities and more are expected in coming years, which would benefit the construction equipment especially an Earthmoving equipment segment.
The technologically equipped industrial machinery products are helping in enhancing productivity as well as efficiency and increasing Research and Development (R&D) in various segments will positively impact industrial machinery market share.
In terms of regional analysis, Asia Pacific contributed to majority of the global revenue in 2015, primarily on account of the significant China industrial machinery market size.
The report projects, the European industrial machinery market share will grow at 4.7% CAGR over the forecast period.
According to the report, key participants represent the global industrial machinery market include Caterpillar, Komatsu, Hitachi, Volvo, Atlas Copco, and Terex.
To make financing easy to own the equipment, many manufacturers offer facilities such as installment loans, operating and financing leases, which offers the option to buyers to own the equipment under lease. Financing or leasing the equipment allows several contractors the benefit to stay on the cutting edge of technology. The report further added, companies continue to make use of multiple options such as rentals, outright purchases, and leasing.
Source: Information has been obtained from Global Market Insights