Construction equipment consists of backhoe loaders, crawler excavators, mobile cranes mobile compressors, compaction equipment, tower cranes and wheeled loaders. Their sales are mostly driven by investment in the infrastructure sector and other core sectors like coal, cement, power and residential high towers. Indian construction equipment industry is highly competitive with global players, with the market growing at a CAGR of 10%.
Some of the issues with the sector are limited access to long-term finance, inflation and regulatory framework (as in the case of bank guarantee etc.,) and speedy dispute resolution. In India, the most popular equipment is the back-hoe loader which holds a 37% market share and is dominated by JCB.
Indian Construction Equipment market is set to expand with focus on infrastructure programme of the new government. According to experts, around 46000 units are expected to be sold in 2016, compared to 39000 units in 2015, an increase of roughly 20%. Another estimate put the number of equipments at 80000 by the year 2019. There will be a demand on special products like all-terrain fork lifts, mini-excavators which are sold in few numbers, will also be in demand due to increasing needs. Around 50,000 bridges in the country are technically obsolete and new road laying of 13kms per day will push up the demand sooner or later.