Factors Propelling Progress of Indian Construction Equipment Segment

The long-term prospect of India’s construction equipment market appears to be very significant. Let’s look at the factors which will make a difference…
If the amounts are any truth, then the Earthmoving and Construction Equipment marketplace in India is expected to grow by 20 to 25 % over the next couple of years to reach 330,000 to 450,000 systems sold in 2020, from current levels of about 76,000 units. This would mean $16 billion to $21 billion market, way up from today’s $3 billion. Further more, the sector is likely to come to be dominated by backhoe loaders, but broad-based development is expected across items, with each segment expected to see double-digit growth. So, the construction equipment businesses in India have all of the reason to say Cheers!
Elements in the favour of expansion of this equipment segment
Here is a set of six factors which will propel the forward in future:
� Demand from end-user industries: Request from customers will continue to rise due to increased usage of this equipment in classic end-user industries, including design and mining.
� Higher adoption in traditional programs: Increased usage of this equipment in traditional applications such as for example digging and soil loading to be able to increase the speed will propel the expansion of the segment.
� Demand from different applicatio����ns: Demand for this applications is also likely to grow in new segments such as for example agriculture which typically faced issued like lack of access.
� Growing urbanisation: Urbanisation may also drive the demand for structure activities and subsequently this equipment segment to be able to meet residential, commercial and infrastructure development needs.
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� Increased affordability. New competitors entering the market will make competition stiffer, thereby, making this machine less expensive. This trend is meant to deepen the market segments to cover users with the machine needs and previously low gain access to.
� Better option of financing. More financing of the equipment will generate wider use by encouraging users to opt for these machines.
Future challenges on the way
� Availability of skilled manpower: Because the construction equipment market will grow, the need for trained operators and mechanics will increase proportionately and this may very well be a challenge for construction equipment businesses in India.
� Stiff competition: The emergence of new structure equipment players in the forthcoming years can make the competition stiff.
� Dependence on innovative solutions: With growing recognition, end-users will demand world-class technologies for better fuel efficiency, bigger productivity and profitability, therefore, this equipment manufacturers will have to come up with innovative solutions to meet customer expectations.
� Resale of used equipment will be difficult: Since, the secondary marketplace for used this equipment is not fully designed in India, the resale of applied equipment is a challenge for the construction equipment manufacturers in the country.
Despite these few problems, the long-term potential for India’s this equipment market is apparently very significant due to various factors propelling the expansion of the segment. Foreseeing large construction activities underway, the building equipment industry is set to see a boom in coming days. Design of highways, railways, bridges, ports, residential and commercial building appears to be on the cards of the federal government and private players and therefore, the construction equipment business is likely to remain bullish about the