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    Factors Propelling Expansion of Indian Construction Equipment Segment

    The long-term prospect of India’s construction equipment market seems to be very significant. Let’s consider the factors which will make a difference…
    If the numbers are any truth, then your Earthmoving and Construction Equipment industry in India is expected to grow by 20 to 25 % over the next few years to reach 330,000 to 450,000 models sold in 2020, from present levels of about 76,000 units. This would mean $16 billion to $21 billion market, upward from today’s $3 billion. Further, the sector is expected to be dominated by backhoe loaders, but broad-based growth is expected across products, with each segment likely to see double-digit growth. As a result, the construction equipment firms in India have all the reason to say Cheers!
    Power Tools and Construction Equipment
    Aspects in the favour of development of this equipment segment
    Here is a set of six factors which will propel the forward in future:
    � Demand from end-user industries: Demand from customers from customers will continue to rise due to increased usage of this equipment in traditional end-user industries, including building and mining.
    � Higher adoption in traditional applications: Increased usage of this equipment in traditional software such as digging and soil loading in order to increase the speed will propel the growth of the segment.
    � Demand from new applicatio����ns: Demand for this applications is also expected to grow in new segments such as agriculture which typically faced issued like insufficient access.
    � Growing urbanisation: Urbanisation may also drive the demand for building activities and in turn this equipment segment in order to meet residential, professional and infrastructure development needs.
    � Increased affordability. New players entering the market will make competition stiffer, thereby, causeing this to be machine more affordable. This trend is meant to deepen the markets to cover users with the device needs and previously low entry.
    � Better availability of financing. More financing of this equipment will generate wider use by encouraging customers to choose these machines.
    Future challenges on the way
    � Availability of skilled manpower: Because the construction equipment sector will grow, the need for skilled operators and mechanics increase proportionately and this is likely to be challenging for construction equipment businesses in India.
    � Stiff competitors: The emergence of new construction equipment players in the forthcoming years can make the competition stiff.
    � Need for innovative solutions: With growing awareness, end-users will demand world-class systems for better fuel efficiency, larger productivity and profitability, as a result, this equipment manufacturers will have to come up with innovative answers to meet customer expectations.
    � Resale of used equipment will be difficult: Since, the secondary marketplace for used this equipment is not fully developed in India, the resale of used equipment will be a challenge for the construction equipment manufacturers in the country.
    Despite these few difficulties, the long-term prospect of India’s this equipment market seems to be very significant because of various factors propelling the growth of the segment. Foreseeing large construction activities underway, the development equipment industry is defined to visit a boom in coming days. Building of highways, railways, bridges, ports, residential and commercial building is apparently on the cards of the government and private players and therefore, the construction equipment field is expected to remain bullish about the

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