The construction equipment industry foresees a very buoyant trend in earthmoving equipment in the next five years. As per off-highway research projections, crawler excavator will witness the highest growth rate, and will catch up with backhoe loader with annual sales of 40,000 units in 2016

Growth Prospects of CE: The construction equipment industry’s performance is directly linked to investment in infrastructure, which is high-priority in India.

The construction equipment industry will grow in tandem with the infrastructure sector. Major international players of industry are present in India and have set up their manufacturing bases. Investment in roads and highways is a major boost for construction equipment. Mining, bridges, ports, airports, dams and real estate are also expected to boost the requirement of CE.

Fastest Moving Classes of Excavators: The 20T excavator is fastest moving class among excavators. They comprise 60% of the total Indian excavator market. This is because they perfectly fit in, as per productivity requirements, availability of matching haulage equipment, and ease of availability of transporting units.

First-Time Buyer: Backhoe Loader (BHL) v/s the Excavator: Many first-time buyers opt for BHL, as the price of an excavator below 10T is 50% more than that of BHLs. Moreover, first-time buyers to continue to go for backhoes because of the versatility of the machine. The backhoe loader is popular because of its multitasking ability, while the excavator is a specialised machine. So BHLs gain preference with first-time buyers because of better return on investment.

Technical trends – Mid-sized excavators: The focus is on whole life costs, which include increasing fuel efficiency, lower maintenance costs and higher performance, as there is pressure on margins due to higher fuel costs. The latest technology machines have electronically controlled engines, electronic monitoring and control systems with automatic mode selection. Besides these, operator comfort and friendly features are also gaining attention.

Conclusion: While the market is growing, the number of manufacturers have also increased, thereby bringing the best of the technology to Indian customers. Customers will certainly benefit, but it will be challenging in terms of the earnings per product, as there remains pressure on equipment pricing.


About the author

Rohit Chaturvedi is the Managing Director of Expand in India, a venture that provides business advisory and execution services to companies eyeing business expansion opportunities in India.

An alumnus of Indian Institute of Management, Lucknow, Rohit has previously worked for well-known multinational companies, including DuPont and Schneider Electric.


Note: The views expressed in this blog are the author's own expert opinions, and do not necessarily reflect the official policy or position of RCPC and its employees. RCPC cannot be held responsible for the use which may be made of the information contained therein.

https://www.youtube.com/watch?v=QiZb877MwDI

You may also like

Leave a comment