Notable Trends In The Construction Equipment Industry

Increasing imports from China

• Chinese equipment manufacturer have a strong in some segments like wheel loaders (Market Share -12 Percent), dozers (Market Share- 13 Percent)
• Chinese equipment tends to be price competitive, thereby putting downward pressure on price of domestic equipment manufacturer.

Rising private sector share

• The private sector’s share holders across key infrastructure segments, ranging from road and communication stop power and air ports.
• Of the total planned infrastructure investments worth USD 1 trillion during the 12th five year plan, the share of private sector is estimated to be 47 percent, up from 25 percent during the 10^th five year plan.

Rapidly growing excavator segment

• The share of crawler excavator is estimated to increase 28.95 % by 2018 from the current 18.96 %, mainly on demand for mid-sized crawlers (20 tons) from the construction segment.
• Demand for large excavators (30 tonnes) used in the mining segment is also expected to increase in the year to come.

Equipment rental

• Several Indian firm are entering into tie-ups for equipment rental & leasing business, E.g. – Tie –up between SREI infrastructure BNP Paribas.
• This is expected to drive of equipment in future.
• The market is expected to grow at a CAGR of 15-20 percent 2015.

Customised equipments

• There is demand for equipment’s for niche applications
• The manufacturers have also started giving end to ends solution to cater this demand.