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 figures are any truth, then the Earthmoving and Construction Equipment market in India is likely to grow by 20 to 25 % over the next few years to reach 330,000 to 450,000 models sold in 2020, from existing 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 expected to become dominated by backhoe loaders, but broad-based expansion is expected across goods, with each segment expected to see double-digit growth. As a result, the construction equipment companies in India have all of the reason to say Cheers!
Components in the favour of growth of this equipment segment
Here is a list of six factors that will propel the forward in future:
� Demand from end-user industries: Demand from end users will continue to rise as a result of increased usage of this equipment in conventional end-user industries, including design and mining.
� Higher adoption in traditional applications: Increased usage of this equipment in traditional software such as for example digging and soil loading so as to raise the speed will propel the growth of the segment.
� Demand from fresh applicatio����ns: Demand for this applications is also expected to grow in new segments such as agriculture which typically faced issued like lack of access.
� Growing urbanisation: Urbanisation may also drive the demand for structure activities and in turn this equipment segment in order to meet residential, professional and infrastructure development needs.
� Increased affordability. New people entering the market will make competition stiffer, thereby, making this 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 create wider use by encouraging users to opt for these machines.
Future challenges on the way
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� Availability of skilled manpower: Because the construction equipment market will grow, the need for qualified operators and mechanics will increase proportionately and this may very well be a challenge for construction equipment businesses in India.
� Stiff opposition: The emergence of new construction equipment players in the on its way years can make the competition stiff.
� Need for innovative solutions: With growing awareness, end-users will demand world-class engineering for better fuel efficiency, higher productivity and profitability, hence, this equipment manufacturers must come up with innovative answers to meet customer expectations.
� Resale of used equipment will be difficult: Since, the secondary market for used this equipment isn’t fully designed in India, the resale of utilized equipment is a challenge for the construction equipment manufacturers in the country.
Despite these few problems, the long-term prospect of India’s this equipment market is apparently very significant because of various factors propelling the expansion of the segment. Foreseeing large construction activities underway, the building equipment industry is defined to visit a boom in coming days. Design of highways, railways, bridges, ports, residential and commercial building seems to be on the cards of the federal government and private players and hence, the construction equipment business is expected to remain bullish concerning t