Positive signs: India’s construction machinery market remains on growth path
The upward trend in the Indian construction machinery market continues. Main driving force are the country's high infrastructure investments. This year, the industry will meet at bauma CONEXPO INDIA in Delhi from December 11 to 14. Many key industry players already confirmed their participation.
The Indian construction machinery market is still on an uptrend: after an exceptional gain of 34 percent in 2016, the German Engineering Federation (VDMA) determined a still very considerable growth of twelve percent for 2017. "And also the start of 2018 was extremely positive, as the first months witnessed a strong sales performance, " reports Sebastian Popp of the Construction Equipment and Plant Engineering Association in the VDMA. The Indian Brand Equity Foundation (IBEF) provides an indicative value here. Established by the Indian Ministry of Commerce and Industry to promote the international brand and location marketing activities, the trust estimates that in the Indian fiscal year of 2018—i.e. from April 2017 until March 2018—almost 97, 000 construction machines were sold throughout the country.
Biggest ever highway development plan approved
In general, things are looking good for the second most populous nation after China worldwide. Looking at the World Economic League Table 2018 published by the Centre for Economics and Business Research, India will overtake the United Kingdom and France in terms of the gross domestic product to move two places up and become the world's fifth largest economy in 2018.
The development in the construction machinery market is mainly driven by the state's massive infrastructure expansion. According to the British market research company Off-Highway Research this expansion is a top priority for the Indian government that monitors all projects at highest level to overcome potential obstacles as quickly as possible. At the very top of the agenda is road construction. In October 2017, the Indian politicians therefore approved the biggest ever highway development plan to develop and expand almost 84, 000 kilometers of roads at an investment of USD 107 billion by 2022. Money that will also boost further sales of construction machines.
Strong market growth for bulldozers
Off-Highway Research for example believes that the sale of bulldozers in India will increase by more than 25 percent over the next five years. According to the experts quite a few foreign companies managed to conquer significant market shares, competing with the domestic and dominating bulldozer manufacturer BEML. Also the real estate market—primarily housing—sends out positive signals: IBEF assumes that it will grow from an estimated USD 126 billion in 2015 to USD 180 billion in 2020.
In the Indian construction machinery market, crawler excavators and backhoe loaders remain a mainstay. According to IBEF these two types are expected to account for 68 percent of the units sold in 2018. With an increase of almost six percent over 2015, crawler excavators are estimated to yield the highest growth rate.
Many key industry players registered with bauma CONEXPO INDIA
To participate in the growing Indian market also in the future, many major companies in the global construction machinery industry—such as Action Construction Equipment, Bauer, Hyundai, KYB-Conmat, Manitou Equipment India, Puzzolana, Schwing Stetter India, Volvo India, Wacker Neuson and Wirtgen India—already registered with bauma CONEXPO INDIA. The trade fair for construction equipment will be held from December 11 to 14, 2018 at the HUDA Ground in Gurgaon/Delhi.
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