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Construction Equipments: Nov 2012

November, 2012

Demand for construction equipment is expected to increase to US$ 4.1 billion by 2014 from US$ 1.8 billion in 2009, a compound annual growth rate (CAGR) of 17.9 per cent. Sales for top six listed construction equipment companies in India rose at a CAGR of 14.6 per cent over the last four years (FY08-11). With infrastructure investment set to go up, demand for construction equipment will rise further.

Earth moving equipment is the largest segment of the construction equipment sector in India; these equipment primarily find use in mining and construction. Equipments include backhoe leaders, excavators, wheeled loaders, dumpers/tippers and skid steer loaders.

Roadways in particular is a key focus area of Government policy and investments in the sector will drive demand for road building and construction equipment. The corresponding investment figure during the Eleventh Five year plan (2007-2012) for roads is US$ 65.4 billion.

Government of India's focus on infrastructure development is the biggest driver for the construction equipment industry. The Union Budget (2011-12) has allocated US$ 44.6 billion to the infrastructure sector.

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