Factors Propelling Development of Indian Construction Equipment Segment

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The long-term potential for India’s construction equipment market is apparently very significant. Let’s look at the factors which will make an improvement…
If the figures are any truth, then your Earthmoving and Construction Equipment marketplace in India is likely to grow by 20 to 25 percent over the next few years to reach 330,000 to 450,000 units sold in 2020, from present levels of about 76,000 units. This might mean $16 billion to $21 billion market, up from today’s $3 billion. Further, the sector is likely to be dominated by backhoe loaders, but broad-based development is expected across goods, with each segment likely to see double-digit growth. Thus, the construction equipment businesses in India have all of the reason to say Cheers!
Elements in the favour of growth of this equipment segment
Here is a list of six factors that may propel the industry forward in future:
� Demand from end-user industries: Desire from customers will continue to rise as a result of increased use of this equipment in traditional end-user industries, including design and mining.
� Higher adoption in traditional software: Increased use of this equipment in traditional applications such as for example digging and soil loading in order to increase the speed will propel the development of the segment.
� Demand from fresh applicatio����ns: Demand because of this applications is also expected to grow in new segments such as for example agriculture which traditionally faced issued like insufficient access.
� Growing urbanisation: Urbanisation will also drive the demand for building activities and in turn this equipment segment in order to meet residential, commercial and infrastructure development needs.
� Increased affordability. New members entering the market will make competition stiffer, thereby, making this machine more affordable. This trend is supposed to deepen the markets to cover users with the machine needs and previously low entry.
� Better option of financing. More financing of this equipment will create wider use by encouraging customers 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 challenging for construction equipment organizations in India.
� Stiff opposition: The emergence of new design equipment players in the forthcoming years can make the competition stiff.
� Need for innovative solutions: With growing recognition, end-users will demand world-class technology for better fuel efficiency, higher productivity and profitability, consequently, this equipment manufacturers will have to 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 created in India, the resale of employed equipment will be a challenge for the construction devices manufacturers in the country.
Despite these few challenges, the long-term potential for India’s this equipment market appears to be very significant because of various factors propelling the progress of the segment. Foreseeing large construction activities underway, the structure equipment industry is defined to visit a boom in coming days. Development of highways, railways, bridges, ports, residential and commercial building appears to be on the cards of the government and private players and hence, the construction equipment marketplace is expected to remain bullish about the

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