India’s construction equipment market is set to double in size over the next five years, according to a report by Pune-based industrial consultant Maximise Market Research (MMR).
It will reach $14.3bn by 2030, compared with $7.8bn in 2023, an average annual growth rate of almost 9%, MMR said.
Growth will be driven by government programmes such as Smart City Mission, which aims to upgrade and digitise the country’s infrastructure, and the Pradhan Mantri Awas Yojana initiative to boost urban housing.
Both policies are responses to India’s rapid urbanisation, which is the root cause of rising demand for construction. It’s forecast that 600 million people, or 40% of Indians, will live in towns and cities by 2036, compared with 31% in 2011.
Companies like JCB, Komatsu, Caterpillar and Volvo are set to benefit from this increased demand.
Other global hotspots for equipment makers are Vietnam, now undergoing an infrastructure boom in the transport and power subsectors.
Another is Thailand, which is also experiencing urbanisation and a boom in demand for residential and commercial projects.
In less dynamic markets such as Japan and Europe, the emphasis will be on defensive consolidation and the introduction of technology to lower costs.
In Singapore, one of the main drivers will be low carbon equipment, driven by the government’s tough regulations on sustainability.
For China and South Korea, advances in AI, autonomous control and telematics are expected to lead to increasingly sophisticated ranges. These are expected to include “internet of things” tech that will allow different kinds of equipment to work cooperatively.
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