Earth Moving Equipments India Growth Statistics Details
The Prime Minister’s Make in India campaign has proved to be a tremendous boost to the growth of the country and its economy on a whole. Closer home, its effects on the construction equipment industry has proved to be a steroid given the increased spending and investment in the infrastructure sector. After a long down slack, the industry has finally found its growth spurt and is set to fly high. Here is a look at some statistics from various organisations to support the claim.
1. USD 5 Billion is the expected value of the construction equipment industry in India by 2020 owing to increased unit sales and revenue.
2. Rising infrastructure investments mean increased investment in the construction equipment manufacturing and its subsidiary industries.
3. More than 60% of the total investment in infrastructure development will be focused on construction equipment.
4. 7-8% of the national GDP is the contribution of the construction equipment sector on a whole including its sister services.
5. The material handling industry is completely de-licensed under the Make In India campaign paving the way for 100% FDI investment.
6. UDS 24.28 Billion is the cumulative FDI inflow in the Earth moving equipment sector from FY2000-2016.
7. Investment requirement of 1 Trillion USD in the infrastructure sector means heavy demand for earth moving equipments along with other construction equipments.
8. Revenue from construction equipment is expected to reach USD 5 Billion by 2020 growing at a CAGR 2.34% FY 2007-20.
9. The equipment rental business in India is still in its nascent stage and has huge potential to grow similar to the after sales revenue component in the construction equipment industry on a whole.
10. Sale of construction equipment is expected to go up to 96,730 by FY18 due to the heavy investment and demand in the infrastructure sector.
11. CAGR 6.18% is the is the estimated growth rate of sales of construction equipments.
12. 62.1% is the share of the earth moving equipments in the construction equipment industry as a whole.
13. Backhoe loader and crawlers are expected to amount to 70% of the total industry sales and revenue.
14. Crawlers are the fastest growing segment wishing the earth moving equipment sector due to increased demand of mid sized machines.
15. The share of crawler excavators is expected to go up to 35% from the previous 23% in 2015
16. Demand for larger excavators is expected to increase in the tie to come, particularly in the mining industry.
17. Growing demand for rental equipments has led to an increased demand for tie ups and sales of the equipment on a general note.
18. After sales support and end to end solutions as an industry is expected to grow rapidly in the time to come due to the increased demand for niche products.
19. Increased mining activity will mean greater demand for equipments in the coming years.
20. Reduced export duty means increased production and export of low grade iron ore, resulting in a higher demand for equipment.Earth moving equipments as a segment is set to grow on the fast track should we believe the above statistics.