The Government of India bulldozed COVID-19 roadblock and achieved a record 13,298 km of highways were constructed in the financial year, as against around 10,240 km in FY20, which made for ~30% y-o-y growth and a pace of 36.4 km/day. On the award front, 10,467 km of projects were awarded in FY20-21, up ~17% over 8,948 km in the preceding year. A host of industry-friendly measures taken by the government including measures to boost liquidity and relaxation in norms for bidders is anticipated to propel construction pace and take the daily construction rate of roads and highways to 40 km/day mark in FY21-22. Over the last seven years, the total length of India’s National Highways has gone up from 91,287 km (April 2014) to 1,37,625 km, (20 March 2021), an increase of 50%, the road ministry has said. Average annual project awards in the FY15-21 period witnessed a growth of 85% over the FY10-14 period. Overall, with an 18% CAGR growth between 2013-14 and 2020-21, the real pace in construction picked up since 2015-16 both in terms of highways constructed in total and construction per day.

In union budget, 2020-21, the highest-ever capital outlay of Rs 1.18 trillion were allocated for roads & highways, more than 13,000 km of roads, costing Rs 3.3 trillion, are awarded under the Rs 5.35-trillion Bharatmala Pariyojana project. By March 2022, another 8,500 km of projects are likely to be awarded and an additional 11,000 km of highways are slated to be completed. NHAI has planned to award projects worth around Rs 2.25 lakh crore in the current fiscal, as against projects worth Rs 1.71 lakh crore in 2020-21. Exceeding the 4,500-km target, the NHAI awarded 141 projects totaling 4,788 km in length in 2020-21.

With continuous urbanization, upcoming infrastructure projects, and a growing population base, the construction industry in India is booming. With huge ongoing project opportunities, it is the third-largest contributor to economic growth. Moreover, the industry employs more than 40 million people and has a large pool of low-cost workers. Besides, various governmental flagship programs like ‘Housing for All’, ‘Make in India’ and ‘Atal Mission for Urban Rejuvenation and Transformation’ (AMRUT) will further drive growth. Owing to these efforts and the government’s will to increase public-private partnerships with foreign companies, it is expected to attract more foreign investment. COVID-19 has badly hit the construction industry and the second wave again threatens to inhibit the recovery. It is estimated that most of the construction sites are running at 60% of their run rate. As per the industry body, at present, there are close to 20,000 ongoing construction projects at the pan India level. The construction industry GVA share accounts for 7.3% in FY18.

The infrastructure and construction sectors are highly responsible for propelling India’s overall development and with intense focus from Government for initiating policies that would ensure time-bound creation of world-class infrastructure in the country. Some of the marquee investment plans as announced by the Government of India and that promises upswing in demand for construction equipment are as below

  • India plans to spend US$ 1.4 trillion on infrastructure in the next five years.
  • The Indian Railways received allocation under Union Budget 2019-20 at Rs 66.77 billion (US$ 9.25 billion). Out of this allocation, Rs 64.587 billion (US$ 8.95 billion) is a capital expenditure.
  • Rs 83,015.97 crore (US$11.51 billion) allocated towards road transport and highway.
  • Rs 3,899.9 crore (US$ 540.53 billion) to increase the capacity of Green Energy Corridor Project along with wind and solar power projects.
  • Allocation of Rs 888.00 crore (US$ 110.88 million) for the up-gradation of state government medical colleges (PG seats) at the district hospitals and Rs 1,361.00 crore (US$ 188.63 million) for government medical colleges (UG seats) and government health institutions.

InfraInsights is of the view that despite the blow due to COVID-19 spread across the world, the growth in the construction sector in India is inevitable as the infrastructure is developed in the country will be in progress for at least the next 20-25 years. regular fund flow from the central government has supported demand from the National Highways Authority of India (NHAI), Pradhan Mantri Gram Sadak Yojana (PMGSY), irrigation projects, and rural infrastructure will ensure that the demand environment for construction equipment like Backhoe Loader, Hydraulic Excavator, Road Compactor, Asphalt Finisher, Motor Grader, Mobile Cranes, etc. In order to ascertain this view, InfraInsights has initiated research on the construction equipment sector and the report is aimed to provide data, information, analysis, and insights, driven from detailed primary research. The report will provide, detailed portfolio analysis of different equipment supplied by different OEMs, current demand and projected demand, usage thumb rules across different industries, demand for equipment under lease model, etc.

  1. Executive Summary
  2. Research Approach & Methodology
  3. Construction Equipment market & application landscape
  4. Construction Activity in India
  5. Key Market Trends
  6. Construction Equipment Market in India in FY20 & FY21 [Equipment to be covered: Backhoe Loader, Wheel Loader, Excavator, Tipper Trucks, Motor Grader, Asphalt Finisher, Soil Compactors, Mobile Cranes]
    1. Market by Equipment Type
    2. Market by OEMs
    3. Market by Domestic Vs Imports
    4. Market by Region
    5. Market by Direct Vs Channel
    6. Market by Leaser Vs Own
    7. Market by end use segment
  7. Construction Equipment Usage Norms for Different Industries
    1. Realty
    2. Roads & Highways
    3. Railways
    4. Metros
    5. Irrigation
    6. Dams
    7. Pipeline
    8. Dredging
    9. Power
  8. Key Variables Influencing Demand for Construction Equipmen
    1. Impact of COVID Second Wave on Construction Sector
    2. Investment & construction activity across key sectors
    3. Government Push to Infrastructure
    4. Aging of construction equipment fleets in major EPC companies
  9. Estimating Demand for Construction Equipment by 2024-25
    1. Scenarios: High Growth Scenario, Low Growth Scenario, Realistic Growth Scenario
    2. By equipment
    3. By end use segment
    4. By regions
  10. Market Competitiveness Assessment of Key OEMs
  11. Procurement Practices of Large EPC, Rental Companies & Small Contractors
  12. Market for Financing of Construction Equipment
  13. Construction Equipment Portfolio Analysis of Key Companies
  14. Evaluating the New Product Launch in India Market
  15. Imports of Construction Equipment in India

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