STEP AHEAD Towards New Goals
India is now the third-largest construction equipment market globally and aims to reach second largest soon. In order to achieve this, there is a pressing need to focus on domestic consumption, improved manufacturing of equipment and components, and a significant increase in exports. Construction Times presents the scenario.
India has become home to many global construction equipment players with their cutting-edge solutions fast tracking India’s infrastructure development. Many of them have established manufacturing facilities here to cater the regional and even global market needs. This has also encouraged some of the homegrown brands to expand in the global market. India is the third-largest market for construction equipment globally, after China and the US. As per ICEMA, Indian CE market is expected to reach $25 billion in FY2030 from around $10 billion in 2024. However, the journey will be challenging as the Chinese and the US markets are far ahead of India.
Market dynamics
V G Sakthikumar, Chairman & MD, Schwing Stetter India, adds, “Expanding infrastructure investments have a direct and significant impact on the consistent utilization of construction equipment. With mega projects in roads, railways, metros, and ports underway, the demand for efficient and reliable equipment is at an all-time high. Schwing Stetter India, with its comprehensive portfolio of concreting and construction machinery, ensures that project timelines are met with precision and productivity.”
“India’s rapid infrastructure growth, driven by expansion in construction and mining, continues to fuel demand for specialized vehicles that support efficient excavation and material transportation essential to these sectors. As the country’s largest commercial vehicle manufacturer, Tata Motors offers a robust product portfolio, including state-of-the-art tippers, and ready-mix concrete (RMC) transportation solutions—all engineered to deliver high productivity, low operating costs, and superior fuel efficiency across applications critical to aid India’s infrastructure development. We have also showcased a range of alternate fuel powered tippers and tractors contributing to a greener tomorrow,” says Rajesh Kaul, Vice President & Business Head – Trucks, Tata Motors.
“The industry also faces challenges such as fluctuating raw material costs and a need for more skilled labour. Despite these hurdles, the market remains dynamic and promising, with increasing adoption of advanced technologies and sustainable practices to meet the evolving needs of modern infrastructure,” adds Prasanta Ganguly, Head – OTR Marketing (Domestic Sales), Balkrishna Industries Ltd.
Technology leads
Currently, OEMs are working on development of construction equipment powered by alternate fuels such as hydrogen, CNG, methanol, bio-diesel and hybrid technologies to reduce emissions. Further, electrically powered CEVs have also been developed on fast track, by most of the OEMs. In line with this, Rajiv Chaturvedi, Vice President, HD Hyundai Construction Equipment India, adds, “HD Hyundai’s focus on fuel-efficient engines, advanced cooling systems, and auto-idle features results in significant savings on operational costs, especially for long-term projects. This is very important for our customer to keep a check on the project cost.”
Make-in-India push
Dimitrov Krishnan, Managing Director, Volvo CE India, points out, “By localizing production, we can respond swiftly to market demands, ensuring that our equipment is tailored to meet the specific needs of Indian projects. This approach supports the growth of India’s construction and mining sectors, fostering technological advancements while aligning with broader economic goals.”
“For ACE, being a 100% Swadeshi company, Make-in-India is more than just a vision; it’s embedded in our core system & processes. We have been heavily investing in local talent, partnerships, and technologies to produce equipment that meets global standards right here in India,” asserts Manish Mathur, CEO – Cranes, Action Construction Equipment (ACE).
“From a strategic perspective, local manufacturing under Make in India can significantly streamline equipment availability. By reducing dependency on imports, we can ensure a more reliable and consistent supply chain for critical machinery, especially for large-scale infrastructure projects where timelines and quality control are key. Moreover, domestic production also addresses the specific need of Indian construction projects, which often require equipment to suit local conditions, terrain and work practices,” says SP Rajan, VP & Head – Competency Centre RBF SBG, L&T Construction.
“Enhancing local manufacturing of components and aggregates in India is critically important for several reasons, particularly in the context of the rapidly evolving construction equipment industry. The construction sector is a cornerstone of India’s infrastructure development, and the growth of this sector heavily depends on the availability and affordability of high-quality components and aggregates,” says Anil Ghegade, Sr. Director, Danfoss India Innovation Center. There is a shift towards localized production of both equipment and components, which is not only improving supply chain resilience but also making the sector more competitive globally.
Focus on export market
“Several OEMs including Tata Hitachi manufacture and export a wide variety of construction equipment to the global markets ranging from the Middle East, Africa and SAARC Nations. However, several challenges remain from a rapid and unprecedented increase in input costs, supply side disruptions due to freight delays, high freight costs, vessel uncertainty induced by the pandemic as well as recent disruption from the Russia-Ukraine conflict,” says Siddharth Chaturvedi, General Manager - Marketing, Tata Hitachi.
Future – Aiming a new high
“India’s path to becoming the world's second-largest CE market reflects our infrastructure sector's remarkable potential. This transformation demands a shift from traditional equipment supply to comprehensive technology-driven solutions that enhance operational efficiency and sustainability. As someone partnering in this journey, I see how digital integration, predictive maintenance, and skilled workforce development are becoming crucial differentiators. By focusing on these elements while strengthening our domestic manufacturing capabilities, we're not just growing our presence - we're building a more resilient and innovative construction equipment ecosystem,” says Chandrashekar V, Managing Director and CEO, Gmmco.
“CASE Construction is preparing for this growth by investing in research & development to create innovative products tailored to the Indian market. We are expanding our product offerings and leveraging advanced technologies like telematics to improve equipment efficiency and minimize downtime, ensuring our solutions meet the diverse needs of infrastructure projects across the country,” says Shalabh Chaturvedi, Managing Director, CASE Construction Equipment – India & SAARC region.
“India is already the third largest CE market globally, and with government’s strong impetus on infrastructure development and increased capex for the same, is boosting the demand for CE Industry. Along with the domestic growth, the international demand is also showing an impressive growth, and we are hopeful that India will soon be the 2nd largest market globally, owing to the demand of infrastructural domains across sectors,” adds Kalpesh Soni, Vice President, KYB Conmat.
“Indian construction equipment industry has witnessed steady growth over the past decade. The demand for construction equipment is expected to grow in line with expansion of infrastructure, industrial, mining and real estate developments in India,” says Sundaram Iyer, Managing Director, OLI Vibrators India.
"The Indian construction equipment industry stands at an inflection point, with significant opportunities ahead. While challenges such as cost pressures and environmental compliance persist, advancements in technology, and strong demand across sectors, paint an optimistic picture for the future," says Ranjeet Manjarekar, Vice President - Asset Management, Tata Projects.
While Indian CE industry aims to step further ahead, the journey will be challenging but not impossible, with the support of policy initiatives in manufacturing, enhancing productivity and sustainability, and increasing exports in the coming years.