One of the key factors contributing to this market growth is the increasing investment in infrastructure development, according to Dublin-based market research company Research and Markets in its report, Construction Equipment Market in India.
The construction equipment market in India has also been witnessing an increasing focus on R&D, but the fluctuation in raw material prices could pose a challenge to the growth of this market, it says.
The report has been prepared based on an in-depth market analysis with inputs from industry experts. The report covers the landscape of the construction equipment market in India and its growth prospects in the coming years in India. The report also includes a discussion of the key vendors operating in this market.
The Construction industry in India includes a large number of small construction companies, which prefer low-cost products from China. These Chinese products are priced competitively about 5-10 percent cheaper than the Indian construction equipment products. Chinese equipment manufacturers have a strong presence in some segments such as Wheel Loaders and Dozers, where they hold a market share of more than 10 percent. Therefore, due to the availability of low-cost products from Chinese vendors, the Construction Equipment market in India is witnessing an increase in imports of construction equipment from China.
According to the report, one of the major growth drivers in the market is increasing investment in infrastructure development. The Government of India is increasing its investment in infrastructure development to provide better roads and bridges across the country. This has led to an increase in the demand for construction equipment in the country.
Further, the report states that one of the major challenges in the market is fluctuations in raw material prices. The prices of the major raw materials used for manufacturing construction equipment are volatile and tend to increase year-on-year, posing a negative impact on the profit margin of vendors.
The study was conducted using an objective combination of primary and secondary information including inputs from key participants in the industry. The report contains a comprehensive market and vendor landscape in addition to a SWOT analysis of the key vendors.