Published at December 5, 2024 by InfraJunction
CHENNAI: India's construction equipment industry has recorded its highest year-on-year growth in the April to October 2024 period. The surge is driven by increased government spending on infrastructure and a significant rise in exports.
According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), the industry achieved cumulative sales of 73,845 units, combining domestic and export figures. This marks an increase from 71,235 units during the same period in 2023 and 55,832 units in 2022. The jump represents a 32% increase from H1 2022.
Exports have shown strong growth year-on-year, increasing from 4,139 units in H1 2022 to 6,722 units in H1 2023, and reaching 7,348 units in H1 2024.
Key Metrics | 2022 (H1) | 2023 (H1) | 2024 (H1) |
Total Units Sold (Domestic + Exports) | 55,832 | 71,235 | 73,845 |
Exports (Units) | 4,139 | 6,722 | 7,348 |
The H1 demand trend is significant, as April to October is typically a slow period for the industry. This year, it was especially sluggish due to the general elections and the monsoon season in Q2.
V Vivekanand, President of ICEMA and Managing Director of Caterpillar India, said, “H2 is when demand picks up. So, we expect the industry to do much better in the November to April period.”
He also mentioned, “Domestic demand has been fuelled by the govt’s infrastructure spending which has been going up year-on-year. In the past, one or two segments in the industry would perform better but in the last couple of years almost all five segments – road construction equipment, earthmoving equipment, concrete equipment and material handling and material processing equipment – are showing growth because of a wide variety of multi modal projects.”
In H1 2024, the road construction equipment segment grew 5% year-on-year (YoY) and 65% compared to H1 2022. The earth moving segment increased by 7% YoY and 31% compared to H1 2022. The concrete segment saw a 1% YoY rise and an 18% increase compared to H1 2022. Material handling declined 12% YoY but grew 55% compared to H1 2022. The material segment dropped 4% YoY but saw a 1% increase compared to H1 2022.
Segment | H1 2024 YoY Growth | H1 2024 Growth vs. H1 2022 |
Road Construction Equipment | +5% | +65% |
Earthmoving Equipment | +7% | +31% |
Concrete Equipment | +1% | +18% |
Material Handling | -12% | +55% |
Material Processing | -4% | +1% |
Industry experts highlight that a key driver of growth in the construction equipment (CE) sector has been the rise in exports. According to Vivekananad, “With Indian regulations merging with global emission and safety standards, we are on a par with global markets and have been exporting to 120 countries all over the world, not just emerging markets as we were before.”
Starting January 1, 2025, India’s construction equipment (CE) industry will adopt Stage V emission norms. “A vast majority of manufacturers have already started aligning,” he further added.
More importantly, with the China-plus-one strategy gaining traction, “global opportunities have opened up as China has been a major manufacturer of CE for the world,” he further added.
ICEMA expects export growth to continue. He also stated that, “Just five years ago it was less than half a billion dollars and this year we should be very close to a billion dollars.”
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