India Construction Equipment Market Size (2024 - 2029)

India Construction Equipment Market Analysis

The India Construction Equipment Market size is estimated at USD 7.30 billion in 2024, and is expected to reach USD 10.90 billion by 2029, growing at a CAGR of 8.30% during the forecast period (2024-2029).

Improvement in road construction infrastructure, increasing urbanization rate, and higher investment to boost infrastructure activities serve as the major determinants for the growth of construction equipment in India. With better road transportation infrastructure and a rise in urban population, there exists a greater demand for convenience in personal mobility, healthcare, sanitation, and water supply, among others, which in turn contributes to the boosting demand for construction equipment, attributed to the growth in the construction sector across India. For instance,

The urban population as a percentage of the overall population in India stood at 36% in 2022, compared to 34% in 2018. As more consumers shift to urban spaces for better employment and financial opportunities, various states must enhance their transportation infrastructure to adapt to the growing urban population, which would, in turn, positively impact the construction equipment market in India.

Coupled with that, the government's investment in developing an efficient road connectivity infrastructure propels the demand for construction equipment market in India owing to the rise in construction activities. In June 2023, the Ministry of Highways and Transport notified that the total length of the national highways in the country increased by about 59% in the last nine years. The total length of National Highways stood at 91,287 km in 2013-14, which increased to 1,44,634 km as of 30 November 2022. Rapid improvement and investment in enhancing national highway infrastructure assist in the surging demand for advanced construction equipment products in India.

One of the major challenges faced by the industry is the increasing demand for rental construction equipment, which hinders the growth of new construction equipment sales. The purchase of this equipment is an expensive affair. Therefore, construction contractors prefer to avail of rental services rather than invest in expanding their construction equipment fleet. Further, the cost for replacement and maintenance is exorbitantly high, which leads to various construction companies renting these machinery rather than purchasing new equipment.

However, with the integration of technologically advanced products in the market and advancement and the growth in the real estate sector anticipated in the coming years, the demand for construction equipment to witness a rapid surge. The government of India's Housing for All 2022 initiative is expected to bring USD 1.3 trillion in investments in the housing sector by 2025. Further, the Pradhan Mantri Awas Yojana (Urban) [PMAY (U)] scheme is expected to push affordable housing and construction in the country and give a boost to the real estate sector. Substantial investment in the real estate sector will drive higher demand for the construction equipment market in India for renovation and new building construction activities.

India Construction Equipment Industry Segmentation

Construction equipment refers to machines or devices drawn as trailers designed and used for construction, tree trimming, and allied construction activities. The construction equipment market consists of a wide range of companies involved in designing, manufacturing, and selling construction machinery to its end users across India.

The India construction equipment market is segmented by equipment type and drive type. By equipment type, the market is segmented into earthmoving and road construction equipment (excavator, backhoe loader, wheeled loader, motor grader, and others), material handling equipment (crane, forklift & telescopic handler, and others), concrete equipment (asphalt finishers, transit mixers, and others), and material processing equipment (crushing equipment). By drive type, the market is segmented into hydraulic and electric/hybrid.

The report offers market size and forecast value (USD) for all the above segments.