The construction equipment market in India is projected to grow at a compound annual growth rate of 18.52 percent from 2012 to 2016 according to a new research study from Research and Markets. Increasing investment in infrastructure development is one of the key factors, the report said, and an increasing focus on research and development is playing a key role. However, the fluctuation in raw material prices could pose a challenge to the growth of the market.
Key vendors include JCB Excavators, BEML Ltd., Caterpillar, Terex and Elecon Engineering.
“The construction industry in India includes a large number of small construction companies that prefer low-cost products from China,” said an analyst from the team that developed the report. “These Chinese products are priced competitively about 5- to 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. 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, leading to greater demand for equipment.
For more information, visit: http://www.researchandmarkets.com/research/5hbwgs/construction.