Earthmoving Equipment_ProjectsMonitor

The global heavy construction equipment market, which comprises earthmoving, material handling, construction vehicles and others, is expected to reach $195 billion by 2018, growing at a CAGR of 8.3 per cent from 2013 to 2018, M&M, a global market research company and consulting firm, has predicted.

The major factors that are likely to propel growth of the sector include a continuous increase in demand for new infrastructure and residential buildings due to growing population, and high construction and public infrastructure growth, especially in emerging markets like India and China. However, the high cost of the market is one of the key concerns in the heavy construction equipment industry.

“The long-term prospects of the Indian earthmoving and construction equipment industry are strong given the increasing demand for world-class infrastructure. However, currently, we are witnessing a decline in the demand due to somewhat global economic slowdown but this is largely self-inflicted,” Vipin Sondhi, Managing Director and CEO, JCB India Ltd, told Projectmonitor.

Earthmoving Equipment_ProjectsMonitorHeavy construction equipment forms the backbone of construction and mining projects as it reduces human effort and time. The market has contributed to the rapid development of infrastructure development. It includes earthmoving equipment (excavators, loaders, backhoes, graders and motor graders, and others); material handling equipment (cranes, telescopic handlers and others); construction vehicles (dumpers, tippers and trucks); and others (compactors and road rollers, pavers and asphalt finishers, and others). This equipment is widely used in infrastructure projects, mining, and commercial and residential construction.

In India, the total market for heavy-duty trucks in the first six months of 2013 declined by 31 per cent to 75,148 trucks following a slowdown in the economy and decreases in fuel subsidies. However, demand is expected to pick up and the outlook for the total market for heavy-duty trucks in India is 160,000 trucks in 2013 compared with 185,000 trucks in 2012, Volvo Group said in its interim report on second quarter of 2013.

The total Indian market for medium-duty trucks is expected to reach a level of about 85,000 trucks in 2013 compared with 94,000 trucks in 2012.

“We believe that the global construction equipment market will see growth rebound slightly in 2013,” Hyundai Heavy Industries Co. Ltd, a major player in heavy construction equipment, noted in its annual report 2012.

According to HHI, the arrival of a new generation of leaders in China is expected to boost government investment in infrastructure while the US economic recovery looks to pick up speed in the second half of the year. Key emerging markets in Russia and Africa are projected to steadily expand infrastructure investment. Likewise, Brazil is also expected to become an even more important market due to major infrastructure projects related to its hosting of the world’s top two sporting events within the next four years. The ongoing economic challenges that Europe faces make it unlikely that major equipment market will recover in the near future.

“We aim to boost our market share in India from No.3 to No.2 by stepping up marketing and delivering equipment specifically designed to meet the needs of this market with huge growth potential,” said HHI, which has a major presence in India.

Apart from JCB, Volvo CE and Hyundai Heavy Industries, other key players in the industry include Caterpillar, Komatsu, Hitachi Construction Machinery Co. Ltd and John Deere & Co.

Print pagePDF pageEmail page