Construction industry is one of the key Industries which contribute around 7% to 8% for GDP and giving direct and indirect employment more than 33 million people. The industry would grow around 5% in 2013-14 compare 5.9 per cent in 2012-13. Construction accounts for more than 60 per cent of the total investment in infrastructure project.
In BRIC countries China is biggest market for construction equipment. Catalyzed by the recent developments, Brazil has become the most attractive market. Russia is going thru a tough economic patch; it is least attractive market in this segment. India is still one of the biggest market however currently it going thru slowdown which impact its growth.
Construction Equipment are the major tools for the industry. Backhoe loader, Crawler Excavator and Mobile cranes are top three segments.
This equipment is further divided into Indian, JV, European and Chinese/Korean category. Even many Chinese manufacturers are also aggressive to tab this market.
Backhoe Loader
JCB India is a market leader with 68% in Backhoe loader. CNH is following number two with 9% market share. However all established players has lost their market share.
Compactor:
CNH is the market leader in compactor with 29% market share. Due to its product position and performance their market share is increasing consistently.
Excavator
Telcon is the market leader in excavator. It is having JV with Hitachi. However Telcon is the market leader but Hyundai, Volvo, Kobelco has increased their market share.
Purchasing Behavior
Price remains the top criteria when making purchasing decision over product performance. The factor has been highly influenced by the current economy and poor market sentiments. Having said so, a turnaround in the order can be witnessed in recent future with the betterment of economic conditions. This will encourage buyers to prioritize Product performance and Maintenance cost as major purchasing criteria.
Source : ACG Data Bank
Thank you for very important information.
Ravi Kiran
Business Development Manager
Tata
Good!
Sunil Meena
DEPUTY OFFICER
TVS LTD
The article does not disclose the source of these information and its break up. Construction Equipment business is much more than just back hoe loader, Compactor,and Excavator. Earth moving, construction, and building infrastructure is a science and can not be classified. The major growth is in the open cast mining sector where high volume, high capacity, machines are deployed. India still lack manufacturing capability of 10 cubic meter excavators (both electrically operated or Diesel Hydraulic) 220+ ton capacity haulers. The methods are changed from what was vogue in the 1950s when mega projects like Bhakra Nangal, Beas Dam, KIOCL, Coal India, Rajaastan Canal Project( Now called Indira Gandhi canal). This industry is highly misrepresented by the media, who do not check with the Industry before they copy and paste from some brochures and press releases. Anything that digs and move the earth is a JCB and any thing that has crawlers are “bulldozers”. The quality of Indian and Chinese made machines are so low and the after market activities are badly managed even for good imported equipment. Please get deeper in to this segment before attempting to quote figures of growth rate and GDP.
Dear Ramachandran,
This is just a sample analysis.
Good Information !
Thank for your valuable data information
Sr. Business Development
Wissen Baum Engineering Solution.
Thanks for the information..probabily its first on the construction equipment industry.
You really write very insightful analytic s . Cheers & keep up the good work & happy new year .
Tarun sharma
Deputy General Manager
Royal Enfield
Its more informative and a very happy new year.
thanx for this brief summary ….its really good….
Hope you will be soon updating FY 2013 figures also….
If its possible, pl add Wheel loader data also…
Can you give similar summary on the forecast or projection for 2014 & 15.
Thanks again & keep it up.
Pravin
Dep. Manager Sales
Trelleborg Industrial Products
Very Useful Information.
Thanks,
S K Kalraiya,
Pranjal Projects
Its really nice information about the contraction industries and equipment analysis.