India’s ambitious road building programmes will continue to require large volumes of compaction equipment according to Off-Highway Research’s new report, The Compaction Equipment Industry in India.
“Compaction equipment demand in the country is mainly met through local production, and imports remained insignificant at 1 per cent in 2021. The scale of planned infrastructure development in the country, especially the road sector, is huge, which will continue to drive the compaction equipment market for many years to come. However, demand is likely to decline by 8 per cent in 2022 due to slowdown in road laying activities, implementation of CEV-IV emission norms from April 2021 and high commodity prices but is projected to grow thereafter to reach 5,000 units by 2026,” said the report.
CEV-IV is the new emission regulation for tyred construction equipment in India. This has impacted the cost of the new machines. In addition, rising commodity prices and inflation have also had an impact this year. Off-Highway Research found that machine prices have risen by 5 to 7 per cent this year as a result of the two factors. Running costs are also higher due to the increased cost of fuel.
“However, the simple truth is that there is a massive amount of work yet to be done in the road sector, and this will call for large volumes of equipment to complete it. How large those volumes will be is totally dependent on the government’s effectiveness in facilitating project execution and addressing key impediments,” said the report.
Off-Highway Research’s 84 page report on the compaction equipment industry in India is now available to subscribers to Off-Highway Research’s Indian Service. It is also available to buy on our online store. Click here for details.
It is believed to be the most detailed and in-depth report ever published on the subject, with analysis covering market size, market shares, production, foreign trade, market structure, distribution networks, equipment population, machines available and a five-year forecast.
Contact [email protected] for more details about our reports and subscription packages.