Construction equipment industry logs 26% growth

Led by the growth in demand for construction equipment (CE), the domestic CE industry has recorded a Y-o-Y growth of 26% in FY23. 

Image Source: Shutterstock

Driven by the amplified pace of construction and mining activity which resulted in a substantial increase in demand for all types of construction equipment, the Indian construction equipment industry recorded an excellent year-on-year (YOY) growth of 26% in FY2023. Except for the road construction equipment which recorded a slight de-growth of 3%, overall sales in FY2022-23 exceeded one lakh units. 

Dimitrov Krishnan, President, ICEMA and MD, Volvo CE India said, “The support from the Ministry of Road Construction & Highways (MoRTH) has been instrumental in driving the demand for construction equipment as over 40% of CE demand originates from this segment.”

Indian Construction Equipment Manufacturers’ Association (ICEMA), in its latest report, stated that about 77,164 units of earthmoving equipment were sold in FY23 – a leap of 23% in sales as compared to 62,629 units sold in FY22. The sales of backhoe loaders and crawler excavators, accounting for over 90% of total sales of earthmoving equipment, grew by 28% and 17% respectively during the year.

Sales of concrete equipment increased by 26% to 11,787 units in FY23. Material handling equipment recorded a growth of 47% driven by a 25% surge in the sales volume of pick and carry cranes, resulting in over 80% of the total sales in this segment. Sales of telehandlers in FY23 were about 713 units, compared to 342 units in FY22. 

VG Sakthikumar, convener, ICEMA Industry Analysis and Insights Panel and MD, Schwing Stetter India noted, “FY2022-23 was a year that saw volumes peak to the best-ever performance, with the industry sales volume exceeding the pre-pandemic level by 10%.”