Top Trends that will augment the industry size by 2026!
The Indian CE industry’s vision for 2030 is to reach USD 25 billion, and sustained growth of the CE industry is imperative to reaching that goal. As the country’s economy matures, generating higher value addition, the CE industry is also expected to move in the same direction.
Some of the key factors that will drive the industry till 2026 and beyond are :
Continued government investment in infrastructure: The NIP envisaged an investment of 111 lakh crores till 2025. As against this, approximately 150 lakh crores of projects are underway under the NIP, the majority of which are in core infrastructure sectors such as roads, railways, water supply, urban and rural development, irrigation, etc. With India expected to become the thirdlargest economy by 2030, investment in infrastructure is expected to increase beyond 2025. All these, along with the NIP, will drive sustained demand for CE in India.
Mechanisation : With the scarcity of skilled labour across industries, its inadequate or timely availability will be a key factor in driving increased mechanisation across the infrastructure sphere. This will lead to increased demand for a range of earthmoving equipment, including excavators, backhoe loaders, wheel loaders, cranes, material handling equipment, and specialised concrete equipment. This will also lead to increased demand for a whole range of compact CE, from excavators, backhoe loaders, other earthmoving equipment, material handling equipment, concrete equipment, etc.
Customised machines : Along with mechanisation, there will be a significant demand for customised equipment that is wholly customised or can be fitted with a range of attachments. There will also be demand from new demand drivers that are not foreseen currently but could emerge in the near future. This will drive demand for attachments as well as expand the range of attachments.
Mining : With the government’s trust in the Atmanirbharata as well as managing energy transit and Coal India’s target of 1 billion tonne of coal production by 2025, continued investment in coal, iron ore, limestone mining, etc. will drive demand for a range of mining equipment, including large-class excavators, dumpers, wheel loaders, underground mining equipment, etc.
Exports : The industry is giving a lot of thrust to exports, and all OEMs have invested significantly in expanding manufacturing with an intent to increase exports. Already, a wide range of advanced, reliable, and costeffective CE is being exported from India throughout the world, and this is expected to expand rapidly, especially given the global tensions and the China + 1 movement. A PLI for the CE industry, if implemented by the government, will further boost manufacturing and CE exports.
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