Construction equipment ind. grows by 25% in FY2023
Equipment

Construction equipment ind. grows by 25% in FY2023

The quick expansion in road and infrastructure development activity across the nation, fueled by the significant governmental expenditure as well as private sector initiatives, is the primary cause of this wise rise in the industry's fortunes.

The CE sector is anticipated to increase by 15-20% annually in FY2024 thanks to the ongoing and upcoming project pipeline, before seeing a steep decline to flat growth or perhaps -10% in FY2025 after the general elections.

According to Dimitrov Krishnan, MD of Volvo Construction Equipment (India) and current president of the Indian Construction Equipment Manufacturers' Association (ICEMA), which represents over 90 companies, there has been a high demand for related CE equipment ever since the road construction activity began to pick up speed in November or December 2022.

In FY2023, he anticipates that the daily average speed of road development will exceed 30 kilometres. The sector was moving an average of 40km per day in February, when road construction was at its peak. Although the government has not yet provided official information on road construction for the most recent fiscal year, ICEMA is anticipated to publish data on industry growth later this month.

Following a particularly poor performance in the first half of FY2023, the rate of road building work and resulting YoY growth have clearly improved market sentiment. And while smaller than the 32km/day in FY2021, the average daily length of new roads in FY2023 of 30 km is a significant improvement over the 19 km/day in FY2022. For the industry, the increase in road development has been a welcome relief, said Dimitrov.

Heavy-duty truck demand is rising as a result of the continuous boom in new construction in the commercial and residential real estate sectors, which also continues to be a key driver of growth in the CE sector. The mining sector's offtake of vehicles is also increasing.

Yet, Dimitrov remains concerned about the sector's short-term prospects. He claims that the growth cycle of the CE industry is likely to slow down in FY2025 because India will hold national elections in the middle of 2024. The fiscal year that follows elections usually sees a dip in this area, and since the CE industry did so well in FY2023 and is projected to do so again in FY2024, it may only have flat growth or even experience a 10% decline.

The quick expansion in road and infrastructure development activity across the nation, fueled by the significant governmental expenditure as well as private sector initiatives, is the primary cause of this wise rise in the industry's fortunes. The CE sector is anticipated to increase by 15-20% annually in FY2024 thanks to the ongoing and upcoming project pipeline, before seeing a steep decline to flat growth or perhaps -10% in FY2025 after the general elections. According to Dimitrov Krishnan, MD of Volvo Construction Equipment (India) and current president of the Indian Construction Equipment Manufacturers' Association (ICEMA), which represents over 90 companies, there has been a high demand for related CE equipment ever since the road construction activity began to pick up speed in November or December 2022. In FY2023, he anticipates that the daily average speed of road development will exceed 30 kilometres. The sector was moving an average of 40km per day in February, when road construction was at its peak. Although the government has not yet provided official information on road construction for the most recent fiscal year, ICEMA is anticipated to publish data on industry growth later this month. Following a particularly poor performance in the first half of FY2023, the rate of road building work and resulting YoY growth have clearly improved market sentiment. And while smaller than the 32km/day in FY2021, the average daily length of new roads in FY2023 of 30 km is a significant improvement over the 19 km/day in FY2022. For the industry, the increase in road development has been a welcome relief, said Dimitrov. Heavy-duty truck demand is rising as a result of the continuous boom in new construction in the commercial and residential real estate sectors, which also continues to be a key driver of growth in the CE sector. The mining sector's offtake of vehicles is also increasing. Yet, Dimitrov remains concerned about the sector's short-term prospects. He claims that the growth cycle of the CE industry is likely to slow down in FY2025 because India will hold national elections in the middle of 2024. The fiscal year that follows elections usually sees a dip in this area, and since the CE industry did so well in FY2023 and is projected to do so again in FY2024, it may only have flat growth or even experience a 10% decline.

Next Story
Infrastructure Urban

PSP Projects Sets World Record With Umiya Dham Foundation

PSP Projects Limited, a leading multidisciplinary construction company in India, has achieved a world-record engineering feat by completing the continuous pouring of 24,000 cubic metres of concrete in just 54 hours. This effort created the world’s largest raft foundation for a religious structure, forming the base of the Umiya Dham temple in Jaspur, Ahmedabad, recognised by the Golden Book of World Records.The operation began on World Engineer’s Day, 15 September 2025, and concluded on 17 September 2025, marking a key milestone in the construction of the Umiya Dham complex. Conceived by th..

Next Story
Infrastructure Urban

TCS Wins Everest Group Growth Honor of the Year 2025

Tata Consultancy Services (TCS), a global leader in IT services, consulting, and business solutions, has been awarded the Growth Honor of the Year at the 2025 Everest Group Elevate Awards during the Elevate Dallas Conference. The accolade recognises TCS’ leadership in constant-currency revenue growth among publicly listed global service providers with revenues exceeding $5 billion.The recognition highlights TCS’ strengths in organic business growth, operational performance, delivery excellence, and consistent market-leading results across global markets. Partnering with leading enterprises..

Next Story
Infrastructure Urban

Markolines Bags Rs 35 Million Order From NCC

Markolines Pavement Technologies Limited, an integrated highway maintenance solutions provider, has secured an order worth Rs 35.1 million (inclusive of GST) from NCC Limited (formerly Nagarjuna Construction Company Limited) for earth piling works at Malad in Mumbai. With this, the company’s total unexecuted order book now exceeds Rs 4 billion.Recently, the company won a Rs 1 billion order from Trans Metalite India Limited for patch repair works in Andhra Pradesh. It also received multiple contracts worth nearly Rs 975 million during FY26, including two repeat orders from Varanasi Aurangabad..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?