India’s construction equipment (CE) industry, currently the third largest in the world, is set to grow at a compound annual growth rate (CAGR) of 12 per cent, reaching $25 billion (bn) by 2030, according to the Indian Construction Equipment Manufacturers Association (ICEMA). With a 26 per cent rise in sales in FY2023-24, reaching 135,650 units, the sector is being propelled by a robust infrastructure pipeline and an ambition to become the world’s second-largest CE market. With a vision to become the second-largest industry, industry experts weigh in on how automation, technology, and skill development are shaping the sector’s future. The role of automation Automation is revolutionising India’s CE industry, with technologies like telematics and drones playing a transformative role. Rajiv Chaturvedi, Vice President, Hyundai Construction Equipment India, emphasises the benefits of telematics in monitoring machine performance, improving efficiency, and identifying potential issues in real-time. The issue lies not just with the equipment but also with customer awareness and affordability. India’s price sensitivity makes it challenging to embrace such high-tech solutions, he remarks. Despite the availability of advanced technologies, scaling them remains a challenge. “While new technology is available, scaling it remains a challenge. Customers' reluctance to pay for such innovations, expecting them to come at no additional cost, isn’t feasible from a manufacturer’s point of view. says Jaideep Shekar, Vice President, Terex. Hitesh Agarwal, COO, Construction Equipment Ltd, advocates “the key to overcoming the challenges lies in automation, predictive planning, and maintaining strong vendor relationships” Standardisation is a necessity The lack of standardisation across states poses challenges for the industry. Muthu Sekkar, COO, Hailstone Innovation, advocates for uniform legislation to standardise materials. One quality, one standard should be applied across states to streamline materials. For example, in the sand industry, the size of sand varies from state to state, with some states specifying 6.65 mm as the standard size, while others specify 0.45 mm. Similarly, some states allow river sand, while others ban it. Kerala was the first state to ban river sand 20 years ago, but there are still about 8 to 10 states in India that have not banned it, Opportunities in recycling Recycling construction and demolition waste offers immense potential. Globally, up to 50% of construction materials are recycled, but in India, adoption remains limited. Shekar suggests “segregating municipal solid waste into categories such as rocks for construction, materials for fertiliser production, and refuse-derived fuel (RDF) for cement plants.” The demand for sand has tripled in the past two decades, reaching 50 billion tonne annually, making it the second-most exploited natural resource after water. Sekkar recommends using overburden material from mining activities as a sustainable alternative to river sand. Instead of sourcing river sand or breaking rocks, we have plenty of overburden material available, he adds. R&D push India’s CE market currently produces 125,000 pieces of equipment annually, a figure expected to grow to 215,000-300,000 units by 2030. However, the global market share is just 5-6 per cent. Sunil Kumar Dixit, President-Manufacturing Operations, Schwing Stetter, emphasises the need for greater investment in R&D to develop machinery that meets local standards, such as the Bureau of Indian Standards (BIS). Success stories in exports Indian companies have already made strides in certain export markets. Dyutiman Chattopadhyay, Vice President of Research, Development & Technology, CEAT Specialty, highlights the success of Indian tyre manufacturers in Australia and the US. In Australia, Indian companies now hold more than 70-75 per cent of the market share, a space once dominated by European brands, he says, attributing this success to cost competitiveness without compromising quality. India’s CE industry stands at a critical juncture, with trade valued at $3 bn, including $2.6 bn in imports and $500 million in exports. As India aims to double the size of its CE industry by 2030, the sector must leverage global shifts such as the China+1 strategy as highlighted by the industry leaders in a recently held event. The way forward for India’s CE industry Automation: Telematics and drones enhance efficiency with real-time monitoring. Adoption Challenges: Price sensitivity and customers’ reluctance to pay hinder the scalability. Standardisation: Lack of uniform standards across states (ex: sand sizes) complicates operations. Recycling: Recycling construction and demolition waste provides sustainable alternatives  R&D: Increased R&D investment and collaboration between industry, government, and academia are crucial for competitive workforce.