Construction Equipment Industry: A Dynamic World
It goes without saying that the Construction Equipment (CE) industry is highly dynamic. This is due to the fact that it is made up of various sub segments which themselves are very dynamic and the CE industry sees continuous changes and innovations on the technological front and is highly influenced by new trends.
A look at dynamic sub segments of CE
If we talk about the dynamic sub segments of CE industry, then the sector is made up of five main segments i.e., earth moving equipment, road construction equipment, concrete equipment, material handling equipment and material processing equipment. While the earth moving equipment and road construction equipment segment account for close to 70 per cent of Indias CE market, the concrete equipment is the second largest segment with a market share of approximately 14 per cent. Material handling equipment and material processing equipment segment account for 10 per cent and 6 per cent of the market respectively. All these segments of CE are highly influenced by the growing trends and technologies and the demand pattern of particular countries.
Talking about India particularly, then at present, major national and international players such as Mahindra Construction Equipment (MCE), Escorts Construction Equipment Ltd, JCB, Action Construction Equipment, Hitachi and few more dominate country’s CE market. Gradually, various other big CE manufacturers are moving aggressively into India so as to give their support in the country’s drive to build roads, railways and other infrastructure.
Note on the technological trends and innovations in the CE segment
With growing awareness, end-users are becoming smart and demanding world-class technology for better fuel efficiency, higher productivity and profitability, thus, motivating the CE manufacturers to come up with innovative solutions to meet the customers’ expectations. Further, the entry of global OEMs is also leading to upgradation in technology-driven product features such as remote access devices, automatic controls to manoeuvre machines, more efficient (Tier III) engines, cabin air-conditioning etc. These few factors have resulted in giving rise to more sophisticated CE in the country.
The key technological trends that have led to various innovations in the CE segment include...
1. Improved mechanics: All the CE are now equipped with powerful engines. The new machines are made such that they help save the fuel to a great extent and reduce the size of the machine. This has also made the equipment environment-friendly.
2. Intelligent technology: Internet of Things (IOT) has lead to automated services and monitoring of CE remotely. Today, CE like backhoe loaders come with sensors installed to monitor operating conditions, machine hours, performance levels, physical states, fuel consumption, GPS tracking, machine’s idle time etc. Through built-in sensors in the equipment, companies can also automate service and preventive maintenance. While in the foreign countries, such technology is already being put to use, in India, it is still not that popular. However, the awareness is gradually increasing. Here, MCE’s EarthMaster backhoe loaders with the REMOTECARE feature deserves a special mention.
3. Effortless operations technology: Most of the CE, these days, come with joystick controls instead of manual levers for increased comfort and reduced fatigue. Joystick controls make the life easy, simple and less tiring for the operators of CE. Also called as pilot controls or pilot joysticks, joystick controls increase the productivity considerably by reducing wrist and arm force and hand and wrist movement, thereby, enabling the operator to work for long hours. Here again, the Mahindra EarthMaster backhoe loader and RoadMaster G75 motor grader need to be noted which offer specially designed joysticks to its customers to make their heavy duty work much easier and effortless than it actually is.
Overall, these technological trends have revolutionised the CE industry to a very large extend and added more to its dynamism in the country.
Key challenges affecting the dynamics of the CE industry
While the CE industry in the country is continuously evolving, it is not away from challenges that affect its dynamism considerably. These challenges need to be addressed well to ensure unprecedented growth of the sector. These challenges include...
1. Regulatory issues, environmental concerns and delays in project approvals that hamper construction projects and limit sales of CE.
2. Cost pressures due to increasing raw material and fuel prices.
3. Other challenges include maintaining high safety standards.
Bright future ahead for the CE segment
Despite the challenges, the future seems bright for the CE segment. As per the latest report of ResearchAndMarkets.com, the Construction Equipment (CE) market is to grow at a CAGR of 6.8 per cent during FY18-FY24 in India, on account of the countrys expanding construction industry. Not only the construction industry will play its role in boosting the demand for CE in India in the coming years but rapid urbanisation, increasing foreign investments and surging demand for customised equipment are some other major factors that will aid in this growth. Apart from this, the growing number of public-private partnerships and initiatives of the government such as smart city development projects etc., are also touted to increase the CE market in India. Well, these figures clearly project that the dynamic CE market in the country has all the reasons to smile.
MCE’s role in further defining the dynamics of CE segment in the country
MCE is playing a definitive role in providing further boost to the CE segment in the country and adding further to its dynamism. With two of its best offerings i.e., Mahindra EarthMaster backhoe loader and RoadMaster G75 motor grader, the company is gearing up well to embrace the projected growth of CE sector in the country with grace.
In a nutshell
There is no doubt about the fact that the CE sector in the country is highly dynamic and ever-evolving. Various factors add to the dynamism of the sector and need to be studied in great detail.