Evaluating the Impact of COVID-19 on the Demand for Construction Equipment in India by 2025 – ResearchAndMarkets.com

DUBLIN–(BUSINESS WIRE)–The “Evaluating the Impact of COVID-19 on the Demand for Construction Equipment in India by 2025” report has been added to ResearchAndMarkets.com’s offering.

The report will help construction equipment manufacture to get visibility into the demand the trajectory the industry is likely to see over the next 5 years and how public sector spending in the infrastructure sector will be constrained to due to COVID impact, as a result of which, whether or not the industry will see the demand it was anticipating assuming NIP stays on course or in the worst case the Infrastructure agenda takes a back seat.

After agriculture, the construction, infrastructure and real estate segments are the second-largest employment providers in the country. The infrastructure and construction sectors are highly responsible for propelling India’s overall development and with intense the focus from Government for initiating policies that would ensure time-bound creation of world-class infrastructure in the country. In 2018, India ranked 44th out of 167 countries in the World Bank’s Logistics Performance Index 2018. Foreign Direct Investment received in the Construction Development sector from April 2000 to June 2019 stood at US$ 25.12 billion, according to the Department of Industrial Policy and Promotion.

Even though the construction sector was in a slump between 2011 till 2015 with demand for construction equipment witnessed a complete collapse, the sector managed to grow post-2015 and the signs were good until the lockdown imposed across the country due to the COVID-19 virus outbreak. It is being believed that the coronavirus outbreak’s impact on the infrastructure and construction segment is expected to be worse than that of the 2008 financial crisis-led economic slowdown. The imposition of Section 144 by state governments and suspension of public transport till April 14 has already impacted manpower mobility and this may even further if the current lockdown proves ineffective.

The lockdown has resulted in various infrastructure project sites staring at closure as it is mainly due to an effect on the labor movement due to the lockdown and also due to supply chain disruptions that may contract further as more states enforce COVID-19 lockdown. The fiscal situation in the construction sector for both the Centre and states is already worsening and continued funding of infrastructure capital expenditure will be a challenge in the near future. Additionally, all these problems will be further aggravated by the relief packages that are being rolled out by many states to support the loss of income caused by the lockdowns. This may further stress the government’s ability to spend on the infrastructure over the next one or two years, further dampening the construction and the infrastructure segment.

Finance minister Nirmala Sitharaman recently announced that the state governments have been directed to use the welfare fund for building and construction laborers, which has around Rs 31,000 crore, to help those who are facing economic disruption because of the lockdown. As per Anarock Property Consultants, more than 15.62 lakh units of housing and residential projects are under construction in the top seven cities of the country.

Key Questions Answered

• What will be the demand for backhoe loaders by 2025
• What will be the demand for tipper trucks by 2025
• What is the current market for transit mixers?
• Which industry segment is likely to be the biggest consumer of construction equipment?
• What is the financing opportunity by 2025?
• Is the construction equipment market likely to see consolidation?
• What is the market size for construction equipment on lease?
• What is the demand contraction expected in 2020-21?
• What will be the impact of COVID-19 on Construction Equipment Industry?
• Which equipment demand is likely to be resilient?
  

Key Topics Covered:

1. Executive Summary

2. Research Approach & Methodology

3. Construction Equipment market & application landscape

• Competition landscape
• Business models
• Imports vs Exports

4. Construction Activity in India – Key Trends

5. Key market trends

• Demand for Construction Equipment
• Key growth drivers
• Key challenges

6. Impact of COVID-19 on the Indian Economy

7. Impact of COVID-19 on the Construction Equipment Sector

8. Decoding National Infrastructure Pipeline – Pre-COVID-19 and Post COVID-19

• Sector-wise Investment by 2025
• Risk in NIP

9. The market for construction equipment market in FY 2019-20

• Market by equipment type
• Market by OEMs
• Market by Domestic Vs Imports
• Market by Region
• Market by Direct Vs Channel
• Market by Leaser Vs Own
• Market by end-use segment

10. Assessing construction equipment usage norms for different industries

• Realty
• Roads & Highways
• Railways
• Metros
• Irrigation
• Dams
• Pipeline
• Dredging
• Power
• Ready Mix Concrete

11. Assessing procurement norms – lease vs own

12. Key demand growth drivers: Mapping different announced, planned & upcoming Infrastructure projects that will drive demand for construction equipment

• Inland Water Ways
• Roads & Highways
• Railways
• Smart City
• Power

13. Projecting demand for construction equipment – Optimistic & Realistic Scenario

• By year till 2025
• By end-use sectors
• By states
• By own vs lease

14. Competitive Analysis of OEMs in India market

• Equipment portfolio mapping
• Manufacturing Locations
• Technology tie-ups
• Manufacturing capacity
• Financial Analysis
• Future Plans

15. User preference for make and type of construction equipment

16. Construction Equipment Financing Market in India

17. M&A Possibilities in the sector

18. GTM portfolio to tap the construction equipment market in India

Companies Mentioned

• Escorts Group
• JCB India
• Manitou
• Polyhose Group
• Terex Corporation
  

For more information about this report visit https://www.researchandmarkets.com/r/2qnoxv

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