Construction Equipment Industry Records Highest H1 Growth in Three Years

India’s construction equipment (CE) industry achieved its highest first-half growth in three years, driven by robust government infrastructure investments and rising exports. According to the Indian Construction Equipment Manufacturers’ Association (ICEMA), total domestic and export sales reached 73,845 units between April and October 2024, marking a 32% increase from 55,832 units in the same period in 2022. Exports climbed from 4,139 units in 2022 to 7,348 units in 2024, reflecting strong global demand.

Despite being a traditionally lean period due to monsoons and election-related slowdowns, H1 growth signals resilience. ICEMA President and Caterpillar India MD V. Vivekanand expressed optimism for H2, stating, “Demand is expected to rise significantly in the November to April period, aligning with seasonal and economic trends.”

All major CE segments, except material handling, posted year-on-year growth in H1 2024. Road construction equipment rose 5% from 2023 and 65% from 2022, while earthmoving equipment grew 7% YoY and 31% over 2022. Concrete equipment saw modest growth, increasing 1% YoY and 18% from 2022. Material handling and material processing segments, however, showed mixed trends.

Export growth has been another standout. Indian CE manufacturers are now competing in global markets due to adherence to international emission and safety standards. “With exports reaching 120 countries, India has shifted from focusing on emerging markets to competing globally,” noted Vivekanand.

The CE industry will adopt Stage V emission norms from January 2025, with most manufacturers already transitioning. Additionally, the “China Plus One” strategy has unlocked further global opportunities, as many countries diversify their supply chains away from China.

ICEMA projects export revenues to nearly double within five years, approaching $1 billion by the end of 2024. With strengthened domestic and international performance, India’s CE industry is poised for sustained growth.