Issue link: https://read.dmtmag.com/i/73372
India: Earth-moving Construction Machinery Market to Grow 21 Percent India, the world's seventh TRENDS AND TIDBITS largest country by area and second biggest by population, is one of the most dynamically growing, but largely untapped, construc- tion equipment markets. In recent years, the country has witnessed massive investment in the con- struction industry from both public and private enterprises. Multi-billion-dollar investments in constructing roads, ports and power plants, and developing tele- communication sector and urban infrastructure have paved the way for the construction equipment demand to grow phenomenally. According to a Construction Industry Analysis research report, "Booming Construction Equip- ment Market in India," the Indian construction equipment industry has been witnessing a consistent double-digit growth over the past few years. Th ough the economic slowdown had its moderate eff ects on the industry, it regained momentum in 2010 showing sig- nifi cant growth that is expected to continue in the years to come. Th e earth-moving segment, in particu- lar, has been driving the overall construction equipment industry in India, with the strong demand emanating from the government- backed infrastructure projects. Th e segment is poised to register a remarkable CAGR of around 21 percent during 2011-2015, per Construction Industry Analysis estimates. Th e study provides a profound research and rational analysis of the Indian construction equip- ment industry. It not only presents information and statistics related to all prominent market segments like earth moving and material handling, but also analyzes the historic, current and upcoming trends to provide balanced market intelligence on the industry. It Volvo Construction Chief Sees No Southern Europe Market Recovery Volvo's construction-equipment unit, the world's third-largest maker of wheel loaders and excavators, sees no recovery in sight in southern Europe, chief Patrick Olney said. "I don't see any signs" of improvement in the construction markets in Spain, Portugal, Italy or Greece, Olney said in a recent phone interview. "Th e market collapsed in 2009 and has not shown any recovery since then." Volvo Construction Equipment's business in those countries dropped more than 80 percent in the fi nancial crisis that began in 2008, he said from the unit's Brussels headquarters. Th e division, Volvo's second-biggest aſt er heavy trucks, more than doubled its North American sales in the fi rst quarter and is a market leader in China, where it has a joint venture with local company Shandong Lingong Construction Machinery Co. IDA UNIVERSAL July-August 2012 Volvo competes globally against bigger rivals Cater- pillar Inc., based in Peoria, Illinois, and Komatsu Ltd in Tokyo. Southern Europe's troubled economies so far haven't aff ected customers in the rest of Europe, said Olney, 43, who got promoted to lead the business last year when former division chief Olof Persson was named Volvo CEO. North America is benefi ting from "tremendous pent-up demand" to replace aging equipment, along with a growing economy and more housing starts, he said. Olney reiterated Volvo's forecasts from April 26 that the total North American construction- equipment market will grow between 15 percent and 25 percent in 2012, more than the 10 percent to 20 percent the company expects for Europe. ● www.bloomberg.com Trends continued on page 29 25 also sheds light on the Indian rental equipment and the equip- ment fi nancing markets. Our research report also highlights how the aſt er-sale services and the emergence of new players in this fi eld are determining the industry's future growth. Discuss- ing various government initiatives and investments for the industry, it also provides an insight into the competitive landscape to under- stand the market scenario and the industry's growth potential. In addition, the study pro- vides the industry forecast, based on the correlation of past drivers, challenges, and opportunities for expansion. In this way, the report depicts an unbiased picture of the Indian construction equipment industry which will prove decisive for the clients and help them make sound investment decisions. ● www.construction-industry-analysis.com