INDUSTRIAL EQUIPMENT SECTOR OVERVIEW-2020

Statistics, news & updates: everything you need to know about the Industrial Equipment Industry in India

Snapshot

  • Summary
  • COVID-19 Impact
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats
INDUSTRIAL EQUIPMENT SECTOR

Sub-Industries

  • Cold Chain
  • Components (including Pipes) & Services
  • Cutting tool & equipment
  • Fasteners
  • Gaskets, Packing & Sealing Devices
  • Valves
  • Filters

Summary

The Industrial Equipment sector describes a diverse set of industries from complex machinery, both fixed and mobile, to large scale process and construction industry plants. Industrial equipment covers a very wide range of devices. The industrial equipment manufacturing industry aids many other industries, supplying companies with highly specialised products and services such as material handling and earthmoving machinery like backhoe loaders, excavators etc. The market is considered to be very competitive, with manufacturers seeking to anticipate demand, to deliver products, to reduce production time and offer increasing services.

Covid-19 Impact

Businesses across industries are implementing risk mitigation strategies to minimize the impact of the looming slowdown with economies and industrial production coming to a near-standstill. Besides, restrictions on the movement of people and goods have disrupted global supply chains, which have further exacerbated the issue for many sectors, including the industrial and heavy equipment sector. However, as we eventually begin rebuilding the global economy, this sector will play a key role, and the relative lull at the moment would be an excellent time to think about ways to prime the industry to rise again.

The statistics below are taken from Industry data available pre-Corona virus impact.

Growth Drivers

  • Construction, one of the key demand drivers for industrial equipment.
    • The construction equipment market in India is witnessing exponential growth for the last few years.
    • Population proliferation, rapid urbanization, and increasing government spending on infrastructure projects have increased impetus for various infrastructure developments.
    • An outlay of Rs 6.92 trillion (US$ 107.64 billion) was approved by the Government of India in October 2017 to build a road network of 83,677 km over the next five years
    • Demand for related machinery in building roads has increased significantly due to large-scale public and private investments inroads.
  • Industrial equipment industry also includes the auto-components industry. The Indian auto-components industry has experienced healthy growth over the last few years. The auto-component industry of India has expanded by 10.6 per cent to reach a level of US$ 56.2 billion in FY19.
  • Growing working population and expanding middle class are expected to remain key demand drivers.
  • The auto-components industry accounts for 2.3 per cent of India’s Gross Domestic Product (GDP) and employs as many as 1.5 million people directly and indirectly each.
  • Government of India has also renewed its focus on the development of infrastructure of the country.
  • With the development of infrastructure, demand for construction equipment and other machinery is expected to rise significantly.

Key Players in India

National

  • Larsen and Toubro
  • CG Power and Industrial Solutions Ltd.
  • Engineers India Ltd
  • Cummins India Ltd
  • Thermax Ltd
  • BGR Energy Systems Ltd

 

International

  • JCB India
  • Metso Minerals
  • Atlas Copco
  • Trane Technologies

Map – Industry Clusters

Industrial-Equipment-Industry-map

Market Stats

  • The market size of the Indian tooling industry is expected to increase at CAGR of 11 per cent from Rs 14,650 crore (US$ 2.18 billion) in 2016-17E to Rs 20,000 crore (US$ 2.98 billion) by 2019-20.
  • Exports of dies, moulds and press tools stood at Rs 1,700 crore (US$ 253.39 million) in FY17.
  • Over 200 manufacturers are engaged in the production of process plant machinery.
  • Production and exports stood at US$ 2.91 billion and US$ 1.38 billion in FY17, respectively.
  • Currently, 20 large and global manufacturers and 200 small and medium manufacturers operate in the earthmoving, construction and mining equipment industry.
  • The construction equipment industry’s size is estimated to reach US$ 5 billion by FY20 from around US$ 4.3 billion in FY18.
  • Infrastructure investments in India increased from US$ 369.28 million in 2008-12 to US$ 577.19 million in 2013-17RE and are further expected to grow to US$ 778.90 million.
  • India has one of the largest road networks (5.48 million km) comprising expressways, national, state highways, districts and village roads
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