Construction equipment industry may see double-digit growth in FY26: ICEMA

The domestic construction equipment industry is likely to register double-digit growth in the ongoing financial year as the pace of project execution, which has shown some positive momentum, is expected to grow further, ICEMA said on Wednesday.

Speaking with reporters here, Indian Construction Equipment Manufacturers' Association (ICEMA) President V Vivekanand said, "Our expectation this year is that we should actually get back to double-digit growth."  "But overall, as an industry, I am confident that we will have double-digit growth. Double-digit means at least 10 per cent growth compared to the previous year, which would mean that our 10-billion-dollar industry is likely to be at least 11 billion dollars by next FY26,"  The Indian construction equipment industry achieved a 3 per cent growth in FY25, with total equipment sales reaching 1,40,191 units compared to 1,35,650 units in FY24.

While domestic market growth remained subdued at 2.7 per cent, the industry's overall performance was better due to a 10 per cent surge observed in exports, reinforcing the country's position as the world's third-largest construction equipment market.

"The three per cent growth in FY25 demonstrates the resilience of India's construction equipment industry, particularly in challenging domestic market conditions. While we faced headwinds during the election period that impacted domestic demand, the remarkable 10 per cent surge in exports validates the global competitiveness of Indian-manufactured equipment.

"This export momentum positions our industry well as we work towards meeting the anticipated higher demand for construction equipment in the coming years," he said.

Earthmoving equipment continued to dominate with 71 per cent market share, recording 99,159 units sold (6 per cent growth). Backhoe loaders sales were 53,133 units (54 per cent share), followed by crawler excavators at 35,816 units (36 per cent share).

Material Handling Equipment accounted for 17,050 units, while concrete equipment contributed 14,473 units with a 3 per cent growth. Road construction equipment achieved 7,002 units, and material processing equipment recorded 2,507 units.

Looking ahead, the industry expects higher demand for construction equipment driven by anticipated infrastructure investments and economic recovery.

However, to capitalise on this expected growth, the sector will require necessary government support including policy interventions to stimulate domestic demand, facilitate financing access, and address supply chain challenges.

The industry's strong export foundation, combined with robust domestic manufacturing capabilities, positions it well to meet future demand provided appropriate support mechanisms are implemented, it said.

ICEMA is the apex body representing leading construction equipment manufacturers in India. ICEMA's members account for over 95 per cent of the construction equipment manufactured and sold in the country.