India Construction Equipment Rental Market Overview, 2028

India Construction Equipment Rental Market Overview, 2028

India is the world's fastest-growing economy, and it is predicted to become the third-largest construction market by 2024. The infrastructure sector is a major economic driver in India. The sector is vital to India's overall growth, and the government places a high priority on implementing laws that will ensure the country's world-class infrastructure is built in a timely manner. We attempted to present a picture of the construction equipment rental industry in India here. Power, bridges, dams, highways, and urban infrastructure development are all part of the infrastructure industry. The World Bank's Logistics Performance Index (LPI) 2018 placed India 44th out of 167 nations in 2018. According to the Department of Industrial Policy and Promotion, foreign direct investment (FDI) received in the Construction Development sector (townships, housing, built-up infrastructure, and construction development projects) totalled USD 25.05 billion from April 2000 to March 2019. India's logistics business is increasing at a CAGR of 10.5 percent per year and is estimated to reach US$ 215 billion by 2020. Few firms dominate the Indian construction equipment rental industry, including iQuippo, Volvo Construction Equipment, ACE Cranes, ABC Infra Equipment Pvt Ltd., Sanghvi Movers Limited (SML), All India Crane Hiring Co., and Jainex Group.

According to the research report, “India Construction Equipment Rental Market Overview, 2028” published by Bonafide Research, the market is projected to add USD 0.14 Billion by 2028. The growing emphasis on infrastructure and the advancement of automation in construction and manufacturing processes have had a significant impact on market growth. The road construction machinery industry has grown significantly in recent years as a result of expanded road development plans conducted by the federal and state governments. Renting construction equipment has become more popular as the cost of the equipment and the maintenance procedures have risen. Aside from the cost, there are other advantages to renting construction equipment. Rental firms provide the machinery as well as the requisite experienced machine operators and drivers.

According to the World Bank, India has a population of 1.39 Billion people, with 723.9 million men and 669.4 million women. 361.4 million People are under the age of 14, and 931.3 million are between the ages of 15 and 64. There are 8.2 million urban residents and 2.3 million rural residents. India’s GDP in 2021 was $3.17 trillion with per capita income of US$2,277.4 and inflation rate was 5.1% in FY 2021. India now has roughly 1,263 construction projects in several industries, such as power, roads, railways, communications, and shipping. Furthermore, the increased demand for office space in tier 1 and 2 cities is expected to drive demand for rental construction equipment in the country throughout the projection period.

India government development projects
The Indian government's Housing for All by 2022 initiative is another game changer for the industry. The expansion of commercial real estate has been predominantly driven by service sectors, particularly IT and ITeS. Two years ago, Prime Minister Narendra Modi announced the commencement of the Smart Cities Mission, with the goal of establishing 100 sustainable and inclusive cities across India. The national government just added nine new cities to the list of 99 cities. With nearly INR 2 trillion invested in the project, the government must look to cost-effective and innovative operational approaches in real estate building.
The government has given the infrastructure industry a significant boost by funding Rs. 10 lakh crore ($130.57 billion) to improve infrastructure. The government provided the National Highways Authority of India with Rs. 134,015 crore (US$ 17.24 billion) (NHAI). The government announced a budget for the Ministry of Road Transport and Highways of Rs. 60,000 crore (US$ 7.72 billion). The Ministry of Housing and Urban Affairs would receive Rs. 76,549 crore (US$ 9.85 billion) from the government. The government has given the Department of Telecommunications Rs. 84,587 crore (US$10.87 billion) to build and upgrade telecom infrastructure in the country.

The total revenue expenditure for railways is expected to be Rs. 234,640 crore (US$ 30.48 billion). Over the following three years, 100 PM-GatiShakti cargo terminals for multimodal logistics facilities will be built. The PM GatiShakti—National Master Plan for Multimodal Connectivity to Economic Zones—was the focal point. The PM GatiShakti National Master Plan will incorporate everything from roads to trains, aviation to agriculture, as well as many ministries and departments.

Growing government investments in infrastructure and other strategic initiatives are expected to improve the country's construction sector. Therefore, with increase in the construction activities by government and the private sector the market for construction equipment rental has great potential.

Covid-19 Impact
The spread of COVID-19 contributed to the decline of the India Construction Equipment rental sector as a result of disruptions in the supply chain and production discontinuity. Furthermore, construction site closures and event cancellations have serious consequences for the equipment rental industry, including the health and safety of rental company employees, the suspension or cancellation of rental contracts, the management and maintenance of machinery, and the ability to retain staff and pay salaries.

Considered in this report
• Geography: India
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report
• India Construction Equipment Rental market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Equipment type
• Earthmoving
• Material Handling
• Concrete & Road Construction
• Others

By Application type
• Residential
• Non-Residential
• Others (Infrastructure, industrial, real estate, etc.)

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third party sources such as press releases, annual report of companies, analysing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to Construction equipment rental industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.