The Indian government focuses on infrastructure development in various sectors including roads, railways, dams, and various easy finance related schemes have helped the Indian backhoe loaders to grow further. India emerges as the world’s most lucrative and largest market for Backhoe Loaders and it will remain the most profitable market, growing at Compound Annual Growth Rate (CAGR) of 6.9 percent against the global growth of CAGR 5.9 percent –through 2026, says the latest report of Persistence Market Research.
The North America will retain the second position as the world’s second largest market for the Backhoe Loaders, followed by the Latin America during the forecast period.
According to the report, Asia Pacific excluding Japan (APEJ) was the largest market for the Backhoe Loaders in terms of volume and value in 2015; it was worth US$ 866.6 Million and is projected to surpass US$ 1 Billion in revenues by 2018.
Persistence Market Research analyst says, “Demand for backhoe loaders and other construction equipment is directly co-related to the pace of infrastructure development. India is going through a momentous phase of development of roads, railways, and dams receiving government support and FDI. Further, India’s real estate sector remained largely unaffected by the global housing crisis of 2007-08, and leading construction equipment manufacturers consolidated their position to compensate for sluggish demand in US and Europe. Since then, the India construction equipment market has been on an upswing, and our research projects the demand to remain buoyant throughout the forecast period.”
As far as construction equipment manufacturers are concerned, the top eight global Backhoe Loaders manufacturers accounted approximately 85 percent revenue share of the US$ 2.14 Billion backhoe loaders market in 2015. While JCB remains the largest player with 20 percent market share, followed by CNH Industrial NV, and Volvo Construction Group, these three companies alone account the revenue share of about 44 percent.
The rest five leading companies in terms of revenue share are, Komatsu Ltd., Hitachi Construction Machinery, Terex Corporation, Caterpillar, and Deere & Company.
In the Backhoe Loader segment, JCB is the market leader in India, roughly accounting three-fourth revenue share.
The report also suggests that center-mount backhoe loaders continue to outsell side-shift variants. During the forecast period, center-mount loaders are projected to account over 86 percent revenue share of the market. The center-mount backhoe loaders majorly consume in Asia Pacific and North America market, whereas side-shift backhoe loaders popular in Europe.
The report further says, frenzied construction activity in Tier II cities of India and implementation of ‘smart cities’ programme expected to drive overall construction equipment sales in the country. Construction and mining industry are the largest end-use sector for the backhoe loader, accounting nearly 53 percent revenue share of the market in 2016.
Source: Information has been obtained from Persistence Market Research