The Indian construction equipment industry witnessed a decline of around 2 per cent in total sales during FY26, as per data furnished by the Indian Construction Equipment Manufacturers’ Association (ICEMA).

Accordingly, total equipment sales during FY26 declined to 1,36,995 units from 1,40,191 units recorded in FY25.

The association cited project delays as well as slower infrastructure execution as factors impacting domestic demand.

However, despite moderation in the domestic market, the industry registered a 32 per cent growth in exports during the year.

Speaking on the industry performance, ICEMA President and JCB India Chief Executive Officer and Managing Director Deepak Shetty said the decline should be viewed in the context of slower infrastructure execution rather than any structural weakness in the sector.

According to Shetty, while government capital expenditure allocations remain at historically high levels, delays in project execution, land acquisition challenges, and slower disbursement cycles impacted equipment demand during FY26.

Besides, he said the strong growth in exports reflects the increasing global competitiveness of Indian-manufactured construction equipment.

Notably, ICEMA said India continues to remain the world’s third-largest construction equipment market.

The industry, estimated at around $10 billion in FY25, is projected to reach $14.76 billion by 2030 at a compound annual growth rate of 8.3 per cent.

As per the data, domestic demand, excluding non-OEM exports, declined by around 7 per cent year-on-year across most equipment categories during the financial year.

Meanwhile, imports increased by around 17 per cent, mainly in the earthmoving, material handling and concrete equipment segments.

Furthermore, more than 95 per cent of equipment sold in India continued to be manufactured domestically.

Segment-wise, earthmoving equipment continued to dominate the market with around 71 per cent share at 97,236 units, reflecting a decline of around 2 per cent year-on-year.

At the same time, material handling equipment recorded sales of 15,290 units, down around 10 per cent during the year.

In addition, concrete equipment remained broadly stable at 14,486 units, while road construction equipment registered growth of around 6.3 per cent to 7,445 units.

Additionally, material processing equipment also posted modest growth of around 1.2 per cent at 2,538 units.

Looking ahead, ICEMA said the industry remains optimistic about long-term growth prospects driven by continued investments in roads, railways, mining, urban infrastructure, housing, and rural development.

The association said demand is expected to recover as project implementation improves and infrastructure activity accelerates in the coming years.

Published on May 8, 2026