India set to become world’s second largest player in construction equipment industry by 2030, says Volvo official

The sector is moving towards electromobility, autonomous solutions using technologies like IoT, virtual reality and self-learning machines: Jernberg

The sector is moving towards electromobility, autonomous solutions using technologies like IoT, virtual reality and self-learning machines: Jernberg

India is poised to become the second largest player in the construction equipment (CE) industry behind China by 2030, as the country is expected to experience “quantum growth” in infrastructure development projects during for the next 5 to 10 years,” said Melker Jernberg, Executive Vice President, Volvo Group.

“With strong impetus from the government’s ambitious infrastructure development plans such as National Bank for Infrastructure Finance and Development, National Monetization Pipeline and Gatishakti, India will achieve [be] a key player, the second in the CE sector by 2030,” he said.

The industry has witnessed a significant impact on production, demand and the supply chain as a result of the pandemic and had to curtail activity and cut costs, Mr Jernberg said. The widening gap between supply and demand has compounded its difficulties with soaring material and logistics costs. The sector has also seen an unusual surge in demand, as well as huge supply-side constraints simultaneously, he pointed out.

India had seen a drop in demand in FY22, mainly due to factors such as pre-purchase in the last quarter (Q4) of the prior fiscal year in connection with the change in emissions regulations in favor of CEV4; the second wave of COVID-19 in the first quarter of FY22; decline in the road construction rate in the second half of 2021; rising commodity prices driving up selling prices; and supply-side shortages due to global disruption caused by the pandemic and the war in Ukraine, said Jernberg, who is also president of Volvo Construction Equipment.

However, he said, both domestic and export volumes increased for Volvo’s CE business, compared to the previous year.

“Embracing digital technology”

Worldwide technological advancements in the CE space have been quite rapid lately, he said. Environmental concerns had led to environmentally friendly engine developments, leading to reduced emissions. The use of electronics and telematics has boosted efficiency while ongoing developments in hydraulics would reduce power losses, thus delivering much higher value to users, he said. declared.

“Globally, the construction equipment industry is clearly moving towards electromobility and autonomous solutions using technologies such as IoT, virtual reality and self-learning machines. India will also witness such technological changes in the years to come,” Mr. Jernberg added.

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