Construction equipment is mainly used in construction, infrastructure, mining, tunnelling, road construction, and others. Innovation in the construction equipment industry contributes to the successful completion of the project within the stipulated time. 

Due to increased activity in the construction sector, there is an increased demand for technically advanced solutions. 

2021 has been an exceptional year, and the pandemic has impacted projects worldwide. In the coming years, we should look forward to infrastructure and mining projects gaining momentum, giving us continued opportunities to touch lives and improve the infrastructure needs of people in India. The equipment industry is expected to see slow and staggering growth in the short term, but stability and better growth can be expected in the long term. 

Challenges 

Along with other sectors, the construction sector also witnessed the impact due to the onset of the second wave of the COVID-19 pandemic. However, it is imperative to note that the construction sector in India plays a significant role as it contributes to around 60 percent of the total investments, so it needs to come back strongly to support the economic revival. 

India is witnessing continuous economic growth. Today, the construction and infrastructure segments require speed and focus in all areas of core infrastructure, such as metros, rails, roads, airports, and expansions on existing highways. 

The main challenge faced by the manufacturers is to introduce new relevant technology on a constant basis. Market leaders are planning to come up with advanced technology products to grow faster than the industry, and to that end, they are continuously innovating. 

Some of the major challenges are losses on account of idling equipment and a lack of special incentives or schemes to finance the import of hi-tech construction equipment for infrastructure projects. 

Opportunities 

The construction equipment industry in India has some of the biggest prospects for expansion and opportunities for growth and investment. The major factors that currently drive the demand for construction equipment in India mainly include infrastructural projects by public and private enterprises like building construction, tunnels, maintenance, road construction, power plants, ports, urban infrastructural developments etc. It has also seen incremental growth with the smart cities that have been started in India. 

The construction and mining equipment industry in India is going to bring in increased modernisation in the infrastructure, mining, and construction segments in India. 

This also indicates a robust growth of the Indian equipment sector in the coming years. To emphasise indigenisation, the industry can fulfil domestic requirements with tailored and cost-effective options. Better awareness of the benefits of using qualified manpower, training programmes and dedicated grants and scholarships for manpower training can be considered a boon for the industry. The concept of used-equipment exchange and buyback plans can help strengthen the sales of used machinery. 

The tight collaboration among the industry, government, and policymakers will be important to ensure that the challenges of the sector can be overcome, thereby paving the roadmap of growth and progress for the country, which will be one of the success factors for the construction ecosystem. 

The continued demand for construction and mining equipment such as portable compressors is due to the increased focus on road development and the revival in the mining and quarrying segment. There is a continued demand for portable compressors. Along with this, the water well segment also contributes to the demand for large compressors for borewell applications.

Technological advancements and innovative solutions by Atlas Copco 

The construction equipment industry is continuously evolving due to innovations in applications and the product range. Advanced technology and solutions for better productivity have been key demand drivers, and they will continue to be in the future as well. For greater productivity, more and more customers are moving towards high-pressure compressors. Customers are seeking results with a higher penetration rate and a reduction in fuel consumption. 

Below are some models which demonstrate how Atlas Copco leads innovations and changes the market dynamics:

Making the lives of drillers easier in key application segments: The XRH 1100 PLUS, is a product tailor-made for specialised applications like water well drilling, foundation drilling, coal mining and blast-hole drilling.

Reengineered technology for higher efficiency: 

The XAS 450–650 cfm range portable air compressor with four variants in its class is the new technology driver in the 450–600 cfm range of compressors to cover a wide range of applications such as blasthole drilling, shotcreting, and DSI (Dimensional stone industry).

One compressor, many applications in segments such as mining, roads, infrastructure, and special applications: The XAS300-100 and XAS400- 100 portable air compressors are upgraded versions of the current XA157 and XA187 models.

The XAWS 550 portable air compressor is the first to operate at 15 bar pressure. 

The XRHS650 has brought in breakthrough technology in the medium air range for shallow water well drilling, where Atlas Copco is the only manufacturer to provide 300 psi in this small foot print class, with the option of dual pressure with higher flow.

The XRS750: Advanced technology for shallow water well drilling and coal mining: 

The XRV 1200 is the undisputed market leader with the highest market share in India:

Indeed, an ideal yellow box, the XRV1200, with more than 3000 installations, dots the borewell landscape across the length and breadth of the country to make the most important natural resource, water, more accessible. 

This yellow compressor distinguishes itself from the competition by focusing on key elements such as performance, dependability, and fuel efficiency. This makes the XRV1200 the market leader in the water well segment.

This yellow box compressor has many unique elements which make this storey interesting and different: 

• Discharge pressure committed is the pressure delivered @ 330 psi
• Low fuel consumption
• Faster and deeper drilling
• Drilling even at ambient temperature as high as 50 degree Celsius
• All safety standards are met
• Smaller machine footprints
• Low weight

Increased Penetration Rate 

Even after reaching the water table, the XRV1200 compressor efficiently handles the back pressure and enables the driller to continue drilling deeper through the water table to get the maximum benefit of the bore.

The best LAT in its class is 

This compressor is specifically designed to operate at a 50-degree latent ambient temperature (LAT) in all kinds of weather with its closed-door operation. 

Low fuel consumption 

The XRV1200 has a unique feature of high torque at optimum engine speed, which ensures the best fuel economy, which we call the STEP LESS REGULATING system. It offers the lowest fuel consumption in its class due to the screw element efficiency.

Ensuring maximum efficiency 

The synthetic oil which is used in the XRV1200 water well compressor is of the highest quality and not only serves as a coolant but also serves as the ideal sealant between the 2 rotors, so there is no loss of efficiency. 

Furthermore, the cooler and radiators are made of aluminium to ensure efficient heat dissipation and are on a single panel for easy maintenance.

Trends 

The other opportunities for the industry could be the renting or leasing of equipment and prospective collaborations, joint ventures, and mergers and acquisitions by leading market players. 

A well-built infrastructure is the basis for the growth of any developing nation to ensure a good quality of life and a high gross domestic product (GDP). Due to rapid urbanisation and industrialisation over the past few decades, there has been excessive pressure on the urban infrastructure in India. We have the densest road networks in India, but a lack of multilane highways, a demand for airport infrastructure, railways, roads, urban and rural housing, office spaces, and a slew of other residential projects all point to the need for improved infrastructure.

To speed up projects and usage in new applications: Construction equipment market to grow to speed up the completion of the current infrastructure projects as well as to fulfil the rising demand of more modern technology equipment for newer segments like mining, commercial projects, housing, agriculture etc.

Despite facing various challenges, the construction and equipment market is going to see huge growth in demand. Foreseeing large construction and infrastructure projects underway the construction equipment industry will see a boom in the coming days. The increased size of projects, tighter deadlines and faster completion of projects also favor the demand for the automation of work and technologically advanced solutions at construction sites. 

Expertise shared by: Tony Van Herbruggen, General Manager, Power Technique, Atlas Copco