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Construction equipment industry sees marginal fall in total sales in FY26: ICEMA

11 May 2026 Evaluate

The Indian Construction Equipment Manufacturers' Association (ICEMA) has said that the construction equipment industry witnessed a decline of around 2 per cent in total sales to 1,36,995 units in the financial year 2025-26 (FY26) as compared to 1,40,191 units in FY25. The association cited project delays as well as slower infrastructure execution as factors impacting domestic demand. However, the industry registered a 32 per cent growth in exports during the year. 

According to the industry body, domestic sales declined by around 7 per cent to 1,13,229 units during FY26 from 1,21,301 units in FY25, reflecting a moderation in infrastructure execution and a cautious buying sentiment across sectors. India continues to remain the world's third-largest construction equipment market, with the sector projected to reach $14.76 billion by 2030 at a compound annual growth rate (CAGR) of 8.3 per cent.

Segment-wise, it said earthmoving equipment continued to dominate the construction equipment market, accounting for about 71 per cent share at 97,236 units, registering a 2 per cent year-on-year (YoY) decline. Material handling equipment recorded sales of 15,290 units, down around 10 per cent during the year. Concrete equipment remained broadly stable at 14,486 units with a marginal growth of 0.09 per cent. Road construction equipment registered growth of around 6.3 per cent to 7,445 units, while material processing equipment also posted modest growth of around 1.2 per cent at 2,538 units. 

ICEMA has stated that domestic demand for infrastructure equipment faced multiple headwinds in FY26, including a seven-year low in national highway construction due to delays in land acquisitions and fewer project awards. The Jal Jeevan Mission (JJM) also slowed amid moderated fund disbursements, while contractor payment delays squeezed liquidity across the sector. 


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