Transforming Opportunities for Construction Equipment Component, Accessories, and Spares
The Indian government’s Production-Linked Incentive (PLI) scheme, designed to boost domestic manufacturing across multiple sectors, has emerged as a game-changer for the construction equipment industry. While its primary focus is on driving growth and innovation among original equipment manufacturers (OEMs), its ripple effects extend far beyond, significantly impacting component, accessories, and spares manufacturers.
The PLI scheme incentivizes production by offering financial benefits tied to incremental sales and investment targets. For construction equipment manufacturers, this translates into increased demand for localized components, accessories, and spares. The scheme’s mandate to encourage Make in India has already motivated OEMs to strengthen their supplier base within the country, opening up vast opportunities for ancillary industries.
Component manufacturers—ranging from engine parts to hydraulic systems—are poised to benefit from this localized approach. Similarly, producers of accessories like attachments, sensors, and precision tools are seeing a surge in demand as equipment manufacturers invest in advanced technologies to meet sustainability and efficiency goals.
Technological Upgradation and Innovation
With the PLI scheme emphasizing innovation, there is a trickle-down effect on ancillary industries to enhance their technological capabilities. Many small and medium enterprises (SMEs) in the components and spares sector are upgrading their manufacturing facilities to align with the quality and precision requirements of OEMs.
The adoption of cutting-edge technologies, such as artificial intelligence (AI), machine learning, and automation, is becoming widespread. For instance, manufacturers of hydraulic systems and filtration units are now incorporating sensors and IoT-based monitoring systems to provide smarter and more efficient solutions.
Boosting Exports and Global Competitiveness
The PLI scheme not only targets domestic markets but also positions India as a global manufacturing hub. The construction equipment industry, supported by robust local supply chains, is becoming more competitive internationally. Component and spares manufacturers are leveraging this ecosystem to tap into export opportunities.
Countries in Africa, Southeast Asia, and the Middle East—regions experiencing rapid infrastructure development—are emerging as key export destinations. With the backing of OEM partnerships and quality certifications driven by the PLI scheme, Indian manufacturers are establishing a foothold in these markets.
Enhancing Collaboration within the Industry
The scheme has also fostered greater collaboration between OEMs and their suppliers. Many OEMs are now entering long-term agreements with component and spares manufacturers, ensuring consistent demand and fostering a culture of co-development. For accessories manufacturers—such as those producing attachments and auxiliary tools—this collaboration has resulted in a diversified product range tailored to new-age equipment demands.
In the spares market, this has led to improved availability and reduced lead times, benefiting end-users and reinforcing the trust in Indian-made products.
Challenges and the Path Ahead
Despite the positives, challenges remain. Many ancillary manufacturers are grappling with the need for significant capital investment to upgrade their facilities. Additionally, aligning with international quality and sustainability standards demands expertise and resources.
However, initiatives such as skill development programs, technology adoption grants, and partnerships with global leaders are gradually addressing these challenges. The government and industry stakeholders must continue to provide the necessary support for this transition.
The PLI scheme has set the stage for a transformative era in the construction equipment manufacturing industry, with ancillary sectors reaping substantial benefits. By fostering local production, driving technological innovation, and enabling global competitiveness, the scheme is creating a robust ecosystem. For component, accessories, and spares manufacturers, the PLI initiative is more than a policy—it is a pathway to sustainable growth and global leadership in the construction equipment industry.
As the scheme unfolds, the ripple effects will undoubtedly strengthen India’s position as a manufacturing powerhouse, fostering a self-reliant and globally connected construction equipment ecosystem.
Bauma CONEXPO India: A Growth Catalyst for the Components, Accessories, and Spares Industry in Construction Equipment
The much-anticipated bauma CONEXPO India 2024, Asia’s leading trade fair for construction equipment and machinery, is set to serve as a significant platform for innovation, networking, and collaboration in the components, accessories, and spares (CAS) sector. This biennial event, known for its expansive showcase of cutting-edge technologies and solutions, offers unparalleled opportunities for manufacturers, suppliers, and buyers within the construction equipment ecosystem.
A Dynamic Platform for Innovation
The CAS industry is pivotal to ensuring the efficiency, reliability, and longevity of construction equipment. With rising demand for high-performance and sustainable construction solutions, bauma CONEXPO India provides an ideal stage for manufacturers of hydraulic systems, engines, bearings, filters, and electronic control systems to exhibit their advancements. These innovations are critical in meeting evolving market demands for improved operational efficiency, enhanced safety, and reduced carbon footprints.
Leading global and domestic players in the CAS sector are expected to unveil a range of products designed for compatibility with next-generation construction equipment. IoT-enabled components, wear-resistant spares, and energy-efficient accessories are some of the highlights anticipated at the event.
Driving Sustainability in Construction Equipment
Sustainability has become a cornerstone of the construction equipment industry, and the CAS sector is no exception. Components like eco-friendly lubricants, biodegradable hydraulic oils, and regenerative braking systems demonstrate the industry’s commitment to minimizing environmental impact. Bauma CONEXPO India serves as a hub for discussions and developments around these innovations, fostering partnerships that aim to create greener construction practices.
Market Trends and Opportunities
India’s construction equipment market is witnessing exponential growth, driven by ambitious infrastructure projects such as Bharatmala, Smart Cities Mission, and railway modernizations. This surge directly impacts the CAS market, which is expected to grow at a CAGR of 7-9% in the next five years.
At bauma CONEXPO India, stakeholders can tap into insights on emerging trends, including:
Demand for modular components: Increasing preference for modular designs to enable easier repairs and upgrades.
Local sourcing initiatives: Government policies emphasizing Make in India, creating opportunities for domestic manufacturers.
Digitization in maintenance: Growing adoption of predictive maintenance powered by AI and data analytics.
Fostering Collaboration and Partnerships
The trade fair is not just about showcasing products; it is also about building relationships. For CAS manufacturers, the event provides a platform to connect with original equipment manufacturers (OEMs), distributors, and contractors. Interactive sessions, technical workshops, and live demonstrations further facilitate knowledge-sharing and collaboration.
Challenges and Resolutions
The CAS industry faces challenges like price volatility of raw materials, stringent emission norms, and supply chain disruptions. At bauma CONEXPO India, industry experts and policymakers will deliberate on solutions, from adopting alternative materials to streamlining logistics and fostering technology transfer.
Looking Ahead
Bauma CONEXPO India is more than a trade fair; it is a bellwether for the future of the CAS industry in construction equipment. The event promises to catalyze innovation, drive market growth, and foster sustainable practices, ensuring that the industry is well-equipped to meet the demands of India’s rapidly evolving construction landscape.
As stakeholders gear up for this mega event, the spotlight is firmly on how the components, accessories, and spares sector will redefine the benchmarks of efficiency, durability, and sustainability in construction equipment.
Industry Voices…
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Prashanta Ganguly, Head OTR Marketing (Domestic Sales), Balkrishna Industries, said, “Globally and in India, the construction equipment industry is evolving towards increased sustainability, automation, and the adoption of multi-functional equipment. Sustainability has become a top priority, with companies actively seeking products that lower carbon emissions through fuel efficiency and resource-optimized materials. Automation, including the development of autonomous and semi-autonomous equipment, is a growing trend, pushing the need for components like high-performance tires that seamlessly integrate with advanced systems. Additionally, the demand for versatile, multi-functional machinery is influencing tire design, making durability, stability, and load-bearing capabilities essential. Another trend is the use of digital solutions for equipment management, as companies seek ways to improve safety and reduce downtime.” |
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Anil Ghegade, Senior Director, Danfoss India Innovation Center, said, “Made in India and “Designed in India” products at a trade show is a powerful way to highlight what Danfoss has invested over the years to cater to local needs and innovation, and growing expertise in various industries which includes our broadest line of portfolio in Fluid conveyance, pumps and advance control solutions. We are showing some of these products and our partners in India. Such events are an excellent platform for building connections, expanding business opportunities, and celebrating the diverse talents of Indian engineers, designers, and manufacturers. We look forward to get first hand impressions / feedbacks for not only today but also future needs of our customers to ensure we continue our legacy of being the preferred solution partner for our customers.” |
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Sanjay Agarwal, Managing Director, Filtrec Bharat Manufacturing, said, “At Filtrec Bharat, we consistently align ourselves with timeless core values: Customer Centricity, Cost Leadership, and Technology Leadership. These values remain steadfast regardless of market conditions, external forces, or the passage of time. We have achieved cost leadership through in-house manufacturing of child-part components, ensuring efficiency and affordability. Additionally, we have demonstrated technology leadership with the launch of our Absolute Beta Series Media, which delivers superior filtration efficiency, an extended lifecycle, and lower operational costs.” |
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Samip Desai, Director, MOBA Mobile Automation, said, “The scheme would help in India’s focus on becoming a cost-competitive hub for heavy machinery has made global manufacturers increasingly rely on Indian facilities for exports. Through PLI, companies are adopting smart manufacturing, automation, and Industry 4.0 technologies, which are vital for producing high-precision, durable, and efficient equipment. Investments in electric and hybrid construction equipment (like electric loaders and hybrid excavators) are positioning India as a sustainable equipment manufacturer. |
The scheme’s focus on incremental revenue incentivizes companies to export more, leveraging India’s relatively lower production costs. Indian firms are now entering competitive markets in Africa, Southeast Asia, and the Middle East with competitively priced and high-quality products.”
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Amit Deokule, Director – Sales & Marketing, Nord Drivesystems, said, “NORD Drivesystems prioritizes sustainability through energy-efficient drive solutions and a commitment to reducing environmental impact across the product lifecycle. The company designs gear units, motors, and frequency inverters that optimize energy usage, integrating IE4 and IE5+ synchronous motors with high efficiency even under partial load conditions. Their modular drive systems allow for resource-efficient configurations tailored to specific applications, reducing material waste. Additionally, NORD emphasizes long-lasting, maintenance-friendly designs to minimize downtime and extend product lifespan. By focusing on innovation and energy-saving technologies, NORD supports the construction sector in achieving sustainability goals while enhancing operational efficiency. Bauma has always been a key event for us, consistently regarded as a priority exhibition. As a preferred brand among our customers, we are dedicated to ensuring their highest satisfaction with our products and services. We have exciting plans to engage with our customers and stakeholders, which we look forward to sharing with you at our stand. Our objective is clear: To foster stronger relationships and deepen customer engagement. We warmly invite you to visit us and experience what we have in store.” |
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Gurunath Kulkarni, Vice President, Shandong Heavy industry India, said, “We have adopted a proactive approach to support Original Equipment Manufacturers (OEMs) through this significant transition. Our engines are fully compliant with CEV Stage V norms, and we’ve already achieved significant readiness to cater to the market, with an annual target of 6,000 units. We collaborate closely with OEMs to develop prototypes equipped with our advanced engines, ensuring a seamless transition. Our team provides extensive technical support, on-ground validations, and troubleshooting assistance. This collaborative effort minimizes production disruptions while enhancing sustainability and operational efficiency. Our engines are equipped with advanced Engine Control Units (ECUs) and After Treatment Systems (ATS) to balance emission compliance and fuel efficiency. All our engines are IoT-enabled, facilitating real-time diagnostics and fault monitoring. This feature communicates with diagnostic tools, providing detailed error codes and descriptions for quick troubleshooting. This reduces downtime, lowers maintenance costs, and enhances overall operational efficiency.” |
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Sunil Newatia, Chairman, Suretech Infrastructure, said, “We are introducing our own brand, Dr. Digger excavator mounted Vibro Hammers during Bauma Conexpo. These hammers coupled with Straight Booms, Goosenecks and Boom Brackets, can be a very cost-effective solution for sheet piling jobs. World over, Excavator Mounted Vibros are used for 90% of the sheet piling jobs while in India, Crane hanging Vibros are preferred for most sheet piling jobs, which not only consume more fuel but also have higher operating costs and ultimately raise the overall cost of sheet pile driving which invariably impacts the cost of the project. EMV’s are faster to set up and cheaper to run and do the job more efficiently. |
We are also showcasing Hand held hydraulic tools for demolition, rock splitting and metal shearing. These are very effective in controlled demolition which tends to be a niche area – in comparison to the overall construction industry. As distributors of equipment for controlled demolition, we supply the right tools and machines for this purpose. Both splitters and crushing tools allow safe controlled demolition of concrete without water, noise, dust or vibration.”
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Rajesh Premchandran, Chief Sales & Marketing Officer, NBC Bearings, said, “The PLI Scheme has the potential to significantly boost India’s competitiveness in the global construction and mining equipment sector. By encouraging domestic manufacturing, the scheme helps reduce import dependency, strengthen local production, and promote technological innovation. At bauma CONEXPO INDIA 2024, Bearings will showcase a robust range of advanced bearing solutions tailored for the construction and mining industries. Our primary focus is on presenting high-performance bearings designed to enhance the reliability and durability of heavy-duty equipment, reduce operational downtime, and optimize overall costs for our customers. We are highlighting innovations such as advanced material bearings, precision engineering solutions, and superior lubrication technologies. Our experts will be available for in-depth discussions to understand specific customer needs and offer customized solutions to support their operational goals.” |
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Apurba Chakraborty, Vice President – Domestic Channel Business, Groz Engineering Tools, said, “Groz being a global innovator and amongst the world leader in providing a vast range of servicing equipment & solutions for large mining equipment, will display all of its star products related to construction and allied sectors. This includes show casing all our latest greasing equipment, pneumatic tools, storage solutions, LED worklights, industrial Hammers, professional hand tools and fuel handling equipment that we have launched on to the world market and we stand by our commitment of providing most optimise results by usage of all our product lines by any quality conscious users in India too! Green/electric construction machinery and their service equipment go hand in hand. At Groz, we are committed to ensuring that every product we manufacture adheres strictly to the Environmental, Social, and Governance (ESG) norms established in each country where we conduct business. This commitment reflects our dedication to sustainability and ethical practices. We take pride in being a significant player in the domestic market and a leading exporter from India, consistently upholding these standards to contribute positively to the global community.” |
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Piero Guizzetti, CEO, MB Crusher India, said, “The construction equipment (CE) sector is increasingly moving towards digitalization, sustainability, and automation. With advancements like IoT integration and AI-driven equipment management, we are seeing a shift in how machines are monitored, maintained, and optimized. Additionally, there’s a strong emphasis on eco-friendly practices as projects demand lower emissions and energy-efficient solutions. On-site material processing has also become a major trend, as it reduces logistics costs and minimizes environmental impact. Our crusher and screening buckets are designed to capitalize on this trend, helping operators recycle materials on-site and save on transportation and disposal costs. This trend aligns well with India’s infrastructure goals and the demand for rapid project completion while maintaining sustainability standards and recycling materials to the extent possible.” |
