May 2026, New Delhi: The Indian Construction Equipment Manufacturers’ Association (ICEMA) today announced that the Indian construction equipment (CE) industry witnessed a decline of approximately 2% in total equipment sales during FY 2025–26, with overall sales declining to 1,36,995 from 1,40,191 units in FY25. Despite temporary domestic market challenges linked to slower infrastructure execution and project delays, the industry remained resilient, supported by a robust 32% surge in exports. India continues to remain the world’s third-largest construction equipment market, with the sector estimated at USD 10 billion in FY25 and projected to reach USD 14.76 billion by 2030 at a CAGR of 8.3%.
Mr. Deepak Shetty, President, ICEMA and CEO & Managing Director, JCB India Ltd., said: “The marginal decline witnessed in FY26 must be viewed in the context of slower infrastructure execution on the ground rather than any structural weakness in the industry. While Government capex allocations continue to remain at historically high levels, delays in project execution, land acquisition challenges and slower disbursement cycles impacted equipment demand during the year. At the same time, the industry demonstrated resilience through a strong 32% growth in exports, highlighting the growing global competitiveness of Indian-manufactured construction equipment. We remain confident about the industry’s long-term growth trajectory driven by India’s continued infrastructure development focus.”
Key Performance Highlights – FY26
• Total Equipment Sales: 1,36,995 units, reflecting a ~2% decline over FY25
• Domestic Demand (excluding non-OEM exports): Declined by ~7% YoY across most equipment categories
• Exports: Registered a strong ~32% growth, reaching record levels across major equipment categories
• Imports: Increased by ~17%, mainly in Earthmoving, Material Handling and Concrete Equipment
• Domestic Manufacturing Strength: Over 95% of equipment sold in India continued to be manufactured domestically
Segment-wise Performance
Earthmoving Equipment continued to dominate with ~71% market share at 97,236 units (−2% YoY). Material Handling Equipment recorded 15,290 units (−10% YoY). Concrete Equipment remained broadly stable at 14,486 units (+0.09% YoY). Road Construction Equipment posted positive growth of ~6.3% to 7,445 units. Material Processing Equipment registered modest growth of ~1.2% at 2,538 units.