Anti Vibration Products Market in Construction Equipment Industry – A Review
1 Market Turns Around After COVID19
The recent ICRA Survey with Construction Equipment Dealers reveals a healthy improvement in demand for new machines. An industry-friendly fund flow from the Government and the ongoing projects that started before the CoVID19 Pandemic are expected to support demand in the second half of fiscal 2021 after a considerable shortfall during the first half.
This is expected to create higher demand for the anti-vibration products market in the construction machinery industry, along with several other factors which are briefly discussed in this blog.
2 The ‘X’ Factor
The demand spike however does not come without any disclaimer. The X factor is the expected legislation in relation to the terms of the Paris Accord (Global Climate Change Agreement) that all nations will have to abide by. If emission, noise, and transport regulations either toughen or harmonize quickly, the replacement cycle away from traditional fossil fuel power to modern electromobility will move to the top gear. Consider this – in the global scenario, and in India is no exception, by 2050 close to 70% of the global population will be living in urban or semi-urban areas. This fast urbanization will call for a change of mindset in the CE industry – the dependence on large vehicles meant for high altitude terrain operations will be replaced by a hybrid market model of such vehicles along with compact machines meant for operations in heavily populated urban and semi-urban areas where the space to operate is limited.
According to various studies, in the coming years close to 80% investment in infrastructure will focus around seven sectors – Telecom, Electricity, Defence, Roads & Bridges, Seaports, Airports, and Renewable Energy.
3 Effect of Indian Union Budget 2021
From an infrastructure perspective, Union Budget 2021 gets 9/10 in our mark sheet. If properly implemented, India will have a market size of approximately 26 Billion USD by 2030 and this will considerably improve the market size for anti-vibration products in the CE industry as well. The vehicle stoppage policy, currently under consideration by the GOI is expected to create a market of its own to the tune of USD 6 Billion (INR 43000 Crore), according to an HDFC Report.
4 Impact of Paris Agreement
From a global perspective and, therefore, from an Indian perspective, the whole thing will depend on two factors – (1) infrastructure needs of increasingly urbanizing society and (2) need to meet the terms of the Paris Accord.
On one hand, the needs of modern society are well documented and we need not go into the details. Fast developing countries including India and most other nations in the SAARC region such as Bangladesh, Sri Lanka, Vietnam, Thailand, etc., are left with no option but to increase the Government spending on infrastructure, whether solely by the Government or Private or through a Public-Private Partnership (PPP).
On the second hand is the Paris Agreement. Look at this scenario – In India alone, 9 million vehicles will go off the road in 2021 and 28 million by 2025, mostly two-wheelers creating a market of 6 Billion USD of its own. It will reduce Carbon Dioxide emission by 17% and cut the particulate matter in the air by 24%. If 50% of Bharat II and III stage vehicles go off the road, it would save around 8 million tonnes of oil a year.
The electromobility to counter global warming and climate change pausing serious threat to the human race will demand a new outlook to transport and construction machinery. As the world moves into electric engines and vehicles, the anti-vibration product designers and producers will have to scale up the technology and R&D capability significantly.
5 The changes that are bound to come
The scenario will also demand a considerable increase in the need for comfortable, high-speed mass transportation such as high-speed trains and metro transportation.
When it comes to heavy construction machinery such as excavators, loaders, dumpers, dozers, and the like, the CE manufacturers have traditionally depended on the high tonnage vehicles meant for high altitude terrain and border operations. These areas were barely populated and hence were considered outside the scope of any serious environmental threat. This will not be the case anymore. Firstly, infrastructure in the urban and semi-urban areas will have an equal say in the CE market as it has in high-altitude operations. This will mean a spike in demand for compact machines in the CE industry. Secondly, the border areas and high-altitude terrains will no longer be considered as outside of any serious environmental threat.
6 Role of Anti Vibration Products
One of the main causes of noise pollution is vibration. The construction machinery and surface transport vehicles whether on-road or rail is a significant contributor to this problem. In order to meet the safety, comfort, and other needs of modern society in general and industry in particular, and in order to meet the climate change requirements, anti-vibration products will attain higher importance than what they used to.
There are two challenges here:
- The capability of the anti vibration product designers to meet the new challenges paused by the scenario explained in this blog
- The ability of the anti vibration manufacturers to offer a full spectrum of products and services with capacity enhancement at short notice.
7 How NAPL can help?
NAPL is a specialist design, development, and manufacturer of anti-vibration products for more than a decade now. NAPL has the ability to both meet the technological challenges paused on the construction equipment and transportation industry as well as the ability to scale up manufacturing capacity at very short notice.
For more details please get in touch with [email protected] or [email protected]
