23 July 2019

Industry Focus- Pavers & Compactors

Paving the way of growth



Asphalt pavers and compactors are undergoing a new round of innovations with advanced in-built and optional features that help deliver a superior surface finish matching asphalt temperature. the companies are also bullish on bringing new age equipment to offer the much needed push to the road construction segment, reports ROHAN AMBIKE.



Almost all types of building sites and construction projects utilize mechanical compaction techniques. With more than 60 per cent of the cargo movement being handled by the road network, the focus will naturally be on road infrastructure. Roads and Highways sector has been and continues to be one of the key drivers for growth for the infrastructure sector in India. India needs roads, both in rural and urban areas to progress.



The government has shown significant focus on building a world-class road network. Thus, there is a substantial budget outlay in successive National Budgets towards this segment. Investments that have been earmarked for this sector present a great opportunity for the OEMs.



Technavio’s market research analysts predict the global paving and concreting equipment market to grow steadily during the forecast period and post a CAGR of about 12 per cent by 2021. The growth of the construction industry across the world will be one of the major factors that will have a positive impact on the growth of this market in the coming years. Owing to the rapid urbanization and economic growth, there is an increase in the construction of ultra-high-rise buildings in several large and medium-sized cities across the world. This in turn, will increase the demand for paving and concreting equipment, consequently aiding market growth.



During 2016, the compactors segment accounted for the major market shares and dominated the market. Due to their usage across a wide of operations such as road construction, site clearance, and landscaping, this segment will post significant growth in the coming years. According to this market research and analysis, APAC will be the major revenue contributor to the market throughout the predicted period. This is mainly due to the rise in urbanization in the countries such as China, India, Indonesia, and the Philippines, which will fuel the growth of construction market in this region.



The demand for ICE grew by 24 per cent in FY 2017-18, and the sector crossed 90,000 units for the first time. Demand for ICE continued to grow mainly due to the increase in infrastructure spends. The industry grew despite the hiccups of emission and GST during April and July 2017, respectively. Demonetization also had a negligible effect on the industry growth.



While earthmoving and mining machines constitute for over 60 per cent of construction and mining equipment (CME) market in India, earthmoving equipment contribute to majority of the total infrastructure equipment sales. Rapid urbanisation, creation and revival of rural roads and highways, improving railway infrastructure; and revival of mining segment have created surging demand for earthmoving equipment. OEMs are coming out with customised solutions and advanced technical features in their equipment to meet the increasing requirements of more infrastructure creation


The market for soil compactors in India has been growing at a steady pace. An estimated 3500 units of compactors were being sold in India annually in the recent few years, out of which roughly about 50 per cent are soil compactors. Whether it is asphalt compactors or soil compactors, the thrust from manufacturers has been on machines that will achieve optimum compaction with the minimum number of passes.




Reasons Driving Demand


Unpaved roads account for more than 40 per cent of the roads globally. These unpaved roads can deteriorate quickly due to traffic, weather changes and bad habit of driving leading to accidents in most of the cases. The need to have paved roads is considered as a priority for growing infrastructure development globally and has driven the demand to produce more asphalt pavers. An asphalt paver is a construction equipment machinery generally used to place asphalt on roads, parking lots, bridges and other such places. It surfaces the asphalt flat and provides minor compaction before it is further compacted by heavy road rollers.



It is usually termed as an asphalt paving machine. Some asphalt pavers are dragged by the dump truck laying the asphalt, but most of these are now self-propelled machines. Rising infrastructural and road development initiatives in emerging economies to develop smart cities serves a major driving factor which accelerates the growth of asphalt pavers market globally. Based on projections of demand by infrastructure segment globally, investment in road development and maintenance account to 25 per cent of overall revenue share fuelling the demand for asphalt pavers globally.



With growth in industrial and infrastructural sector in the fast pace economies globally, there has been heavy expenditure on the road maintenance and infrastructural projects, creating demand for asphalt pavers globally. According to Energy Technology Perspectives (ETP), it is estimated that the world will need to add nearly 25 million paved road lane as only up to 60 per cent of roads are paved globally. The enhancement and establishment of modern roads and development in emerging economies such as India and China are major growth drivers of global asphalt pavers market.



Understanding the importance of road maintenance globally is proving to be very effective to reduce the number of accidents, ultimately driving global asphalt pavers market during the forecast period. Reuse and rental market for road machinery and asphalt pavers are trends prevailing in the global asphalt pavers market which also is a restraint for new equipment sales for major players and manufacturers existing in this market. Increasing demand from road traffic will require continuous construction and improvement of roads, in both urban and rural areas and is likely to fuel the global asphalt pavers market by the end of 2025.




Market leaders & Technology Innovation


The trend that has been witnessed in the Indian compaction market is the movement towards vibratory compaction from the earlier predominantly static rollers. The technology helps send pressure waves into the soil surface in different directions leading to the particles achieving a dense state of orientation. Just as in the case of the other types of construction equipment, contractors have realized that the initial higher capital investment is bound to pay off in the long run, given the cost savings achieved due to the lesser number of passes.



Manufacturers are also focusing on coming out with machines that are fuel efficient and require minimal maintenance, all adding to the good news for contractors. With competition, intensifying suppliers are concentrating on coming out with machines that would ideally suit Indian working conditions, where typically these machines would be put through more number of work cycles, as compared to the developed world. Global players who have entered the fray in India have been getting feedback from end-users and have been focusing their R&D towards machines that are specifically suited for India.



The Wirtgen Group offers Hamm range of compactors which are Economical and Effective. The articulated tandem rollers like the compact line HD 12 VV are perfectly adapted to applications on smaller road construction or landscaping sites. They are highly maneuverable for smaller areas and offer economical compaction on small sites. The HD series rollers like the HD 99 tandem roller made in India are perfectly designed for road construction and paving of large asphalt surfaces. Vibration and oscillation make them suitable for a variety of applications. They offer benefit to an operator in terms of comfort and visibility. The 311 soil Compactors and the 3520 Padfoot compactors for earthwork applications are characterized by high degree of comfort, outstanding ergonomic design, excellent field of vision and extremely powerful gradeability. The rubber wheeled rollers GRW 15 are used to compact asphalt pavements.



With the knowledge gained from working with the Indian market for decades, Volvo CE designed a single drum compactor specifically to suit local industrial applications. The 11.0-tonne class SD110BA combines dynamic drum forces and a heavy drum weight to produce the energy necessary to achieve material target density in fewer passes. With the highest centrifugal force in its class, the SD110BA delivers unmatched performance, ease of operation and outstanding output. Besides this, the Volvo SD110BA also enables operators to access hard-to-reach areas of the job site thanks to the fully integrated traction control system. Preventing wheel slip provides stability when operating on steep inclines and slippery surfaces.


Meanwhile, the tapered drum frame allows the machine to operate on slopes up to 35 degrees and provides greater clearance when loading and unloading for transport. Even in challenging environments, operators can count on the Volvo SD110BA to stand its ground. The well-balanced machine features a center joint with a +/-38 degree angle of articulation and +/-17 degree of oscillation, improving stability, maneuverability, and safety. In combination, these features provide customers with a means of achieving a greater volume of work at a higher quality and in less time.



JCB India offers a range of road compaction equipment with three world-class products – the VMT330 (a 3T Mini Tandem Roller), the VMT 860eco (a 9T Tandem Roller) and the latest JCB116 (a 11T Soil Compactor). The JCB116 Soil Compactor, a new world-class machine from JCB India comes with JCB Diesel Max engine, providing fuel savings of up to 6%. It is also equipped with proven German Vibration Technology and is designed to give more compaction per litre. It assures desired compaction density in a minimum number of passes.




Market Potential


For over a decade, the road-building sector in India has offered major growth opportunities for the cons­truction equipment industry. With more than 60 percent of the cargo movement being handled by the road network, the focus will naturally be on road infrastructure. Experts suggest that the market for compactors for the past 8-10 years has been around 2500 units per year. However, with the infrastructure development projects planned by the government in the roads and highway sector, this demand has increased considerably.



The growth of this sector is interlinked with the growth of the Indian economy and indirectly, with the growth of infrastructure. Factors like slow land approvals, high-interest rates, a weak rupee and the slowdown in the mining industry have affected the market which registered an almost flat growth over the last few years.





There is huge growth potential for compactors in an India that is developing a lot in terms of infrastructure. While the construction equipment market looks challenging in the short term due to policy paralysis at the executive level of the government, the medium to long- term growth story of this industry seems intact.

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