Analysis of the market for the construction of bridges and tunnels

The relevance of research

Roads and railways, as well as structures on them, are one of the most important elements of the state's infrastructure. The degree of development of the road network directly affects the economic prosperity and defense capability of the country. Due to the harsh climate, the presence of a large number of various kinds of obstacles - forests, mountains, wetlands, the construction of roads, bridges and tunnels in India has always been fraught with significant difficulties.

Purpose of the study

Analysis of the state of the market for the construction of bridges and tunnels, assessment of the market size, analysis of competitors, as well as identification of factors affecting the market for the construction of bridges and tunnels

Content

Part 1. Overview of the Indian bridge and tunnel construction market
1.1. Definition and Characteristics of the Indian Bridge and Tunnel Construction Market
1.2. Dynamics of the volume of the Indian market for the construction of bridges and tunnels, 2014-2018.
1.3. Market structure by type of service provided in India
1.4. Structure of the market for the construction of bridges and tunnels in the Union Territories
1.5. Assessment of current trends and development prospects of the studied market
1.6. Assessment of factors affecting the market
1.7. Analysis of sectoral indicators of financial and economic activity
Part 2: Competitive Analysis in India's Bridge and Tunnel Construction Market
2.1. Major players in the market
2.2. Market shares of the largest competitors
2.3. Profiles of major players
Part 3. Consumption analysis of bridge and tunnel construction
3.1. Estimated per capita consumption of bridge and tunnel construction
3.2. Market Saturation and Estimated Market Potential in India
3.3. Description of consumer preferences
3.4. Price analysis
Part 4. Assessment of factors of investment attractiveness of the market
Part 5. Forecast for the development of the market for the construction of bridges and tunnels until 2023
Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators

Research excerpt

Part 1. Overview of the Indian bridge and tunnel construction market
1.1. Definition and Characteristics of the Indian Bridge and Tunnel Construction Market
Artificial road structures on public roads include bridges, overpasses and overpasses, tunnels, pedestrian crossings at different levels. Bridges and tunnels can also be built on railways. 
A bridge is a structure made up of… 
The subject of the study includes all the listed categories of structures: bridges, tunnels, as well as all types of elevated and underground roads.
Roads and railways, as well as structures on them, are one of the most important …
The construction of bridges, overpasses, overpasses, tunnels is different ...
...
Bridges are classified according to a number of criteria:
- by appointment: ...;
- by type: ...;
- ...
The scope of tunnels is so large that it allows only the most general classification according to their purpose, location, depth and method of construction.
According to their purpose, ... tunnels intended for ...
...
Improvement of constructive and technological solutions, further industrialization of construction will allow …

1.2. Dynamics of the volume of the Indian market for the construction of bridges and tunnels, 2014-2018.
Consider the dynamics of the volume of the market for the construction of bridges and tunnels in India.
The dynamics of the bridge and tunnel construction market in India is … character. In general, the trend towards …, taken by the market back in 2014 and continuing in 2015, is a reflection of … According to Rosstat, in 2014 the rate of … completed construction amounted to …%, and in 2015 it amounted to …% compared to the previous 2014. 
But already in 2016, there is … the market for the construction of bridges and tunnels - the growth rate was …%, and at the same time in absolute terms …, and in 2018 … this indicator for the last 5 years was … billion Rs., while the growth rate compared to the previous amounted to …%.
If we consider the structure of the market by type of structures (bridges and tunnels), then we state the fact that ...
However, if information … is used to calculate the structure, then on average the share of tunnels in the total capacity in physical terms (kilometers) is …% (the share of bridges, respectively, …%), and in value terms the share of tunnels is about …% (the share of bridges , respectively, …%). For 2018, the capacity of the tunnel market is estimated at … billion Rs, and the market of bridges - at … billion Rs.
One of the key market growth drivers is…
The growth and progressive development of the bridge and tunnel construction market is largely determined by …

1.3. Market structure by type of service provided in India 
The diagram shows the structure of services (shares of costs by areas of use) for the construction of bridges and tunnels in ...
Three quarters of the cost of the project to create ... (...%) falls on the main process ..., in second place in the structure - services for ... (...%), including ... In third place in terms of share in the structure (...%) - ... work.
The following services and expenses are also highlighted: creation of … – …%; creating objects...

1.4. Structure of the market for the construction of bridges and tunnels in the Union Territories
Diagram 3. The structure of the provision of services for the construction of bridges and tunnels in India by Union Territories in 2014 and 2018,%

According to … data, during the period under review, the largest market share fell to … Union Territories, namely …% in 2014 and …% in 2018. The smallest share of the bridge and tunnel construction market falls on the … Federal District, it is equal to …% in 2014 and …% in 2018. More ... in 2014 and 2018, the tunnel and bridge construction market falls on the federal districts of ..., namely ... the Union Territories, ... the Union Territories and ... the Union Territories. It should be noted that, in all likelihood, the distribution of shares in the construction of bridges and tunnels between federal districts seems to be …. based …

1.5. Assessment of current trends and development prospects of the studied market
The main features, trends and prospects of the bridge and tunnel construction market are:
- Market size...
- India lags behind economically developed countries in...
Experts comment on this situation. For example, … 
The development of public-private partnership (PPP) legislation in India was initially largely determined by …
- The development of the industry is hindered by a consistently low …
- ...

1.6. Assessment of factors affecting the market
Macroeconomic factors influence the dynamics of all sectors of the Indian economy, including the market for the construction of bridges and tunnels. The main groups of factors are: economic, political, social and technological.
Economic
GDP (gross domestic product) is used to determine the rate of economic development of any state. GDP is a macroeconomic indicator that reflects the total value of goods, works and services that were produced and provided in the country in a year. Gross domestic product is the main indicator on the basis of which the level and pace of the country's economic development are determined.
Chart 4 shows India's GDP growth rate from 2011 to 2018. In the period from 2011 to 2014, the growth rate was ..., but constantly ... 
In 2015, which was the peak of the crisis in the state, …% compared to the previous year 2014, and since the dynamics of GDP …
In 2016, there is… 
According to the … review published … in 2019, the acceleration of India’s GDP growth rates in 2018 to …% is largely due to …
...
Demographic (social)
...
technological
...
Political
...
Thus, Table 5 provides a list of factors considered.
Table 5. STEP analysis of factors affecting the bridge and tunnel construction market

 In general, the influence of macro factors on the market for the construction of bridges and tunnels can be assessed as ... Negative influence is exerted by ... Positive influence is exerted by …

1.7. Analysis of sectoral indicators of financial and economic activity
Important data for analyzing the state of the industry is the dynamics of such indicators as profit, profitability, liquidity.
Table 6. Profit (loss) from the implementation of the construction of bridges and tunnels in the Union Territories of India, 2014-2018, million Rs.

 During the period under review, in terms of profits from the construction of bridges and tunnels, the leading federal districts were …, … and …, in the distribution of profits there is no … between districts and by years, which is associated with … To objectively assess the situation in terms of sales profits in 2014 and 2015 in general, India is difficult, because ... This is due to ...

Table 7 shows the dynamics of the gross margin indicator (the ratio of gross profit to income).
For the period under review from 2014 to 2018, the gross margin indicator in the bridge and tunnel construction industry as a whole showed ... From the value of …% in 2014 to …% in 2018. It speaks of...
However, during the entire period, the value of the gross margin for the construction of bridges and tunnels is significantly ...
Diagram 10 shows the dynamics of profitability before tax.
In general, for the period, the profitability of profit before tax in the construction of bridges and tunnels …%. Despite this, the work of the industry cannot be named ... At the end of 2018, the difference between the industry in question in terms of profitability of the reporting period and the average for all sectors of the economy amounted to …%.
Consider the liquidity ratios in the bridge and tunnel construction industry. The indicator of current liquidity is a measure of the solvency of the organization, the ability to repay the current (up to a year) obligations of the organization. Diagram 11 shows the dynamics of this indicator.
Estimated indicator of current liquidity …

For the industry under consideration, during the period from 2014 to 2018, the dynamics of the total coverage indicator ... The nature of the change in this value ...
A more stringent liquidity criterion is the absolute liquidity ratio. He shows, …
The normal value of the absolute liquidity ratio fluctuates ...
Table 8 shows the dynamics of this coefficient.
During the period under review, the overall indicator for all sectors of the Indian economy did not fall below ..., which indicates ... In the construction of bridges and tunnels, this indicator ... At the end of 2018, absolute liquidity was ..., which is less than ...
Business activity is the ability ...

Diagram 12 shows the dynamics of the average turnover of receivables in the bridge and tunnel construction industry.
The dynamics of the average turnover period of receivables in the period from 2014 to 2018 was ... In 2015 and 2018, there was ...
The stability of the financial position of the enterprise is impossible without ...
The final working capital ratio for all sectors of the economy in 2015-2016 shows a trend towards …
The financial viability of the bridge and tunnel construction industry has been…
Thus, despite the fact that financial indicators for the period as a whole showed …

Part 2: Competitive Analysis in India's Bridge and Tunnel Construction Market
2.1. Major players in the market 
The largest participants in the bridge and tunnel construction market in 2018 were: …
2.2. Market shares of the largest competitors
Diagram 14. Shares of the largest competitors in the bridge and tunnel construction market in 2018, %

The market for road construction, and in particular the construction of bridges and tunnels, is ... Currently, there are ... companies operating in this market niche. For most of them, the main activity is…
The bridge and tunnel construction market in India is … – the Herfindahl-Hirschman index in 2018 was ...
The shares of the largest competitors in the bridge and tunnel construction market are estimated based on data on ... Top-5 companies engaged in the construction of bridges and tunnels in India (shown in the diagram) occupy a total of …% of the market. The top 5 includes the following companies: … with a share of …%, … with a share of about …%, …
Estimating the shares of market participants and identifying leaders is difficult due to the following circumstances:
- Of the companies presented in the diagram, only 2 ...
- On the websites of companies and in open sources of information (information portals, mass media) …
- ...

2.3. Profiles of major players
OOO …
Table 10. Basic information about participant No. 1 of the bridge and tunnel construction market 

...
Company ""…""
...
The dynamics of the revenue of the largest companies working in the field of tunnel and bridge construction has … a character that reflects ... In 2015, the growth rate of this indicator … The growth rate compared to 2015 amounted to …%. In 2017 and 2018, this trend …

Part 3. Consumption analysis of bridge and tunnel construction
3.1. Estimated per capita consumption of bridge and tunnel construction
Diagram 16 shows the dynamics of the ratio of the volume of the market for the construction of bridges and tunnels and the population of India.
Diagram 16. The volume of consumption of construction of bridges and tunnels per capita, 2014-2018, Rs./person

The nature of the change in the indicator of construction of bridges and tunnels per capita ... In 2015, there is ... In 2016 ..., and the construction indicator almost reached ..., showing a rate of ...%. In 2017-2018, the upward trend …

3.2. Market Saturation and Estimated Market Potential in India
According to ... in 2018, a record was set for the number of ... In total, more than ... occurred in India during this time.
The most famous cases are: ...
...
In particular, according to experts … the situation that developed in 2018 was the result of a certain cumulative effect: …
One side:
- The dynamics of the volumes of the market for the construction of bridges and tunnels since 2016 is …;
- Since 2000, at an accelerated pace ... 
On the other hand:
...
...
In India ... Compared to the US: ..
Also ... can be judged by the indicator ...
It is also worth considering that citizens live ...
At the same time, we should not forget about the already existing ...
Thus, the potential for the development of the market for the construction of bridges and tunnels ... At all levels: federal, regional, municipal and smaller settlements, a significant increase is required ... However, such a significant increase in construction, reconstruction and repair is expected ...

3.3. Description of consumer preferences 
...

3.4. Price analysis
Table 16 shows the dynamics of the CPI for the section of OKVED ""Construction"", as well as for the considered sector of construction of bridges and tunnels.
The CPI in this table is shown as... 
In the “Construction” industry, a significant jump in CPI was observed in … year, it amounted to …%, in other years of the period under review from 2014 to 2018, the index value fluctuated between …%. According to the data for October 2019, the consumer price index for Construction by December 2018 is …%. CPI for the construction of bridges and tunnels on average over the years …
Table 17 presents the prices and cost of building the largest bridges and tunnels in India from 2000 to the present. Also added information on the largest projects (and their cost) planned for implementation in the coming years.
Table 17. Average prices for the construction of bridges and tunnels in the Union Territories in 2000-2018, planned projects until 2025, units rev.

The cost of a bridge or tunnel is made up of many costs ranging from…
The cost of a bridge depends on the cumulative effect of the following parameters:
- ...
- Designs, technologies...

Part 4. Assessment of factors of investment attractiveness of the market
… investment climate factors of the bridge and tunnel construction market dominate over… A comprehensive assessment of investment attractiveness factors is … points – … investment climate, but close to the border with … investment climate. This means that within the industry in question…
The most significant positive factors…
The most significant negative factors…

Part 5. Forecast for the development of the market for the construction of bridges and tunnels until 2023
We will analyze the market based on methods based on identifying trends over time, adjusted for expert opinion in the industry.
The further development of the bridge and tunnel construction market in India will largely depend on …
...

Part 6. Conclusions on the prospects of creating enterprises in the study area and recommendations for current market operators 
...

Diagrams
Diagram 1. Dynamics of the volume of the market for the construction of bridges and tunnels, 2014-2018, billion Rs.
Diagram 2. Structure of the market for the construction of bridges and tunnels by type of service, %
Diagram 3. The structure of the provision of services for the construction of bridges and tunnels in India by Union Territories in 2014 and 2018, %
Diagram 4. Dynamics of India's GDP, in 2011-2019 (1pg.), % to the previous year
Diagram 5. Monthly dynamics of the US dollar against the rupee, 2014-2018, Rs. for 1 US dollar
Diagram 6. Dynamics of India's IPP in 2014 - 2019 (Jan.-Oct.), % to the previous year
Diagram 7. Population dynamics in India, 2010-2019, million people, %
Diagram 8. Dynamics of real income of the population of India, 2011 - 2019 (Q1 and Q2), % to the previous year
Diagram 9. Dynamics of the average interest rate on loans, 2014-2019 (January-Aug.), years, %
Diagram 10. Profitability of profit before tax (profit of the reporting period) in the construction of bridges and tunnels in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 11. Current liquidity (total coverage) in the construction of bridges and tunnels for 2014-2018, times
Diagram 12. Business activity (average term of receivables turnover) in the construction of bridges and tunnels, for 2014-2018, days days
Diagram 13. Financial stability (security of own working capital) in the construction of bridges and tunnels, in comparison with all sectors of the Indian economy, 2014-2018, %
Diagram 14. Shares of the largest competitors in the bridge and tunnel construction market in 2018, %
Diagram 15. Dynamics of the total revenue of the largest operators of the bridge and tunnel construction market (TOP-5) in India, 2014-2018, billion Rs.
Diagram 16. The volume of consumption of construction of bridges and tunnels per capita, 2014-2018, Rs./person
Diagram 17. Forecast of the volume of the market for the construction of bridges and tunnels in 2019-2023, billion Rs.

 Tables 
Table 1. Average producer prices for certain types of industrial goods in India at the end of the period in 2014-2018, rupees per unit of measurement
Table 2. Producer price indices for construction products in 2017-2019 (October), % to December of the previous year
Table 3. Indicators for assessing road congestion in India for 2014-2018, units rev.
Table 4. Weighted average interest rates of credit institutions on credit operations in rupees, excluding PJSC Sberbank (% per annum), 2014-2019 (Jan-Aug.)
Table 5. STEP analysis of factors affecting the bridge and tunnel construction market
Table 6. Profit (loss) from the implementation of the construction of bridges and tunnels in the Union Territories of India, 2014-2018, million Rs.
Table 7. Gross profitability of the bridge and tunnel construction industry in comparison with all sectors of the Indian economy, 2014-2018, %
Table 8. Absolute liquidity in the construction of bridges and tunnels in comparison with all sectors of the Indian economy, 2014-2018, times
Table 9. Key companies participating in the bridge and tunnel construction market in 2018
Table 10. Basic information about the No. 1 participant in the bridge and tunnel construction market
Table 11. Basic information about the No. 2 participant in the bridge and tunnel construction market
Table 12. Basic information about the No. 3 participant in the bridge and tunnel construction market
Table 13. Basic information about the No. 4 participant in the bridge and tunnel construction market
Table 14. Basic information about the No. 5 participant in the bridge and tunnel construction market
Table 15. Comparative indicators for India and the USA, units rev.
Table 16. Consumer price indices for the construction of bridges and tunnels in India in 2014-2019. (October), %
Table 17. Average prices for the construction of bridges and tunnels in the Union Territories in 2000-2018, planned projects until 2025, units rev.
Table 18. Assessment of factors of investment attractiveness of the market for the construction of bridges and tunnels