As per the estimate of the Twelfth Plan of the Planning Commission of India, India would witness roughly USD 1 trillion investments in the infrastructure sector. Since National Democratic Alliance (NDA) government has come in power, the government has given additional priority to this sector and much needed attention to boost the infrastructure sector.
The government has planned an outlay of Rs 2, 21,246 crore in the Budget 2016-17, which has shown the clear picture to construction equipment companies that construction machines demand will rise due to investment and expansion of infra sector.
Excavators are the crucial and versatile equipment used for various constructions related works, especially used for road, highways, mining, canals and river dredging and other works like digging holes, foundation and trenches, heavy lifting and material handling.
Global market research company, Research and Markets said in its report called ‘Excavator Market in India 2015-2019’, that the Indian excavator market is to grow at a compound annual growth rate (CAGR) of 7.86 percent over the period between 2014 and 2019.
As per another report of the same research company, market for mini excavator is also bullish on India. The report known as ‘Indian Mini Excavator Market Outlook 2020’ said, the mini excavator market is to grow around at CAGR 12.5 percent during 2015-2020. The report estimated that Indian mini excavator market was Rs 5.7 billion in 2014.
Generally, mini excavators are more fuel efficient compared to heavy excavators.
One of the major reasons for the better growth of the mini excavator is, it’s very handy, very compact, versatile in nature, mobility is very easy from one place to another place on construction sites and pass through even small gates and having various other advantages. Nowadays, many contractors have started preferring mini excavator over Backhoe loader due to its above mentioned features, which could lead to its market expansion. However, both have different feature sets and applicability of these two equipments depend on the project size.
Excavator manufacturers like JCB India, Caterpillar, BEML, Komatsu India, Hyundai Construction Equipment India, L&T Construction Equipment, Tata Hitachi, Volvo, Sany India are the key players in this segment and growth of these companies are expected to rise.
Various government initiatives such as Smart cities, affordable housing for rural and urban population, growing expansion of road & highway network, huge investment in railway infrastructure, new ports and expansion of airport across the country will definitely driver the excavators and heavy construction equipment market in the country and help in growing the sector.
Source: Information in this article has been obtained from Planning commission, Research and Markets report.