The Excavator market in India to grow at a CAGR of 22% percent over the period 2013-2018.
One of the major growth drivers in the market is the increasing investment in infrastructure projects by the government of India. The investment in infrastructure projects has been estimated to be US$1 trillion during the 12th five-year plan (2012-1017).
The crawler excavator is the fastest selling earth moving equipment in India. In 2013, a total of 16,141 units of crawler excavators were sold. This figure is estimated to increase to 50,091 units by 2018. The increasing growth of the Crawler Excavator segment of the Excavator market in India is attributed to the rising demand for 20 ton and 30 ton crawler excavators that are widely used in the Construction and Mining industries.
Further, the report states that effective product differentiation helps vendors survive in an intensely competitive market, as is the case with the Excavator market in India. Vendors in the market are trying to differentiate their products by providing additional support and services. This method of differentiating products requires large investments in R&D, but return of investment in R&D takes a long time. Moreover, obtaining capital for conducting R&D is one of the main constraints for any vendor.
