An exciting future

The excavator market is on a continued growth path considering the ongoing infrastructure development activities. Construction Times presents an overview of the market and the key technology trends.

The government has been continuously putting a strong focus on infrastructure development with a slew of mega infrastructure creation plans. Continuing its focus, the government in its interim budget 2024-25 has allocated Rs 11.11 lakh crore capex for infrastructure development. This has opened up new opportunities for the construction equipment industry for introducing more advanced and productive equipment and machinery in the construction and mining market. Excavators, being the largest used earthmoving and construction equipment, has a larger role to play in the upcoming market scenario.

Market dynamics

In India, the excavator market has seen significant growth over the years, supported by the vigorous construction and infrastructure development activities. As per the latest ICEMA figures, the Q3 sales of crawler excavator has seen 35 percent growth compared to last year. The industry projections suggest that the market is poised to achieve double-digit growth this year, potentially reaching an all-time high of approximately 27,000 units.

Demand trend

Excavators are being used broadly in construction and mining applications. According to the scale and nature of jobs, excavators are available in different tonnages. In the excavator market, the 20-tonne segment holds a significant share, constituting over 60% of the market, which are extensively utilized in major construction and infrastructure projects. This segment experiences demand from various customer groups, including first-time buyers and small hirers who focus on value for money and durability. Premium machines with advanced features are preferred by large contractors, fleet owners, and construction companies focusing on productivity enhancement through telematics for performance monitoring. The 10-tonne and 7-tonne class excavators cater to smaller-scale projects.

Mini excavators, falling under the 7-tonne class, are experiencing significant growth with diverse applications across real estate, industrial utility, agriculture, plantations, and maintenance works.

Larger excavators exceeding 45 tonnes are primarily deployed in mining operations and have shown consistent growth, driven by the increasing focus on coal, cement, and iron ore production to support the growing economy.

Tata Hitachi offers a wide range of excavators, as BKR Prasad, General Manager – Marketing, Tata Hitachi elaborates, “Our comprehensive range of excavators include 2 tonne to 40 tonne hydraulic excavators for the infrastructure sector, 45 tonne to 120 tonne for the mining sector and the ultra large 190 tonne to 800 tonne excavators for specialized heavy-duty mining. The ultra large mining excavators are sourced from Hitachi Construction Machinery, Japan and have both options of being diesel-driven and electric-driven, depending on the requirements of customers. These products, amongst others, are a part of our latest innovative and dependable PRIME series and the technologically advanced ZAXIS series.”

Innovations in excavators

The excavator market has seen a lot of innovations and technology developments over the years, considering the most demanding equipment category in construction as well as mining sectors. These include various digital tools, fuel-efficiency and productivity enhancement technologies, hybrid, electric and green hydrogen powered equipment focusing on environment and sustainability.

Komatsu and L&T Construction & Mining Machinery offer a comprehensive range of hydraulic excavators equipped with several digital tools for various applications. Arvind K Garg, Senior Vice President and Head, L&T Construction & Mining Machinery, Larsen & Toubro, elaborates, “We jointly provide exceptional product experiences supported by state-of-the-art technologies. The latest introduction is the Smart Construction solution. Built to support the digital transformation of customers’ worksites, Komatsu’s suite of Smart Construction solutions leverages the power of IoT to help customers orchestrate construction planning, with the aim to handle management and scheduling better, streamline costs, and optimise processes remotely—in near real-time.” Machines like the Komatsu excavators feature advanced ecot3 (Ecology, Economy, Technology 3) engine technology. With in-house developed control systems and components, these excavators consume less fuel, are highly versatile, and offer superior productivity, reducing overall production costs, according to Garg.

Mukul Dixit, Industry Manager, GCI, Caterpillar India, explains the innovations in the latest excavator range from the company, “Recently, we have launched Cat®350, 374 and 395 excavators. These products are equipped with the best-in-class technology which can help increase productivity, provide better cost efficiency, enhance safety, and offer more customizable features compared to its predecessors to meet the multi-functional requirements of the customers.” These machines come with a high-ambient capability of 52°C (125°F) and cold start capability of -18°C (0°F). An optional -32°C (-25°F) cold start is available for extreme cold conditions.

SCHWING-XCMG has been at the forefront of deploying cutting-edge excavators in the recent times. V G Sakthikumar, Chairman & Managing Director, Schwing Stetter India, adds, “With a comprehensive product range comprising 18 model variants, our excavators are equipped with innovative features crafted through meticulous market research and dedicated R&D efforts. These innovations enhance machine performance, durability, and overall efficiency, making SCHWING-XCMG the preferred choice for Indian CE customers seeking top-notch excavators.”

Market opportunities and future

Compared to other construction equipment segments, crawler excavator market has seen significant growth over the years and the trend is continuing. As Rohit Punjabi, Vice President & Business Head, LiuGong India, anticipates, “This year, the excavator market in India is expected to be of around 30,000 units and I am sure in next two years, it will be more than 35,000. The current excavator market of China is more than a lakh. So, we still have a long way to go and we are in the right direction.”

“In the dynamic landscape of India's construction equipment industry, the hydraulic excavator segment is undergoing a transformative phase marked by substantial growth. Propelled by a forecasted CAGR of 23.3% from 2021 to 2027, the sector is witnessing an upsurge in demand across various excavator types and variants,” says Puneet Vidyarthi, Head of Marketing and Business Development, India & SAARC, CASE Construction Equipment. According to him, factors such as the 'Smart Cities Mission' and other urban development projects contribute to a positive and stable market outlook.

The NIP programme and the latest announcements on infrastructure developments mean a lot of opportunities for construction equipment in general and excavators are surely going to play a crucial role in India’s infrastructure developments.