The Market Report covers Chinese Construction Equipment Companies by Machinery Type (Crane, Telescopic Handlers, Excavator, Loader & Backhoe, Motor Grader), Drive Type (Conventional and Hybrid & Electric), Sales Channel (OEM and Aftermarket), and Application Sector (Building, Infrastructure, and Energy).
For each of the aforementioned segments, the market size and projections are given in terms of volume in units and value in USD billion.
The market for construction equipment in China is currently worth USD 50 billion. Over the following five years, it is anticipated to grow at a CAGR of 5.55% to reach USD 68 billion.
China’s construction industry was significantly hit by the COVID-19 outbreak. In the first quarter of 2020, China’s construction industry had a 6.9% fall. China’s industrial industry is a significant user of construction machinery, including cranes and wheel loaders. However, since a PMI below 50 is regarded as a significant indicator of economic contraction in China, the PMI dropped to 49.4, signalling a slowdown in the economy. The market’s diminishing growth can be attributed to a number of factors, including travel limitations, equipment sales declines, supply chain disruptions, and interruptions in large-scale manufacturing. Following the pandemic, there was an increase in construction nationwide as a result of the country’s relaxation of limitations. It is anticipated that the market would recover from all of the losses incurred during the epidemic and expand at a specific rate. In order to maintain continuity with customers in the crucial areas of the construction equipment industry, the manufacturers are also putting emergency plans into place to lessen future business concerns. For example,
Sany Heavy Industry boosted their R&D expenditures to USD 954 million in 2020, a 33.2% increase over 2019, and added 5436 R&D staff, a 69% increase over 2019. As a result, Sany Heavy Industry was able to introduce new, cutting-edge goods such as the 4000 t crawler crane SCC40000A, the new generation of intelligent excavators, and super-large excavators SY870, SY980, and SY1250. These items enabled the firm stop the sales loss during the COVID-19 epidemic.
In the long run, the expansion of the market under study is anticipated to be significantly impacted by the growing emphasis on infrastructure, the advancement of automation in the manufacturing and building processes, and the introduction of electric construction equipment such as electric excavators. Because more road building projects, like the Belt and Road Initiative, were implemented, the market for road construction equipment grew significantly.
China is the world’s largest market for construction machinery in addition to being the world’s largest manufacturer of such equipment. The need for construction equipment was fuelled by rural construction operations, fast urbanisation, and the expansion of public-private partnerships. With every component of the supply chain located in China, the country also boasts one of the best supply networks for construction equipment worldwide.
Construction equipment rental and leasing is becoming more popular. Purchasing new equipment entails significant expenses, upkeep, and storage-related problems. Newer enterprises are also starting to see renting as a feasible option. Construction contractors have actually found that renting machinery is a better option than buying it outright for short-term projects since it allows for the best possible use of the equipment.
To meet the growing demand for construction equipment, major payers are increasing their manufacturing capacity and introducing new items. For example
The new SY2600E 300 t class electric-drive hydraulic front shovel, which will be manufactured at Sany Heavy Industry’s Suzhou facility in China, was unveiled in February 2022. The SY2600E has a 15 cubic metre bucket capacity and measures 15 meters long by 8 meters high. It is driven by an electric motor that has three valves, eight pumps, and a fully electronic control system. The excavator is made especially for heavy-duty mining tasks.
XCMG Port Machinery began operations at their new facility in Xuzhou, China, in October 2022. With an annual capacity of 2000 units, the new plant manufactures gantry cranes, shore bridges, container reach stackers, forklifts, and other mobile port equipment.
The Chinese construction equipment market is expected to expand at a respectable compound annual growth rate (CAGR) during the next five years, based on the previously mentioned variables.
Increasing Investment in the Construction Sector in China
Many pieces of equipment and supplies must be moved from one area of China to another for ongoing megaprojects. Among the several projects that need for the use of numerous pieces of construction equipment are the Belt and Road Initiative, the Liuzhou-Wuzhou Railway Line, the Zhongwei Ji’an Natural Gas Pipeline project, and the Zhengshen Foshan Motorway. In 2021, China announced plans to invest USD 3.4 trillion in infrastructure projects. For example
China announced a further stimulus package for infrastructure spending in August 2022, worth USD 146 billion.
In 2021, China contributed for 20% of the worldwide construction equipment industry, with sales of construction equipment totalling over USD 50 billion. The world’s biggest producers of construction equipment have set up joint ventures and manufacturing plants in China. Additionally, restrictions on foreign investment in land development, upscale hotels, office buildings, international exposition centres, and the establishment and management of large theme parks have been lifted. The rising demand for construction equipment in the country is probably what would propel the market’s expansion.
The need for construction equipment is anticipated to rise as a result of the Belt and Road Initiative. China’s main project, the Belt and Road Initiative, is a major factor in the country’s demand for construction equipment. The machinery is bought and sent from China because the government provides tax incentives to construction businesses who acquire the equipment in order to participate in the Belt and Road Initiative, even if all of the building projects are carried out outside. In anticipation of the enormous demand from the nation’s flagship project, the Belt and Road, Kobelco, Tadano, Caterpillar, and Liebherr are attempting to expand their activities in the country.
The Shanghai Urban Rail transit extension, for example, is estimated to be about USD 44.23 billion. It consists of three intercity railways, nine rail projects, and six underground lines. The project’s estimated overall length is 286 kilometres. The goal of this network is to improve the linkages between Shanghai’s two main train stations and its two airports.
China is a major manufacturing base for foreign equipment makers as well. All of the major global manufacturers, including Volvo, Liebherr, Wirtgen, Fayat, Doosan, Hyundai, Terex, Manitowoc, Komatsu, Hitachi, Kobelco, and Caterpillar, have production facilities in China through joint ventures, completely owned investments, or acquisitions. Their most important worldwide manufacturing bases are some of these businesses, including as Manitowoc’s tower crane factory in Zhangjiaguang.
Consequently, in order to take advantage of the growing demand for construction equipment, large corporations are setting up production plants throughout China. Despite the fierce competition in the nation, numerous international companies are vying for market share with regional producers of construction equipment. For example,
The second phase of Zoomlion Heavy Industry Science & Technology Co.’s smart crane tower plant in Cgangde City, central China, was opened in May 2021. The plant is the largest wind tower crane manufacturing facility in the world, with a total area of 49.33 hectares.
The market for construction equipment in China is very dispersed. Local companies including Sany, XCMG, Zoomlion, Liugong, and Shantui dominate the market. Construction firms are attempting to gain an advantage over their rivals by forming joint ventures and introducing new goods with cutting-edge technology, as the market for construction machinery is characterised by a large number of regional and worldwide participants. For example,
September 2022: Zoomlion designed the ZAT24000H, a heavy-duty crane with a capacity of more than 2000 tonnes, especially for lifting wind generating equipment. As soon as it came off the assembly line, it was the largest tonnage all-terrain crane in the world. Because of its distinctive structural design and control system, which is driven by digital and intelligent technology, this product can fully meet the installation requirements for fans that are 160 meters or less in height. It also boasts strong hoisting performance, high convenience, and broad adaptability to a variety of working conditions.
Shantui Construction Machinery Co. Ltd. introduced the first unmanned, autonomous bulldozer in history in September 2022. Huazhong University of Science and Technology (HUST) and Shantui Construction Machinery Co. Ltd. collaborated to create the bulldozer.
source: mordor intelligence
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