Dublin, Aug. 29, (GLOBE NEWSWIRE) -- The "China Construction Equipment Market - Strategic Assessment & Forecast -" report has been added to ResearchAndMarkets.com's offering.
The China construction equipment market is expected to grow at a CAGR of 2.05% from to .
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China's investment in green hydrogen aims to boost its low-carbon future, with 57 projects currently underway. As the country pushes towards carbon neutrality, hydrogen-powered transportation, including trucks and ships, is being trialed. Green hydrogen's share in China's hydrogen output is projected to rise to 15% by , with production costs expected to decrease. The nation is also advancing hydrogen technology through successful pipeline experiments and the establishment of national construction guidelines, targeting a robust hydrogen energy industry by .
The development of waste-to-energy projects is expected to drive the sales of wheeled loaders in China's construction equipment market. From to , China's urban domestic waste production grew significantly, and waste incineration became the predominant disposal method. This trend aligns with the high demand for excavators driven by extensive infrastructure projects under the 14th Five-Year Plan, which supports major developments in superhighways, railways, and airports. China's mining sector also boosts excavator demand as the country leads in coal, gold, and copper production, and increases quotas for rare earth minerals due to the demand from the electric vehicle battery market.
The 14th Five-Year Plan is crucial for the development of China's transport infrastructure, aiming to establish an advanced and globally competitive system by , and a highly competitive one by . Emphasis is placed on reducing carbon emissions before and achieving carbon neutrality by , with a focus on expanding infrastructure in less developed areas, advancing transport services technology, and promoting green transport options.
China's investments in the renewable energy sector are also set to boost demand for construction, with the nation spending USD 150 billion annually on renewable energy until , primarily in the solar and wind industries. By , this investment is expected to rise to USD 250 billion annually, positioning China as a leader in global renewable energy investments. Additionally, the booming copper mining industry is driving sales of earthmoving equipment, with companies like Zijin Mining achieving significant milestones in copper production and focusing on technological innovation and international partnerships to enhance capacity.
Despite these positive trends, the industry faces several challenges, including China's real estate crises, which are expected to hamper demand for residential units. The sharp decline in home prices has affected buyer confidence and increased pressure on the government to rejuvenate the property market. Additionally, the construction equipment manufacturing sector is hindered by a skilled labor shortage, with a significant portion of the workforce nearing retirement age, leading to an anticipated deficit of workers by . Furthermore, China's high debt levels, particularly in the real estate sector, are expected to decrease investments in the construction industry.
The vendor landscape in the China construction equipment market features leaders like Caterpillar, Komatsu, SANY, XCMG, Volvo CE, Zoomlion, and Hitachi Construction Machinery, who offer diverse equipment portfolios. Niche players such as Sunward, AICHI, and HELI have a strong local market presence but offer limited product diversification. Emerging companies like Kubota, Liebherr, and John Deere are introducing technologically advanced products to challenge market leaders, while companies like Sumitomo, Yanmar, and Manitou Group lag in adopting new technologies, limiting their market impact.
KEY HIGHLIGHTS
Material handling equipment accounted for the largest market share of the construction equipment market . Forklifts and telehandlers in the material handling segment had the largest share in . Rising investment in housing, port expansion, and warehousing projects is expected to drive the demand for forklifts in the China construction equipment market.
In , domestic demand for construction machinery declined due to ongoing real estate investment declines and slower infrastructure investment growth. Similarly, exports faced challenges from reduced overseas demand, channel destocking, and a high comparison base, leading to a further decline in export growth.
In , leading companies in the excavator industry, like SANY, Caterpillar, and Komatsu, are analyzing the projected expansion of the market. These vendors are optimistic about stabilizing domestic excavator sales, supported by policies like the Chinese government's significant national debt allocations.
In , electric forklifts showed significant growth, with sales increasing by 18.05% compared to the previous year. They now make up 67.87% of total sales among other types of forklifts. This surge reflects a trend toward environmentally friendly and sustainable solutions in the China construction equipment market. Electric forklifts offer economic benefits and enhance work efficiency, making them a promising choice for widespread adoption.
In March , the State Council released the "Action Plan for Promoting Large-Scale Equipment Renewal and Consumer Goods Old-for-New" to drive equipment renewal and transformation across key industries. The plan also includes initiatives for implementing energy-saving and carbon-reduction transformations across various sectors.
In , forklift sales dominated the China construction equipment market, followed by elevating working platforms and excavators in the domestic market. Based on their proportion, Crane sales represented less than 8% of total construction machinery sales.
COMPETITIVE LANDSCAPE
Key Vendors
Caterpillar
Komatsu
Xuzhou Construction Machinery Group (XCMG)
SANY
Zoomlion Heavy Industry Science & Technology Co., Ltd.
Volvo Construction Equipment
Hyundai Construction Equipment
Liebherr
John Deere
DEVELON
LiuGong
SUNWARD
Kobelco
Takeuchi Manufacturing Co., Ltd.
Hyundai Construction Equipment
Other Prominent Vendors
JCB
Kubota
Yanmar
Terex Corporation
Manitou
Tadano
KATO WORKS CO., LTD.
Bobcat
Haulotte
Toyota Material Handling
Ammann
AUSA
Wacker Neuson
The Manitowoc Company, Inc.
Bomag
Aichi Corporation
SUMITOMO CONSTRUCTION MACHINERY CO., LTD.
Shantui Construction Machinery Co., Ltd.
Hangcha Group
HELI
SAKAI HEAVY INDUSTRIES, LTD.
Shandong Lingong Construction Machinery (SDLG),
Lonking
For more Chinese Construction Equipmentinformation, please contact us. We will provide professional answers.
Xiamen XGMA Machinery Co., Ltd.
Yongmao
JLG
Skyjack
Dingli
Distributor Profiles
Mantrac Group
China Engineers Limited
Anhui Dachen Engineering Machinery Co., Ltd.
Beijing Komatsu Engineering Machinery Co., Ltd
Henan Wotong Construction Equipment Co Ltd
Shin Le Te Co., Ltd.
Anhui Qiaoyuan Construction Machinery Co., LTD.
SEGMENTATION ANALYSIS
Earthmoving Equipment
Excavator
Backhoe Loaders
Wheeled Loaders
Other Earthmoving Equipment (Other loaders, Bulldozers, Trenchers)
Road Construction Equipment
Road Rollers
Asphalt Pavers
Material Handling Equipment
Crane
Forklift & Telescopic Handlers
Aerial Platforms (Articulated Boom Lifts, Telescopic Boom lifts, Scissor lifts)
Other Construction Equipment
Dumper
Tipper
Concrete Mixer
Concrete Pump Truck
Segmentation by End Users
Construction
Mining
Manufacturing
Others (Power Generation, Utilities Municipal Corporations, Oil & Gas, Cargo Handling, Power Generation Plants, Waste Management)
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The Chinese construction equipment market has problems. After an enormous stimulus spending spree in and , sales of equipment more or less halved in and halved again last year. Off-Highway Research believes this year will see the bottom of the cycle, but it will also be a slow journey back to health thereafter.
Source: Off-Highway Research
As well as stimulus-driven boom and bust, the domestic industry has to cope with enormous bad debt problems in the real estate sector, the scaling back of road building work, and further debt problems for many provincial governments. The short list of positives include the mining segment and railway construction.
How the Chinese industry is reacting to this has implications around the world.
A record number of construction machines was exported from China in , while was the first year ever that exports were higher than domestic sales. This figure not only includes indigenous OEMs, but also the numerous international manufacturers which have significant production bases in China.
China's leading OEMs have had ambitions to be global giants in the industry and this predates the current domestic issues by years if not decades, but the current woes have certainly given more impetus to the development of export markets.
A lack of brand recognition, establishing residual prices and building strong distribution networks will all take time for China's OEM's to establish. However, some significant strides were made during the pandemic when more entrenched manufacturers had supply chain and delivery headaches, but Chinese OEMs had excess capacity due to the start of the home market collapse.
Across the machine types we cover, Off-Highway Research data shows the total world market for electric construction machines was 6,000-7,000 units last year (that is to say machines which have traditionally been diesel-powered, not equipment like small scissor lifts which have a long history of electrification). Some 75 per cent of those sales were in China, and an even higher proportion of electric machine production was in China, mostly by indigenous OEMs. There are at least 30 producers of electric construction equipment in China ' some well-known names in the industry world, but many which are new to the sector and which have entered from on-road applications.
Chris Sleight, managing director, Off-Highway Research.
Electric machines are likely to be at the forefront of Chinese OEMs' renewed push into overseas markets. They have first over advantage and less-developed distribution networks are not such a hindrance for machines with lower parts counts, fewer moving parts and lower service requirements in general.
Whereas a rule of thumb in Europe or North America for the last few year has been that the electric version of a machine is around 2-3 times the cost of the traditional diesel version, a 5 tonne capacity electric wheeled loader cost the same as the diesel equivalent (about a 230 horsepower machine) in China last year. This year the electric versions could be cheaper.
The argument in favour of electric equipment to date has been that although the purchase price might be a lot higher, the customer wins in a few years because of the lower Total Cost of Ownership (TCO). If the purchase price now becomes compelling growth in electric equipment sales could rise extremely steeply and the barriers will start to come down to practical issues around charging times and charging infrastructure.
One important point around wheeled loaders and why electrification has already moved quickly in China (penetration was close to 10 per cent last year) is that they have a lot of applications in waste management, mining and quarrying, where infrastructure is in place and there is access to grid power. That removes the big hurdle in a greenfield project ' where do you plug it in to charge?
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