Dublin, Aug. 29, 2024 (GLOBE NEWSWIRE) -- The "China Construction Equipment Market - Strategic Assessment & Forecast 2024-2029" 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 2023 to 2029.
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 2030, 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 2025.
The development of waste-to-energy projects is expected to drive the sales of wheeled loaders in China's construction equipment market. From 1996 to 2020, 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 2035, and a highly competitive one by 2050. Emphasis is placed on reducing carbon emissions before 2030 and achieving carbon neutrality by 2060, 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 2030, primarily in the solar and wind industries. By 2050, 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 2027. 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 2023. Forklifts and telehandlers in the material handling segment had the largest share in 2023. Rising investment in housing, port expansion, and warehousing projects is expected to drive the demand for forklifts in the China construction equipment market.
- In 2023, 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 2024, 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 2023, 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 2024, 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 2023, 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
- 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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