China Construction Equipment Market - Strategic Assessment & Forecast 2022-2028

MARKET INSIGHTS

The China Construction Equipment market was valued at USD 57.66 billion in 2021 and is forecasted to reach USD 78.70 billion by 2028, growing at a CAGR of 4.70%.
In 2021, the material handling segment had the largest share due to the shift towards prefabricated construction and port development projects.

Increasing Focus on Infrastructure to Drive China Construction Market Growth

The construction industry in China is expected to generate high demand primarily due to the “build, reconstruct, renovate, and revitalize” program, which is anticipated to further dominate the construction equipment market over the forecast period. Projects such as Liuzhou-Wuzhou Railway Line (USD 4,793 million), Zengcheng-Foshan Expressway (USD 2,376 million), etc., are expected to surge the demand for all types of construction machinery (earthmoving, material handling, and road construction) in China. China's government focus on improving infrastructure by investing USD 573 billion and approving various projects to drive the China construction equipment market growth.

Affordable government home schemes are expected to spur demand for construction equipment. Government plans to build 300,000 affordable rental homes by 2025, with around 60,000 completed by the end of 2022. The government allocated USD 23.6 billion for housing development in the 2021 budget plan.

The shift to prefabricated construction is driving demand for cranes. It is estimated that 30% of newly constructed buildings in China will be prefabricated by 2030 as Chinese infrastructure developers adopt prefab construction techniques.

Robust Business Ecosystem in China to Attract Investments

China has an incredibly experienced and trained workforce in almost all sectors (Literacy rate: 96.8%). This skilled employee base has helped China open to foreign investments.

China is still relatively more economical than most developed countries, specifically in the manufacturing sector. China’s robust business ecosystem, competitive currency practices, and low taxes are a few of the reasons considered an advantage of doing business, which will drive the China construction equipment market growth.

Projects & Investments:

• China's government allocated USD 573 billion in 2021 for improving infrastructure in the nation’s 14th Five-Year Plan, which covers economic and social development from 2021 to 2025. The infrastructure plan focused on developing roadways, highways, and airports across the country.
• In December 2021, the government issued 97% of the amount (~USD 555.81 billion). It announced various projects, including the expansion of the railway by 19,000 kilometers, of which 12,000 kilometers will be high-speed rail, the development of public roads by 302,000 kilometers, of which 29,000 kilometers will be expressways, building at least 29 new passenger airports, and expansion of urban transit rail operating mileage by 3,400 kilometers.

VENDOR LANDSCAPE

• The key players in the China construction machinery market are XCMG Group, SANY Group, Zoomlion Heavy Industry Science & Technology Co. Ltd., Caterpillar, Komatsu Group, Volvo Construction Equipment, Hitachi, Ltd., Liebherr Group, KUBOTA Corporation, JCB, Lingong Group Jinan Heavy Machinery Co., Ltd. (LGMG), Hyundai Doosan Infracore, Kobelco Construction Machinery, Sumitomo Heavy Industries Ltd., and Fayat Group.

• XCMG Group, Caterpillar, Volvo, Komatsu Group, SANY Group, and Zoomlion Heavy Industry Science & Technology Co. Ltd. are market leaders that accounted for nearly ~85% of the overall construction equipment market share in 2021.

• XCMG Group, Caterpillar, Volvo, Komatsu Group, SANY Group, and Zoomlion Heavy Industry Science & Technology Co. Ltd. have a significant share in China's construction machinery market. The companies have a strong distribution network and high experience in China.

• LGMG has served the customers of the China region from the past more than 50 years. However, it lags behind SANY Group in innovations though SANY has less than 35 years of experience in the region. In early 2022, SANY introduced its first 300-ton electric-drive front shovel.

• In 2022, Kobelco Construction Machinery launched two new next-generation construction equipment.

REPORT COVERAGE:

Earthmoving Equipment:

• Excavator
• Backhoe Loaders
• Motor Graders
• 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)

End Users

• Construction
• Manufacturing
• Mining
• Others

TARGET AUDIENCE

• Top-level management personnel of existing operators/vendors
• Potential new entrants to the market
• Consultants/consultancies/advisory firms
• Professional landscaping service providers/contractors
• Corporate and governments bodies

WHY SHOULD YOU BUY THIS REPORT?

This report is among the few in the market that offers an outlook and opportunity analysis forecast in terms of:

• Market Size & Forecast Volume (Unit sales) 2019-2028
• Earthmoving, Material Handling, and Road Construction
• Excavators, Backhoe Loaders, Cranes, Forklifts
• End Users (construction, mining, manufacturing, and other industries)
• Market Size & Forecast Value (USD) 2019-2028
• Earthmoving, Material Handling, and Road Construction
• Excavators, Backhoe Loaders, Cranes, Forklifts
• End Users (construction, mining, manufacturing, and other industries)
• Major current & upcoming projects & investments
• Gain competitive intelligence about the economic scenario, advantages in China's major projects and investments, dynamics, and market share.
• Examples of the latest technologies.
• Get presentation-ready format and easy-to-interpret data.
• Enable decision-makers to make informed and profitable choices
• Gain expert quantitative and qualitative analysis on value/volume incremental growth projections
• Complete supply chain analysis
• Get COVID-19 impact analysis of the market
• Vendor capability matrix
• Company Profile of vendors and distributors