China Construction Equipment Market Size (2024 - 2029)

The construction equipment market in China is poised for growth, driven by a resurgence in infrastructure development and the increasing adoption of automation and electric machinery. Despite the setbacks caused by the COVID-19 pandemic, which led to a temporary decline in the industry, the market is expected to recover and expand steadily. Factors such as rapid urbanization, public-private partnerships, and a robust supply chain contribute to China's position as the largest market for construction machinery globally. Additionally, the trend of renting and leasing equipment is gaining traction, offering a cost-effective solution for businesses. Key players are responding to the rising demand by enhancing manufacturing capacities and introducing innovative products, further supporting the market's expansion.

Market Size of China Construction Equipment Industry

China Construction Equipment Market Summary
Study Period 2019 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2019 - 2022
CAGR 5.10 %
Market Concentration Low

Major Players

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*Disclaimer: Major Players sorted in no particular order

China Construction Equipment Market Analysis

Currently, the Chinese construction equipment market is valued at USD 50 billion. It is expected to reach USD 68 billion, registering a CAGR of 5.55% over the next five years.

The COVID-19 pandemic severely impacted the construction industry in China. The construction industry in China registered a decline of 6.9% during the first quarter of 2020. The manufacturing sector in China is a major consumer of construction equipment like wheel loaders and cranes. However, Purchasing Managers Index (PMI) fell to 49.4, indicating an economic slowdown since a PMI under 50 is considered to be a major sign of economic contraction in China. The disruptions in supply chain activities, the interruption in large-scale manufacturing, restrictions on travel, and the declining sales of equipment, are responsible for the declining growth of the market. The rise in construction across the country is observed after the pandemic due to the easing of restrictions in the country. The market is expected to cope with all the losses that happened during the pandemic and grow at a certain pace. . Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the construction equipment industry. For instance,

  • In 2020, Sany Heavy Industry increased its R&D investments to USD 954 million an increase of 33.2 % over 2019 and the number of R&D employees reached 5436 a 69% increase over 2019. Thus Sany Heavy Industry was able to luanch new innovative products like super-large excavators SY870, SY980 and SY1250, new-generation product line of intelligent excavators and 4000 t crawler crane SCC40000A which helped the company to arrest the decline in sales during the COVID-19 pandemic.

Over the long term, the increasing focus on infrastructure, the development of automation in the construction and manufacturing processes, and the introduction of electric construction equipment like elctric excavators is expected to have a significant impact on the growth of the market studied. The road construction machinery market witnessed a substantial increase in the due to the increased road development programs undertaken, such as the Belt and Road Initiative.

Besides being the largest manufacturer of construction equipment globally, China is the largest market for construction machinery in the world. Rural construction activities, rapid urbanization, and the growth in public-private partnerships drove the demand for construction equipment. China also has one of the best construction machinery supply chains in the world, with all parts of the supply chain being in China.

Renting and leasing construction machinery is on the rise. Buying new equipment involves high cost, maintenance, and storage-related issues. Renting is becoming a viable possibility for newer businesses as well. In fact, for short-term construction applications, renting machinery has been preferable to an original purchase among construction contractors, as renting allows optimum utilization of the machinery.

Key payers are expanding their manufacturing capacity and launching new products to cater to the increased demand for construction equipmnet. For instance

  • In February, 2022, Sany Heavy Industry unveiled new SY2600E 300 t class electric-drive hydraulic front shovel to be produced at its Suzhou plant in China. The SY2600E is 15 m long and 8 m high, and it has a bucket capacity of 15 cubic metres. It is powered by an electric drive consisting having fully electronic control system with eight pumps and three valves. The excavator is specifically designed for heavy duty mining applications.
  • In October, 2022, XCMG Port Machinery started operations at their new plant in Xuzhou, China. The new plant produces container reach stackers, forklifts, and other mobile port machinery and gantry cranes, shore bridge and other large port machinery with an annual capacity of 2000 units.

Based on the aforementioned factors the market for construction equipmnet in China is anticipated to grow at a decent CAGR over the next five years.

China Construction Equipment Industry Segmentation

Construction equipment is defined as any type of equipment used for the execution, completion, erection, operation, or maintenance of any construction project or work. Construction equipment is also used in earthmoving works during the construction of roads, bridges, and dams. Some types of construction equipment, like excavators and wheel loaders, are also used for mining. 

The Chinese construction equipment market is segmented by machinery type, drive type, sales channel, and application type. By machinery type, the market is segmented into cranes, telescopic handlers, excavators, loaders and backhoes, and motor graders. By drive type, the market is segmented into conventional, hybrid, and electric. By sales channel, the market is segmented into OEM and aftermarket. By application type, the market is segmented into building, infrastructure, and energy. The report also provides market size and forecasts in terms of value in USD billion and volume in units for all the above-mentioned segments.

Machinery Type
Crane
Telescopic Handlers
Excavators
Loaders and Backhoe
Motor Graders
Drive Type
Conventional
Hybrid and Electric
Sales Channel
OEM
Aftermarket
Application Type
Building
Infrastructure
Energy
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China Construction Equipment Market Size Summary

The Chinese construction equipment market is poised for significant growth, driven by a resurgence in infrastructure development and urbanization. Despite the setbacks caused by the COVID-19 pandemic, which led to a temporary decline in the sector, the market is recovering steadily. The demand for construction machinery is bolstered by large-scale projects such as the Belt and Road Initiative and extensive urban development programs. China, being the largest manufacturer and market for construction equipment globally, benefits from a robust supply chain and increasing public-private partnerships. The market is characterized by a high degree of competition, with local giants like Sany, XCMG, and Zoomlion leading the charge, while international players also expand their presence through manufacturing facilities and joint ventures in the country.

The market's growth trajectory is further supported by technological advancements and the introduction of innovative products, such as electric and autonomous machinery. The rising trend of renting and leasing equipment is also reshaping the market dynamics, offering cost-effective solutions for short-term projects. Excavators, in particular, dominate the market due to their essential role in infrastructure and mining activities. The ongoing investments in infrastructure, coupled with the increasing focus on automation and sustainability, are expected to drive the demand for construction equipment in China over the next five years. As key players continue to expand their product offerings and enhance manufacturing capabilities, the Chinese construction equipment market is set to maintain its upward momentum.

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China Construction Equipment Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porters Five Forces Analysis

      1. 1.3.1 Threat of New Entrants

      2. 1.3.2 Bargaining Power of Buyers/Consumers

      3. 1.3.3 Bargaining Power of Suppliers

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Intensity of Competitive Rivalry

  2. 2. MARKET SEGMENTATION (Value in USD billion)

    1. 2.1 Machinery Type

      1. 2.1.1 Crane

      2. 2.1.2 Telescopic Handlers

      3. 2.1.3 Excavators

      4. 2.1.4 Loaders and Backhoe

      5. 2.1.5 Motor Graders

    2. 2.2 Drive Type

      1. 2.2.1 Conventional

      2. 2.2.2 Hybrid and Electric

    3. 2.3 Sales Channel

      1. 2.3.1 OEM

      2. 2.3.2 Aftermarket

    4. 2.4 Application Type

      1. 2.4.1 Building

      2. 2.4.2 Infrastructure

      3. 2.4.3 Energy

China Construction Equipment Market Size FAQs

The China Construction Equipment Market is projected to register a CAGR of 5.10% during the forecast period (2024-2029)

Sany heavy industry Co. Ltd. , Xuzhou Construction Machinery Group Co., Ltd., Zoomlion Heavy Industry Science and Technology Co., Ltd., LiuGong, officially Guangxi LiuGong Machinery Co., Ltd. and Shantui Construction Machinery Co., Ltd. are the major companies operating in the China Construction Equipment Market.

China Construction Equipment Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)