Report Overview

China construction machinery market is growing owing to the emerging economy activities across the country, which is boosting the construction activities for infrastructure development...

China Construction Machinery Market- Industry Trends & Forecast Report 2028

China construction machinery market is projected to grow at a CAGR of 4% during the forecast period i.e. 2018 - 2028. Since China is a fast-developing large economy, the expanding construction activities for infrastructure development act as a major driving factor for the country’s construction machinery market. Furthermore, stringent government regulations for high safety and security during construction activities are also propelling the demand for new construction machinery in China.

Construction Machinery - Overview

Construction machinery refers to the heavy equipment involved in the construction activities and is often engaged in earthwork operations. There is a wide range of construction machinery available such as road headers, agricultural tractors, wheel dozers, loaders, graders, pile drivers, etc., that are used for various purposes. The construction machinery is often painted yellow since it makes it easy to detect, even in harsh conditions such as during heavy rainfall or fog.

China Construction Machinery Market Forecast and Trends

Growth Drivers

Expanding Construction Activities for Infrastructural Development

Since China is an emerging economy, the government, and private sector significantly invest in the construction of buildings and other infrastructures. The construction of commercial facilities such as airports, hotels, offices, roads, manufacturing plants, etc., is proliferating at a high rate. The government is also sanctioning tenders to boost the infrastructural development activities in the country. All these factors are anticipated to drive the China construction machinery market in the forecast period.

Rapid Urbanization and Increasing Demand For Residential Facilities

China is the most populated country in the world, with more than 1.4 billion people in 2021, according to the data released by the National Bureau of Statistics of China in January 2022. With the increasing population rate, the demand for residential spaces and homes is also increasing among people as their families are expanding. As a result, the construction of residential spaces is gaining significant traction, propelling the demand for construction machinery in the country.

Restraints

High Cost of Construction Machinery

The high cost of construction machinery and equipment is a key stumbling block to the Chinese construction machinery market's expansion. The average price of a bulldozer, which is very commonly used in construction activities, ranges around USD 30,000 to USD 200,000 and more. Such high cost prompts the contractors to opt for leasing construction machinery or buying second-hand machinery instead of new ones, which hinders the market growth.

Impact of COVID-19 on China Construction Machinery Market

The entire construction industry was among the worst affected sectors post the coronavirus outbreak in China. China being the epicenter of the virus outbreak, had to halt all economic activities and focus completely on virus spread and the healthcare industry. Due to this, the manufacturing and distribution of construction machinery were immediately halted. Furthermore, the infrastructural development activities were also restricted during the lockdown period, which resulted in a subsequent decline in the demand for construction machinery in China.

China Construction Machinery Market - By Equipment Type

Based on equipment type, the China construction machinery market is segmented into an articulated dump truck, asphalt finisher, wheeled loader, backhoe loader, crawler dozer, crawler excavator, crawler loader, mini-excavator, motor grader, motor scraper, road roller, rigid dump truck, RTLT masted, pick and carry cranes, compactors, and others. The wheeler loader accounts for the largest market share. This type of equipment is commonly used in the loading and unloading of bulk materials, which is driving its market growth.

China Construction Machinery Market - By Equipment Category

Based on the equipment category, the China construction machinery market is segmented into earthmoving equipment, material handling equipment, heavy construction vehicles, and other categories. The earthmoving equipment segment accounts for the largest market share. Some of the most commonly used earthmovers are excavators, loaders, motor graders, etc. These kinds of equipment act as a main motion source, which drives its market growth.

China Construction Machinery Market - By Propulsion Type

Based on propulsion type, the China construction machinery market is segmented into diesel and CNG/LNG/RNG. The diesel segment holds the largest market share. This is because diesel offers higher efficiency by a high compression ratio. Furthermore, it can also be used as both light oil and heavy oil. Diesel fuel also has a higher thermal energy content and is less volatile. However, the CNG/LNG/RNG propulsion type is anticipated to register the highest growth rate during the forecast period.

Competitive Landscape

The leading market players of the China construction machinery market are Kobelco, Tadano, XCMG, Liebherr Corp, Sany Group, China Communications Construction Company, Zoomlion, Volvo CE, Caterpillar Inc, and other prominent players.

The market is consolidated with the presence of established players that covers significant shares in the market. However, several small companies are also entering the market and giving tough competition by offering a wide range of high-quality construction machinery. The companies constantly launch new products to grab a larger share in the market. Furthermore, the adoption of competitive strategies such as partnerships, mergers, acquisitions, collaborations, etc., is also prominent in this market.

Recent Development

• In March 2022, China Yuchai International Limited, a machinery industry company, through its subsidiary Guangxi Yuchai Machinery Company Limited, announced its joint venture with Beijing Yuchai Xingshunda New Energy Technology Co., Ltd., for the development and manufacturing of fuel cell powertrain systems.

Scope of the Report

By Equipment Type

• Articulated Dump Truck
• Asphalt Finisher
• Backhoe Loader
• Crawler Dozer
• Crawler Excavator
• Crawler Loader
• Mini Excavator
• Motor Grader
• Motor Scraper
• Road Roller
• Rigid Dump Truck
• RTLT Masted
• Pick And Carry Cranes
• Compactors
• Others

By Equipment Category

• Earthmoving Equipment
• Material Handling Equipment
• Heavy Construction Vehicles
• Other Categories

By Propulsion Type

• Diesel
• CNG/LNG/RNG

By Application

• Infrastructure
• Commercial
• Residential