Analysis on Prospects of Construction Machinery Industry
In terms of the sales volume of new machines in the construction machinery industry, with stable infrastructure investment and start-ups of real estate in 2016, the high growth of excavator sales was mainly driven by the machine updating in the infrastructure and real estate starts at the downstream. In 2017, since the investment on the real estate and infrastructure increased and PPP projects landed, China’s market demand for excavating machines achieved substantial growth. Meanwhile, company’s business indicators turned optimistic and the entire industry began to restore. In 2016, manufacturers such as Sany, Zoomlion, XCMG and Shantui experienced a diminished decline or even growth in the revenue at different levels.
Related report: Research Report on China’s Construction Machinery Industry, 2018-2022
In 2017, the sales volume of excavators was 140,303 units, increasing by 99.5% YOY; the sales volume in the domestic market was 130,559 units, with an increase of 107.5% YOY; the export sales volume reached 9,672 units, with an increase of 32.0% YOY. The domestic market increased significantly. Other products such as cranes, bulldozers, and loaders, also followed the growth of excavator sales. In 2016, the sales volume of cranes was 9,455 sets, increasing by 2.60% YOY; the sales volume of bulldozers registered 4,061 sets, with an increase of 10.29% YOY; that of loaders reached 75,445 sets, increasing by 2.50% over the same period of last year. Driven by the rebound of excavators, the overall construction machinery industry warmed up from single products to sub-sectors.
By the end of 2017, the penetration of excavation machines was approximately 789,000 units in 6 years, 1.183 million units in 8 years, and 1.411 million units in 10 years. Among them, the six-year penetrations of large, medium and small excavators were respectively 119,000 units, 233,000 units, and 437,000 units. The eight-year penetrations of them were 185,000 units, 413,000 units and 586,000 units. The ten-year penetrations amounted to 221,000 units, 524,000 units and 666,000 units.
Related report: Research Report on China’s Construction Machinery Industry, 2018-2022
In 2017, the sales volume of all kinds of construction machinery products achieved high growth. The sales of excavators reached 140,303 units, increasing by 99.5% YOY, of which 130,559 were sold in the domestic market, increasing by 107.5% YOY; the sales volume of loaders was 97,610 units, with an increase of 45% YOY; bulldozers were sold at 5,707 units, with an increase of 40.53%, including 3,437 units of 160 horsepower bulldozers, accounting for 60.22% of the total sales; the sales volume of graders reached 4,522 units, with an increase of 42% YOY. The grader industry in 2017 maintained stable growth and the growth rates exceeded 25% in the year except for that in January as low as 0.96%.
In 2018, the construction machinery industry is expected to improve. First, the supply-side reform achieved remarkable effects. Many key customers try to take the lead, stimulating the demand of buying new machines and improving the brand and image. Second, the 19th National Congress set strict standards on environmental protection, thus driving the demand of updating construction machines. Third, the international market is promising. XCMG, Sany and other companies perfected their overseas sales layout and gained greater brand acceptance. Fourth, the industry is closely related to life and engages in many segment markets, such as intelligent equipment. Therefore, the demand and market potential are both very large.
Related report: Research Report on China’s Construction Machinery Industry, 2018-2022
