Construction machinery demand will benefit from the vast usage of cranes and excavators,
the largest segment in the Chinese industry, in both building and nonbuilding construction.
Demand in China
to increase 6.2% per
annum through 2015
Demand for construction machinery in
China is expected to rise 6.2 percent per
year to 387 billion yuan in 2015, supported
by continuing gains in construction
spending, especially in infrastructure
development. Growth in construction
activity will be driven by continuing
industrialization and increasing personal
and business income levels. However,
gains will decelerate from the torrid pace
of the 2005-2010 period as a result of a
moderating outlook for the economy in
China as a whole. This will impact total
construction expenditures, which are expected
to grow at a slower pace through
the forecast period, limiting stronger
market gains for construction machinery.
Excavators and cranes to
remain largest machinery
product segment
Excavators and cranes are the largest
construction machinery product segment
due to their widespread use in both
building and nonbuilding construction.
The better versatility and flexibility of
excavators will also ensure their widespread
use in all types of construction
applications in China. Loaders, the
second largest product type, will see
healthy demand increases, benefiting
from their functional versatility. Mixers
and related equipment will be one of the
fastest growing product segments,
benefiting from greater use in numerous
types of infrastructure projects that are
intensive users of cement. Parts and
attachments will see the fastest growth
due to favorable government policies
under the Twelfth Five-Year Plan.
This Plan aims to encourage domestic
producers to upgrade their products and
improve innovation in product development
so as to maintain sustainable
growth. These technological improvements,
coupled with pricing advantages
due to relatively low production costs,
will spur growth in shipments of all types
of construction machinery by Chinese
firms. As a result of such improvements,
China will erase its trade deficit in the
industry and become a net exporter.
Northwest to lead gains
The size, growth, and composition of
construction machinery demand in the
six regions of China vary considerably
due to regional differences in economic,
social, and cultural conditions. In all
regions, gains will decelerate from 2000-
2010 rates as a result of moderating
growth in the Chinese economy. Due to
its large share of the nation’s population
and economic activity, the Central-East
will remain the largest regional market
for construction machinery. Although
small, the Northwest is expected to be
the fastest growing regional market,
primarily benefiting from the central
government’s Great Western Development
program.
Study Scope
This study analyzes the 287 billion yuan construction machinery industry in China. It presents historical demand data for the years 2001, 2006 and 2011, and forecasts for 2015 and 2020 by product (e.g., excavators and cranes, loaders, mixers, rollers, bulldozers and off-highway trucks) and regional market.
The study also considers market environment factors, details industry structure, evaluates company market share and profiles 30 industry participants, including Xuzhou Construction Machinery Group, SANY Heavy Industry and Zoomlion Heavy Industry.
