China Construction Equipment Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The China Construction Equipment Market is Segmented by Machinery Type (Crane, Telescopic Handlers, Excavator, Loader & Backhoe, Motor Grader), by Drive Type (Conventional and Hybrid & Electric), and by Application Sector (Building, Infrastructure and Energy)

Market Snapshot

China Construction Equipment MarketOverview
Study Period: 2018-2027
Base Year: 2021
CAGR: 5.1 %

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Market Overview

The China Construction Equipment Market is anticipated to register a CAGR of about 4.8% during the forecast period (2020 – 2025).

  • 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 up demand for construction equipment. China also has one of the world’s best construction machinery supply chain, with all parts of the supply chain being in China.
  • The increasing focus on infrastructure and development of automation in the construction and manufacturing processes had a significant impact on market growth. The road construction machinery market has witnessed a substantial increase in the recent past due to the increased road development programs undertaken, such as the Belt and Road Initiative.
  • Renting and leasing of 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 than an original purchase among construction contractors, as renting allows optimum utilization of the machinery.

Scope of the report

The China Construction Equipment Market covers the current and upcoming trends with recent technological development. The report will provide detailed analysis on various areas of the market by machinery type, drive type, and rental duration. The market share of significant equipment rental companies across the Chinese market will be provided in the report.

Machinery Type
Telescopic Handlers
Loaders & Backhoe
Motor Graders
Drive Type
Hybrid & Electric
Application Type

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Key Market Trends

Growing Demand for Second- Hand Machines

China is one of the largest manufacturing countries and consumers of building construction equipment in the world. However, industry revenue is only expected to rise at an annualized 1.5% over the past five years till 2019. However, although spending in China surpassed the US since 2012, the demand for construction equipment has weakened in China, creating a surplus of unused and used construction equipment.

Low demand from the construction sector in the country has resulted in low profits for significant companies, and small construction equipment has incurred huge losses. The competition in the market has also been fierce, which pushed the major equipment manufacturers to lower the prices of their equipment.

As a result of this, the used equipment is increasingly becoming popular. Used equipment is generally sold in good condition and at significantly cheaper rates. A substantial economic disadvantage in shipping costs, unfavourable exchange rates, and heavy import taxes on new equipment can cost a lot more. This can be a challenge, especially for upcoming business and local players.

The second-hand market also seems to offer much more choice, with the availability of a vast range of machine types, models, and manufacturers – and more options in terms of price. With this, the waiting period between purchasing the equipment and actual delivery can be avoided.

China Construction Equipment Market_Key Market Trend1

China Growing Investment in The Construction Industry

The world’s major construction machinery makers have been setting up manufacturing bases and joint ventures in China. Also, the restrictions on foreign investment in land development, high-end hotels, office buildings, international exhibition centers, and the construction and operation of large theme parks have been lifted. This is expected to increase the demand for construction equipment in the country, thus driving the construction equipment market. Currently, China has been witnessing weak domestic demand for machinery from industries like steel, coal, power, and oil refining. The recovery of these industries is expected to be slow-paced owing to weak external demand and the prevailing protectionism from the overseas market.

The Belt and Road Initiative expected to create increased demand for construction equipment. The Belt and Road Initiative, the flagship project of China, has been a significant demand driver for construction equipment in China. Although all the construction projects are executed overseas, the machinery is purchased and shipped from China as the government offers tax rebates to construction companies that buy the equipment for participating in the Belt and Road Initiative. Kobelco, Tadano, Caterpillar, and Liebherr have been working in increasing their presence in the country, as they anticipate massive demand from the country’s flagship Belt and Road Initiative.

The Shanghai Urban Rail transit expansion is valued at the USD 44.23 billion. It includes nine rail projects and six subway lines along with three intercity railways. The project commenced in 2018 and is estimated to be a total of 286km. This network is aimed at creating better connections between Shanghai’s two airports and its two major railway stations. In Jiangsu province, eight regional Intercity Railway is being built along the Yangtze River. This is to shorten the commuting time from Nanjing, the capital city of Jiangsu province, to other towns and districts within the area.

As a result, major companies have been establishing manufacturing facilities in different parts of China to capitalize on increasing demand for construction machinery. Although the country's competitive situation is intense, many global players are competing with local construction machinery manufacturers to increase their share in the market.

China Construction Equipment MarketKey Market Trend2

Competitive Landscape

China Construction Equipment Market is consolidated with existing players such as Kobelco, Tadano, Caterpillar, and Liebherr, who captured the significant market share in 2019. The market is also dominated by local players such as Sany, XCMG, Zoomlion, China Communications Construction Company etc.. Since numerous international and regional players characterize the construction machinery market, construction manufacturers are trying to edge over its competitors by making joint-ventures, partnerships, and launching new products with advanced technology.

In April 2018, XCMG launched a 700-tonne hydraulic excavator, a first in China, which has been equipped with exclusive technologies like high-pressure system intelligent monitoring system and self-diagnosis and dual power assembly coupling control system.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porters Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 Machinery Type

      1. 5.1.1 Crane

      2. 5.1.2 Telescopic Handlers

      3. 5.1.3 Excavators

      4. 5.1.4 Loaders & Backhoe

      5. 5.1.5 Motor Graders

    2. 5.2 Drive Type

      1. 5.2.1 Conventional

      2. 5.2.2 Hybrid & Electric

    3. 5.3 Application Type

      1. 5.3.1 Building

      2. 5.3.2 Infrastructure

      3. 5.3.3 Energy


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Kobelco

      2. 6.2.2 XCMG

      3. 6.2.3 Sany Group

      4. 6.2.4 Zoomlion

      5. 6.2.5 Caterpillar Inc

      6. 6.2.6 Volvo CE

      7. 6.2.7 China Communications Construction Company

      8. 6.2.8 Liebherr Corp

      9. 6.2.9 Tadano


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Frequently Asked Questions

The China Construction Equipment Market market is studied from 2018 - 2026.

The China Construction Equipment Market is growing at a CAGR of 5.1% over the next 5 years.

Kobelco, XCMG, SANY Group, Zoomlion Heavy Industry Science & Technology Co. Ltd., Caterpillar Inc. are the major companies operating in China Construction Equipment Market.

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