Construction equipment demand in China continues to grow

Demand for construction machinery in China is expected to rise 6.2%/year to 387 billion yuan in 2015. This will be supported by continuing increases in construction spending, especially in infrastructure development. The data comes from a report by US-based research firm Freedonia Group. According to the report, growth in construction activity will be driven by continuing industrialisation but will be more moderate than in the 2005-2010 period. This will impact overall construction expenditures, which are e
June 18, 2012 Read time: 2 mins
Demand for construction machinery in China is expected to rise 6.2%/year to 387 billion yuan in 2015. This will be supported by continuing increases in construction spending, especially in infrastructure development. The data comes from a report by US-based research firm 2821 Freedonia Group.

According to the report, growth in construction activity will be driven by continuing industrialisation but will be more moderate than in the 2005-2010 period. This will impact overall construction expenditures, which are expected to advance at a slower pace through the forecast period, limiting stronger market gains for construction machinery. Excavators and cranes are the largest construction machinery product segment due to their widespread use in construction. 

The increasing versatility of excavators will also ensure their widespread use in all types of construction applications in China. Wheeled loaders will also see healthy demand increases, benefiting from their functional versatility. Mixers and related equipment will be one of the fastest growing product segments, benefiting from increased use in the numerous types of infrastructure projects in China which are intensive users of cement. Meanwhile components and attachments will see the most rapid growth due to favourable government policies under the Twelfth Five-Year Plan.

Technological improvements, coupled with pricing advantages due to relatively low production costs, look set to stimulate growth in shipments of all types of construction machinery by Chinese producers according to the report.

For more information on companies in this article

Related Content

  • New focus on hydraulics operations for Lonking
    January 6, 2017
    Lonking widening its product range and developing its hydraulics components operations - Mike Woof reports Shanghai-based Lonking is best known as a major supplier of wheeled loaders, and as one of the market leaders in China. The company has followed a path of diversification in recent years however, significantly widening its product range and with its excavator business in particular proving successful and taking a substantial share of the Chinese home market. Other Lonking products rolling off the produ
    Read More
  • Construction machine sales strong reports CECE
    March 17, 2016
    The European construction equipment market is performing relatively well in global terms. However striking regional disparities remain, according to the Annual Economic Report for 2016 from the European construction equipment manufacturing association, CECE. Data from the report shows that excluding Russia, the European market for construction machines grew by 3.5% in 2015 and it forecasts a slight increase in business for 2016.
    Read More
  • SDLG and Volvo CE are utilising a novel dual brand approach in key markets
    October 14, 2013
    SDLG and Volvo CE are adopting a dual brand approach – Mike Woof writes. Chinese firm SDLG and its European partner Volvo CE are working on a novel arrangement that will see the two companies use a dual brand marketing strategy. While the sales channels in these markets will remain distinct, some back office services and parts logistics will be shared, affording SDLG much greater customer support than offered by other Chinese exporters
    Read More
  • Caterpillar reports slight sales dip for full year 2014
    February 16, 2015
    Global construction equipment manufacturer Caterpillar reported full-year 2014 sales $55.184 billion, down from $55.656 billion in 2013. Caterpillar also reported fourth-quarter 2014 sales of $14.244 billion, again slightly down at 1% from $14.402 billion in the fourth quarter of 2013. The results and a continued weak to modest improvement has dampened Caterpillar’s expectation of increased sales for 2015, likely to be around $50 billion. “Overall, we had many positives and a better year in 2014 than 2013,”
    Read More

Highlighted Content