Development Trend of Construction Machinery Industry
1. Accelerate the electric transformation and comprehensively promote the green development of the industry
As one of the major emission sources in the field of pollutant emission, construction machinery can not be ignored. The goal of "carbon peak" runs through all aspects, such as optimizing the industrial structure of construction machinery, promoting the development and application of green technology, equipment and products of construction machinery. At the end of October 2020, the Ministry of Industry and Information Technology issued a letter saying that it would jointly issue and implement the Action Plan to Promote the electrification of Public Sector Vehicles to accelerate the electrification of construction machinery.
With the advantages of high efficiency, low noise, no emission and diversified energy sources, electric drive technology provides technical support for the structural adjustment of construction machinery industry and the transformation of old and new growth drivers. In the face of the "carbon peak" goal, the major construction machinery enterprises have layout of new energy engineering development, launched electric products, and put into the market, leading and industry technology development, the future construction machinery industry low-carbon pace will gradually accelerate, electrification has become the trend of the industry. According to BCG forecast, China's pure electric construction machinery market will reach a breaking point in 2025-2026, the penetration rate of pure electric construction machinery will reach 4%-6%, to 2035, the penetration rate of pure electric construction machinery is expected to reach 30%.
The construction machinery industry is characterized by diversified equipment products, discrete production process and complex supply chain. It has entered the era of intelligent interconnection, and new technologies represented by 5G, big data and industrial Internet are changing with each passing day, fully empowering the digital and intelligent development of construction machinery. At the same time, the weakening of China's demographic dividend, the gradual enlargement of modern construction projects, and customers' demands for product value enhancement all require the industry to accelerate the transformation and upgrading to the direction of automation, digitalization and intelligence.
The 14th FiveYear Development Plan for Construction Machinery Industry clearly points out that new technologies such as industrial Internet, artificial intelligence and blockchain should be used to promote the research and development, promotion and application of intelligent construction machinery products, and that more efforts should be made in the aspects of dynamic multiinformation perception of the environment, remote control of 5G high-speed transmission, autonomous decision-making technology and data control of human computer interaction. In the face of market economy and global competition, advanced manufacturing technology has become the core competitiveness of construction machinery enterprises. It has become a necessary way to improve the core competitiveness of Chinese construction machinery industry to digitize and intellectualize.
3、Domestic leaders actively expand overseas business
To accelerate the pace of "going out" is becoming a number of construction machinery leading enterprises common choice. 2021, the export volume of construction machinery products in 12 big categories of our country will all increase differently. Among them, the overseas sales of lifting working platform and crawler crane doubled; Excavator, grader, bulldozer, forklift, roller, truck crane, truck crane export volume increased by more than 50%. The surge in exports reflects that leading enterprises are accelerating their overseas layout. Leading enterprises represented by Xugong Machinery, Sany Heavy Industry, Zoomlion and Liugong, on the one hand, vigorously explore the markets of countries along the "Belt and Road", on the other hand, deeply participate in the highend market competition in Europe and the United States, and constantly expand business in overseas markets. Accelerating the international layout will be the inevitable trend of the development of leading enterprises, but also an important direction of the transformation and upgrading of domestic construction machinery industry.
4、The European and American markets are in the ascendant, and emerging markets have great potential
From the perspective of global construction machinery market distribution, European and American market demand accounts for more than 40%, still occupying a major position in the global market. India, Southeast Asia and other developing countries and regions have large population base, low level of urbanization, relatively active economic development, and strong demand for infrastructure construction and real estate construction. The development process is similar to that of China's construction machinery market more than 10 years ago.
Specifically, according to data from the Equipment Manufacturers Association of the United States and the China Construction Machinery Industry Association, India's urbanization rate in 2019 was only 36%, which is roughly the same as China's 35% in 2002. In 2019, the average urbanization rate of emerging markets outside India (including Vietnam, Indonesia, Philippines, etc.) was about 52%, which is similar to China's 2011 level (49%). In 2019, about 20,000 excavators were sold in India, equivalent to that of China in 2002. In 2019, the total sales volume of the excavator in emerging markets outside India was about 180,000 units, and the structure of the excavator was mainly medium size, which matched the sales volume and structure of the excavator in China in 2011. According to the Chinese market, the demand for construction machinery in emerging markets is expected to increase significantly in the future, and the market demand potential is huge.