Development And Prospect Of Excavator Industry

In the first half of 2019, the overall situation of excavators rose steadily in the first half of the year. However, what will happen in the second half of the year?            

Recently, Li Hongbao, Executive Vice President and Secretary-General of Excavation Machinery Branch of China Construction Machinery Industry Association, participated in an event to share the market dynamics and future development of China's excavators. We will briefly refine our views:            

The sales of excavators have been considerable in the past three years.            

This round of growth started in June 2016 and has now achieved 35 months of continuous growth, which is due to:            

1) The excavator industry has entered a new cycle;            

2) The increase of investment and export by the state;            

3) The application scenarios of excavators in China are expanding.            

The market share of excavators in domestic enterprises has been increasing.            

In 2019, the domestic enterprise excavator market accounted for 62%. Over the past decade, the market share of China's excavators has been growing steadily. The main reason is that Chinese brands have certain advantages in price. At the same time, the quality and service level of domestic excavators are constantly improving, which has been recognized by users. Another important reason is the change of product structure of excavators in China. Domestic brands have advantages in both product quality and price in the small excavation market.            The excavator industry is closely related to China's macro-economy and has a strong periodicity.            

The excavator industry has a three to five-year growth cycle, but also a three to five-year downward adjustment cycle, which is a long-term trend and inevitable.            

Analysis of the growth of domestic excavator market in the next two years.            

Favorable factors include increased investment in infrastructure, long-term demand for mechanical replacement, and the sustained promotion of national urbanization and new rural construction.           

The disadvantage factors are that the new cycle is coming to an end.