Ipsos Business Consulting
Build · Compete · Grow
CONSTRUCTION
EQUIPMENT
IN CHINA
Overview of the Component
and Service Afermarket
May 2017
The informaton contained herein is of a general nature and is not intended to address the circumstances of any partcular
individual or entty. Although we endeavour to provide accurate and tmely informaton, there can be no guarantee that
such informaton is accurate as of the date it is received or that it will contnue to be accurate in the future. No one should
act upon such informaton without appropriate professional advice afer a thorough examinaton of the partcular situaton.
reproduced without the prior writen consent of Ipsos.
INTRODUCTION
Afer a prolonged period of growth coinciding with China’s
entry on the global economic stage, the country’s
constructon vehicles industry is experiencing a tough
tme. From a high of around 975,000 constructon
equipment (CE) units sold in China as recently as 2011,
sales in 2015 were down to around 648,000. The decline
contnues to be felt across most of the industry despite
China’s plans to follow through on its highly ambitous
One Belt One Road initatve, linking the country’s
infrastructure with economic centres in Europe, the
Middle East and Africa.
China’s overall slowdown in constructon does not mean
that investors should steer clear of the industry, however.
Previous years’ high-volume CE sales mean that a large
proporton of China’s actve CE is either near or past the
end of its warranty, opening up a potentally lucratve and
long-lastng afermarket for companies that organise their
market strategies correctly.
Ipsos Business ConsultingConstructon Equipment in China | 3
淘宝店铺
“Vivian研报”
收集整理
获取最新报告及后续更新服务请淘宝搜索“Vivian研报”
NEW HORIZONS IN CHINA’S SHIFTING
CONSTRUCTION LANDSCAPE
RECENT TRENDS
IN THE CONSTRUCTION INDUSTRY
China’s economic reorientaton will require a proportonal
realignment within the constructon industry, which can
succeed if it adapts well to changing currents. Several
large-scale constructon projects in China have contnued
on schedule despite the country’s ongoing pivot toward
slower and more manageable growth. The country’s One
Belt One Road project is well on its way towards upgrading
and developing its connectons to Southeast Asian,
European and Middle Eastern capitals by land, as well as
several African port cites by sea. As internatonal
business is set to become the main beneciary of these
trans-regional corridors, many analysts are predictng
future economic growth as a result, leading to additonal
boosts in constructon for decades to come.
Nevertheless, despite such ongoing investments in
infrastructure, previous CE purchases within the country
seem to be largely sucient to handle the country’s need
for its contnued growth. CE sales depend, more than
anything, on the rate of constructon growth. With
constructon vehicles easily repurposed and reused from
one project to the next, high demand for new vehicles
appears only when the current eet is not adequate for
the task.
By contrast, the CE afermarket ourishes when
constructon projects contnue apace with increasingly
older vehicles. Perhaps more so than in any other country,
the boom in China’s CE sales in the rst decade of the 21st
century has led to an ideal set of conditons for a sustained
rise in the afermarket economy. As vehicle warrantes
from this boom period contnue to expire, repair and
replacement for CE parts will form an increasingly
sought-afer and compettve industry. Success in this eld
can lead to high returns, but will depend on insightul
market analysis surrounding the preferences of the
dierent types of CE owners actve in China today.
With the excepton of modest increases in demand for
forklifs, direct CE sales in China have undergone an
across-the-board decline following the constructon boom
of previous years. Sales of wheel cranes saw a precipitous
drop of 26% from 2011 to 2015, with other CE types such
as road rollers, loaders, excavators and other specialised
equipment decreasing their sales by 10-20% over a
comparable tme period. New concrete mixer trucks have
seen relatvely stable sales gures over the years, declining
by a mere 1% since the boom period.
975
825
CAGR (2011 - 2015)
Overall-10%
+5%
-15%
-19%
-26%
-14%
-18%
-1%
Forklif
Loader
Excavator
Wheel Crane
Road Roller
Concrete
mixer truck
Others*
772
648
781
20112012201320142015
1,000
Annual Sales of New Constructon Equipment (Thousand Units)
Sales of new constructon equipment (CE) has been
declining, overall and across major categories
600
700
800
900
*Note: Others include grader, bulldozer, paver, tower crane, concrete pump, concrete mixer,
and pump truck, which have a combined share of 22% of china’s total CE sales in 2015.
Sources: Ipsos Business Consultng Analysis, China Constructon Machinery Industry Yearbook
5,000
20112012201320142015
5,500
6,770
6,000
7,000
8,000
Total Constructon Equipment Populaton (Thousand Units*)
Populaton of CE is experiencing a stable growth, as
compared to the decline in new sales
6,500
7,500
6,905
6,365
5,845
5,255
CAGR
+7%
*Note: Including excavator, loader, grader, bulldozer, road roller, paver, wheel crane, tower
crane, forklif, concrete pump, concrete mixer, concrete mixer truck and purmp truck
Sources: Ipsos Business Consultng Analysis, China Constructon Machinery Industry Yearbook
Ipsos Business ConsultingConstructon Equipment in China | 4
。。。以上简介无排版格式，详细内容请下载查看