PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1763041
PUBLISHER: Frost & Sullivan | PRODUCT CODE: 1763041
Off-highway Equipment is Experiencing Transformational Growth through Disruptive Technologies and Electrification Trends
The study provides an overview of the off-highway equipment market in China, with a specific focus on construction, mining, and agriculture.
China has a large population of 1.4 billion people, a vast geographical area, and rich natural resources. Key activities such as infrastructure construction, mining, and agriculture have improved the country's off-highway equipment market, which has experienced rapid growth and is maturing.
The study discusses unit shipment, equipment in operation (EIO), revenue, corresponding forecasts, forecast analysis, OEM market share analysis, and revenue share analysis.
China's off-highway equipment market is highly competitive due to the presence of many OEM brands. The study covers information such as competitive environment, growth drivers, growth restraints, government initiatives, the electric off-highway equipment sector, the connected and autonomous driving off-highway equipment sector, and the rental business sector.
The study also highlights growth opportunities for off-highway equipment in existing and future scenarios. Growth opportunities provide stakeholders with practical and actionable recommendations to expand their presence in the value chain.
Revenue Forecast
The revenue estimate for the base year 2024 is $60,451 million and the CAGR for the study period is 5.6% for Construction and Mining Equipment and 10.2% for Agricultural Equipment in the Chinese off-highway equipment market.
Scope of Analysis
Scope
Geographic Coverage
China
Mainland
Study Period
2023-2030
Base Year
2024
Historical Year
2023
Forecast Period
2025-2030
Monetary Unit
US dollar
1 RMB is equivalent to $0.14
Vehicle Scope
Off-highway equipment
Construction
Mining
Agriculture
The Impact of the Top 3 Strategic Imperatives on the Off-highway Equipment Industry
Disruptive Technologies
Transformative Megatrends
Industry Convergence
Key Competitors
Construction
Mining
Agriculture
Competitive Environment
Number of Competitors
More than 250 OEMs, including 6 OEMs with revenue greater than $2,000 million related to the Chinese off-highway equipment market
Competitive Factors
Cost, performance, technical support, technology, maintenance and service support, reliability, contractor relationships, customer relationships in the Off-highway Equipment industry
Key End-user Industry Verticals
Manufacturing, automotive, oil and gas, construction, mining, agriculture, equipment rental within the Chinese Off-Road Equipment Market
Leading Competitors
XCMG, Sany, Zoomlion, Liugong, Lovol
Revenue Share of Top 5 Competitors (2024)
46.2%
Other Notable Competitors
YTO, World, Lingong
Distribution Structure
OEMs, retail sales, direct sales within the Chinese Off-Highway Equipment Market
Growth Drivers
Driver
1-2 Years
3-4 Years
5-6 Years
With the expansion of urban areas and the migration of permanent residents to higher-tier cities, the rural permanent population is gradually decreasing. The proportion of urban population in the total national population (urbanization rate) has increased from 53.1% in 2012 to 65.2% in 2022, and 66.2% in 2023 associated with the Chinese off-highway equipment market.
High
High
High
The Chinese government encourages the replacement of old off-highway equipment by providing purchase subsidies, thereby promoting equipment upgrades and consumption cycles within the Off-highway Equipment industry.
High
High
Low
The government has improved the National Land Use Master Plan, including agricultural land, construction land, mining land, land consolidation, and reclamation, as well as comprehensive land management at the provincial, municipal, and county levels influencing the Chinese Off-Road Equipment Market.
High
Medium
Low
The total amount of cultivated land continues to increase, and the supply capacity of agricultural products will continue to improve. With the implementation of food security and ecological protection policies, China's cultivated land area has increased for 3 consecutive years since 2021, with a net increase of 17.6 million mu**.
Medium
Medium
Low
Investment growth in mineral geological exploration will continue, supporting the associated mining activities. In 2023, new mineral deposits were discovered, and breakthroughs were made in large oil and gas basins, including Tarim, Junggar, and Bohai Bay within the context of the Off-highway Equipment industry.
Medium
Low
Low
Growth Restraints
Restraint
1-2 Years
3-4 Years
5-6 Years
Owing to well-developed infrastructure, there is limited potential for further expansion in key cities. As a result, domestic infrastructure demand is gradually reducing, further compressing the construction industry's development, especially in cities with a significant concentration of historical buildings and cultural heritage sites affecting the Chinese off-highway equipment market.
High
High
High
Housing demand has reached saturation following a period of rapid economic growth, compounded by the one-child inheritance rights established by parents and grandparents due to the One-child Policy that was in effect from 1979 to 2015. In addition, in 2023 and 2024, the sales prices of both new and second-hand homes in 70 large and medium-sized cities have consistently decreased impacting the Off-highway Equipment industry.
High
High
Medium
The macroeconomic environment has adversely affected the financial stability of Chinese real estate developers. Since 2021, many companies, including leading companies in the real estate market, have defaulted on their debts, leading to a decline in consumer confidence regarding the Chinese Off-Road Equipment Market.
High
High
Medium
Mining activities are strictly controlled. The Chinese government protects the rights and interests of resources and assets, in accordance with laws and regulations, especially ecological spaces with special and important functions associated with the Off-highway Equipment industry.
Medium
Medium
Medium
Agricultural labor wages are low. Though farmers' income is growing, it remains more than 40% lower than that of urban employment. The gap in labor productivity between the primary industry and the secondary and tertiary industries remains significant in the context of the Chinese off-highway equipment market.
Low
Low
Low