Off-highway Equipment Market, China, 2025-2030

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

• This study provides an overview of the Chinese off-highway equipment market, 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 Chinese Off-Road 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 in the context of China's Off-Highway Equipment Market.
• 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 within the Off-highway Equipment industry.
• The study also highlights growth opportunities for off-highway equipment in existing and future scenarios. Growth opportunities within the Off-highway Equipment industry provide stakeholders with practical and actionable recommendations to expand their presence in the value chain.

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

• WHY:
• China's mechanization rate for crop cultivation and harvesting has exceeded 73%. The production of rice, wheat, and corn has been mechanized, impacting the Chinese Off-Road Equipment Market.
• In terms of environmental protection and agricultural production, the total amount of agricultural fertilizers used in China has declined for 8 consecutive years, with a year-over-year (YoY) decrease of 1.1% in 2023.
• FROST PERSPECTIVE:
• Frost & Sullivan expects China's green agricultural product supply capacity to continue to increase in the landscape of the Chinese off-highway equipment market.
• Technological progress, especially the mechanization rate of crops such as fruits, vegetables, and tea, will exceed 40%-50% in the next 1-3 years.
• The popularity of intelligent agricultural equipment, including autonomous tractors and precision fertilizer applicators, will increase, further affecting the Off-highway Equipment industry.

Transformative Megatrends

• WHY:
• In its efforts to promote low-carbon and green development, the Chinese government is encouraging social capital stakeholders to participate in ecological protection and restoration, influencing the Chinese Off-Road Equipment Market.
• At the same time, the government is supporting the production, sale, and application of electric off-highway equipment in China, including the provision of subsidies to replace old off-highway equipment with newer models.
• FROST PERSPECTIVE:
• In line with the government's vision and plan, market stakeholders will increase the penetration rate of electrification and accelerate the adoption of electric equipment in different off-highway applications, which is vital for the Off-highway Equipment industry.
• In the long term, old off-highway equipment will gradually withdraw from China and be replaced by green powertrains.

Industry Convergence

• WHY:
• As digitalization and ecosystem development further strengthen, cross-industry cooperation will impact the off-highway equipment market and the broader Chinese off-highway equipment market.
• For example, the participation of agricultural product processing enterprises continues to increase, and rural online retail, with a focus on agricultural product live streaming, accelerates the growth of rural eCommerce.
• FROST PERSPECTIVE:
• In the long term, cooperation among stakeholders in the off-highway equipment market will boost business expansion and optimize benefits related to the Off-highway Equipment industry.
• In addition, the R&D of cutting-edge technologies, including big data and artificial intelligence (AI), and their integration with off-highway equipment, will significantly enhance operational efficiency.
• Vertical integration will expand the product portfolio and provide end users with seamless one-stop solutions in the overall Chinese Off-Road Equipment Market.

Key Competitors

Construction

• Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
• Sany Heavy Industry Co. Ltd.
• Zoomlion Heavy Industry Science & Technology Co. Ltd.
• Guangxi Liugong Machinery Co. Ltd.
• Shandong Lingong Construction Machinery Co. Ltd.
• Sunward Intelligent Equipment Co. Ltd.
• Shantui Construction Machinery Co. Ltd.
• Lonking Holdings Ltd.
• Caterpillar (China) Investment Co. Ltd.
• Komatsu (China) Ltd.

Mining

• Xuzhou Construction Machinery Group Co. Ltd. (XCMG)
• Sany Heavy Industry Co. Ltd.
• Zoomlion Heavy Industry Science & Technology Co. Ltd.
• Guangxi Liugong Machinery Co. Ltd.
• Shandong Lingong Construction Machinery Co. Ltd.
• Sunward Intelligent Equipment Co. Ltd.
• Sandvik (China) Holding Co. Ltd.
• Fujian South Highway Machinery Co. Ltd.
• Caterpillar (China) Investment Co. Ltd.
• Komatsu (China) Ltd.

Agriculture

• Weichai Lovol Intelligent Agricultural Technology Co. Ltd.
• YTO Group Corporation
• Jiangsu World Agricultural Machinery Co. Ltd.
• Changzhou Dongfeng Agricultural Machinery Group Co. Ltd.
• Changfa Agricultural Equipment Company
• Weifang Huaxia Tractor Manufacturing Co. Ltd.
• Zoomlion Agriculture Machinery Co. Ltd.
• Kubota Agricultural Machinery (Suzhou) Co. Ltd.
• Yanmar Agricultural Equipment (China) Co. Ltd.
• Shandong Shifeng Group Co. Ltd.

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