Trend 1: Chinese manufacturers will top the world in the next 10 years
On the list of the top 50 global construction machinery manufacturers in 2021, 3 construction machinery manufacturers in China entered the top five.
In terms of sales by country, China surpassed the United States for the first time to become the world's first. The 11 Chinese manufacturers on the list had sales of US$50.481 billion, accounting for 26.48% of the top 50 sales.
The rise of Chinese construction machinery manufacturers is behind the improvement of comprehensive strength in all aspects.
The quality, performance and technology of Chinese construction machinery products are no longer the same as many years ago; at the same time, in the Chinese market, Chinese construction machinery manufacturers have also ushered in another wave of dividends. Under the "domestic and international dual circulation" strategy, China's construction machinery market capacity and growth space have been pushed to a new height. At the same time, in more and more overseas regions around the world, not only in the "Belt and Road" market, but also in Europe, the United States and other places, the overseas layout of Chinese enterprises is improving day by day, and the target market is gradually advancing.
Under the development momentum of "two-handed and two-handed" in the domestic and foreign markets, the status and ranking of Chinese construction machinery manufacturers in the world have grown by leaps and bounds.
In the next 10 years or so, Chinese construction machinery manufacturers will reach the top of the world.
Trend 2: Global market, Chinese and foreign manufacturers confront each other directly
In the past five years, in China's construction machinery market, Chinese and foreign manufacturers have changed from the previous state of two "parallel markets" in the high-end and mid-low-end that are fighting each other and have no interaction with each other, and have opened up a new situation of head-to-head confrontation and competition.
In the future, with the formation and growing strength of the "Chinese product genre", with the deepening of the globalization strategy of Chinese manufacturers and the gradual improvement of the overseas layout of Chinese enterprises and entering the harvest period, Chinese and foreign enterprises will surely expand more directly in the broader overseas market. the confrontation; the advantages of Chinese construction machinery manufacturers will also be fully released in the world.
Trend 3: The head effect of comprehensive manufacturers is obvious, and the pattern is basically stable
China's construction machinery industry, the group with the first stable pattern must be the comprehensive manufacturer camp.
On the list of the top 50 global construction machinery manufacturers in 2021, among the 11 Chinese manufacturers that entered the top 50, the sales concentration reached to 88.42%.
The Matthew effect of "stronger is stronger" and "bigger is bigger" is more obvious. It is almost impossible for some specialized manufacturers to join the ranks of comprehensive manufacturers through product diversification and expansion; and even if the pattern of comprehensive manufacturers changes, it is only a change in the ranking of comprehensive giants.
Trend 4: The segment pattern is not stable and there are still variables
In China's construction machinery industry, except for concrete equipment, there are variables in all other segments.
Why is the concrete equipment market an exception? A very important reason is that the top resources of the global concrete equipment industry have been acquired by Chinese companies several years ago. At present, whether it is production capacity or sales, China's concrete equipment industry accounts for more than 90% of the world. It can be said that the pattern of China's concrete equipment industry is the pattern of the global concrete equipment industry.
In addition, there are variables in any segment of China's construction machinery industry.
For example, in the field of cranes, on the one hand, Chinese manufacturers have begun to "face up" with Liebherr, which has been firmly in the global hegemony position for a long time; competition between companies. In addition, from the perspective of the crane industry segment, whether it is tower cranes, crawler cranes, or wheeled cranes, in recent years, various companies have been making big moves, and their market shares have fluctuated frequently with the introduction of new products and the intensity of market promotions. .
Another example is emerging industries, such as aerial work equipment, crushing and screening equipment, etc., which are becoming a new stage for comprehensive manufacturers to fight each other. Due to the entry of comprehensive enterprises such as XCMG, Zoomlion, and Lingong, the development of the pattern is accelerating. Variety.
Trend Five: Winning in System Solutions
Large enterprises build diversified product platforms horizontally, and specialized enterprises continue to expand in vertical fields. The two have the same purpose in creating more complete "customer system solutions", which is also recognized as the key for manufacturers to win in the future .
This is actually what the end user needs. Under the background of the continuous development of the market, the continuous maturity of the industry, and the more complex engineering projects, end users are paying more and more attention to "one-stop procurement" and "one-stop solutions", compared with companies with complete product lines and flexible product portfolios , a single manufacturer of product lines, limited development space.
Trend 6: Accelerated differentiation of Chinese excavator manufacturers
In the past two years, the growth of China's excavator market has reached a record high. And every time the hot market and the fierce battles in it will spawn a group of "stronger and stronger" companies, and at the same time, some participants will fall behind or be eliminated.
Compared with domestic enterprises, foreign manufacturers are a little lonely. Although foreign capital has already made some moves in terms of Chinese-style products and local marketing strategies in China, it takes time to truly adapt to China's changes and innovations, and not all companies can do it.
Trend 7: User brand choice is still unstable
Changes in the pattern of China's construction machinery industry, the biggest variable comes from end customers.
Despite years of rapid development, in general, the entire Chinese construction machinery industry is still flooded with a large number of new customers, primary customers, and non-professional customers; according to CCM's prediction, this proportion will not be lower than 30%. These new customers have obvious characteristics: brand choice is not fixed, brand loyalty is not high. Even professional big customers, old customers, their brand loyalty is far lower than developed markets.
It is the above reasons that determine that in any segment, the competition for "end customers" among manufacturers is far from over; to retain customers for a long time and continuously improve customer loyalty, manufacturers have a heavy responsibility far.
Trend 8: Leasing is coming
In China's construction machinery industry, the wind of leasing has been tight for a while.
On the host manufacturer side, the leasing business is becoming a regular business item for many companies. In the past, there were XCMG and Lingong, or established leasing companies with corporate backgrounds, or established leasing business sectors by means of cooperation and shareholding; later, Liugong acquired the business of One Hertz, the world's largest equipment leasing company, in China.
Not only domestic manufacturers have made moves, but foreign giants have also made substantial moves in the leasing business in China's construction machinery market. Such as Caterpillar, such as Hitachi Construction Machinery.
On the agent side, there are not a few companies that have already taken steps. Lei Shing Hong, a Caterpillar agent, established a leasing service center in Xiong'an in early 2019. For any agent transforming into a comprehensive service provider, "leasing business" is obviously one of the key starting points.
Among the end user groups, the number and scale of professional enterprises integrating "leasing + construction" are growing rapidly. The most representative is that in the Chinese crane user group and the Chinese aerial work equipment end customer group, the penetration rate of the former is as high as 70%-80%, and the latter has exceeded 90%. According to the forecast of relevant industry insiders, in the next 5-10 years, in the traditional excavator and loader products, the rental penetration rate in the Chinese market will also reach about 40%.
Obviously, leasing is the next industry outlet that all parties have already realized.
With the joint actions of all parties, the day when the leasing business is detonated is getting closer and closer.
Trend 9: New Technology "Overtaking"
global industryIn the engineering machinery industry, Chinese manufacturers are drawing a roadmap to the top of the industry; and electrification, intelligence, and digitalization are undoubtedly the key to this summit and overtaking.
In the era of traditional construction machinery, Chinese manufacturers are followers; but in the era of intelligent, digital and electrified equipment that has come, Chinese companies are one of the leaders.
All of China's leading construction machinery companies have continuously launched a series of products in intelligent, digital and electrified technologies and put them into application. In this trend, the global construction machinery industry has seen "China's progress" and "China's speed" by local manufacturers in a series of new technologies.
Every technological change and upgrade will have a huge "market siphon effect"; with the increase in market influence and share, the day has come for Chinese companies to overtake global giants.
Trend 10: Supply chain restructuring, a new round of "embedding"
In recent years, the concentration of mainframe manufacturers in China's construction machinery industry has been increasing. Among the 11 Chinese companies entering the 2021 Top 50 Global Construction Machinery Manufacturers list, the sales concentration of the top 3 companies is as high as 81.49%, and the sales concentration of the top 5 companies is as high as 91.39%. Such a high degree of concentration will inevitably promote the core supply chain to concentrate on leading host manufacturers.
At the same time, the high-end, large-scale, electrified, intelligent, emission standard upgrades of China's construction machinery products, and changes in the product structure of the industry will all make major adjustments to the supply chain system of Chinese construction machinery manufacturers. In addition, with the acceleration of Chinese construction machinery products to go overseas, the core supporting system of Chinese construction machinery has also been continuously upgraded.
Under the action of many factors, the core supporting system of China's construction machinery must undergo a historic reconstruction. Core supporting enterprises with true technical strength, comprehensive solutions and sustainable development capabilities will use this time window to deeply "embed" into the core supply chain system of mainframe manufacturers.
In addition to the "restructuring of the supply chain", the rise of China's local component manufacturers is also triggering a "switching of the core supporting system from foreign brands to domestic brands".
(Excerpt: Construction Machinery Observation)
