Since 2010, under the background of rapid growth in domestic fixed asset investment and real estate development, the annual sales of construction machinery have increased by more than 48% year-on-year, ranking first in the entire machinery industry.

However, the industry generally believes that under the pressure of the country to strengthen macro-control and real estate regulation and control, the growth rate of construction machinery industry in 2011 will obviously drop, and it is expected that the industry growth rate will fall back to 18% to 20% this year. Although the decline in the growth rate of fixed asset investment will inhibit the growth rate of sales of construction machinery, the construction of affordable housing, water conservancy, and high-speed railways will ensure that the sales volume will remain high.

Among these, the biggest difference from previous years is the investment in water conservancy construction. When the 4 trillion yuan investment in construction machinery that drastically boosted the demand for construction machinery came to an end, the national water investment policy was introduced in due course. This year, the Central Document No. 1 proposed that China will invest 4 trillion yuan in Daxing water conservancy projects in the next 10 years. Water conservancy construction is an important market for construction machinery. This will directly boost the demand for construction machinery such as excavators, loaders, bulldozers, and cranes.

This year’s vigorous construction of affordable housing is unprecedented, and affordable housing will, to a certain extent, ease the impact of real estate regulation on the industry. Consensus market expectations for related companies also reflect concerns about the slowdown in the growth of the industry. However, in January 2011, sales of construction machinery were good. Take the excavator as an example. January sales of Sany Heavy Industry and Liugong increased by 170% and 160% respectively year-on-year.

At present, the low-end products in the construction machinery market in China, such as bulldozers and loaders, are basically in a state of overcapacity. Relatively speaking, excavators and large-tonnage cranes are favored.

Excavator is one of the most profitable products in all types of construction machinery, and is also considered to be the most growth segment in the future. From the perspective of market competition, excavator industry has a higher market concentration and foreign brands dominate the market. Among domestic brands, Sany Heavy Industry and Liugong's excavator product lines are relatively complete and the market sales volume grows rapidly. Sanhe Intelligent focuses on the development of small digging markets. Among them, the excavator development of Sany Heavy Industry is particularly rapid, becoming the only domestic brand that ranks among the top five in the global sales of excavators.

For cranes, China’s self-manufactured cranes are mostly small to medium-sized tonnage cranes due to technical limitations. The development of large-tonnage cranes started late. At present, only a few leading companies such as Xugong Machinery, Zoomlion, and Sany Heavy Industry have certain Manufacturing capacity. Xugong Machinery is the largest crane manufacturer in China, occupying about half of the domestic market share. Its products cover large, medium and small tonnage cranes, with a market share of more than 50%. At the same time, the expectation of Chenggong Group's acceptance has become the focus of market attention; The company’s crane business accounts for about 30% of the domestic market share. It is the second largest crane manufacturer after Xugong Machinery. The main products are concentrated on small to medium-sized tonnage models. The large tonnage crane projects currently funded by the company have already entered production. stage.