Overview of the Global Construction Machinery Industry: Multiple Giants are Thriving
2025-03-13
Construction machinery, a type of equipment that plays a pivotal role in the infrastructure construction and real estate sectors, is regarded by the industry as a barometer of economic trends. In China, real estate and infrastructure construction have always been the main driving forces for the demand in the construction machinery industry. Recently, the real estate sector has witnessed a number of favorable policies, such as the implementation of the policy of "recognizing the house but not the loan", the reduction of the interest rate of existing mortgage loans, and the decrease of the down payment ratio. These loose policies will undoubtedly further stimulate the growth of demand in the domestic construction machinery market.
From the perspective of the industrial chain, the upstream of construction machinery mainly involves the production of steel, as well as core components such as hydraulic systems and engines. The downstream applications cover a wide range of infrastructure projects such as water conservancy, power, and roads, and also include industries such as real estate development and mining. Next, we will focus on the ten largest construction machinery manufacturers globally, among which two are from China.
I. Caterpillar (USA)
Caterpillar, a company founded in 1925 in Illinois, USA, has now become a leader in global construction and mining equipment, diesel and natural gas engines, and industrial gas turbines. Its business footprint spans the globe, and it serves 192 countries through 156 independent dealers. In 2023, Caterpillar firmly held the leading position in the North American construction machinery market with a market share of 64.6%.
Thanks to its leading position in the US construction machinery industry, Caterpillar not only has profitability exceeding the industry average but also demonstrates superior performance flexibility. Judging from past data, the company has always enjoyed a high valuation premium. In 2023, Caterpillar's sales and revenue reached $67.1 billion, a year-on-year increase of 13%, which was mainly attributed to the excellent double increase in both selling prices and sales volumes.
Next, we will continue to introduce leading construction machinery manufacturers around the world.
II. Komatsu (Japan)
Komatsu Group, founded in Tokyo, Japan in 1921, has now established regional headquarters globally, including in China, the United States, Europe, etc., and has 143 subsidiaries with a total of more than 30,000 employees. As a global leader in the manufacturing of construction machinery and mining machinery, Komatsu Group's business is supported by two major segments: construction machinery and mining equipment.
Komatsu Machinery focuses on providing a diverse range of construction machinery products, covering multiple fields such as excavators, bulldozers, loaders, and dump trucks. Among them, bulldozers, loaders, and excavators are regarded as Komatsu's three core products, representing the company's technical strength and market position.
Looking back at history, Komatsu's product strategy has evolved from bulldozers to wheel loaders and hydraulic excavators. This adjustment not only reflects the company's keen insight into market changes but also demonstrates its innovation strength in the construction machinery field.
In terms of the acquisition strategy, Komatsu chose to acquire overseas companies first. This is not only due to the cost advantage brought by the upward trend of the Japanese yen but also a profound insight into the global development prospects of the construction machinery industry. In addition, Komatsu's leading position in the fields of hydraulic technology and underground construction machinery such as shield machines and TBMs has also given it a head start in the global market competition.
From April to December 2023, Komatsu's sales of construction machinery, mining, and utility equipment achieved an excellent year-on-year growth of 10.8%, fully demonstrating its steady growth trend in the global market.
III. XCMG Machinery (China)
XCMG Machinery, which originated from Huaxing Iron Works founded in 1943, has now grown into a leading enterprise in China's construction machinery industry. After officially changing its name to XCMG Machinery in 1993, the company successfully listed on the Shenzhen Stock Exchange in 1996, marking a new stage of its development.
XCMG Machinery began to enter the fields of high-end equipment such as large excavators and mining dump trucks around 2008 and has made remarkable progress. In April 2018, the company successfully developed a 700-ton hydraulic excavator, known as the "No.1 Excavator in China", which was a major breakthrough that broke the long-term monopoly of foreign brands in the field of large mining mechanical equipment.
In 2022, XCMG Machinery further expanded its scale by successfully reverse-merging XCMG Co., Ltd., achieving the overall listing of XCMG Group's construction machinery segment. Now, XCMG Machinery has become one of the largest, most comprehensive in product lines, and most competitive and influential enterprises in China's construction machinery industry.
In 2023, XCMG Machinery achieved an operating revenue of 92.848 billion yuan. Although it decreased slightly by 1.03% year-on-year, its net profit attributable to the parent company reached 5.326 billion yuan, a year-on-year increase of 23.51%, indicating the company's good profitability. In addition, in the list of the top 50 global construction machinery manufacturers in 2022 announced by KHL in 2023, XCMG Machinery has ranked third globally and first domestically for two consecutive years.
IV. John Deere (USA)
John Deere Machinery, a company founded in the United States in 1837, has now become a leader in global construction machinery, agricultural machinery, and lawn machinery and equipment. Its business footprint spans the globe, with industrial production bases established in 11 countries. Since it entered the construction machinery field in the middle of the 20th century, John Deere has continuously launched a series of innovative products, such as excavators, loaders, bulldozers, etc., to meet the diverse needs of customers. In order to further strengthen its R&D and manufacturing capabilities in this field, the company established a special industrial equipment department in 1956, focusing on the R&D and production of construction machinery.
However, according to the first fiscal quarter report released on January 29, 2024, John Deere's net profit decreased compared with the same period last year. Nevertheless, this has not affected its leading position in the global construction machinery field. Looking ahead, John Deere will continue to be committed to providing high-quality products and services to consolidate its leading position in the industry.
V. Sany Heavy Industry (China)
Sany Heavy Industry, a Chinese company founded in 1994 and listed on the Shanghai Stock Exchange in 2003, has now developed into a global leading construction machinery manufacturer. Starting from establishing its first overseas production base in India, Sany Heavy Industry has gradually established five production bases globally, demonstrating its strong international development capabilities. In 2018, the company embarked on the path of digital and intelligent transformation. Through the commissioning of its lighthouse factories, it has further enhanced its competitiveness in the global market.
Sany Heavy Industry's development strategy has similarities with that of international giants such as Caterpillar. In terms of strategic layout, the company has continuously expanded its business scope, starting from construction machinery and expanding into multiple fields such as coal mining machinery, port machinery, and mining machinery. At the same time, in terms of product layout, Sany Heavy Industry has also transformed from a leader in the concrete industry to a domestic leader in diversified products such as excavators. After years of development, the company has formed a complete industrial chain layout of construction machinery covering multiple fields such as concrete machinery, road machinery, excavating machinery, piling machinery, and lifting machinery.
Currently, Sany Heavy Industry's concrete products have become a global leading brand, and its leading products such as excavators also hold a leading position in the Chinese market. According to statistics, in 2023, both Sany Heavy Industry and XCMG Machinery had a market share of over 20% in the Chinese market and successfully surpassed the share of the international giant Caterpillar. This achievement fully demonstrates Sany Heavy Industry's leading position and strong market competitiveness in China's construction machinery industry.
VI. Volvo Construction Equipment (Sweden)
Since its establishment in 1832, Volvo Construction Equipment has transformed from a local factory into a global top construction equipment manufacturer. Its product line is rich, covering various models of excavators, wheel loaders, self-propelled graders, and articulated trucks, and its business footprint spans more than 150 countries around the world. In 2023, Volvo Construction Equipment achieved a net sales of 104.981 billion Swedish kronor, a year-on-year increase of 5%, with equipment sales increasing by 4% and service sales surging by 8%. The achievement of this series of results not only highlights Volvo Construction Equipment's stable position in the global market but also heralds its strong momentum for future development.
VII. Liebherr (Germany)
Liebherr, a family-owned company founded by Hans Liebherr in 1949, has now become a global leader in construction machinery. After decades of development, it has more than 100 subsidiaries on all continents around the world, with a total of nearly 38,000 employees, demonstrating its strong strength. Liebherr's construction machinery is renowned globally for its stability. Its product line is extensive, including various models and specifications of tower cranes, mobile construction cranes, as well as earth-moving machinery such as hydraulic excavators and wheel loaders. In addition, the company also provides heavy-duty crawler cranes and piling rigs designed specifically for special underground construction needs, as well as efficient concrete pouring technical solutions. Its deep foundation construction equipment is particularly known for its versatility and can work stably in extreme environments. In the 2023 fiscal year, Liebherr's revenue reached 14.042 billion euros, a record high, an increase of 11.5% compared to the previous year, showing a strong development momentum.
VIII. Hitachi Construction Machinery (Japan)
In the list of the top 50 global construction machinery manufacturers in 2023, Hitachi Construction Machinery stood out and firmly ranked 8th. This well-known company, affiliated with Hitachi in Japan, has made a name for itself globally with its excellent construction machinery products since its establishment in 1970. Hitachi Construction Machinery is not only one of the largest multinational manufacturers of excavators in the world but also established Hitachi Construction Machinery Europe in 1972, laying a solid foundation for its global layout. It is worth mentioning that the EX8000, Japan's largest 800-ton ultra-large hydraulic excavator, is also a masterpiece of Hitachi Construction Machinery. The excellent performance in the first three quarters of the 2023 fiscal year further proves Hitachi Construction Machinery's strong strength and growth potential in the construction machinery field.
Conclusion
In addition to internationally renowned manufacturers such as Hitachi Construction Machinery, Shantui Vögele and JCB also demonstrate strong competitiveness in the construction machinery field. Currently, the competition pattern of the global construction machinery industry is gradually becoming concentrated, which also provides more market expansion opportunities for domestic construction machinery products. The main domestic construction machinery layout manufacturers include Zoomlion, Liugong, Long Gong, Shantui Co., Ltd., CRCC Heavy Industries, Sunward Equipment, Zhejiang Dingli, Lovol Heavy Industry, etc., all of which have excellent strength and potential in their respective niche fields.
With the continuous improvement of the global competitiveness of domestic leading enterprises and the continuous and stable demand for construction machinery in the global market, domestic construction machinery products are expected to further expand their market share globally and achieve more outstanding market performance.