Look at the overseas market demand of construction machinery industry in 2024 by region

       After two consecutive years of rapid growth, the construction machinery export market has also been slightly "weak".

       2023 China's construction machinery exports 48.552 billion US dollars, an increase of 9.59%. However, from the point of view of products, some products exports declined year-on-year, such as excavator exports of 105,038 units in 2023, down 4.04% year-on-year, especially since the second half of the year, excavator export growth is obviously weak, showing negative year-on-year growth for six consecutive months.

The data for the first quarter of 2024 have also been fully released, and the export situation of excavators is still declining, but some products still show high resilience.Overall, from January to March 2024, China's import and export trade volume of construction machinery was 12.66 billion US dollars, an increase of 2.66%. Among them, the export value was 12.007 billion US dollars, up 2.6% year-on-year.The export of construction machinery has gradually transited from a period of rapid growth to a period of stable development, and the overall trend of good body has not changed. Under the high base effect, the sales growth of the export market in 2024 is expected to be stable as a whole. How about the market demand in different regions?

        The global construction machinery market is huge, according to Statista statistics, the global construction machinery market space is expected to exceed 150 billion US dollars in 2023, and it is expected to exceed one trillion yuan in 2024.

        Look at it by region. According to the sales volume in 2022, North America accounted for 27%, which is the largest market; China accounted for 19%, the second largest market; The third largest market is Europe with 18%, the fourth and fifth largest markets are Japan and India with 6% each, and other markets account for 24%.

        Overall, China's construction machinery industry in the international market sales revenue still has a lot of room for growth. With the bottoming out of the domestic construction machinery market and the continuous expansion of the head enterprises in overseas markets, China's construction machinery industry is expected to achieve internal and external resonance in the next few years and maintain a high growth rate.

      1.  North American market

According to data, the sales volume of construction machinery in North America in 2023 is about 315,000 units; Among them, the US construction machinery market size of 44.76 billion US dollars, accounting for 28% of the world. According to the customs export amount, China's 23 years of exports to North America construction machinery and equipment about 2.72 billion US dollars, accounting for only about 6.1% of the North American market. The North American market is still the most potential growth market in the global construction machinery industry, and domestic enterprises have a huge space for developmenFrom the demand side, on the one hand, the sales of new housing in the United States led to a positive residential construction expenditure of 23M10 year-on-year, and real estate demand bottomed out and rebounded; On the other hand, in November 2021, the US Infrastructure Investment and Employment Act took effect,

 and the Chip and Science Act was signed in 22 years to support the continuous growth of non-residential construction spending and the steady demand for infrastructure.

 At the same time, North American energy and mining demand is stable, crude oil and natural gas production is growing steadily, and the mining output index is stable. 

It is expected that the next demand equipment will mainly be excavators, loaders and other equipment.

At present, the share of China's construction machinery in North America is still in the single digits, I believe that with the improvement of overseas channel layout, China's construction machinery will have broad development in North America

      3 European market

      Demand for electrification may become a major growth point in the future

In 2022, the four Western European countries (Britain, France, Germany and Italy) will account for 58% of total European demand; In 2023, the market size is about 39 billion US dollars, accounting for 24.8% of the world, of which the demand for construction machinery brought by construction is concentrated in Western Europe.

According to the customs export amount, 23 years China's construction machinery exports to Europe 12.689 billion US dollars, accounting for 32.5% of the European market, of which about 6.05 billion US dollars exported to the Russian market, accounting for 48% of Russia.

     4 Southeast Asian market

     Mining equipment demand is still robust, 2023 ASEAN construction machinery sales of about 74,000 units, the market size of 640 million US dollars, accounting for 4.9% of the world's 2023 China's exports to ASEAN construction machinery machine + parts parts 7.16 billion US dollars. From the demand side, the infrastructure demand in Indonesia, Thailand and Vietnam has declined in 23 years, but the demand for mining equipment in Indonesia is still strong.

In 2024, in the face of the Southeast Asian market, the demand for mining equipment is robust, and the core of domestic manufacturers should be to increase market share. And with the policy support of the "Belt and Road" Initiative and the RCEP agreement, domestic manufacturers have location and tariff advantages, and domestic manufacturers are expected to continue to increase market share in Southeast Asia in the future.

      5Middle East, Africa market 

      In 2023, the Middle East and Africa construction machinery market size of 11.11 billion US dollars, accounting for 7.1% of the world. Benefiting from rising energy prices and infrastructure demand, the World Bank expects the Middle East GDP to grow by about 3.5% in 2024-2025. About one-fifth of infrastructure projects in Africa are financed by China, and one-third of infrastructure projects are built by China, which has considerable room for development. At the same time, the overall pattern of the Middle East and Africa engineering market is balanced, and the share of domestic brands in some regional markets is leading, and it will hold a good trend in 2024.

      All in all, the overseas market development of domestic brands has ended the period of rapid growth and entered a period of steady development. In the face of increasing instability and challenges,

 Chinese enterprises still need to continue to deepen their layout in supply chain, market and operation management.

In 2024, China's construction machinery export overseas market space is still huge, and the short-term increase point is to increase the market share in Southeast Asia and the Belt and Road;

 Medium-term growth may be in Western Europe and Russian markets; Long-term growth point or localization construction to improve the North American market share.