Global construction machinery market trends and analysis

The global construction machinery market overview    
2015, the global construction machinery market showed an accelerated decline in the amount of the year to year decline of -17%, the decline in the value of -16%. From a regional perspective, the main reason for the decline is the continued decline in China and most emerging market demand. But India has become a bright spot in the global market, after several years of continuous decline showed growth. Most of the traditional developed market performance is stable and even a slight rebound, they accounted for the proportion of the global market has been calculated to Taiwan to 54%, to achieve the value of up to 60%.     in short, because of the large market had grown fast continuous decline, while the developed market rebound is not enough to offset the huge decline in global demand for construction machinery market in decline. This puts pressure on the development of manufacturers, so that they must re-examine their own development strategies and market concerns.     the overall view of the global market, the market is entering a period of operation of the bottom of the next five years will be a slow process of recovery, the recovery rate can be predicted from the current lows from 20 to 25%. This expectation is based on the assumptions of the main market — — including the Chinese market and the traditional developed market — — the demand for the central level of the market to return to the operation. But, obviously, there exists a lot of uncertainty influence on specific market movements, including politics, economy, regional security and other aspects, the most direct impact of these uncertainties brought to the construction machinery market is difficult for the construction market to make sustained and stable expectations, the user confidence in the purchase of new equipment will appear frequently swing the indefinite. Therefore, although from the historical experience and economic trends, the current market level is entering the bottom, but for the recovery of any overly optimistic estimates are unrealistic.    
Market demand analysis in major regions    
China    
China Construction machinery market since 2012, the downward trend has not changed, in 2015 fell to 43%. After several years of continuous decline, China has fallen from the world's largest construction machinery market fell behind the level of North America and Western Europe, the domestic excavator market sales have even lower than japan. The great turning point of the Chinese market is due to the adjustment of domestic economy and the change of economic policy. Due to a substantial decline in investment growth, in the traditional field of engineering machinery can hardly see the new growth in demand, the market is flooded with a huge amount of accumulated due to the early high sales growth, so that the new machine sales is inhibited. Investor confidence in the purchase of new equipment is affected by the low utilization rate of equipment and poor return on investment, the purchase of the mining industry customers will be particularly low.    
At present China economy back into possibility of accelerated growth is low, and the transformation of economic structure, mainly to improve the final consumption's contribution to economic growth, supporting role of investment gradually weakened, the mining industry production capacity will be significantly reduced. Therefore, the demand for construction machinery is still hovering in the near future, the future demand will largely depend on the update of existing equipment and the growth of new applications such as small machinery market. Investment growth will continue to be the main factor to support market demand, but can not expect too much.     due to the continuous decline in the domestic market, expanding exports to improve capacity utilization is of great significance. But because Chinese manufacturers export mainly for emerging markets, but these markets in recent years, most are in decline, so in the past two years overseas sales also decreased significantly, the export business contribution is only due to a downturn in the domestic market more greatly improved. In the current international market environment, exports seem to have reached a high point of development potential.
Western Europe    
Western European market sales in 2014 increased by 11% in 2015, the growth rate dropped to 2%. Overall, this is still a good performance. Demand has been strong in the UK, Germany and some smaller regions, with a long-awaited recovery in Italy, Ireland and Spain, but the performance of the French market has declined. There are still uncertainties in the European market, in some areas due to lack of confidence in the market potential buyers can not be fully released. Market performance of the products, including small excavators and crawler excavators, while digging loaders in the main traditional markets have declined. Sales of telescopic arm mounted machines decreased in major markets due to difficulties in agriculture.    
Expectations of Western Europe's market prospects are relatively optimistic, although the annual growth rate will not be great. Sales in 2016 is expected to increase in 2016-2020 years, during the five years of the cumulative increase of up to 6%. The European market will not fluctuate significantly, but Spain, Italy, Ireland and Portugal will remain relatively positive growth, the French market is expected to rebound in the near future.    
North American    
North American construction machinery market demand in 2015 fell by nearly 2%. The performance of small equipment is better than that of larger products, especially small excavatorsAnd small wheel loaders and other small devices have also grown. But the decline in the sales of skid steering loaders offset the growth of these small products. Crawler bulldozers, wheel loaders, excavators, graders, articulated dump truck and other large equipment demand last year generally steady decline slightly. Sales of smaller but higher value of mining equipment demand dropped significantly, including rigid dump trucks, a large excavator, large crawler bulldozer and mine loader. Construction spending increased in 2015, but lower than in canada. Construction machinery leasing companies as main target users, the rental income increased slightly compared with 2014, the purchase of new machines spending also remained stable, but the purchase of focus from medium-sized equipment industry to quantity reduced the scale of varieties.    
U.S.A
    the U.S. economy since the 2008-2009 recession has not achieved substantial growth, is expected to remain relatively low growth in the near future. Residential construction and new residential construction will increase, some non residential construction is also expected to grow. However, the purchase of equipment leasing expenditure is expected to decline, while large new construction projects and large-scale infrastructure projects will fear is still difficult to pick up, although the United States Congress has approved the new highway budget spending bill. There will be no improvement in the mining industry in 2016. Due to the uncertainty of the market caused by the cautious psychology, contractors and leasing customers “ wait-and-see ” attitude is sufficient to lead to continued decline in sales. The future trend of equipment demand will depend largely on the economic and fiscal policies of the new government.    
Japan    
Japan's construction machinery market due to the earthquake and tsunami disaster after the equipment demand in 2013 reached a high point, but the last two years of continuous decline. Japan's economic performance as a whole, partly due to the slowdown in China's economy, the government's willingness to invest in infrastructure will no longer exist. In addition, the existing equipment is still relatively new, users in the face of an uncertain future, they will postpone the purchase of new equipment investment. Sales of the most important Crawler excavators declined significantly in 2015, but were offset by strong demand from small excavators. The future situation of the Japanese market is still optimistic, the existing equipment update demand will be the driving force of the market, the demand for the next three years is expected to maintain an annual increase of 1-2%.     India     India market after three consecutive years of decline, in 2015, a slight increase of 2%, which is due to engineering construction, especially in the field of road construction demand growth. The main categories of products, mining loader and mobile crane demand has been declining for fourth consecutive years, while the crawler excavator and wheel loader to achieve more than 15% growth. The new government of India took the infrastructure development strategy as an important part of economic growth, in the rapid action, the key measure is to eliminate all obstacles, to plan the implementation of goals and projects. The industry generally believe that the new government performance is good, but compared to the expected is still too cautious, various constraints still exist. Financing capacity is an obvious problem, but also to strengthen the ability of the government to promote the implementation of the project. However, given the huge growth potential of India's economy, the future prospects of its construction machinery market is optimistic.