Page 156 - 2023 White Paper on the Business Environment in China
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3 White Paper on the Business Environment in China
powered construction machinery to secure an that 30% of newly constructed buildings in
increased share in overseas markets. Jiangsu China will be prefabricated by 2030 as Chinese
Weiteli Motor Ltd, a Taizhou, Jiangsu province-based infrastructure developers are adopting the
manufacturer of electric vehicle drive motors, saw prefabricated construction techniques. Material
orders for motors used on electric construction handling equipment is mainly used in construction,
machinery rise dramatically in 2022. The company manufacturing, cargo handling, logistics,
predicts the market in this category is expected to warehousing, and mining industries. In 2021,
grow more than 300% on a yearly basis. The diesel- 102 major projects were announced in the China
powered construction machinery market currently 2021–2025 development plan, which supports the
is finding increasing use by new energy products, demand for material handling equipment (Arizton).
especially in developed markets such as Germany,
France and the United States. Customers are also Farm Equipment
demanding longer battery lives and smarter control
systems, pushing the company to continuously In recent years, China's autonomous agricultural
launch new products. The electrification trend machinery systems have developed radically.
of construction machinery with small operating They have been just applied in northern regions
radiuses and fixed activity is more obvious, such (Xinjiang and Heilongjiang), while they are still
as electric-powered loaders and dump trucks used in the germination stage in other areas of China
in factories, mines and ports. The earliest start of where the farmland scale is moderate. Despite the
electrification in the field of construction machinery regional imparity, China's autonomous agricultural
is the electric forklift. The proportion of electric machinery systems as a whole have been growing
forklifts has reached 62%. New energy loaders swiftly. It is expected that the penetration rate
have become a pillar product for this category. of autonomous agricultural machinery systems
With notable improvement of the technical level, will reach 6.5% by 2025 and about 20% by 2035.
quality and reliability of batteries, motors and The penetration rate of autonomous agricultural
electronic control systems in China, the nation's machinery systems in China is much lower than
export volume and production capacity of electric- that in Europe and the United States. In 2020,
powered construction machinery will continue to the average price of autonomous agricultural
rise in 2023. Under China's coordinated regional machinery systems and equipment in China was
growth strategy and ongoing establishment 50,000-60,000 RMB per set. In 2021, the substantial
of a unified domestic market, demand for reduction in the subsidy standard dragged
infrastructure construction remains appealing with down the average price of automatic navigation
continuous efforts to drive the development of equipment to only 36,000 RMB per set. With the
the Beijing-Tianjin-Hebei region, the Yangtze River completion of the ground base station network
Economic Belt and the Guangdong-Hong Kong- and the improvement of agricultural electrical
Macao Greater Bay Area. The Communist Party control systems, the price of China's autonomous
of China Central Committee and the State Council agricultural machinery systems and equipment
jointly released in April a guideline on accelerating will decline slowly in the future, may be less than
the establishment of a unified domestic market. It 25,000 RMB per set by 2025 (R&M).
said China will optimize the layout of commercial
and trade circulation infrastructure, bolstering the The Chinese agricultural machinery market
integration of online and offline development. is projected to record a CAGR of 5.8% during the
forecast period 2022-2027. China is one of the
The China construction equipment market is largest manufacturers of farming equipment and
projected to reach US$79 billion by 2028. The the largest market for agricultural machinery
demand for construction equipment boosts due globally. The bestselling types of agriculture
to the rise in transport infrastructure projects machinery in the country include large tractors
and affordable government home schemes. The and harvesting machinery products with high
material handling equipment market in China is horsepower (HP) and high degrees of automation.
estimated to grow at a compound annual growth Nearly 2,500 agricultural equipment manufacturers
rate (CAGR) of 3.15%. Therefore, it is estimated
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powered construction machinery to secure an that 30% of newly constructed buildings in
increased share in overseas markets. Jiangsu China will be prefabricated by 2030 as Chinese
Weiteli Motor Ltd, a Taizhou, Jiangsu province-based infrastructure developers are adopting the
manufacturer of electric vehicle drive motors, saw prefabricated construction techniques. Material
orders for motors used on electric construction handling equipment is mainly used in construction,
machinery rise dramatically in 2022. The company manufacturing, cargo handling, logistics,
predicts the market in this category is expected to warehousing, and mining industries. In 2021,
grow more than 300% on a yearly basis. The diesel- 102 major projects were announced in the China
powered construction machinery market currently 2021–2025 development plan, which supports the
is finding increasing use by new energy products, demand for material handling equipment (Arizton).
especially in developed markets such as Germany,
France and the United States. Customers are also Farm Equipment
demanding longer battery lives and smarter control
systems, pushing the company to continuously In recent years, China's autonomous agricultural
launch new products. The electrification trend machinery systems have developed radically.
of construction machinery with small operating They have been just applied in northern regions
radiuses and fixed activity is more obvious, such (Xinjiang and Heilongjiang), while they are still
as electric-powered loaders and dump trucks used in the germination stage in other areas of China
in factories, mines and ports. The earliest start of where the farmland scale is moderate. Despite the
electrification in the field of construction machinery regional imparity, China's autonomous agricultural
is the electric forklift. The proportion of electric machinery systems as a whole have been growing
forklifts has reached 62%. New energy loaders swiftly. It is expected that the penetration rate
have become a pillar product for this category. of autonomous agricultural machinery systems
With notable improvement of the technical level, will reach 6.5% by 2025 and about 20% by 2035.
quality and reliability of batteries, motors and The penetration rate of autonomous agricultural
electronic control systems in China, the nation's machinery systems in China is much lower than
export volume and production capacity of electric- that in Europe and the United States. In 2020,
powered construction machinery will continue to the average price of autonomous agricultural
rise in 2023. Under China's coordinated regional machinery systems and equipment in China was
growth strategy and ongoing establishment 50,000-60,000 RMB per set. In 2021, the substantial
of a unified domestic market, demand for reduction in the subsidy standard dragged
infrastructure construction remains appealing with down the average price of automatic navigation
continuous efforts to drive the development of equipment to only 36,000 RMB per set. With the
the Beijing-Tianjin-Hebei region, the Yangtze River completion of the ground base station network
Economic Belt and the Guangdong-Hong Kong- and the improvement of agricultural electrical
Macao Greater Bay Area. The Communist Party control systems, the price of China's autonomous
of China Central Committee and the State Council agricultural machinery systems and equipment
jointly released in April a guideline on accelerating will decline slowly in the future, may be less than
the establishment of a unified domestic market. It 25,000 RMB per set by 2025 (R&M).
said China will optimize the layout of commercial
and trade circulation infrastructure, bolstering the The Chinese agricultural machinery market
integration of online and offline development. is projected to record a CAGR of 5.8% during the
forecast period 2022-2027. China is one of the
The China construction equipment market is largest manufacturers of farming equipment and
projected to reach US$79 billion by 2028. The the largest market for agricultural machinery
demand for construction equipment boosts due globally. The bestselling types of agriculture
to the rise in transport infrastructure projects machinery in the country include large tractors
and affordable government home schemes. The and harvesting machinery products with high
material handling equipment market in China is horsepower (HP) and high degrees of automation.
estimated to grow at a compound annual growth Nearly 2,500 agricultural equipment manufacturers
rate (CAGR) of 3.15%. Therefore, it is estimated
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