I. Overview

　　Throughout 2023, China's excavator market faces multiple factors at home and abroad. Domestically, changes in demand for excavators in infrastructure construction, real estate and other industries are important factors affecting the market. From the international perspective, the global economic situation and trade policies have an impact on the export market. According to the statistics of China Construction Machinery Industry Association, the total sales volume of excavators in 2023 was 195,018 units, a year-on-year decrease of 25.4%. Among them, the sales volume in the domestic market was 89,980 units, down 40.8% year-on-year; the export sales volume was 105,038 units, down 4.04% year-on-year. The following will analyze the situation of China's excavator market in 2023 from various angles.

　　Second, the domestic market demand analysis

　　Domestic market demand is the main support of the excavator market. In 2023, influenced by infrastructure construction, real estate and other industries, the domestic market demand presents the following characteristics:

　　Stable demand for infrastructure construction: infrastructure construction has been an important source of demand for the excavator market. Driven by the stable growth policy, infrastructure construction has been increased in various places, especially the start rate of large-scale projects in the fields of transportation, water conservancy and energy has increased. This provides a stable sales space for the excavator market.

　　The impact of the real estate market is inconsistent: the impact of the real estate market on the sales of excavators is uncertain. On the one hand, with the in-depth implementation of the policy of "housing without speculation", the real estate market has gradually returned to rationality, and the demand for investment and speculation has been suppressed; on the other hand, there is a certain demand for excavators in the field of safeguarded housing, rental housing and other areas of people's livelihood. Therefore, the real estate market on the impact of excavator sales uncertainty.

　　Increased demand for replacement: With the increase in the service life of excavators, the demand for replacement is gradually emerging. In recent years, the Chinese government has increased the supervision of environmental protection and production safety, some old, substandard excavators face elimination. This will provide some development space for the new excavator market.

　　Third, the export market analysis

　　The export market has been an important growth point for the excavator industry. In 2023, despite the weak demand in the global market, China's excavator exports still maintained a certain scale. The main reasons are as follows:

　　Cost-performance advantage: Chinese excavator products have a competitive advantage in terms of cost-performance, which can meet the demand of some low-end and middle-end markets. At the same time, Chinese enterprises have actively explored the international market and established a certain sales network and brand awareness.

　　Promoted by the "Belt and Road" Initiative: With the in-depth promotion of the "Belt and Road" Initiative, the demand for infrastructure construction in the countries along the route has increased, providing more opportunities for Chinese excavator products. The localization strategy of Chinese enterprises in overseas markets has also achieved certain results, improving product competitiveness and market share.

　　Changes in the international trade environment: Changes in the international trade environment have a certain impact on the export of excavators. On the one hand, global trade protectionism is on the rise, and some countries and regions have taken restrictive measures against Chinese excavator products; on the other hand, the fluctuation of the RMB exchange rate also exerts certain pressure on exports. These factors lead to increased uncertainty in the export market.

　　Competition pattern analysis

　　In terms of competition pattern, the competition among enterprises in the domestic excavator market is still fierce. On the one hand, large enterprises consolidate market share through technological innovation, brand building and other means; on the other hand, small and medium-sized enterprises seek survival space through differentiated competition, market segmentation and other strategies. At the same time, the pace of industry integration and mergers and acquisitions is also accelerating, which helps to improve industrial concentration and overall competitiveness.

　　V. Future Prospects

　　Looking ahead, China's excavator market still has development potential. Demand from domestic infrastructure construction, real estate and other industries will gradually recover, and demand for replacement will continue to grow. At the same time, the in-depth promotion of the "Belt and Road" initiative will create more opportunities for China's excavator exports. Enterprises should increase investment in technological innovation and brand building to enhance core competitiveness; keep up with changes in market demand and adjust product structure; strengthen international cooperation and exchange to expand overseas markets. The government should continue to increase support for infrastructure construction, optimize the business environment; strengthen environmental protection and production safety supervision, and promote the high-quality development of the industry. At the same time, it is also necessary to pay attention to changes in the international trade environment and RMB exchange rate fluctuations and other factors on the export market, and take effective measures to deal with risk challenges.