Forecast of Market Size Trend of Construction Machinery in China in 2012

Although the slowdown in China's economic growth this year is a foregone conclusion, Xiang Wenbo, president of Sany Heavy Industry, a large construction machinery manufacturer in China, still expects the 2012 domestic market outlook. This year, the domestic construction machinery market is expected to reach 500 billion to 600 billion yuan.

It is an inevitable trend for Chinese construction machinery manufacturers to conduct overseas mergers and acquisitions. Large-scale overseas mergers and acquisitions have only just begun.

Although the growth rate of the industry will slow this year, but in view of the rapid growth of GDP, I remain optimistic about the prospects of China's construction machinery market in 2012.

China's GDP growth rate in 2011 reached 9.2%, and the GDP growth target set this year is 7.5%. A strong local market is an important reason for the rise of Chinese construction machinery manufacturing companies. According to the “12th Five-Year Plan” of China's construction machinery industry released earlier, by 2015, the sales volume of the Chinese construction machinery industry will reach 900 billion yuan, with an average annual growth rate of 17%.

The market size of China's construction machinery accounts for 47% of the world in 2010, and it is estimated that this proportion will increase in 2011.

The size of the Chinese market has accounted for half of the global market size. China's construction machinery manufacturers have unparalleled advantages in the local market. If strategic overseas acquisitions can be carried out at this time, Chinese enterprises will accelerate the development.

Due to fierce competition in the domestic market, Chinese construction machinery manufacturers will seek overseas development. It is expected that there will be larger-scale and bolder overseas mergers and acquisitions this year. In the next 3 to 4 years, the proportion of overseas large-scale construction machinery operators in China will increase their revenue from 10% to 30%.