The global construction machinery is a trillion level track, and the competitiveness of domestic leaders continues to increase. The global construction machinery market is huge. According to statista, the global construction machinery market size is about 136.3 billion US dollars in 2020, and it is estimated that the market size will reach 234.6 billion US dollars in 2030, with a CAGR of 5.6%. After long-term development, the global construction machinery market has entered a relatively stable mature stage, and gradually formed a competition pattern of "competition game of existing leading enterprises". After years of exploration, domestic leaders XCMG machinery, Sany Heavy Industry and Zoomlion still have a gap compared with overseas leaders, but their global competitiveness is constantly improving. In 2021, a total of 10 enterprises in China entered the top 50 construction machinery enterprises in the world, significantly higher than that in 2019.
After 2016, the export of excavators maintained a growth rate of 30% plus. The growth rate nearly doubled in 2021, and the market distribution became more diversified. Domestic leaders continued to promote overseas expansion in recent years. After 2016, the export of excavators continued to maintain a growth rate of 30% plus, and the growth rate nearly doubled in 2021. Since 2022, exports have maintained a high growth. From January to June, China's cumulative exports of excavators have increased by +72.2% year-on-year. At the same time, the proportion of excavator exports in total sales continued to increase, from about 11% in 2020 to 20% in 2021, and further increased to 36% from January to June 2022. After 2021, the export growth of excavators accelerated, mainly due to the continuous enhancement of the comprehensive competitiveness of leading host manufacturers, and increased overseas expansion after the domestic cycle went down. At the same time, the construction demand in overseas markets such as North America and Southeast Asia was also relatively prosperous. It is noteworthy that the regional distribution of the leading overseas market of domestic mainframe is also becoming more diversified. On the basis of consolidating the traditional "the Belt and Road" market, the layout of key global construction machinery markets in Europe, North America and other countries is strengthened, and the proportion of sales continues to increase.
From the performance of domestic host companies, since the epidemic, domestic leading companies have seized the opportunity of high demand in overseas markets and achieved explosive growth in overseas revenue. According to the announcements of various companies, in 2021, the overseas revenue of XCMG machinery, Sany Heavy Industry and Zoomlion reached 112%, 76% and 51% respectively year-on-year.
Global competitiveness and overseas expansion are strengthened, and exports are expected to continue the rapid growth momentum. We believe that the continuous growth momentum of domestic construction machinery exports since 2016 is expected to continue, mainly based on: 1) at present, the demand for construction in overseas markets is relatively booming. According to the operating hours of excavators published by Komatsu, since this year, the operating hours of excavators in North America, Southeast Asia, Indonesia and other markets have improved better year-on-year, The opening hours of the European market fluctuated around the same level; 2) There is still room for domestic mainframe manufacturers to improve their overseas market share. At present, domestic exports are still concentrated in countries along the "the Belt and Road", and there is still room for major markets in Europe and the United States to improve. In terms of share, taking excavators as an example, in 2020, the global sales of construction machinery was about 1.06 million units, and that of excavators was about 640000 units. Corresponding to the domestic sales of excavators in 2020 was about 290000 units, and the export of excavators was about 35000 units, the domestic export of excavators accounted for only about 10% of the total overseas sales in 20 years, and some domestic exports were made by foreign brands in China, so there is still much room to improve the overseas share in the future; 3) After years of exploration, domestic leaders XCMG machinery, Sany Heavy Industry and Zoomlion have formed an international development mode of "four in one" of overseas factory construction, high-quality service, cross-border mergers and acquisitions and global research and development, and have continuously increased investment and established a perfect global layout. In the context of the downward domestic cycle, the investment and expansion of the main engine leaders in the overseas market are strengthened, which is expected to ensure the continued rapid growth of the export of construction machinery.
With the enhancement of comprehensive competitiveness, the domestic construction machinery leader is moving towards the global leader, and the high export growth is expected to further smooth the cyclical volatility of the industry. At the same time, the pace of the implementation of the domestic steady growth policy is expected to accelerate, and the industry sales volume is about to usher in a positive growth inflection point. After the superposition of the decline in steel prices, the profit will be repaired, with emphasis on the oversold repair opportunities such as the leading Sany Heavy Industry, Hengli hydraulic, Zoomlion Heavy Industry, tower crane leasing and so on.
