Construction machinery is widely used in infrastructure and real estate and other fields, and is regarded as a barometer of the economy. Real estate and infrastructure is the two pillars of the domestic construction machinery industry demand, the current domestic real estate field has introduced a series of policy "combination punch", including the implementation of the mortgage does not recognize the loan, reduce the stock of mortgage interest rates, reduce the proportion of down payment and other measures, the real estate market easing policy to a new height, will further stimulate the demand of the domestic construction machinery market.
In the industrial chain of construction machinery, the upstream mainly includes steel and core components (such as hydraulic systems, engines, etc.), and the downstream applications include infrastructure projects such as water conservancy, electric power, roads, as well as real estate development and mining.
This article focuses on the world's top 10 construction machinery manufacturers, two of which are from China.
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1. Caterpillar (USA)
Founded in 1925 and headquartered in Illinois, Caterpillar is the world's leading manufacturer of construction and mining equipment, diesel and natural gas engines, and industrial gas turbines.
Caterpillar operates on every continent and includes 156 independent dealers serving 192 countries. In 2023, Caterpillar's market share in the North American construction machinery market will be as high as 64.6%, firmly occupying the industry leader.
As a leader in the U.S. construction machinery industry, Caterpillar's profitability far exceeds the industry average. At the same time, due to the uniqueness of the construction machinery industry, the company's performance elasticity is also greater than the average level. Historically, Caterpillar has enjoyed a high valuation premium.
Caterpillar's 2023 sales and revenues were $67.1 billion, up 13% year-over-year, primarily driven by good selling prices and higher volumes.
Caterpillar's main products:
Source: Caterpillar's website
2. Komatsu (Japan)
KOMATSU Group, founded in 1921 and headquartered in Tokyo, Japan, has regional headquarters around the world such as China, the United States, Europe and other places, and has 143 subsidiaries with a total of more than 30,000 employees.
As the world's second largest construction machinery and mining machinery manufacturing giant, Komatsu is driven by two major businesses: construction machinery and mining equipment.
Komatsu Machinery offers a diverse range of construction machinery products, including excavators, bulldozers, loaders, dump trucks, and more. Among them, bulldozers, loaders and excavators are Komatsu's three core products.
From the perspective of historical review, Komatsu's product focus changed in 1970. Bulldozers were the company's star products, but they were transformed into wheel loaders and hydraulic excavators.
Komatsu's product line strategy is to adjust the main products according to its "star products". In terms of M&A strategy, Komatsu first chose to acquire overseas companies due to the difficulty of integrating domestic peers, and this strategy was the best choice based on the trend of yen appreciation and the development prospects of the construction machinery industry.
Komatsu had successfully beaten Caterpillar in the U.S. market with its leading hydraulic technology. In addition, Komatsu has also made achievements in the field of underground construction machinery, such as shield machines and TBMs.
From April to December 2023, Komatsu construction machinery, mining, and utilities equipment sales increased by 10.8% year-on-year.
3. XCMG Machinery (China)
XCMG was founded in 1943 as the Huaxing Iron Works, which manufactured China's first truck cranes and steam rollers. XCMG Machinery was formally established in 1993 and successfully listed on the Shenzhen Stock Exchange in 1996.
As early as around 2008, the company has begun to lay out large excavators, mining dump trucks and other equipment; In April 2018, XCMG Machinery successfully developed a 700-ton "Shenzhou No. 1 Digging" hydraulic excavator, breaking the monopoly position of foreign brands in the field of large-scale mining machinery and equipment in one fell swoop. In 2022, the company further expanded its scale and successfully made a reverse acquisition of XCMG Co., Ltd., and the construction machinery sector of XCMG Group was listed as a whole.
At present, XCMG has become one of the largest enterprises in China's construction machinery industry, with the most complete product line, competitiveness and influence. At present, XCMG Machinery is in a leading position in the whole category of construction machinery, and a variety of products occupy the first place in the domestic market. In 2023, the company will achieve operating income of 92.848 billion yuan, a slight decrease of 1.03% year-on-year, and net profit attributable to the parent company will reach 5.326 billion yuan, a year-on-year increase of 23.51%.
In addition, in the list of the world's top 50 construction machinery manufacturers in 2022 announced by KHL in 2023, XCMG Machinery once again ranked third in the world and first in China.
Illustration of some products of XCMG Machinery:
Source: Company announcement
4. John Deere (USA)
Founded in 1837 and headquartered in the United States, John Deere Machinery is a global leader in the manufacture of construction, agricultural and lawn machinery and equipment. John Deere has a global presence and has established industrial bases in 11 countries. Since the middle of the 20th century, John Deere has been involved in the field of construction machinery, providing a series of product lines including excavators, loaders, bulldozers, etc., in order to further deepen this field, in 1956, the company set up a special industrial equipment department, dedicated to the development and manufacture of construction machinery.
For the fiscal first quarter ending January 29, 2024, the company reported a decline in net income of $1.75 billion, or $6.23 per share, from $1.96 billion, or $6.55 per share, in the year-ago quarter, and expects a net profit of $7.5 billion to $7.75 billion in FY2024.
5. Sany Heavy Industry (China)
Sany Heavy Industry was founded in 1994 and listed on the Shanghai Stock Exchange in 2003.
Since the establishment of its first overseas production base in India in 2006, Sany has successfully laid out five production bases around the world. In 2018, the company started the road of digital and intelligent transformation, and with the successive commissioning of lighthouse factories, it further enhanced its competitiveness in the global market.
Sany Heavy Industry's development strategy is similar to that of Caterpillar. From the perspective of strategic layout, the company has gradually expanded from construction machinery to coal machinery, port machinery and mining machinery, and in terms of product layout, Sany Heavy Industry has gradually developed from a leader in the concrete industry to a domestic leader in excavators and other diversified products.
On the basis of the original concrete pump truck and road machinery business, Sany Heavy Industry continues to integrate the construction machinery assets within the group. After years of development, it has formed a whole industrial chain layout of construction machinery covering concrete machinery, road machinery, excavation machinery, piling machinery, lifting machinery and other fields.
At present, Sany Heavy Industry's concrete products have become the world's leading brands, and leading products such as excavators also occupy the first place in the Chinese market.
In terms of domestic market share, the market share of Sany Heavy Industry and XCMG Machinery will be more than 20% in 2023, and exceed the share of the international giant Caterpillar.
Illustration of some products of Sany Heavy Industry:
Source: Company's official website
6. Volvo Construction Equipment (Sweden)
Volvo CE is a core member of the Volvo Group, which has grown from a local factory to one of the world's largest construction equipment manufacturers since its founding in 1832. The company mainly produces different models of excavators, wheel loaders, self-propelled motor graders, articulated trucks and other products, and its business covers more than 150 countries.
Volvo produces a wide range of excavators, such as EC380DL-crawler excavators, which are suitable for all kinds of earthworks, infrastructure construction, etc.
For the full year of 2023, Volvo CE achieved net sales of SEK 104.981 billion (approximately RMB 71.919 billion), a year-on-year increase of 5% compared with SEK 100.261 billion (approximately RMB 68.686 billion) in the same period of 2022. In 2023, equipment sales will increase by 4% and service sales by 8%.
Volvo CE Q4 and full year 2023 net sales:
Source: Volvo Construction
7. Liebherr (Germany)
Liebherr is a global leader in construction machinery, founded in 1949 by Hans Liebherr and still a purely family-owned company. After decades of development, it has grown into a large conglomerate with more than 100 companies and nearly 38,000 employees on all continents.
Liebherr's construction machinery is known worldwide for its robustness, and the company's product range includes a wide range of tower cranes and mobile construction cranes, as well as all types of earthmoving machinery such as hydraulic excavators, wheel loaders, crawler bulldozers, crawler loaders and telehandlers and dump trucks.
For special underground construction requirements, Liebherr offers universal heavy-duty recirculating crawler cranes and dedicated piling rigs. At the same time, concrete pouring technology provides a complete set of efficient and economical solutions, ensuring high-quality transportation and production of concrete.
Liebherr's deep-based machines are known for their versatility and ability to work even in extreme environments.
In the 2023 fiscal year, Liebherr's revenues reached a record high of 14,042 million euros. Compared to the previous year, the revenue in 2023 increased by 11.5%, and the growth momentum is strong. #建筑 ##工程机械##房地产##财经#
8. Hitachi Construction Machinery (Japan)
In the 2023 Global Top 50 Construction Machinery Manufacturers, Hitachi Construction Machinery ranked 8th.
Hitachi Construction Machinery is a subsidiary of Hitachi Japan, established in 1970 and headquartered in Tokyo, Japan. The company has first-class construction machinery and is one of the world's largest multinational manufacturers of excavators. Hitachi Construction Machinery established Hitachi Construction Machinery Europe in 1972 to start a global layout, and Japan's largest 800-ton ultra-large hydraulic excavator (EX8000) came from Hitachi Construction Machinery. In the first three quarters of fiscal 2023, Hitachi Construction Machinery's sales revenue was 1,020.369 billion yen, a year-on-year increase of 13.0%.
epilogue
In addition to the above-mentioned manufacturers, Shantui Vic and Jessie Bo ranked ninth and tenth. At present, the concentration of the competition pattern of the global construction machinery industry is still expected to be further improved. Domestic construction machinery products have become globally competitive and are expected to further expand their market share in the world. In addition to the two leading domestic manufacturers mentioned above, the main layout manufacturers of China's construction machinery also include Zoomlion, Liugong, China Lonking, Shantui, Railway Construction Heavy Industry, Sunward Intelligence, Zhejiang Dingli, Foton Lovol, etc., all of which have strong strength in the field of segmentation.
In the context of the small fluctuation in the demand for construction machinery in overseas markets, domestic leading enterprises are expected to continue to increase their global market share with the continuous improvement of global competitiveness, extending from Southeast Asia to the European and American markets, driven by the increase in the global market, the performance of the new cycle of the construction machinery industry is worth looking forward to.
Pay attention to [Leqing Industry Observation] and gain insight into the industrial pattern!