Used Excavators Market Research Report
one. Market size and growth trend
With the expansion of market demand for construction machinery, the used excavator market shows a booming trend. According to relevant data, by the end of 2022, the global construction machinery ownership amounted to 360 million units, of which the excavator ownership amounted to 2.9 million units. in 2022, China’s cumulative sales of excavators amounted to 261,000 units (including exports), although down year-on-year, but the used excavator market showed strong vitality. in 2023, China’s cumulative sales of second-hand excavators amounted to about 261,600 units, with a growth of about 34% year-on-year. In 2023, the cumulative sales of used excavators in China were about 261,600 units, with a year-on-year growth of about 34%. It is expected that China’s used excavator market will reach around RMB80 billion by 2028, which will become the largest used excavator market in the world. This growth trend is mainly attributable to the continuous promotion of domestic infrastructure construction and the accelerated replacement of construction machinery. Many users resell their old equipment, leading to an abundant supply and high demand in the second-hand market.
Second, the market source and product composition
The used excavator market has a wide range of product sources, mainly divided into domestic and foreign markets. Taking Shanghai used excavator market as an example, its sales products cover three major categories: imported, joint venture and domestic. Imported products mostly come from Japan and enter the domestic market through customs. These equipment may be eliminated by leasing companies, switched by engineering companies, or repossessed by banks as mortgage equipment. Joint venture products by foreign companies (such as Komatsu, Hitachi, Carter, etc.) in the domestic production base manufacturing, into the second-hand market is mainly due to the end of the project or business strategy adjustment of engineering companies. Domestic products, on the other hand, come from domestic manufacturers such as Sany, Zoomlion, Yuchai, Shanhe Intelligence, etc., and also enter the second-hand market because they are no longer needed by customers after a period of use. Products from different sources and categories enrich the market and meet the needs and budgets of different customers.
Third, the market competition pattern
Competition in the used excavator industry is relatively fierce. Within the industry, due to the slow growth of the market, the number of competitors and product homogenisation is more serious, the enterprises to compete for market share competition is intense. Some enterprises are pursuing economies of scale and expanding their production scale, which leads to oversupply in the market and triggers a price war. In this environment, some small enterprises are facing greater pressure to survive, while large enterprises with brand, resources and customer base advantage, in the market competition to occupy a favourable position. Customers have strong bargaining power when buying used excavators, and they tend to compare the price, quality and after-sales service of different products, prompting the seller to reduce the price and improve the quality of the product and service level. The bargaining power of the supplier depends on the uniqueness of its products and market scarcity, for some popular brands and models of used excavators, the supplier may have a certain bargaining advantage. In addition, the threat of potential competitors should not be ignored, such as emerging used equipment trading platforms or cross-border entry into the field of enterprise, they may bring new business models and technologies, change the existing market competition pattern.
Fourth, the market development constraints
1. Lack of standards: At present, the second-hand excavator market lacks uniform quality assessment standards, resulting in uneven product quality in the market. Consumers are difficult to accurately judge the true condition of the equipment, increasing the risk of purchase, which to some extent inhibits the further development of the market.
2. Non-transparent information: Non-transparent information about the equipment is a major problem facing the market, including the history of the equipment’s use, maintenance records, and accidents. Unscrupulous sellers may conceal the true information of the equipment, misleading consumers and destroying the market trust mechanism.
3. Large price fluctuations: Influenced by a variety of factors such as market supply and demand, equipment brands, models, years of use, hours of work, etc., the price of used excavators fluctuates greatly. This makes it difficult for buyers and sellers to reach a consensus price in the transaction process, affecting the efficiency of the transaction.
4. imperfect after-sales service: compared with the new equipment, the after-sales service of used excavators is often not perfect. Part of the seller in the sale of equipment after the problem does not care, maintenance channels are not smooth enough, which allows consumers to buy and use the process of worries.
FIVE. Market Development Suggestions
1. Establishment of standard system: Industry associations and relevant departments should establish and improve the standard system of quality assessment, value assessment, acceptance technical specifications for second-hand excavators as soon as possible, so as to enhance the credibility of the equipment and the activity of the market.
2. Improve information transparency: Encourage the establishment of digital trading platforms, requiring sellers to disclose detailed information on equipment, including equipment files, maintenance records, inspection reports, etc., to provide consumers with comprehensive and true information on equipment and reduce information asymmetry.
3. Stabilise price mechanism: through big data analysis and other means, monitor and analyse market prices, establish a price reference system, guide reasonable fluctuations in market prices, and reduce the impact of abnormal price fluctuations on the market.
4. Improve after-sales service: Standardise after-sales service standards, require sellers to provide after-sales protection for a certain period of time, and at the same time, establish a perfect maintenance network to ensure that consumers can obtain timely and reliable after-sales service after purchasing used excavators.
