The latest data from the China Construction Machinery Association (CCMA) shows that in May 2026, major manufacturers sold 24,794 excavators of all types, representing a year-on-year (YoY) increase of 36.2%, continuing the high-growth trend seen throughout the year. Cumulative sales over the first five months have already surpassed 120,000 units, with market momentum continuing to build. This data not only exceeded market expectations but also sent a strong signal of a comprehensive recovery in the construction machinery industry.

1. May Data Blooms Across the Board: A "10 Up, 2 Down" Industry Landscape

According to the May sales bulletin released by the China Construction Machinery Association, the main construction machinery products showed a "10 up, 2 down" pattern. Excavators continued to lead with a 36.2% YoY growth rate, serving as the core engine driving industry growth. Multiple categories including loaders, cranes, and concrete machinery all achieved positive growth, with industry prosperity spreading comprehensively.

Worth noting is that the crane category announced a price increase alongside its sales growth — a particularly significant signal. It reflects the construction machinery industry's shift from the previous "trading price for volume" competitive model to a virtuous cycle of "rising volume and price simultaneously." For the entire industry chain, this means corporate profitability is poised for a substantive recovery.

From a monthly cadence perspective, May is traditionally a peak sales season for construction machinery. However, this year's May performance was clearly stronger than what seasonal factors alone could explain. After adjusting for seasonality, actual demand growth remained robust, indicating that the market is not simply experiencing a cyclical rebound but rather a structural recovery.

2. Domestic Sales Growth Surpasses Exports: Clear Signals of Domestic Market Recovery

Looking back at market trends so far this year, a notable change has been the rapid rebound in domestic sales growth. In the first quarter, excavator exports grew by more than 36%, and overseas markets were once seen as the primary growth engine. However, entering the second quarter, domestic sales growth began to surpass exports in April, and this trend became even more pronounced in May.

Behind the domestic sales recovery is the cumulative release of multiple policy tailwinds. Infrastructure construction rush demand in the final year of the 14th Five-Year Plan is being concentrated and released, new-type urbanization construction continues to advance, rural infrastructure gap-filling efforts are intensifying, and equipment replacement and upgrade policies are being implemented on the ground — all jointly forming a solid foundation for domestic demand growth.

Taking Hunan Province as an example, five Hunan-based enterprises including Sany Heavy Industry, Zoomlion, and China Railway Construction Heavy Industry (CRCHI) collectively command half of the national construction machinery market. These leading companies have full order books in the domestic market, production lines running at full capacity, and certain popular models are even experiencing demand outstripping supply. From a regional distribution perspective, infrastructure project start-up rates in East China, Central China, and Southwest China are significantly higher than the same period last year, making them the primary regions driving domestic sales growth.

3. Rising Volume and Price: The Logic Behind Leading Companies' Price Increases

The construction machinery industry is undergoing a profound transformation from "quantity" to "quality." Following earlier announcements of product price increases by leading companies such as Sany Heavy Industry and XCMG Machinery, the crane category also joined the price hike ranks in May, lifting the industry's overall price center upward.

The confidence behind these price increases stems from three aspects: First, raw material costs are stabilizing — steel prices have continued to decline recently, and easing upstream cost pressures have created profit margin room for enterprises. Second, the product mix continues to upgrade, with the sales share of electrified, intelligent high-end models rising, directly driving up average product prices. Third, market demand is booming, and certain popular models have entered a seller's market where demand exceeds supply, giving enterprises stronger pricing power.

However, a rational perspective is also needed. Some leading companies experienced a "deceleration" in first-quarter net profit, primarily because the profit erosion from the earlier price war has not yet been fully absorbed, compounded by lengthening accounts receivable collection cycles. But as the simultaneous rise in volume and price gradually takes effect, along with continued improvements on the cost side, second-quarter profit recovery is worth anticipating. The market broadly expects that the profitability of leading companies will show a clear inflection point in the second half of the year.

4. Global Perspective: Chinese Brands Accelerating International Expansion

Looking globally, the construction machinery market is also showing positive momentum. John Deere's FY2026 Q2 earnings report showed strong performance in construction equipment sales, with the North American market maintaining steady growth. Caterpillar, at its Investor Day, clearly stated that AI-driven power infrastructure construction and data center building demand will become important growth engines over the next three to five years.

Chinese brands' pace of globalization is also accelerating. According to data from multiple institutions, Chinese excavator exports grew by more than 36% in the first quarter, with Southeast Asia, the Middle East, Africa, and other emerging markets becoming the primary growth poles. In Belt and Road Initiative countries, Chinese construction machinery's market share continues to rise, localized service networks are becoming increasingly comprehensive, and the model is transitioning from pure equipment export to a comprehensive "equipment + services + solutions" approach.

From a global competitive landscape perspective, Chinese enterprises have established significant cost and scale advantages in the mid-to-low-end market and are gradually making breakthroughs in the high-end market. As the leading advantages in electrification technology translate into market competitiveness, Chinese construction machinery brands' global market share is expected to achieve further leaps within the next three years.

5. Second-Half Outlook: Can the High-Prosperity Trend Sustain?

Overall, the construction machinery industry is in the midst of an upward prosperity cycle. Supporting factors include: infrastructure investment maintaining a high operational level, concentrated release of equipment replacement and upgrade demand, continued expansion of the export market, and leading company premium effects brought by rising industry concentration.

However, potential risks also warrant attention. Real estate investment remains in an adjustment period, fiscal pressures at some local levels may affect the pace of infrastructure fund disbursement, and uncertainty in the international trade environment could also cause some disruption to exports. Additionally, the rapid expansion of industry capacity necessitates vigilance against the risk of future oversupply.

For buyers, the current period represents a favorable window to focus on equipment upgrades. On one hand, the price increase expectations from leading companies persist, and locking in prices early can effectively control procurement costs. On the other hand, the successive launch of new electrified models provides more options for green construction and low-carbon operations. It is recommended to closely monitor new product release schedules and promotional policies from various brands to seize the optimal procurement timing.

For the latest equipment quotes and selection recommendations for brands such as Sany, XCMG, and Zoomlion, feel free to contact our sales team to receive a tailored procurement plan.

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