2020 Construction Machinery Equipment Leasing Market Review

China is the most active country in the field of global infrastructure construction. The domestic stock market of engineering machinery equipment alone exceeds one trillion, far exceeding the scale of the United States. The engineering machinery industry is in the process of upgrading from Made in China to Smart Manufacturing in China, from supply-driven to demand-driven, and from domestic supply to global supply. Affected by these three major trend factors, it will inevitably produce a historic industrial opportunity.

At present, from the perspective of China's engineering equipment industry, there are 20 categories, 109 groups, 450 types of machines, and tens of thousands of models of product equipment, with a stock of more than 9 million units, and the stock asset scale of equipment exceeds 3 trillion, and it is increasing at a rate of 10%-15% per year. It is one of the countries with the most complete categories and product varieties of engineering equipment in the world. At the same time, the engineering equipment leasing market is highly fragmented, with an overall market size of more than one trillion, continuous growth in equipment stock, and continuous improvement in leasing market penetration.

The engineering machinery leasing industry can effectively alleviate the problems of capital shortage and capital turnover difficulties of engineering construction enterprises, enable funds to be used more reasonably, and promote the development of the investment market. Construction machinery leasing, especially engineering equipment with low utilization rate, can not only obtain the right to use machinery and equipment, but also solve the funding problems of engineering construction companies if it is leased through construction machinery leasing companies.

The complexity of the operation of the construction machinery leasing industry itself requires the entrepreneurial team to have an in-depth understanding in order to create a professional brand company and provide efficient service quality. At present, the largest online construction machinery leasing platform in China is Zhongneng United, which started with high-altitude equipment leasing and gradually became an open large-scale industrial Internet operation platform; and the largest offline entity leasing company is Shanghai Pangyuan, which has the most complete types and models of leasing products and a large number of them. It has been established for nearly 40 years.

The decline in the prosperity of real estate investment and infrastructure investment in 2020 suppressed the demand for the purchase of construction machinery and equipment, while the relatively stable demand for equipment use in the downstream stimulated the leasing of construction machinery and equipment. The relative ranking of the leasing utilization rate of construction machinery equipment is similar to that of the previous year. Among the main types of construction machinery, the top utilization rates are concrete pump trucks and tower cranes with low usage frequency and relatively high monthly rents. However, it should be pointed out that in the current economic environment, the industry can still improve the utilization rate by improving the level of leasing services.

Due to the great market potential of China's construction machinery leasing business, it has now become a field for Chinese and foreign companies to compete. In developed countries such as North America, the European Union and Japan, construction machinery sold through leasing accounts for 85% of the local market and has become the main sales channel. In China, construction machinery sold through leasing only accounts for 10% of the national market, which is a huge gap with the international level. At the same time, the domestic supply and demand market for construction machinery and equipment is very huge. Therefore, it can be foreseen that in the future, with the comprehensive control of the domestic epidemic and the reform of the sales mechanism of production enterprises, under the influence of the leasing law, its potential and space are huge, and huge leasing business opportunities are nurtured.

According to statistics from the government's Ministry of Industry, in 2020, China became the world's largest construction equipment leasing market with a market size of over 720 billion yuan, a service market size of over 70 billion yuan, a new + second-hand machine size of over 300 billion yuan, and a financial and insurance market size of over 400 billion yuan. The future is full of unlimited potential and development space.