Against the backdrop of global economic recovery, the construction machinery industry chain is ushering in new development opportunities.
The CSI Construction Machinery Theme Index focuses on the entire construction machinery industry chain and selects the securities of listed companies whose business involves construction machinery manufacturing, spare parts manufacturing and other fields to accurately reflect the core trends of the industry.
In terms of industrial hot spots, it shows a multi-dimensional positive trend.
First of all, the domestic large-scale equipment update policy has been implemented. In December 2025, the National Development and Reform Commission and the Ministry of Finance issued relevant policies to expand the scope of equipment update support, lower the application threshold, and increase support for small and medium-sized enterprises.
The number of construction machinery in my country exceeds 9 million units, and the peak period of replacement demand will be reached from 2025 to 2026. The policy superimposed on the natural renewal cycle has become the core driving force for the recovery of domestic demand.
Secondly, the global manufacturing industry has entered a new cycle.
In February 2026, JPMorgan Chase’s global manufacturing PMI climbed to 51.9%, staying above the boom-bust line for seven consecutive months, indicating that the manufacturing industry has steadily recovered, and construction machinery, as a “shovel seller”, was the first to benefit.
Furthermore, the scale of exports continues to break through. In 2025, China’s exports of construction machinery equipment and parts will reach US$60.17 billion, a year-on-year increase of 13.8%. In the first two months of 2026, exports will increase significantly by 33.4% year-on-year. The global operation model of enterprises has been continuously upgraded, and overseas revenue and profit contributions have increased significantly.
In addition, the electric transformation is accelerating. Driven by the dual-carbon policy and cost advantages, the penetration rate of electric loaders and other products will increase significantly in 2025. Leading domestic companies have achieved full matrix coverage of electric products, and electric products have become a new growth point for exports.
At the same time, the global competitiveness of Chinese companies has increased significantly. In 2025, 13 Chinese companies will be on the list of the top 50 global construction machinery manufacturers. Exports have become an important source of profit margins and revaluation of leading companies.
From the perspective of the industrial chain structure, the construction machinery industry chain can be divided into three major links.
Upstream are raw materials and core components, which are the core base for industrial chain security.
The cost of raw materials such as steel accounts for a large proportion, which directly affects the cost of the entire machine; core components include four major categories such as hydraulic systems, which were previously a “stuck” link. Now, the independent control rate of my country’s entire industrial chain exceeds 90%, and domestic parts companies continue to seize the market share of foreign brands.
Midstream complete machine manufacturing is the core hub of the industrial chain. China’s construction machinery industry ranks first in the world in terms of scale, with complete product categories. The complete machine manufacturing value is high, the threshold is high, and the leading advantage is obvious.
Downstream is the application scenarios and aftermarket, with diversified demand. Infrastructure, mining, exports, etc. are the main application scenarios. The aftermarket space continues to expand, and second-hand equipment trading and remanufacturing have become new growth points.
Looking forward to the construction machinery industry, the prospects are very optimistic.
The industry cycle has bottomed out and the recovery trend has been obvious since 2025. Core indicators such as sales volume, operating rate, order volume, etc. have shown good growth trends, and the profit side has also continued to recover.
In the future, the policy side, cycle side and inventory side will provide strong support for the recovery of the industry.
The dividends of globalization continue to be released, Chinese construction machinery companies are accelerating their overseas expansion, and their global market share is expected to further increase. It is expected that overseas markets will become the core profit source of leading companies in 2026.
The electrified and intelligent two-wheel drive will restructure the industry competition and open up space for long-term growth.
For investors, buying construction machinery ETF is a good choice.
There are many types of construction machinery, and the threshold for investment research is high. The CSI Construction Machinery Theme Index focuses on the entire industry chain, and the leading configuration can hedge individual stock risks and grasp core trends.
At the same time, it also has the advantages of low cost, no stamp duty on transactions, only brokerage commissions paid, low threshold, minimum investment of 100 yuan, and direct purchase of A-share accounts.
