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	<title>Excavators | Power Systems Research</title>
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	<description>Data • Forecasting • Solutions</description>
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	<title>Excavators | Power Systems Research</title>
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		<title>Hitachi Tests Remote Construction Equipment</title>
		<link>https://www.powersys.com/2026/06/hitachi-moves-toward-remote-construction-deployment/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Sun, 21 Jun 2026 16:52:14 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=15893</guid>

					<description><![CDATA[<p>Hitachi Construction Machinery announced that a joint demonstration test will begin with Fukudome Kaihatsu in Tosa, Kochi Prefecture, using a ZX200A-7 20-ton class hydraulic excavator and a real-time digital twin platform. The test will be conducted in &#160;June 2026 at a river dredging project site in the Niyodo River Mochiishi District. The platform integrates 3D</p>
The post <a href="https://www.powersys.com/2026/06/hitachi-moves-toward-remote-construction-deployment/">Hitachi Tests Remote Construction Equipment</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<figure class="wp-block-image alignleft size-full"><img decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2025/03/Akihiro-Komuro.png" alt="Akihiro Komuro" class="wp-image-13336"/><figcaption class="wp-element-caption">Akihiro Komuro</figcaption></figure>



<p class="wp-block-paragraph">Hitachi Construction Machinery announced that a joint demonstration test will begin with Fukudome Kaihatsu in Tosa, Kochi Prefecture, using a ZX200A-7 20-ton class hydraulic excavator and a real-time digital twin platform. The test will be conducted in &nbsp;June 2026 at a river dredging project site in the Niyodo River Mochiishi District.</p>



<p class="wp-block-paragraph">The platform integrates 3D terrain data, camera images, construction machinery, vehicles, and worker location information in real time, and reproduces the worksite in a virtual 3D space. The demonstration will compare remote operation under direct visual observation, remote operation using camera images, and remote operation using the real-time digital twin platform, in order to verify its effect on safety and productivity.</p>



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<p class="wp-block-paragraph">A related example can be seen in agricultural machinery, where NTT, Kubota, and NTT DOCOMO demonstrated communication technologies for the remote operation and monitoring of robotic agricultural machinery in mountainous areas. The demonstration combined mobile and satellite communications with video control technology to support stable remote operation under fluctuating communication conditions.</p>



<p class="wp-block-paragraph"><em>Source:</em> <a href="https://www.hitachicm.com/global/en/news/press-releases/2026/26-05-28/">Hitachi Construction Machinery</a> / <a href="https://group.ntt/en/newsrelease/2026/05/25/260525b.html">NTT, Kubota and NTT DOCOMO</a></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis: </em></strong>The significance of this announcement is not simply that Japanese construction machinery is becoming more digital. The more important point is that Japan’s off-highway sector is beginning to show a practical path for dealing with one of its most serious structural constraints: the shrinking supply of skilled operators.</p>



<p class="wp-block-paragraph">In Japan, the discussion around construction machinery and agricultural machinery often turns quickly to electrification or autonomy. Both are important long-term themes, but they are not necessarily the first areas where the market will see broad practical adoption. On many construction sites, especially in civil engineering, disaster recovery, and regional public works, the immediate problem is not how to replace the diesel engine. It is how to keep work moving when experienced operators are becoming harder to secure, and when safety requirements are rising.</p>



<p class="wp-block-paragraph">That is why remote construction using digital twin technology deserves attention. Full autonomy remains difficult in construction because the work environment is highly variable. Ground conditions change, surrounding objects move, work procedures differ by site, and judgment often depends on the operator’s understanding of the whole worksite. A digital twin platform does not remove the operator from the process. Instead, it gives the operator and site manager a better view of the jobsite and supports better decision-making from a remote location.</p>



<p class="wp-block-paragraph">This distinction matters. Remote operation and worksite visualization can be introduced as an extension of existing hydraulic excavators and construction workflows. They do not require an immediate shift to a completely new machine architecture. For users, that makes adoption more realistic. For OEMs and suppliers, it means that competitiveness will increasingly depend on how well machines can be integrated into connected worksite systems, not only on conventional measures such as power, durability, fuel efficiency, or hydraulic performance.</p>



<p class="wp-block-paragraph">The agricultural machinery case points to the same issue from another direction. Robot tractors and other automated machines cannot operate safely at scale without stable communications, reliable video transmission, and remote monitoring. In mountainous areas, where communication quality can fluctuate sharply, the machine itself is only one part of the solution. The broader system — communications, software, sensors, video control, and supervision — becomes just as important as the vehicle.</p>



<p class="wp-block-paragraph">For the Japanese off-highway market, this suggests that “labor-saving” may become a more immediate commercial driver than electrification. Diesel-powered machines are likely to remain in use for many applications, but they will be expected to operate within increasingly digital and remotely managed environments. The future competitive question may therefore shift from “who builds the best machine?” to “whose machine fits best into a safer, more productive, and more remotely managed worksite?”</p>



<p class="wp-block-paragraph">This is a meaningful direction for Japan. It plays to the country’s strengths in machinery, field engineering, telecommunications, and incremental system integration. It also addresses a problem that is already visible in the market: not a shortage of machines, but a shortage of people who can operate them efficiently and safely. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>for Power Systems Research</em></p>The post <a href="https://www.powersys.com/2026/06/hitachi-moves-toward-remote-construction-deployment/">Hitachi Tests Remote Construction Equipment</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Volvo Moves into Big Electric Equipment</title>
		<link>https://www.powersys.com/2026/04/volvo-moves-into-big-electric-equipment/</link>
		
		<dc:creator><![CDATA[Emiliano Marzoli]]></dc:creator>
		<pubDate>Sun, 19 Apr 2026 13:36:59 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Pressure Washers]]></category>
		<category><![CDATA[Underground Mining Equipment]]></category>
		<category><![CDATA[Europe Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=15179</guid>

					<description><![CDATA[<p>Volvo Construction Equipment has officially transitioned the A30 Electric and A40 Electric articulated haulers into serial production at its Braås site in Sweden. Originally unveiled as prototypes at bauma 2025, these machines represent the largest electric articulated haulers currently available on the global market, boasting payloads of 29 and 39 tons, respectively. Designed for high-utilization</p>
The post <a href="https://www.powersys.com/2026/04/volvo-moves-into-big-electric-equipment/">Volvo Moves into Big Electric Equipment</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<figure class="wp-block-image alignleft size-full"><img decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2024/11/Emiliano-Marzoli.jpg" alt="Emiliano Marzoli" class="wp-image-12827"/><figcaption class="wp-element-caption">Emiliano Marzoli</figcaption></figure>



<p class="wp-block-paragraph">Volvo Construction Equipment has officially transitioned the A30 Electric and A40 Electric articulated haulers into serial production at its Braås site in Sweden. Originally unveiled as prototypes at bauma 2025, these machines represent the largest electric articulated haulers currently available on the global market, boasting payloads of 29 and 39 tons, respectively.</p>



<p class="wp-block-paragraph">Designed for high-utilization environments like large-scale infrastructure projects and mining, the haulers offer up to six hours of operation on a single charge, depending on the application. The first production units are scheduled for delivery to customers in the United Kingdom and Norway this month.</p>



<p class="wp-block-paragraph">This move solidifies Volvo’s commitment to lead the heavy-duty transition, moving beyond compact machines into the most energy-intensive segments of the construction industry.</p>



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<p class="wp-block-paragraph"><em>Source: Volvo</em>&nbsp; <a href="https://www.volvoce.com/global/en/news-and-events/news-and-stories/2026/volvo-ce-starts-worlds-first-serial-production-of-electric-articulated-haulers/">Read The Article</a><strong></strong></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis. </em></strong>The serial production of 40-ton electric haulers is a &#8220;proof of concept&#8221; for the entire European construction sector. For years, the industry argued that electrification was only viable for small excavators or urban projects; Volvo has now shattered that ceiling.</p>



<p class="wp-block-paragraph">For competitors like Komatsu and Caterpillar, the pressure is now on to move their European fleets toward serial production rather than limited pilot programs. For fleet operators, the &#8220;total cost of ownership&#8221; (TCO) equation is shifting; while the upfront cost remains high, the reduction in fuel costs and maintenance for such high-utilization machines makes them increasingly attractive.</p>



<p class="wp-block-paragraph">This is particularly relevant given the Industrial Accelerator Act’s focus on green procurement, as public infrastructure projects in Scandinavia and the UK are now likely to mandate zero-emission machinery of this scale.&nbsp;&nbsp; <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Emiliano Marzoli is Manager of European Operations</em> <em>at Power Systems Research</em></p>The post <a href="https://www.powersys.com/2026/04/volvo-moves-into-big-electric-equipment/">Volvo Moves into Big Electric Equipment</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>HD Construction Introduces Electric Safety Training</title>
		<link>https://www.powersys.com/2026/04/hd-construction-introduces-electric-safety-training/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Sat, 18 Apr 2026 19:29:55 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=15150</guid>

					<description><![CDATA[<p>SOUTH KOREAREPORT In response to the growing adoption of electric construction equipment, HD Construction Equipment has introduced South Korea’s first safety management certification system for high-voltage systems. The system is designed to educate specialists in maintaining and inspecting high-voltage batteries and electrical systems in electric excavators and other machinery. Recognizing that the expansion of electric</p>
The post <a href="https://www.powersys.com/2026/04/hd-construction-introduces-electric-safety-training/">HD Construction Introduces Electric Safety Training</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<p class="wp-block-paragraph"><strong>SOUTH KOREAREPORT<br></strong></p>



<p class="wp-block-paragraph">In response to the growing adoption of electric construction equipment, HD Construction Equipment has introduced South Korea’s first safety management certification system for high-voltage systems. The system is designed to educate specialists in maintaining and inspecting high-voltage batteries and electrical systems in electric excavators and other machinery.</p>



<p class="wp-block-paragraph">Recognizing that the expansion of electric construction equipment requires addressing safety risks that differ from those of conventional diesel machines, the company has developed educational programs and a certification system. Certified individuals receive specialized training in handling high-voltage equipment, troubleshooting, and maintenance operations.</p>



<p class="wp-block-paragraph">The company positions this initiative as part of the infrastructure development required for the expansion of the electric construction equipment market. HD Construction Equipment plans to continue fostering relevant talent and strengthening its service infrastructure.</p>



<p class="wp-block-paragraph"><em>Source:</em> <a href="https://www.hd-ce.com/en/company/media/news-view/33">HD Construction Equipment</a></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis: </em></strong>I think this initiative shows that South Korean construction equipment manufacturers are starting to see electrification as more than just product development. They view it as an &#8220;operation-oriented industrial infrastructure&#8221; that includes service systems and workforce development.</p>



<p class="wp-block-paragraph">Electric construction machinery requires high-voltage batteries and electrical systems, so it demands different maintenance skills than conventional diesel machines. Against this backdrop, manufacturers&#8217; move to establish a certification system reflects their intention to establish electrification in the market as a total solution that includes operation and maintenance, not as a standalone product.</p>



<p class="wp-block-paragraph">In this regard, South Korean manufacturers&#8217; approach appears to differ from that of their European and American counterparts. In Europe and the United States, service systems based on existing dealer networks are well-established, and efforts regarding electric construction machinery proceed as an extension of these frameworks.</p>



<p class="wp-block-paragraph">In contrast, Korean manufacturers are proactively establishing certification systems and training programs to address the new risks associated with electrification. This proactive approach effectively mitigates operational uncertainties during the initial stages of electrification, potentially providing a competitive advantage, especially in regions with underdeveloped service infrastructure. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>at Power Systems Research</em></p>The post <a href="https://www.powersys.com/2026/04/hd-construction-introduces-electric-safety-training/">HD Construction Introduces Electric Safety Training</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>CONEXPO Provides NA Market Outlook</title>
		<link>https://www.powersys.com/2026/03/conexpo-lorena/</link>
		
		<dc:creator><![CDATA[Lorena Violante]]></dc:creator>
		<pubDate>Sat, 14 Mar 2026 17:43:49 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Off-Highway Trucks]]></category>
		<category><![CDATA[Rollers]]></category>
		<category><![CDATA[Wheel Loaders and Dozers]]></category>
		<category><![CDATA[United States Offices]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=14981</guid>

					<description><![CDATA[<p>We talked with many industry representatives at CONEXPO, and we generally heard that the North American construction equipment market is performing relatively well and that it is expected to experience low single-digit growth in the near term, with demand remaining stable. Demand continues to be supported by infrastructure investment and ongoing construction activity. OEM representatives</p>
The post <a href="https://www.powersys.com/2026/03/conexpo-lorena/">CONEXPO Provides NA Market Outlook</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<figure class="wp-block-image alignleft size-full"><img decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2024/12/Lorena-Violante.jpg" alt="" class="wp-image-13078"/><figcaption class="wp-element-caption">Lorena Violante</figcaption></figure>



<p class="wp-block-paragraph">We talked with many industry representatives at CONEXPO, and we generally heard that the North American construction equipment market is performing relatively well and that it is expected to experience low single-digit growth in the near term, with demand remaining stable. Demand continues to be supported by infrastructure investment and ongoing construction activity.</p>



<p class="wp-block-paragraph">OEM representatives said their cautious forecasts were affected by factors such as interest rates, inflation, tariffs and global supply chain disruptions.</p>



<p class="wp-block-paragraph">Tariffs were repeatedly mentioned as one of the main uncertainties affecting the industry. Frequent policy changes are impacting equipment pricing, sourcing strategies, and global supply chains. Manufacturers are adjusting sourcing strategies and regional production to mitigate tariff exposure.</p>



<p class="wp-block-paragraph">The industry is moving toward a dual technology pathway. Electrification continues emerging in compact equipment and adoption is increasing slowly as customers become more familiar with EV solutions. Advanced diesel engines remain dominant in medium and large machines, and according to experts, diesel will remain the dominant technology for a long time.</p>



<p class="wp-block-paragraph">OEMs said they are investing heavily in new engine platforms, efficiency improvements, telematics and connectivity.</p>



<p class="wp-block-paragraph">We were able to identify a number of trends, based on field interviews and observations conducted during OEM and engine manufacturer booth visits.</p>



<h4 class="wp-block-heading">Powertrain, Engine Technology Trends</h4>



<p class="wp-block-paragraph">Diesel engines remain the dominant power solution for medium and large construction equipment. Large equipment used in remote areas still requires internal combustion engines due to power needs and operational constraints. According to interviews made by PSR, diesel will continue to be the preferred power solution.</p>



<p class="wp-block-paragraph">Manufacturers continue to improve fuel efficiency, simplify engine architecture, and enhance durability. Manufacturers showcased different alternative power solutions and are still exploring and testing hydrogen combustion engines, hybrid systems, and introducing multi-fuel platforms (hydrogenated vegetable oil, hydrogen, biodiesel, and natural gas) to the market.</p>



<p class="wp-block-paragraph">Several companies presented prototype hydrogen engine concepts, although these technologies remain in testing phases or with some few customers. One of the key operational challenges for hydrogen equipment is the lack of fueling infrastructure. As an example, Power Systems Research analysts interviewed executives of JCB, and the company explained that its hydrogen combustion engine technology is already on the field with a limited number of customers, although the market is still at an early stage of deployment. </p>



<p class="wp-block-paragraph">JCB has developed a mobile hydrogen refueling unit in conjunction with a supplier company that delivers hydrogen directly to job sites, so the fuel logistics is handled as part of a service package supporting early adopters. The main takeaway from the interview is that hydrogen combustion technology is technically viable but still constrained by fueling infrastructure.</p>



<p class="wp-block-paragraph">Regarding multi-fuel platforms, major manufacturers like Perkins and Cummins showcased engines designed to run on low-carbon fuels, including hydrogen, HVO, and natural gas, aiming to provide flexible, lower-emission solutions without sacrificing performance. Cummins next generation X15, and Perkins 2600 Series were showcased at the venue. FPT showcased it´s multi-fuel XCursor 13. Isuzu also presented it´s multi-fuel engine concepts based on its established engine architecture.</p>



<h4 class="wp-block-heading">Electrification Trends</h4>



<p class="wp-block-paragraph">Compact equipment segments show the highest experimentation with electrification and alternative power solutions, while large machines such as dozers and large excavators continue to rely primarily on diesel power due to high energy requirements.</p>



<p class="wp-block-paragraph">Electrification is primarily being applied to compact equipment used in urban environments, as well as in some remote applications supported by portable power stations or battery storage units.</p>



<p class="wp-block-paragraph">Battery-electric prototypes and electric power units were showcased, with some already available in the market and others currently being tested as potential replacements for diesel engines in smaller and medium-sized equipment. </p>



<p class="wp-block-paragraph">There is a growing trend toward presenting these technologies, and several new models were introduced during the show by different OEMs and engine manufacturers. Examples include the Perkins battery-electric power unit, the Komatsu electric micro excavator PC01E-2 made in Japan, the JLG scissor lift ES1930M Micro-Sized, the mini track loader TL100EV from Case, and the Dynapac CC1000e electric vibratory roller.</p>



<p class="wp-block-paragraph">Charging infrastructure and operational limitations continue to restrict wider adoption of electric equipment across the broader construction equipment market.</p>



<p class="wp-block-paragraph">Additional technologies presented included autonomous and robotic equipment, such as the RogueX3, Bobcats third-generation autonomous compact loader concept. This machine was introduced to explore the future of compact construction equipment through electrification, autonomy, and modular machine architecture.</p>



<h4 class="wp-block-heading">OEM &amp; Engine Manufacturer Highlights</h4>



<p class="wp-block-paragraph">While walking the CONEXPO, we saw several interesting engine platforms and alternative power technologies at engine manufacturer booths. Interestingly, a number of the innovative products were diesel powered.</p>



<h4 class="wp-block-heading">Diesel Engines</h4>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td><strong>Manufacturer</strong></td><td><strong>Engine Model</strong></td><td><strong>Displacement</strong></td><td><strong>Power</strong></td><td><strong>Notes</strong></td></tr><tr><td>Cummins</td><td>F3.8 Power Unit</td><td>3.8 L</td><td>74–173 hp</td><td>Modular power unit for off‑highway equipment</td></tr><tr><td>Cummins</td><td>X15 Next Generation</td><td>~15 L</td><td>Up to ~700 hp</td><td>Heavy‑duty multi-fuel engine platform</td></tr><tr><td>Perkins</td><td>904J‑E36TA</td><td>3.6 L</td><td>~134 hp</td><td>High power density compact diesel engine</td></tr><tr><td>Perkins</td><td>2606J‑E13TA</td><td>~13 L</td><td>~690 hp</td><td>Large industrial diesel engine platform and multi-fuel</td></tr><tr><td>Kubota</td><td>V5009</td><td>5.0 L</td><td>~210 hp</td><td>Stage V / Tier 4 Final diesel engine</td></tr><tr><td>John Deere</td><td>JD5</td><td>5.0 L</td><td>125–268 hp</td><td>Mid‑range diesel engine platform (under development)</td></tr><tr><td>John Deere</td><td>JD8</td><td>7.5 L</td><td>250–389 hp</td><td>Heavy‑duty diesel engine platform (under development)</td></tr><tr><td>Kawasaki</td><td>GEOTORQ</td><td>2.4 L</td><td>~95 hp</td><td>Gasoline engine alternative to small diesel</td></tr><tr><td>Hyundai</td><td>DX05</td><td>5 L&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td><td>230hp</td><td>Diesel engines</td></tr><tr><td>Hyundai</td><td>DX08</td><td>7.5 L</td><td>341hp</td><td>Diesel engines</td></tr><tr><td>Komatsu</td><td>DBA127</td><td>12.74 L</td><td>563 hp</td><td>Industrial diesel engine platform</td></tr><tr><td>Rehlko</td><td>Command Pro EFI ECH936, ECH938, ECH941</td><td>999 cc</td><td>36-41hp</td><td>Gasoline engine</td></tr><tr><td>Hatz</td><td>F Series</td><td>0.952-1.758 L</td><td>&#8212;</td><td>Diesel engines</td></tr></tbody></table></figure>



<h4 class="wp-block-heading">Alternative Fuel and Electrified Power Systems</h4>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><td>Manufacturer</td><td>Engine / System</td><td>Technology</td><td>Status</td></tr><tr><td>Deutz</td><td>TCD 12.8</td><td>Diesel, HVO certified</td><td>390 kW, 6-cylinder, 12.809 L</td></tr><tr><td>JCB</td><td>Hydrogen ICE</td><td>Hydrogen combustion engine</td><td>4 cylinder, 74 hp @ 2000rpm</td></tr><tr><td>FPT</td><td>XCursor 13 Hydrogen</td><td>Hydrogen internal combustion</td><td>12.9 L, In-Line 6-cylinder, 512hp</td></tr><tr><td>Hyundai</td><td>H2ICE Hydrogen Engine</td><td>Hydrogen ICE</td><td>In-Line 6-cylinder, 11.1 L displacement, Euro 6 (Zero-CO2), EPA Tier 4 Final, EU Stage V</td></tr><tr><td>Perkins</td><td>1206 Hydrogen Hybrid IOPU</td><td>Hybrid hydrogen power unit</td><td>Prototype</td></tr><tr><td>Perkins</td><td>Battery Electric Power Unit</td><td>Battery electric drivetrain</td><td>Prototype</td></tr></tbody></table></figure>The post <a href="https://www.powersys.com/2026/03/conexpo-lorena/">CONEXPO Provides NA Market Outlook</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Construction Machinery Demand Could Hit 25,000 Units</title>
		<link>https://www.powersys.com/2026/01/2026-construction-machinery-demand-could-hit-25000-units/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Sun, 25 Jan 2026 15:27:10 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Forestry Equipment]]></category>
		<category><![CDATA[Underground Mining Equipment]]></category>
		<category><![CDATA[Wheel Loaders and Dozers]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=14789</guid>

					<description><![CDATA[<p>The Indonesian Heavy Equipment Distributors Association (PAABI) forecasts an expansion in construction machinery demand in 2026, with a potential total of 23,000 to 25,000 units. This represents an estimated growth of 5% to 8% compared to 2025, with a projected total market size of around US$3.62 billion. According to the PAABI Chairman, the increase in</p>
The post <a href="https://www.powersys.com/2026/01/2026-construction-machinery-demand-could-hit-25000-units/">Construction Machinery Demand Could Hit 25,000 Units</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<figure class="wp-block-image alignleft size-full"><img loading="lazy" decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2025/03/Akihiro-Komuro.png" alt="Akihiro Komuro" class="wp-image-13336"/><figcaption class="wp-element-caption">Akihiro Komuro</figcaption></figure>



<p class="wp-block-paragraph">The Indonesian Heavy Equipment Distributors Association (PAABI) forecasts an expansion in construction machinery demand in 2026, with a potential total of 23,000 to 25,000 units. This represents an estimated growth of 5% to 8% compared to 2025, with a projected total market size of around US$3.62 billion.</p>



<p class="wp-block-paragraph">According to the PAABI Chairman, the increase in demand in 2026 will be driven by the nation&#8217;s Strategic Infrastructure Projects (PSN), the ongoing construction of the new capital, IKN, and mining activities at major nickel and coal sites. These projects are expected to increase demand for heavy machinery, such as hydraulic excavators, wheel loaders, and bulldozers.</p>



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<p class="wp-block-paragraph">PAABI also noted that the mining sector is expected to contribute significantly to these demand forecasts, accounting for about 45% to 50% of the total. The construction and infrastructure sector is expected to follow, accounting for about 35% to 40%. Other industries, such as plantations and forestry, are expected to account for a smaller share.</p>



<p class="wp-block-paragraph">PAABI notes that factors supporting medium- to long-term growth rates include nationwide infrastructure development, demand for disaster recovery and reconstruction, expansion of mining-related resource development, and anticipated adoption of next-generation technologies, such as telematics and electric/hybrid heavy machinery. These factors could drive a shift in demand toward high-value machinery and services, such as after-sales service and leasing.</p>



<p class="wp-block-paragraph">Against this backdrop, PAABI projects that &#8220;the construction machinery market will remain robust in 2026, with annual demand potentially reaching 23,000 to 25,000 units.&#8221; However, PAABI also warns that risks persist, including competition across the entire value chain, technology adoption costs, and uncertainties in mining production plans.</p>



<p class="wp-block-paragraph"><em>Source: </em><a href="https://ima-api.org/potensi-permintaan-alat-berat-2026-tembus-25-000-unit-nilai-pasar-us-362-miliar/?utm_source=chatgpt.com">Indonesian Mining Association</a></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis:</em></strong><strong><em> </em></strong>The figure of 25,000 units is overly optimistic and does not reflect actual demand. Taking it at face value is dangerous. However, it is not so far-fetched as to be dismissed as completely unrealistic.</p>



<p class="wp-block-paragraph">In Southeast Asia, including Indonesia, it is common practice for governments, industry associations, and major dealers to announce targets based on expectations. In messages intended to stimulate the economy for national projects, such as the IKN new capital and mining/energy projects, figures based on maximum cases or ideal progress are often used. Actual results often converge to around 60-80% of the announced targets.</p>



<p class="wp-block-paragraph">From the perspective of actual demand, recent Indonesian construction equipment sales have realistically ranged from 15,000 to 20,000 units per year. Even during boom years when high resource prices and public investment coincided, sales rarely exceeded 25,000 units. Therefore, 25,000 units can be considered &#8220;close to a historical peak.&#8221;</p>



<p class="wp-block-paragraph">So, why did this figure emerge? It&#8217;s based on the assumption that multiple drivers will materialize simultaneously. Specifically, it&#8217;s a scenario in which the following occurs without a hitch: the full-scale launch of construction related to IKN (New Capital), the re-acceleration of mining investments in nickel, copper, etc., the recovery of public investment after the elections, and the demand to replace aging equipment. This can be described as a conditional figure. &#8220;Strong if it happens, but it will fall short if even one factor is delayed.&#8221;</p>



<p class="wp-block-paragraph">A more realistic assessment would be:</p>



<ul class="wp-block-list">
<li>Conservative scenario: 18,000–20,000 units</li>



<li>Base case: 20,000–22,000 units</li>



<li>Bullish scenario (reported 25,000 units): If all conditions align.</li>
</ul>



<p class="wp-block-paragraph">This seems like a reasonable assessment. That said, there is no doubt that the demand for construction machinery in Indonesia is strong. It is expected to continue growing, but the actual number of units will depend significantly on whether all the drivers align. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>at Power Systems Research</em></p>The post <a href="https://www.powersys.com/2026/01/2026-construction-machinery-demand-could-hit-25000-units/">Construction Machinery Demand Could Hit 25,000 Units</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Green Construction Equipment Sees Growth</title>
		<link>https://www.powersys.com/2025/10/green-construction-equipment-sees-growth/</link>
		
		<dc:creator><![CDATA[Jack Hao]]></dc:creator>
		<pubDate>Mon, 20 Oct 2025 15:07:22 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Off-Highway Trucks]]></category>
		<category><![CDATA[Trucks Class 8 (>16 tonnes)]]></category>
		<category><![CDATA[Underground Mining Equipment]]></category>
		<category><![CDATA[Wheel Loaders and Dozers]]></category>
		<category><![CDATA[China Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=14455</guid>

					<description><![CDATA[<p>In China this year, green construction machinery is seeing rapid growth, and demand across multiple scenarios is becoming unmistakable. EVE Energy is delivering full-scenario solutions for earthmoving equipment, aerial work platforms and specialized machinery. After six years of shipments in the construction-machinery segment, EVE Energy now ranks second nationwide; individual vehicles have logged more than</p>
The post <a href="https://www.powersys.com/2025/10/green-construction-equipment-sees-growth/">Green Construction Equipment Sees Growth</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<figure class="wp-block-image alignleft size-full"><img loading="lazy" decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2025/04/Jack-Hao.jpg" alt="Jack Hao" class="wp-image-13582"/><figcaption class="wp-element-caption">Jack Hao</figcaption></figure>



<p class="wp-block-paragraph">In China this year, green construction machinery is seeing rapid growth, and demand across multiple scenarios is becoming unmistakable. EVE Energy is delivering full-scenario solutions for earthmoving equipment, aerial work platforms and specialized machinery. After six years of shipments in the construction-machinery segment, EVE Energy now ranks second nationwide; individual vehicles have logged more than 16,000 operating hours, and the company&#8217;s products are fitted to over 60 OEMs including LiuGong, SANY and Lingong.</p>



<p class="wp-block-paragraph">According to data from the Construction Machinery Association, domestic sales of new-energy construction equipment are expected to surpass one million units by 2028, and the incremental market for green machinery is opening up rapidly—yet pain points remain: bulky batteries, short cycle life and complex assembly.</p>



<span id="more-14455"></span>



<p class="wp-block-paragraph">EVE Energy’s Huang Xiaobin noted that the company leverages cutting-edge battery innovations to precisely solve these application challenges under tough operating conditions. Its high-performance battery solutions significantly boost equipment efficiency, runtime and safety while cutting full-life-cycle operating costs, accelerating the sector’s march toward efficient, low-carbon and sustainable development.</p>



<p class="wp-block-paragraph"><em>Source:</em><em> Finance Sina&nbsp;&nbsp;&nbsp;&nbsp; </em>Read The Article<strong><em><u></u></em></strong></p>



<p class="wp-block-paragraph"><strong><em>PSR</em></strong> <strong><em>Analysis</em></strong>: This year is seen by China’s construction industry as the “Year of Electrification,&#8221; and is expected to see penetration leap to 20–25 % with sales of around 120, 000 units and new-energy machines topping 1 million by 2028.</p>



<p class="wp-block-paragraph">Government policies have shifted from incentives to mandates, and dozens of cities are banning sub-China-IV equipment from urban job sites, forcing a replacement wave. Battery prices have fallen 15–20% in three years while energy density has risen 20%. Coupled with fast-charge, swap and CTB highly integrated packs, the total-cost-of-ownership payback has been improved by two years.</p>



<p class="wp-block-paragraph">Penetration is following a “small-first, large-later” strategy: forklifts &gt;60%, mini-excavators 20%, wheel loaders 30%, heavy mining trucks &lt;5%, with swap and hydrogen solutions set to unlock the upper-weight segment after 2027. More than 90% of the value chain is now domestic—CATL, EVE Energy, BYD, SVOLT, Xingyi Technology, TELD and others forming a full ecosystem—lifting Chinese brands’ global share from 20% to an expected 40%.</p>



<p class="wp-block-paragraph">Policies are setting required hard targets for 2025 use of ≥10% of new or renewed construction machines of zero-emission and 80% of public projects in key regions are to be zero-emission equipment. A central 2.5% interest rebate on equipment-upgrade loans, plus local subsidies of RMB 300–500k for every electric excavator, erases roughly 30% of the purchase-price gap.</p>



<p class="wp-block-paragraph">On the technology side, LFP+CTP/CTB packs deliver &gt;180 Wh/kg, 6,000 cycles and 80% capacity at –30°C; EVE and SVOLT’s 800V platforms recharge to 80% in 15 min. Sany and XCMG’s 5-minute whole-pack swap is already in volume use, raising daily utilization by 8–10%.</p>



<p class="wp-block-paragraph">XCMG’s 120kW hydrogen wheel loader runs 8h and refuels in 5min, with a 2026 system-cost target of RMB800/kW. In the market, assuming 2,000 operating hours/year and RMB0.7/kWh electricity, a 5-tonne electric loader saves RMB280k over three years versus diesel, paying back in 1.8 years.</p>



<p class="wp-block-paragraph">“Battery rental + pay-per-hour” schemes from Sany and Zoomlion cut the down-payment by 40%, speeding SME adoption. Meanwhile, Southeast Asia and the Middle East are demanding electric mini excavators at 50% annual growth; Chinese makers, leveraging cost advantages, have captured 70% of those export orders, creating a new outlet for capacity.&nbsp; <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Jack Hao is Senior Research Manager &#8211; China</em> <em>for Power Systems Research</em></p>The post <a href="https://www.powersys.com/2025/10/green-construction-equipment-sees-growth/">Green Construction Equipment Sees Growth</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>CEMA Sees 3% Decline in FY2025 Shipments</title>
		<link>https://www.powersys.com/2025/08/cema-sees-3-decline-in-fy2025-construction-equipment/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Sun, 17 Aug 2025 03:33:27 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=14125</guid>

					<description><![CDATA[<p>CEMA (The Japan Construction Equipment Manufacturers Association) said it expects domestic shipments of construction equipment in fiscal 2025 to decline 3% YOY to US$ 19.65 billion (2.8488 trillion yen). This reflects declining capital investment sentiment due to rising interest rates and the impact of the Trump administration&#8217;s tariff policies. Exports are also expected to decline</p>
The post <a href="https://www.powersys.com/2025/08/cema-sees-3-decline-in-fy2025-construction-equipment/">CEMA Sees 3% Decline in FY2025 Shipments</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<p class="wp-block-paragraph">CEMA (The Japan Construction Equipment Manufacturers Association) said it expects domestic shipments of construction equipment in fiscal 2025 to decline 3% YOY to US$ 19.65 billion (2.8488 trillion yen). This reflects declining capital investment sentiment due to rising interest rates and the impact of the Trump administration&#8217;s tariff policies.</p>



<p class="wp-block-paragraph">Exports are also expected to decline by 3%, reaching US$ 13.60 billion (1.9717 trillion yen). Sales of hydraulic and mini excavators, the mainstay products, are expected to decline. Domestic sales are expected to decrease by 4%, down US$ 365.5million (52.9 billion yen) from the previous forecast, to US$ 6.05 billion&nbsp;USD (877.1 billion yen). Companies are expected to reduce their capital investment due to concerns about increased borrowing costs associated with rising interest rates.</p>



<span id="more-14125"></span>



<p class="wp-block-paragraph">Akira Yamamoto, chairman of KOBELCO Construction Machinery, said, &#8220;The reality is that the construction industry is struggling. In Japan, projects are not moving forward due to soaring steel prices and labor shortages. Overseas, interest rate cuts have not yet translated into demand.&#8221;</p>



<p class="wp-block-paragraph">The North American market, which has been driving global demand, is being affected by U.S. tariffs. In a survey of member companies about North American demand trends, 58% responded that demand would &#8220;decrease&#8221; in fiscal year 2025, 33% said it would remain &#8220;flat,&#8221; and only 9% expected an increase.</p>



<p class="wp-block-paragraph"><em>Source:</em> <a href="https://www.nikkei.com/article/DGXZQOUC04AWQ0U5A800C2000000/">The Nikkei</a></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis: </em></strong>The automotive sector will be the hardest hit by U.S. tariffs, but the construction machinery sector will also be impacted. Komatsu generates approximately 30% of its sales in the North American market, and Hitachi Construction Machinery forecasts a 15% year-on-year decline in North American demand.</p>



<p class="wp-block-paragraph">Many manufacturers are planning countermeasures, such as strengthening their rental businesses (which are less affected by sales), restructuring their supply chains, and raising sales prices. However, there are concerns that these costs could dampen demand for housing construction and infrastructure development. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>for Power Systems Research</em></p>The post <a href="https://www.powersys.com/2025/08/cema-sees-3-decline-in-fy2025-construction-equipment/">CEMA Sees 3% Decline in FY2025 Shipments</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Kubota To Build Excavator Plant in Germany</title>
		<link>https://www.powersys.com/2024/12/kubota-to-build-excavator-plant-in-germany/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Fri, 13 Dec 2024 19:31:37 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=13043</guid>

					<description><![CDATA[<p>JAPAN REPORT Kubota says it plans to build a factory in Germany to manufacture small excavators. Production will begin in 2026, and the new factory will increase the local subsidiary&#8217;s production capacity by 40%. Kubota will acquire a factory site near the current factory of Kubota Baumaschinen, which manufactures and sells construction equipment in Germany.</p>
The post <a href="https://www.powersys.com/2024/12/kubota-to-build-excavator-plant-in-germany/">Kubota To Build Excavator Plant in Germany</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<h5 class="wp-block-heading"><strong>JAPAN REPORT</strong></h5>



<figure class="wp-block-image alignleft size-full"><img loading="lazy" decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2019/06/Akihiro-Komuro-e1567289377747.png" alt="Akihiro Komuro" class="wp-image-794"/><figcaption class="wp-element-caption">Akihiro Komuro</figcaption></figure>



<p class="wp-block-paragraph">Kubota says it plans to build a factory in Germany to manufacture small excavators. Production will begin in 2026, and the new factory will increase the local subsidiary&#8217;s production capacity by 40%. Kubota will acquire a factory site near the current factory of Kubota Baumaschinen, which manufactures and sells construction equipment in Germany. In the fiscal year ending December 2022, sales of construction equipment in Europe accounted for 20% of the company&#8217;s total sales in this sector, behind North America and Australia, which accounted for 60%.</p>



<p class="wp-block-paragraph">Demand for small construction equipment in Europe is currently sluggish. In the first nine months of fiscal 2024, sales of construction equipment in Europe declined 29.1 billion yen from the same period a year earlier.</p>



<p class="wp-block-paragraph">Kubota says the reason for building a new plant despite the sluggish demand for construction equipment is that the market has bottomed out.</p>



<p class="wp-block-paragraph"><em>Source:</em> <a href="https://www.nikkei.com/article/DGXZQOUF061ZX0W4A201C2000000/">The Nikkei</a></p>



<p class="wp-block-paragraph"><strong><em>PSR Analysis: </em></strong>In Germany, Kubota has held the leading market share for its main product, mini excavators, for 20 years. Although the construction equipment market is currently sluggish, this move can be seen as an investment in anticipation of an upturn in demand in the medium to long term. The EU has the most stringent exhaust regulations, and acceptance in such a market demonstrates the company&#8217;s ability to respond to increasingly stringent environmental regulations in other countries. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>for Power Systems Research</em></p>The post <a href="https://www.powersys.com/2024/12/kubota-to-build-excavator-plant-in-germany/">Kubota To Build Excavator Plant in Germany</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Komatsu Develops Hydrogen Generator</title>
		<link>https://www.powersys.com/2024/05/komatsu-develops-transportable-hydrogen-generator/</link>
		
		<dc:creator><![CDATA[Akihiro Komuro]]></dc:creator>
		<pubDate>Sat, 25 May 2024 15:47:37 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Power Generation]]></category>
		<category><![CDATA[Underground Mining Equipment]]></category>
		<category><![CDATA[Japan Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=11876</guid>

					<description><![CDATA[<p>JAPAN REPORT Komatsu has announced the development of a hydrogen-powered generator that will be used to power an electric mini excavator. It can be transported to the job site, allowing electric construction equipment to be used in places where there is no electric power infrastructure. The system will be tested at customer sites by September</p>
The post <a href="https://www.powersys.com/2024/05/komatsu-develops-transportable-hydrogen-generator/">Komatsu Develops Hydrogen Generator</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<h5 class="wp-block-heading"><strong>JAPAN REPORT</strong></h5>



<figure class="wp-block-image alignleft size-full"><img loading="lazy" decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2019/06/Akihiro-Komuro-e1567289377747.png" alt="Akihiro Komuro" class="wp-image-794"/><figcaption class="wp-element-caption">Akihiro Komuro</figcaption></figure>



<p class="wp-block-paragraph">Komatsu has announced the development of a hydrogen-powered generator that will be used to power an electric mini excavator. It can be transported to the job site, allowing electric construction equipment to be used in places where there is no electric power infrastructure. The system will be tested at customer sites by September 2024.</p>



<p class="wp-block-paragraph">The generator was developed in cooperation with DENYO. The generator is 3.1 meters long, 1.1 meters wide and 1.7 meters high. It generates electricity by mixing up to 40% hydrogen with light oil. HVO fuel (hydrogenated vegetable oil), a type of biofuel made from waste cooking oil, can also be used.</p>



<p class="wp-block-paragraph">Komatsu has developed hydrogen-blended combustion power generators for use in on-site power generation at factories and other facilities. The company sells seven types of electric construction equipment but is unable to supply power to sites where there are no power distribution networks, so it has been working to commercialize an electric power supply infrastructure.</p>



<p class="wp-block-paragraph"><em>Source:</em> <a href="https://www.nikkei.com/article/DGXZQOUC16D5L0W4A410C2000000/">The Nikkei</a></p>



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<p class="wp-block-paragraph"><strong><em>PSR Analysis: </em></strong>&nbsp;The short operating time of electric construction equipment is a major problem, and in many cases, diesel generators are brought to job sites and operated while the batteries are being recharged. Under these conditions, it is difficult to achieve the goal of reducing CO2 emissions.</p>



<p class="wp-block-paragraph">Even generators that can use hydrogen or HVO fuel cannot reduce CO2 emissions to zero, but they are making progress. As more of these devices enter the market, it is expected that the number of situations in which they will be used will increase.</p>



<p class="wp-block-paragraph">There are three major issues that need to be addressed for the future use of hydrogen on construction sites. The first is to increase the number of sites where hydrogen is available. Currently, the number of places where hydrogen can be refueled is very small compared to gas stations. This is not a situation that Komatsu can solve on its own. A long-term plan is needed, including regulatory improvements.</p>



<p class="wp-block-paragraph">The second issue is CO2 emissions from hydrogen production. At present, the amount of hydrogen that can be produced from water and air is limited and still at an experimental level. Most of the hydrogen used in various industries today is produced by combustion, which emits large amounts of CO2 during hydrogen production. Hydrogen is considered clean energy only in terms of CO2 emissions from hydrogen combustion, and CO2 emissions from hydrogen production will be considered in the future.</p>



<p class="wp-block-paragraph">The third is cost. Compared with light oil, hydrogen is more expensive. The phase of popularization will not begin until the price of hydrogen becomes competitive.</p>



<p class="wp-block-paragraph">All these issues require a great deal of effort and time to resolve, and widespread adoption is still a long way off. However, efforts to develop such products should continue, and only a limited number of manufacturers can make such efforts. Komatsu has an important role to play in determining how much hydrogen will be used in the construction equipment world in the future. <strong>PSR</strong></p>



<p class="wp-block-paragraph"><em>Akihiro Komuro is Research Analyst, Far East and Southeast Asia</em>, <em>for Power Systems Research</em></p>The post <a href="https://www.powersys.com/2024/05/komatsu-develops-transportable-hydrogen-generator/">Komatsu Develops Hydrogen Generator</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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		<title>Electrification of China Construction Machinery Industry Accelerates</title>
		<link>https://www.powersys.com/2024/03/electrification-of-china-construction-machinery-industry-accelerates/</link>
		
		<dc:creator><![CDATA[Jack Hao]]></dc:creator>
		<pubDate>Wed, 20 Mar 2024 14:50:35 +0000</pubDate>
				<category><![CDATA[Excavators]]></category>
		<category><![CDATA[Mixers]]></category>
		<category><![CDATA[Off-Highway Trucks]]></category>
		<category><![CDATA[Wheel Loaders and Dozers]]></category>
		<category><![CDATA[China Office]]></category>
		<guid isPermaLink="false">https://www.powersys.com/?p=11605</guid>

					<description><![CDATA[<p>CHINA REPORT The electrification of the construction machinery industry in China continues to accelerate. For example, CATAL and Longgong have signed a strategic cooperation agreement in Ningde, Fujian, a move that follows the January cooperation agreement between CATAL and Lingong Heavy Machinery. According to the agreement, both parties will expand cooperation in the development and</p>
The post <a href="https://www.powersys.com/2024/03/electrification-of-china-construction-machinery-industry-accelerates/">Electrification of China Construction Machinery Industry Accelerates</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></description>
										<content:encoded><![CDATA[<h5 class="wp-block-heading"><strong>CHINA REPORT</strong></h5>



<figure class="wp-block-image alignleft size-full"><img loading="lazy" decoding="async" width="140" height="192" src="https://www.powersys.com/wp-content/uploads/2019/06/Jack-Hao.png" alt="Jack Hao" class="wp-image-808"/><figcaption class="wp-element-caption">Jack Hao</figcaption></figure>



<p class="wp-block-paragraph">The electrification of the construction machinery industry in China continues to accelerate. For example, CATAL and Longgong have signed a strategic cooperation agreement in Ningde, Fujian, a move that follows the January cooperation agreement between CATAL and Lingong Heavy Machinery. According to the agreement, both parties will expand cooperation in the development and production of construction machinery, the development of power batteries for construction machinery, and jointly research and develop adaptive products and market promotion to jointly explore the new energy construction machinery market.</p>



<p class="wp-block-paragraph">More and more construction machinery companies are turning their attention to the electrification market. Domestic and foreign engineering machinery companies such as XCMG, Sany, Zoomlion, and Carter have developed and launched electric products such as loaders, excavators, and mixer trucks.</p>



<span id="more-11605"></span>



<p class="wp-block-paragraph">In 2023, the total sales of electric loaders increased by 2,435 units compared to the same period in 2022, a year-on-year increase of 209.9%. However, the overall electrification of the construction machinery industry is still in its early stages and the penetration rate is not high. In 2022, only 0.04% of off-road equipment globally was electrified, and the electrification penetration rate in large construction machinery such as excavators, bulldozers, and large loaders was less than 1%.</p>



<p class="wp-block-paragraph">Although new energy engineering machinery has significantly improved in terms of endurance and power performance, there is still a technological gap compared to traditional fuel powered machinery, and there is a need to improve technical factors such as battery energy density, cycle life, and low-temperature performance.</p>



<p class="wp-block-paragraph">In terms of cost, the manufacturing cost of new energy engineering machinery is relatively high. At the same time, the construction speed of charging facilities and maintenance networks remains a limitation, since it does not match the growth of market demand for new energy engineering machinery.</p>



<p class="wp-block-paragraph">However, in the long run, industry insiders indicate that with the development of battery technology and cost reductions, the electrification of the construction machinery industry is expected to accelerate in 2024. The energy consumption cost of new energy engineering machinery is being reduced, construction efficiency is improving, and the economic cost of companies is significantly reduced, achieving a win-win situation of economic and ecological benefits.</p>



<p class="wp-block-paragraph"><em>Source: </em><em>EEO&nbsp;&nbsp;&nbsp;&nbsp; </em><a href="http://www.eeo.com.cn/2024/0303/641244.shtml">Read The Article</a><em></em></p>



<p class="wp-block-paragraph"><strong><em>PSR</em></strong> <strong><em>Analysis</em></strong>: With the decline of China&#8217;s domestic economy, sluggish demand for construction machinery, and increasingly fierce market competition, some foreign-funded companies have begun to consider reducing the scale of Chinese engineering or departing the Chinese market altogether. Companies are putting more resources into the development of new models, expansion in the new energy sector, and growth of overseas markets.</p>



<p class="wp-block-paragraph">Presently, the main product inventory of domestic construction machinery exceeds 9 million units, and it is growing at a rate of about 300,000 units per year. The penetration rate of new energy construction machinery is less than 1%. Against the backdrop of policy promotion and environmental pressure, the penetration rate of electrification of construction machinery will rapidly increase in the coming years, with an expected penetration rate of over 30% by 2025.</p>



<p class="wp-block-paragraph">Compared with traditional fuel engineering machinery, electric engineering machinery has a long service cycle, high utilization rate, low operating costs, and the dual advantages of environmental protection and performance, making it more economically efficient overall.</p>



<p class="wp-block-paragraph">Batteries account for 40% to 50% of the total cost of electric construction machinery. The main purpose of engineering machinery companies entering the battery field is to promote the development of their products. But currently, the main battlefield for batteries is still passenger cars.    <strong> PSR</strong></p>



<p class="wp-block-paragraph"><em><br>Jack Hao is Senior Research Manager &#8211; China</em> <em>for Power Systems Research</em></p>



<p class="wp-block-paragraph">As a hidden incremental market, electrified construction machinery needs to continuously expand its application areas. Manufacturers and battery production enterprises need to continue to innovate and collaborate in technology, further reduce battery costs, and improve battery life in order to accelerate the electrification process of construction machinery.   <strong>PSR</strong></p>The post <a href="https://www.powersys.com/2024/03/electrification-of-china-construction-machinery-industry-accelerates/">Electrification of China Construction Machinery Industry Accelerates</a> first appeared on <a href="https://www.powersys.com">Power Systems Research</a>.]]></content:encoded>
					
		
		
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