The Chinese excavator market delivered an outstanding performance exceeding market expectations in the first half of 2026. According to the latest data released by the China Construction Machinery Association, a total of 152,320 various excavator units were sold from January to June, representing a year-on-year increase of 26.4%. This figure not only marks the industry’s return to growth after a period of adjustment but also reflects profound structural shifts in the market’s growth drivers.

Overall Market Recovery: Monthly Growth Surpasses 25% for Four Consecutive Months

Monthly sales data reveals a clear upward trajectory for the excavator market in the first half of the year. The market kicked off with a strong opening in January, with 18,708 units sold, a sharp year-on-year surge of 49.5% — hitting the highest growth rate for the same period in recent years. Affected by the Spring Festival holiday, February sales dipped month-on-month to 17,226 units, down 10.6% year-on-year. However, this fluctuation stemmed mostly from seasonal statistical distortions and did not alter the overall warming trend.

Market momentum rebounded sharply in March, the traditional peak sales season, fueled by rising project construction starts. Monthly sales peaked at 37,402 units, up 26.4% year-on-year. While monthly sales edged down seasonally from April to June, year-on-year growth expanded consistently: 29.8% in April, 36.2% in May, and 35.3% in June, maintaining high growth of roughly 30% for three straight months. This "robust demand even in off-peak seasons" demonstrates that the current recovery is underpinned by strong internal market momentum, rather than merely low comparative base effects.

Domestic Market: Dual Growth Engines of Infrastructure Investment and Equipment Replacement

Domestic demand formed the core pillar of first-half growth. From January to June 2026, domestic excavator sales hit 79,025 units, a 20.4% year-on-year rise. Monthly domestic sales saw wider volatility than the overall market: January jumped 61.4% year-on-year, February plunged 42% due to the Spring Festival, before bouncing back to 24,101 units in March with a 23.5% year-on-year increase. Growth remained above 30% for the next three months: 34.9% in April, 38.6% in May, and 33.9% in June.

The sustained strength of the domestic market in Q2 aligned closely with the rollout of macro infrastructure projects. Accelerated issuance of local government special-purpose bonds spurred concentrated launches of urban renewal, water conservancy, transportation and other infrastructure schemes, effectively unlocking demand for earthmoving machinery. Meanwhile, demand for replacing aging stock equipment grew steadily, as China’s National Stage III emission standard excavators entered a peak replacement cycle, providing solid support for market expansion. Although monthly domestic sales declined sequentially in May and June, year-on-year growth stayed elevated, highlighting growing resilience in domestic demand recovery.

Export Engine: Six Consecutive Months of Positive Growth, Exports Account for Nearly Half of Total Sales

Export performance emerged as the biggest highlight of the first half-year. Between January and June, excavator export volumes reached 73,295 units, surging 33.5% year-on-year — far outpacing domestic market growth. Monthly export data showed remarkable stability, with positive year-on-year growth recorded every single month, consistently above 23%.

June delivered an outstanding export result: 14,547 units shipped overseas, the highest monthly export volume of the first half, with a 36.4% year-on-year increase. This broke the historical pattern of sequential slowdown in export growth, proving that Chinese excavator brands are continuously boosting penetration in global markets. Across Belt and Road Initiative markets, Southeast Asia, the Middle East, Latin America and other regions, Chinese OEMs are capturing larger market shares thanks to cost-effective products, rapid iterative upgrades and comprehensive after-sales service networks. Booming exports have created a second growth track for the industry, effectively offsetting cyclical swings in the domestic market.

Restructured Market Landscape: Exports Make Up 48.1% of Total Sales

Widening growth gaps between domestic and overseas sales have reshaped the industry’s market structure. In the first half of 2025, exports accounted for 45.5% of total sales, with domestic sales taking the remaining 54.5%. By the first half of 2026, export share climbed to 48.1%, while domestic sales fell to 51.9%. Exports are now on the verge of claiming half the total market volume, a landmark structural transformation.

For China’s excavator industry, the rising export proportion significantly strengthens its ability to withstand market risks. Historically, the sector’s cycle relied heavily on domestic infrastructure investment, leading to drastic market volatility. Today, a dual domestic-international circulation framework has taken initial shape, with the two markets complementing each other to smooth cyclical fluctuations. Nevertheless, rapid export expansion brings external uncertainties including geopolitical tensions, trade barriers and exchange rate volatility. A key industry-wide challenge lies in improving the quality and resilience of overseas operations while scaling up export volumes.

Accelerated Electrification: First-Half Electric Excavator Sales Surpass Full-Year 2025 Volume, 99 Units Sold in June Alone

The explosive growth of electric excavators represented another noteworthy trend in the first half-year. A total of 321 electric excavators were sold from January to June 2026, skyrocketing 129.3% year-on-year — far exceeding overall industry growth. June set a new monthly sales record for electric excavators at 99 units, up 266.7% year-on-year; March also delivered strong results with 76 units sold, representing a more than fourfold year-on-year increase.

While electric excavators remain a tiny fraction of the total 150,000-unit market, their steep growth curve sends powerful industry signals. Driven by China’s dual carbon goals, demand for electric construction machinery is rising rapidly in closed operation scenarios such as mines, ports and industrial yards. Advances in battery technology and lower operational costs are also accelerating the commercial adoption of electric excavators. Leading manufacturers have ramped up investment in electrification, expanding product portfolios from small to medium-and-large tonnage models. Electrification will become a core competitive track for the industry in the coming years; manufacturers that break through cost and range bottlenecks will seize the initiative in the next industrial transformation wave.

Market Outlook: Recovery Confirmed, Focus on Long-Term Sustainability

Overall, the 26.4% cumulative year-on-year sales growth in the first half of 2026 confirms a solid recovery trend for the excavator market. Domestic demand recovery and robust export growth reinforce each other, while electrification fosters new industrial momentum, supporting steady industry progress.

Multiple variables will shape market performance in the second half of the year. On the domestic front, infrastructure investment intensity, real estate sector recovery and the pace of used equipment replacement will jointly determine domestic demand trends. Externally, overseas economic conditions, shifts in trade policies and exchange rate fluctuations require close monitoring. That said, the quality of first-half growth indicates the current recovery is not a short-term stimulus-driven rebound, but a product of natural industrial cycle repair and deepened global layout. Barring major macroeconomic shocks, the excavator market is expected to maintain growth through the full year, with structural optimization and technological upgrading as persistent industry themes.