LONG-TERM GROWTH PATH
China remains one of the fastest growing access equipment markets in the world, despite the impact of Covid-19.
The country has developed at an extraordinary rate over the past decade – and the last five years in particular – and now boasts a rental fleet with a total of almost 150,000 machines.
That makes it, already, one of the largest access rental markets in the world, but the size of the Chinese economy and its continuing economic growth mean that it remains on course for many more years of expansion.
The year 2020 was obviously impacted by Covid-19. However, Chinese government stimulus actions mean that its construction equipment market is forecast to increase by 14% (Source: Off-Highway Research), which is in stark contrast to the rest of the world.
For the access business, there are a small number of very large rental businesses who have been investing heavily and expanding their fleets at dramatic rates. That has led to pressures on rental pricing and a moderation of the rate of investment.
However, the market is on course to continue to expand. Why? Because there are many sectors for access equipment to penetrate beyond construction; because rental companies are opening new depots and promoting access to new customers; and, finally, because the country remains an immature access market in comparison to Europe or North America.