As the global urbanization rate significantly increases, there is a growing need for small-scale machinery worldwide. In urban environments, infrastructure maintenance such as pipeline laying, garden landscaping, and even small-scale agricultural activities require compact equipment. In cities where space is limited, mini excavators with short radii are becoming more popular. Moreover, they do not require specialized technical training, as beginners can learn to operate them in just a couple of hours. Economic development, changes in the labor market, and technological advancements have driven this evolution, making compact equipment indispensable in both developed and emerging markets. The shift in this sector represents a broader trend where commercial or industrial equipment is gradually transitioning to household use. For example, the rise of short video platforms is linked to the widespread availability of cameras, and the popularity of household robotic vacuum cleaners originates from commercial cleaning machines.
Over the past 20 years, mini excavators have been particularly popular in China and Japan. However, the global popularity of mini excavators has been steadily increasing every year. These machines are compact, versatile, and there are no signs indicating that this trend will slow down. Manufacturers are continuously enhancing the functionality of these machines. According to the Off-Highway Research report, over 365,000 mini excavators were sold globally in 2023, valued at over $12.5 billion. The annual compound growth rate is projected to exceed 5% by 2029.
Major construction machinery giants are introducing their own mini excavators, continually enhancing their features. Hyundai mini machines are equipped with 5-inch full digital LCD screens. In February 2023, JCB launched a 2.5-ton mini excavator, while Volvo upgraded its mini excavators at the beginning of 2023, increasing fuel efficiency by 10%.
China boasts numerous manufacturers of mini excavators, including domestic top players like XCMG, Sany, and Zoomlion, as well as local factories representing international brands such as Caterpillar and Komatsu, along with many smaller manufacturers offering high cost-effectiveness.
Take the production factory behind Xemach as an example, which offers a full range of small and medium excavators with Japanese technology and large excavators with Korean technology. These machines are known for their cost-effectiveness and come with over a decade of production experience, with export volumes even surpassing domestic sales. As consumer preferences increasingly prioritize cost-effectiveness, it will play an increasingly significant role in customer choices.