Pioneers become martyrs: The brutal transformation of the electric loader market

1 Industry Trends: The Electrification Wave is Irreversible

In 2025, the construction machinery industry ushered in a long-awaited spring. Excavator sales reached 17,138 units in July, a year-on-year increase of 25.2%. Infrastructure investment accelerated, and local government special bond issuance accelerated. As of early August, 5.18 trillion yuan had been issued, significantly faster than the same period last year. Driven by environmental protection policies and technological innovation, the electrification of construction machinery has become a clear development direction. The “Action Plan for Peaking Carbon Dioxide Before 2030” issued by the State Council explicitly requires that the proportion of non-fossil energy consumption reach approximately 20% by 2025.

Electric construction machinery offers irreplaceable advantages in specific scenarios: ecologically fragile regions such as Sichuan and Tibet, where environmental protection requirements are stringent; and construction in enclosed spaces and tunnels, where ventilation conditions are poor. These demands create market space for electric equipment.

2 Pioneers: Early Explorations by New Forces

When the electrification of construction machinery began, a group of “new forces” emerged, focusing specifically on new energy construction machinery. They keenly recognized the pain points of traditional construction machinery—high emissions, high noise levels, and high energy consumption—and sought to carve out a blue ocean market with pure electric products. Companies like Tangshan Dingshi, Yipin Heavy Industry, Boreton, Green, and Noho invested significant R&D resources in electric loaders. These new forces launched distinctive products, and some of them briefly enjoyed market and investment traction. However, high prices became the biggest obstacle to market penetration. Pure electric loaders cost around 800,000 yuan, while gasoline-powered loaders only cost around 350,000 yuan. This substantial price difference of 450,000 yuan deterred many users.

3 Data Speaks: Market Landscape in the First Half of 2025

Electric loader sales data for the first half of 2025 reveals a fundamental shift in the industry landscape:

The top eight are all traditional loader manufacturers, with no new electric loader companies. The former market pioneers have become martyrs.

4. Why It Happened: The Overwhelming Advantage of Traditional Manufacturers

Traditional construction machinery giants have been able to leapfrog the competition in the electrification sector thanks to their multiple competitive advantages.

1. Significant economies of scale. Leading companies such as XCMG, Liugong, Lonking, and Lingong have achieved a dominant position through economies of scale, industrial chain advantages, and operational efficiency. They can co-produce electric and traditional products, sharing costs.

2. Strong financial resources. Electric construction machinery requires significant initial investment, and traditional giants can withstand years of losses. However, emerging companies often rely on financing to survive, and face a survival crisis if the capital market cools.

3. Well-established sales network. Traditional manufacturers have long-established global sales and service networks, enabling them to provide timely customer support. Electric equipment requires professional maintenance, which emerging companies cannot match.

4. Solid customer base. The construction machinery industry boasts stable customer relationships, and traditional manufacturers have accumulated customer resources over many years. “Electric equipment is still primarily in the ‘experiential sales’ phase, with significant initial preferential policies and promotional efforts.”

5. Far-reaching brand influence. Construction machinery purchases are large, and customers tend to choose products with branded credentials. “Electric construction machinery has a narrower customer base, making it easier for OEMs and distributors to leverage social resources and personal connections to secure bulk sales.”

Sixth, in addition to the advantages of established brands, new forces and companies, many of which are cross-sector players, face various challenges, setbacks, and even self-destruction, leading to their “falling behind,” ultimately transforming from pioneers into “martyrs.”

5 Matthew Effect: The Market Law of the Strong Getting Stronger

The “Matthew Effect” in the construction machinery industry is becoming increasingly pronounced. Large enterprises enjoy greater policy support and are more likely to collaborate with large conglomerates such as central and state-owned enterprises. Construction officially commenced on July 19, 2025, alongside the upcoming launch of major national projects such as the Tibet Railway. These large projects often explicitly require the use of electric and unmanned equipment, but the procurement targets are almost exclusively traditional giants. Traditional manufacturers not only hold an advantage in the domestic market but also perform well in exports. In July 2025, the export trade volume of construction machinery reached US$5.238 billion, a year-on-year increase of 19.19%. Specifically, Africa, Oceania, and the Belt and Road Initiative and its regions saw year-on-year increases of 69.33%, 64.26%, and 33.46%, respectively.

6 Technological Accumulation: Traditional Manufacturers Catch Up

Traditional manufacturers have demonstrated a strong ability to catch up in electric technology research and development. The Liugong 856HE electric loader, equipped with an intelligent energy management system, increases operating efficiency by 30%. Shandong Lingong’s L956H EV loader features fast-charging technology, enabling a full charge in 1.5 hours and a range of over 8 hours, with sales projected to increase 200% year-on-year in 2025. The Sany SW956E-Super electric wheel loader, equipped with an unmanned driving system and remote fault diagnosis, consumes 15% less power than similar products. These technological innovations are comparable to those of early-stage emerging market players and are more tailored to actual working conditions and user needs.

7 Future Outlook: Strategies for Survival in the Electrification Trend

Although emerging market players are losing ground in the complete machine market, they may still find niche opportunities in niche sectors. Focusing on the supply of core components is a good option. Key technology areas such as battery management systems and electronic control systems offer potential for specialized development. Collaboration with traditional giants is also a solution. While traditional manufacturers possess significant strength, they are also willing to collaborate with companies with unique technological expertise to complement their shortcomings.

Opportunities still exist in overseas markets, especially in countries along the Belt and Road Initiative, where environmental protection requirements are relatively low, potentially making them more suitable for cost-effective electric products. From January to July 2025, China’s construction machinery exports reached US$33.409 billion, a year-on-year increase of 10.52%. Traditional manufacturers’ electric products are taking advantage of this surge in overseas sales.

On the construction sites of major projects like the Tibet Railway and the Yarlung Zangbo River Hydropower Project, electric loaders from traditional giants like XCMG and Liugong roar to life. The once-emerging powerhouses have left behind only a legacy of technological approaches and development philosophies.

The pioneers have become martyrs, but the sparks they ignited have already spread like wildfire.