Source: China Remanufacturing Industry Association, CEHome | Published: December 5, 2025
As China advances its “dual carbon” goals and global demand for cost-effective construction solutions rises, the country’s construction machinery remanufacturing sector is poised for robust growth in 2025. Industry forecasts indicate the market scale will reach RMB 98.6 billion (approx. $13.8 billion) this year, representing a 15% year-on-year increase—doubling the growth rate of the overall construction machinery market. Policy incentives, technological innovations, and expanding overseas demand are the three core drivers behind this surge.
Policy Boost: Subsidies & Standards Fuel Market Growth
This year marks a milestone for policy support in the remanufacturing industry. In January 2025, the Ministry of Industry and Information Technology (MIIT) jointly issued a three-year action plan with five other ministries, introducing targeted measures including direct subsidies, tax breaks, and mandatory remanufacturing standards for end-of-life equipment.
Key policy highlights include a RMB 2,000-5,000 subsidy per unit for remanufactured construction machinery (varying by equipment type), a 13% value-added tax (VAT) exemption for remanufacturing services, and a mandatory “remanufacturing eligibility certification” for enterprises. As of November 2025, 128 enterprises have obtained the certification, including industry leaders such as XCMG, Sany, and LiuGong.
“The policy has significantly reduced our operating costs and enhanced market trust,” said Wang Jian, General Manager of XCMG Remanufacturing. “In the first 10 months of 2025, our remanufactured excavator sales increased by 42% year-on-year, with 30% of orders coming from overseas markets.”
Overseas Demand Surges: Emerging Markets Embrace Cost-Effective Solutions
Overseas markets have emerged as a new growth engine for China’s remanufactured construction machinery. Data shows that in the first three quarters of 2025, exports of remanufactured equipment reached $1.2 billion, a year-on-year increase of 38%. Africa, Southeast Asia, and Latin America are the top three destination regions, accounting for 72% of total exports.
Cost advantage is the primary appeal for overseas buyers. A remanufactured 20-ton excavator from China is priced at approximately $85,000, which is 40-50% lower than a new unit of the same model, while its performance meets 95% of the new equipment standards and comes with a 12-month warranty. “For African infrastructure projects with tight budgets, remanufactured equipment is the most cost-effective choice,” noted Peter Kimani, a Kenyan construction contractor who purchased 15 remanufactured loaders in 2025.
To adapt to local needs, Chinese enterprises are also customizing remanufacturing solutions. For example, Sany has optimized the cooling system of remanufactured excavators for high-temperature African regions, while Lonking has adjusted the fuel injection system to adapt to low-quality diesel in Southeast Asia—measures that have significantly improved product competitiveness.
Tech Upgrade: AI & Digitalization Enhance Quality Control
Technological innovation is reshaping the remanufacturing process, elevating quality and efficiency to new heights. AI-based detection systems have become a standard configuration in leading enterprises’ workshops: 3D laser scanners can identify microcracks as small as 0.02mm on mechanical parts, while machine learning algorithms predict component service life with an accuracy rate of over 92%.
Digital twin technology is another breakthrough. XCMG has built digital twins for 12 core remanufacturing processes, enabling real-time monitoring of parameters such as temperature, pressure, and precision during the repair process. This has reduced the defect rate of remanufactured parts from 3.2% in 2023 to 0.8% in 2025.
Industry experts believe that with the integration of more advanced technologies such as additive manufacturing and industrial Internet, China’s construction machinery remanufacturing sector will gradually move from “performance restoration” to “performance upgrading”, further narrowing the gap with new equipment in terms of added value.
Future Outlook: Towards Standardization & Globalization
Looking ahead, the remanufacturing industry will focus on two key directions: standardization and globalization. Domestically, the MIIT plans to release 10 more national standards for remanufacturing by 2026, covering parts recycling, repair processes, and quality inspection. Internationally, Chinese enterprises are actively participating in the formulation of international remanufacturing standards, with XCMG and Sany joining the ISO/TC 107 (Construction Machinery) technical committee.
“2025 is a critical year for China’s remanufacturing industry to move from scale expansion to high-quality development,” said Li Ming, Secretary-General of the China Remanufacturing Industry Association. “As policies, technologies, and markets form a synergy, Chinese remanufactured construction machinery will play an increasingly important role in the global market.”
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