Domestic status of rotary drilling rigs and market influencing factors

Since 2017, the rotary digging machinery industry has achieved more than expected growth. After years of tragic decline, the industry giants finally saw the dawn of a rebound. However, China's economic restructuring and transformation and upgrading have not yet been completed, and future investment and real estate investment are subject to downside risks. , The rapid growth of the industry will be difficult to maintain for a long time, and industry practitioners cannot be blindly optimistic. However, benefiting from the improvement of the international and domestic economic situation, the future of China's rotary drilling machinery industry is still worth looking forward to.

    1. Current domestic situation

    As the rotary drilling machinery industry is a capital and intensive industry, and the current market share is becoming saturated, new companies entering the industry must face entry barriers in terms of technology, capital, and the market, as well as fierce competition from industry companies. The advantages of industry-leading companies in R&D, manufacturing, quality, supply chain, sales and service will increasingly be reflected in their comprehensive advantages in market competitiveness, and are expected to occupy a higher market share, and market concentration will maintain an upward trend.

    From the analysis of the market holding of rotary drilling machinery, in the next 3 to 5 years, the market holding of about 1.5 million units will basically meet the current market demand, and the replacement of old machines will become the most important market demand in the future. The implementation of China's Phase III emission standards and the society's continued attention to environmental pollution and energy conservation and emission reduction may promote the accelerated renewal of stock equipment and further increase the market demand for renewal. In 2018, the domestic sales of rotary digging machinery increased by about 20%, and the sales volume is expected to be about 155,000 units.

   2. Main factors affecting the rotary drilling market

    The market demand for rotary digging machinery depends on the balance between construction demand and inventory. The construction demand is mainly related to downstream infrastructure construction, real estate investment, urbanization and mining investment, etc. At the same time, the industry development trend is affected by many factors such as the macroeconomic situation, environmental protection policies and market expectations.

    When construction demand increases, equipment operating hours and operating rate increase, prompting users to implement equipment; on the contrary, when construction demand decreases, operating hours and operating rate decrease, users have no demand for purchasing machines, and even some equipment is transferred to the second mobile phone market. And may affect the sales of new machines. Once the industry enters an irrational state, it may cause the sales of new phones to exceed market demand and lead to excess inventory. After the industry returns to rationality, a large number of stock devices will be transferred to the second mobile phone market and will inhibit the sales of new phones for a period of time.