The Rise of Green Energy: A New Wave of Opportunity for Construction Machinery

Historically, the growth momentum of the construction machinery industry primarily stemmed from traditional infrastructure sectors such as building construction, highways, railways, and bridges. Today, however, the market demand structure is undergoing profound changes—traditional infrastructure growth is slowing, while green energy projects are rapidly emerging as the new and most certain growth driver for the construction machinery industry.

What Are Green Energy Projects?

As the saying goes, it's not enough to know the what; one must understand the why. To grasp why green energy projects have become the new engine for the construction machinery industry, we must first clarify their essence.

Green energy projects comprise both green energy sources themselves and initiatives related to green transformation.

Here, “green energy” typically refers to renewable energy systems—including solar, wind, hydro, nuclear, biomass, and geothermal power—along with complementary technologies and services such as energy efficiency upgrades, energy storage systems, retrofits for improved energy performance, and smart grid solutions.

“Green transition” denotes the process of shifting traditional energy systems, economic structures, and industrial models toward low-carbon, clean, and sustainable directions.

Within this framework, the following elements fall under the broad category of green energy projects:

· Green energy infrastructure development, such as large-scale wind farms, photovoltaic power stations, hydropower upgrades, and pumped-storage projects;

· Green retrofits and energy-saving initiatives, including efficiency enhancements, smart monitoring, and energy-saving upgrades for traditional factories and port terminals;

· Green energy supporting services, such as energy storage, hydrogen energy, green logistics, and eco-friendly construction;

· Overseas green energy project construction and operation, meaning engineering machinery enterprises “going global” to deliver green energy projects and integrated services.

Why are green energy projects considered the next growth frontier?

I. Highly Defined Development Trajectory

China's energy development path clearly points toward green transformation:

The 13th Five-Year Plan achieved scaled-up initial development, while the 14th Five-Year Plan advances toward high-quality growth. It also proactively lays the groundwork for the deep integration of “AI + Energy,” making green and low-carbon development the central theme of the energy system's evolution.

The “Proposal of the Central Committee of the Communist Party of China on Formulating the 14th Five-Year Plan for National Economic and Social Development” incorporates “building a strong energy nation” into the national strategic blueprint. This signifies China's energy development is transitioning from a “security-oriented” to a “leadership-oriented” model. This represents not only a systematic plan for energy security and green transformation but also opens up long-term, stable development opportunities for related industries.

II. Sustained Growth in Market Demand

With continuous breakthroughs in key green energy technologies and accelerated commercialization of research outcomes, energy technologies and their associated industries are becoming a major engine driving growth in the construction machinery sector.

In application scenarios such as mining, ports, smart logistics, and environmental construction, the penetration rate of new energy construction machinery continues to rise, with its application boundaries constantly expanding.

Take LIUGONG as an example: in January 2026, its electric loaders and forklifts were delivered in bulk to a mining group. Over 30 electric units will be fully deployed in core operations like ore transfer, production feeding, and finished product storage, providing robust support for the enterprise's “electrification, intelligentization, and low-carbonization” transformation. Simultaneously, LIUGONG leverages its comprehensive solutions covering the entire mining and smelting process to help clients build greener, more efficient modern production and logistics systems.

III. Expanding Overseas Opportunities

Green energy also offers new growth pathways for construction machinery companies venturing abroad.

Through an integrated “engineering + equipment + services” model, enterprises can not only expand their overseas market footprint but also enhance project value-added, creating a more stable revenue structure.

Boreyton's photovoltaic-storage project in the Democratic Republic of the Congo exemplifies this approach. Each project generates approximately 120 million kWh annually, yielding annual electricity revenue of around RMB 180 million. Currently, all four concurrent photovoltaic-storage projects underway overseas have entered substantive construction phases, gradually establishing sustainable and predictable power operation income for Boreyton's international operations.

Three Major Challenges in Green Energy Projects

· Technical Complexity and Talent Shortages

Green energy projects impose higher demands on construction techniques, operational adaptability, and specialized expertise. For construction machinery companies to deeply engage in these projects, they must accelerate R&D of intelligent, green, and digital equipment.

However, the reality is that multidisciplinary talent in new energy and related fields remains relatively scarce. Concurrently, companies must enhance organizational capabilities, digital competencies, and green standardization levels while systematically optimizing management systems. This transformation process itself represents a formidable challenge for enterprises.

· Fierce Competition and High Costs

Most construction machinery companies have now recognized the opportunities presented by green energy projects, leading to increasingly intense market competition. Simultaneously, industry barriers continue to rise, compelling construction machinery enterprises to rapidly enhance their capabilities to remain competitive. Failure to do so may result in future market elimination.

Furthermore, while technological advancements have reduced the cost of new energy construction machinery, it remains significantly more expensive than fuel-powered alternatives. This presents a major challenge for companies seeking to enter the market.

· Policy Shifts Increase Complexity

The development of new energy construction machinery currently relies heavily on policy support. However, we must also consider whether these machines will retain sufficient cost-effectiveness for customers to purchase them once the benefits of policy incentives diminish.

Trade barriers in international markets have also been rising in recent years. Examples include escalating tariffs in the United States and the European Union's imposition of anti-dumping duties on Chinese aerial work platforms. These shifts in overseas trade policies have added pressure on construction machinery companies.

In this wave of green energy, construction machinery companies engaging in green energy project development have entered an unavoidable battle for transformation. Green energy projects represent both a windfall for the construction machinery industry and a competitive arena for enterprises. Moving forward, only those companies that accurately grasp trends, proactively seek change, and dare to innovate will remain at the forefront and avoid being left behind.