Continuing demand for infrastructure construction: infrastructure construction in many countries in Europe and the United States is still advancing, 

such as the construction and maintenance of roads, bridges, harbours and other projects, which will provide certain market space for small excavators. 

For example, the highway renovation and expansion projects in some U.S. states, as well as the urban rail transit construction projects in some 

European cities, etc., all need small excavators for earthmoving, material handling and other work.

Agricultural demand growth: with the continuous development of agricultural modernisation, agricultural production in Europe and the United States 

rely more and more on mechanical equipment. Small excavator in farmland water conservancy construction, land leveling, crop planting and other 

aspects have a wide range of applications, can improve efficiency, reduce labour intensity, so its market demand in the agricultural field is expected to 

grow further.

Environmental policy to promote the replacement: Europe and the United States on environmental protection requirements are becoming increasingly 

stringent, the old high-emission small excavators are facing greater restrictions on the use of and out of pressure. This prompts users to prefer to 

choose a new type of small excavator that meets the local environmental standards, thus promoting the renewal of small excavator market, bringing 

new market opportunities for low-emission, energy-saving and environmentally friendly small excavators.

Technology innovation

Accelerated trend of electrification: electric small excavators have the advantages of zero emission, low noise, low maintenance costs, etc., and are 

increasingly favoured by the European and American markets. With the continuous progress of battery technology, the range and performance of 

electric small excavators will continue to improve, and its market share is expected to further expand in 2025. For example, construction sites and 

municipal projects in some European cities have begun to purchase electric small excavators to meet environmental requirements.

Miniaturisation and multifunctionality: in order to meet the construction needs of different scenarios, small excavators will move towards more 

miniaturisation and multifunctionality of the direction of development. Miniaturisation will enable small excavators to operate more flexibly in narrow 

spaces, while multifunctionalisation will enable them to realise various functions such as digging, crushing, drilling and grasping by replacing different 

attachments, thus improving the utilisation rate and economic benefits of the equipment.

Competitive landscape

Increased brand competition: European and American local small excavator brands such as Caterpillar, Deere, etc. have strong brand influence and 

technical strength, occupying a larger share in the market. At the same time, China's small excavator brands such as Sany Heavy Industry, Xugong 

Machinery, etc. are also increasing investment in the European and American markets, with the cost-effective advantage of gradually expanding 

market share, the competition between brands will be more intense.

Channel and service competition highlights the importance of competition: perfect sales channels and quality after-sales service is one of the key 

factors for enterprises to stand out in the market competition. Small excavator manufacturers will pay more attention to the establishment of a sound 

sales network and service system, improve product availability and after-sales response speed, in order to enhance customer satisfaction and loyalty.