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In the first half of 2026, the domestic excavator undercarriage industry—specifically the “four wheels and one track” segment—benefited from multiple positive factors: deepening import substitution, a surge in overseas orders, and the successful implementation of wear-resistant materials and electric-specific undercarriage technologies. The industry is characterized by three major trends: market concentration among leading players, a significant rise in export volumes, and technological innovation. The domestic market size is projected to exceed RMB 22 billion for the year, with export growth remaining high at over 20%, marking a new phase of high-quality development for the industry chain.
Regarding the domestic supply market, OEMs (Original Equipment Manufacturers) are continuing to optimize their supply chains. Major manufacturers such as Sany, XCMG, and Zoomlion have tightened entry standards for Tier-1 undercarriage suppliers, requiring capabilities in comprehensive heat treatment, digital traceability, and simultaneous R&D. Consequently, small and medium-sized enterprises (SMEs) focused on rough processing are gradually exiting the OEM supply market, leading to increased industry concentration. Data shows that the top five enterprises held a 58.3% market share in the first half of 2026—an increase of 12 percentage points over five years. Large-scale, integrated factories consistently maintained operating rates above 90%, whereas small processing plants lacking core process capabilities operated at less than 65% capacity, accelerating the industry’s consolidation and the elimination of weaker players. Meanwhile, key breakthroughs were achieved in the localization of large-tonnage mining undercarriage components. Heavy-duty track rollers and double-arc anti-derailment track assemblies for 300-ton-class machinery—previously heavily reliant on imports—have entered mass production. These domestic mining undercarriage components offer a service life 50% longer than standard products at just 60% of the cost of imports; domestic open-pit mines are increasingly replacing imported undercarriages with these domestic alternatives, significantly reducing equipment operation and maintenance costs.
The export market has emerged as the core engine of industry growth. Driven by the infrastructure boom associated with the “Belt and Road Initiative” and tariff benefits under the RCEP, the export value of excavator undercarriage components rose by 23.6% year-on-year in the first half of 2026, exceeding RMB 4.1 billion. Resource-rich nations in Southeast Asia, the Middle East, and Africa served as key growth markets, with overseas order backlogs for the major undercarriage industrial clusters in Quanzhou and Jining extending well into the third quarter and beyond. At the Xiamen International Construction Machinery Exhibition, which concluded in early July, dozens of domestic undercarriage manufacturers showcased “four-wheel and one-track” products compatible with the full lineups of Caterpillar, Komatsu, Hitachi, and Sany. They introduced 2,000-hour wear-resistance warranties and engaged in intensive negotiations with overseas buyers for customized heavy-duty mining undercarriages, resulting in a 40% year-on-year increase in bulk custom orders. Many enterprises launched localized products—such as lightweight undercarriages for compact municipal excavators in Southeast Asia and high-strength, wear-resistant gear rings for African mining operations—thereby significantly boosting their overseas competitiveness through product differentiation; for some companies, exports now account for 65% of total revenue.
Technological evolution is reshaping the industry’s competitive landscape, with new wear-resistant materials, intelligent systems, and electrification emerging as the three primary drivers of upgrades. Leading enterprises have widely adopted alloy steel forging combined with nano-wear-resistant coating processes, extending the wear life of track rollers and drive sprockets by 40%–60%. Intelligent undercarriage components featuring integrated wear sensors have entered mass production, enabling real-time monitoring of component wear and predictive maintenance scheduling; the penetration rate of these components in new mid-to-high-end machinery has surpassed 25%. Lightweight undercarriages designed specifically for electric excavators represent a new growth sector; the mass production of low-friction, quiet tracks and lightweight aluminum alloy track frames has reduced total undercarriage weight by 14% and rolling resistance by 18%, meeting the low-energy-consumption requirements of new energy excavators. Annual shipments of electric undercarriages are projected to double year-on-year. At the policy level, the Ministry of Industry and Information Technology’s “Industrial Foundation Re-engineering Project” has designated highly reliable construction machinery undercarriages as a key category for support. Annual R&D subsidies exceeded 800 million yuan, driving the industry’s R&D-to-revenue ratio to a record high of 4.7%.
However, structural weaknesses persist; the localization rate for components such as high-end seals and specialized bearings remains below 35%, and there is still room to improve brand recognition in overseas mid-to-high-end markets. Industry analysts suggest that future development will focus on three key areas: first, continuously mastering core manufacturing processes for ultra-high-tonnage mining chassis to fully achieve import substitution in the high-end market; second, deepening localization of support services by establishing assembly bases in Southeast Asia and the Middle East to shorten delivery times; and third, intensifying R&D into electric and intelligent chassis to capitalize on the long-term growth potential of new energy construction machinery. As global investment in infrastructure and mining continues to rebound, there is vast room for long-term growth in domestically produced excavator chassis components, and the industry is shifting from competition based solely on cost-performance ratios to a contest of comprehensive strength encompassing technology, quality, and service.