In 2020, global trade in machinery totalled about €1.05 trillion, which was nearly 10 percent lower than a year earlier due to the pandemic. Of this, China's machinery exports were about 165 billion euros, corresponding to a global market share of about 15.8 percent. It was the first time That China had overtaken Germany, which exported about €162bn of machinery and equipment, with a market share of 15.5 per cent. Germany's global market share of exports was also about 1.4% ahead of China's in 2019.
The United States remains in third place with a 9.1% market share, followed by Japan with 8.6% of the global market and Italy with about 6.7%. In 2020, China's machinery sales totaled 924 billion euros, almost as much as those of the United States, Germany, Japan and Italy combined.
According to a recent study by German Trade and Investment, the federal business development agency, Chinese exports of machinery and equipment will rise nearly 31% this year to $296 billion, while German exports will rise only 13% to $249 billion.
China is now outpacing German exporters in a growing number of sectors, and is ahead of Germany in 16 out of 28 sub-segments of machinery and equipment engineering. "This includes areas where Germany has traditionally exported a lot in value terms," the report said. The areas of spare parts, transportation technology, heating, cooling and air conditioning technology, and mining, structural and civil engineering machinery are all named.
Taking a longer view, German mechanical engineering companies increased their global deliveries by 8.7% in 2020 compared with 2010, while suppliers from China almost doubled their exports over the same period. This trend suggests that In the long run, German exports are likely to lose this market segment to Chinese machine makers. Coupled with China's current "2025 manufacturing plan," this advantage may continue.