Overview of the Current Status of the Rotary Drilling Rig Industry: Multi-faceted Policy Support and Domestic Equipment Taking the Lead Across the Market

With the continuous increase in domestic infrastructure and steady promotion of new quality productivity, coupled with the implementation of policies related to green construction and intelligent manufacturing, the domestic rotary drilling rig industry has entered a steady upward cycle. After years of technological breakthroughs and capacity iteration, domestic equipment has completely broken free from the monopoly of overseas brands. Relying on policy dividends, a complete industrial chain, and high cost-effectiveness advantages, it has achieved absolute dominance in the domestic market. At the same time, the scale of going global continues to rise, and the industry as a whole presents a development pattern of policy support, domestic production self-improvement, and internal and external circulation improvement.

Multiple policies continue to provide protection, laying a solid foundation for the development of the industry

The government has introduced support policies from four dimensions: infrastructure investment, green equipment, high-end manufacturing, and foreign trade going global, to comprehensively empower the rotary drilling rig industry. Domestic intercity railways, wind power infrastructure, urban renewal and other infrastructure projects have started construction in a concentrated manner, directly driving the demand for pile foundation construction equipment to increase; The dual carbon policy is forcing the industry to upgrade, encouraging the popularization of electric rotary drilling rigs and low-noise intelligent drilling rigs, and promoting the elimination and replacement of old and high-energy consumption equipment. At the same time, high-end equipment manufacturing subsidies, export tax rebates of construction machinery, and customs clearance facilitation policies along the the Belt and Road have been implemented, which not only help the domestic industry to upgrade technology, but also reduce the threshold for domestic equipment to go to sea, providing stable policy support for the long-term development of the industry.

Domestic technology breaks through comprehensively, breaking the long-term monopoly of overseas brands

In the early years, the domestic high-end rotary drilling rig market was long monopolized by foreign brands such as Germany's Bao'e, and the core hydraulic components and key technologies of the power head were controlled by others. Nowadays, leading domestic enterprises continue to increase their research and development investment, achieving comprehensive breakthroughs in core technologies such as hard rock drilling, intelligent vertical adjustment, remote operation and maintenance, and pure electric drive. The overall performance, drilling accuracy, and equipment durability are all benchmarked against international first-line brands. At present, domestic drilling rigs have achieved large-scale domestic substitution of core components, completely solving the bottleneck problem. Whether it is conventional municipal pile foundations or high-risk conditions of deep pile hard rock, domestic equipment can be fully adapted, and the comprehensive performance fully meets various construction requirements.

The market pattern is highly concentrated, with local brands occupying an absolute dominant position

The concentration of the domestic rotary drilling rig market continues to rise, and industry resources are gathering towards leading domestic enterprises. Sany, XCMG, and Zoomlion, the three major local leaders, occupy nearly 70% of the domestic market share, while the market share of foreign brands continues to shrink. Compared to the high selling price, expensive maintenance costs, and lagging after-sales response of imported equipment, domestic drilling rigs have advantages such as high cost-effectiveness, full coverage of after-sales outlets, sufficient supply of accessories, and strong customization capabilities. Both large engineering contractors and small and medium-sized construction leasing enterprises give priority to purchasing domestic models, and local brands firmly establish their leading position in the domestic market.

The pace of going global continues to accelerate, with domestic drilling rigs seizing global market share

Relying on the mature domestic industrial chain and policy dividends, the export volume of domestically produced rotary drilling rigs has been increasing year after year, and they are exported to multiple regions such as Southeast Asia, the Middle East, Africa, and Latin America. Faced with complex geological formations and diverse construction conditions overseas, domestic equipment balances performance and cost, adapts to the needs of overseas infrastructure projects, and gradually replaces imported equipment from Japan, South Korea, Europe, and America. The industr