This chapter introduces the international situation and trend of the construction machinery industry in 2018. Then it analyzes the construction machinery industry in China from these aspects that the scale of development，the situation of operation，the composition of industry，the level of technology and the existing issues. In addition，it summarizes the prospects and suggestions for development. After five years of industry development trough，under the push of supply-side structural reform，in the process of “The Belt and Road” construction，with the continuous efforts of the industry and enterprises for many years，the industry has ushered in a new substantial growth since 2017. Currently，the industry is in a period of development and transformation，so it is necessary to focus on the main problems facing the development：on the one hand，based on the industry，in-depth research and analysis of the actual situation，particularity and other personalized problems of the development of construction machinery industry，and on the other hand，fully integrate into the background and policies of the development of manufacturing industry. This chapter objectively analyzes the changes and evolution of China’s own market and the gap with the actual supply capacity of the construction machinery industry. Typical products such as earth moving machinery，industrial truck，tunneling and drilling machinery are selected to analyze the overall situation of the construction equipment industry in 2018.