US manufacturing giant Caterpillar says its digital strategy will help more Chinese customers unlock industrial productivity and efficiency through smart machines and devices.

Caterpillar China chairman Chen Qihua said China would continue to be one of the company's most significant markets as the age of smart machinery arrived.

"Our digital-driven strategy is a synergy with China's Belt and Road Initiative and Made in China 2025," he told a news conference.

Chen cited a project in Fujian where a smart solution had led to an increase in efficiency of construction of up to 80 percent.

Last year, Caterpillar announced its "Age of Smart Iron" digital technology strategy. It aims to leverage connected technologies and services to help its enterprise customers reduce costs, enhance efficiency and ensure onsite safety.

Currently, about 500,000 of its more than 3 million machines and engines in service around the world have become connected with each other, Chen said.

China's construction machinery segment, after a nearly five-year recession, started a recovery in its business cycle last September.

To meet growing demand, Caterpillar injected new capital in its Jiangsu unit in February to equip the local mini-excavator base with increased capacity.

The company also plans to introduce several new types of mini-excavators to the market this year, Chen said.

Chen predicted the construction machinery sector would continue the expansion in the second half of 2017, but the growth rate will start to slow down to a normal level as the effect of a low comparison base fades.