Motor Grader Market Expected to Reach $12.1 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Motor Grader Market," The Motor Grader Market was valued at $6.8 billion in 2021, and is estimated to reach $12.1 billion by 2031, growing at a CAGR of 5.9% from 2022 to 2031. 

The construction and mining industry is growing over years. For instance, the global construction industry has grown by about 10% since 2020 to 2021. This led to growth in the demand for heavy construction equipment for use at construction sites. In addition, the rental service of various heavy construction equipment is getting common over the years. These rental services include services for large, medium & small contracts. Moreover, taking motor graders along with other heavy construction equipment on rent helps in saving cost and helps in providing the timely application.

Moreover, there is a rise in infrastructure development in different countries such as China and India with rise in urbanization. The infrastructure development is responsible for development of new in new road and building projects. Furthermore, different key players are adopting different strategies for expansion of their product portfolio owing to developments in technology. With the adoption of such strategies, the key players are launching new construction equipment with new technologies which in turn is making the construction process smoother.  Thus, all such factors are expected to drive the growth of the motor graders market.  

The motor graders market is driven by increased private sector investment, real estate sector growth, improving economic situations, and residential and commercial infrastructure setup in emerging countries. In addition, the expansion of government infrastructure development projects and public-private partnerships for the construction of public infrastructure systems in countries such as the U.S., India and China, has aided the market growth and helped in expansion of motor grader market size. 

The U.S. government has made significant investments in the construction of roads, railway tracks, airports, and other infrastructure, which necessitates the employment of excavators, loaders, graders and other heavy equipment. For instance, in March 2021, the U.S. President introduced $2 trillion infrastructure plan, which includes transportation, broadband, electric grid and residential & commercial constructions. 

In addition, leading market players are doing motor grader market analysis and are focusing on manufacturing smart, internet-connected, fuel- and energy-efficient construction machinery, resulting in market development potential throughout the projection period. For instance, in March 2021, Doosan Infracore launched super large 100-ton excavator model. It uses smart power control and electronic integrated hydraulic system. It has in-house designed fuel optimization system, to improve fuel efficiency and deliver ideal job performance with loss-free power and speed. 

The major demand for motor grader was previously noticed in giant manufacturing regions, such as North America, Europe, Asia-Pacific, and South America, which are negatively affected by the spread of the coronavirus, thereby declining the demand for yarders. Further, potential impact of the lockdown is currently vague and financial recovery of companies is totally based on their cash reserves. Motor grader manufacturers can afford a full lockdown only for a few months, after which the players have to modify their investment plans.

For instance, various players in the market halted their production activities for several weeks to reduce their expenses. On the contrary, few players adopted employee lay-offs to sustain themselves during the COVID-19 health crisis. Motor grader manufacturers are expected to focus on protecting their workforce, operations, and supply chains to respond to immediate crises and find new ways of working after COVID-19. For instance, provision of sanitizers, maintaining social distancing, as well as ensuring the vaccination of every employee in the company are promoting the health & safety of the workforce.  

Further factors driving motor grader market growth include expansion of construction sector and increase in government investments in infrastructure projects all around the world, especially in the U.S., China, and India. For instance, in February 2022, the Indian Government announced 48,000 Cr under the Pradhan Mantri Awas Yojana, which aims to build 80 lakh residential houses. Similarly, In January 2022, the Chinese Government invested $471 billion for its infrastructure development projects, which include roads & highways, airports, railways, and high-tech industries.  Furthermore, growth in mining sectors in emerging countries in Asia-Pacific increased the demand for motor graders. For instance, in October 2021, the Australian Government approved third coal mine projects to create new coal pit. In addition, major companies in the construction equipment sector are focusing on manufacturing motor grader vehicles for construction and mining sectors. 

However, outbreak of COVID-19 has led to halt in construction and manufacturing activities across the globe. This, in turn, hindered the growth of the motor grader market for a very small period. Conversely, with the launch of vaccines and reduction in number of COVID-19 cases different industries are gradually resuming their regular manufacturing and services. This is leading to re-initiation of companies at their full-scale capacities, that helped the market to recover by end of 2021. 

Several players such as Caterpillar Inc., CNH Industrial N.V. and Deere & Company having significant motor grader market share are expanding their business worldwide, owing to augmented customer base, improved effective operations, expanded geographical reach, and developed product portfolio. In addition, many major players in the global motor grader industry are designing their products considering convenience factors to increase their sales. All such factors are expected to offer lucrative opportunities for the market. 

 Key Findings of The Study 

• The report provides an extensive analysis of the current and emerging global motor grader market trends and dynamics during the motor grader market forecast period. In addition, it offers motor grader market outlook.

• Depending on product type, the articulated frame segment was the largest revenue generator in 2021. 

• By capacity, the medium motor graders segment generated the highest revenue in 2021. 

• On the basis of application, the construction segment dominated the market in 2021.  

• Region wise, Asia-Pacific is anticipated to dominate the global motor grader market throughout the study period.