Motor Graders Market by Product, End-user and Geography - Forecast and Analysis 2023-2027

Motor Graders Market Forecast 2023-2027

The Global Motor Graders Market is estimated to grow by USD 935.53 million at a CAGR of 3.57% between 2022 and 2027. The expansion of the market hinges on various factors, notably the operational advantages offered by motor graders, technological innovations within the motor grader sector, and the increasing requirements from the construction industry. However, challenges arise from uncertainties prevailing in the construction sector, the rising trend of rented motor graders, and the shortage of proficient and certified operators. They play a crucial role in various sectors such as construction, mining, and road maintenance, efficiently executing tasks like grading, leveling, and earthmoving.

Motor graders, in particular, are indispensable for achieving precise grades and smooth surfaces, thereby diminishing the necessity for rework and augmenting overall productivity. Moreover, their versatility and capability to navigate different types of terrain render them invaluable in a multitude of applications, further bolstering market expansion.

What will be the Size of the Motor Graders Market During the Forecast Period?

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Market Segmentation

This report extensively covers market segmentation by Product (MS motor graders, lS motor graders, and SS motor graders), End-user (construction, mining, and others), and Geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

Product Segment Analysis:

The market share growth by the MS motor graders segment will be significant during the forecast period. The MS motor graders segment was valued at USD 2.03 billion in 2017 and continued to grow by 2023. MS motor graders range from 150-175 horsepower. They generally weigh between about 30,000 and 36,000 lbs. MS motor graders models developed by different manufacturers include Case 865, Caterpillar 140H or 143H, John Deere 670 or 672, Volvo 710 or 720, and Komatsu GD655 Laterra. MS motor graders have the weight and power to operate on construction sites. They have applications in various jobs performed by grading contractors, such as fine grading and applications that require an increased amount of power, such as spreading stone for a road base or digging ditches along roadsides.

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Globally, rapid urbanization increases construction and infrastructure activities, thereby resulting in the development of highways, roads, and ports. This growth is also likely to be influenced by increased housing starts and a rise in infrastructure due to the growth of the global population. As a majority of these construction activities need MS motor graders, the demand is likely to increase during the forecast period.

End User Analysis

The demand for construction motor graders is growing due to the increasing investment in infrastructure projects across the world. For instance, China invested around USD13.1 billion in the development and construction of the Beijing International Airport, which is designed to handle about 45 million people annually by 2019 and 72 million passengers by 2025. In July 2019, the Government of India, in its FY2019 budget, announced significant funds for several infrastructure development projects in the country, including industrial corridors, Dedicated Freight Corridor (DFC), Bharatmala Pariyojana, the Sagarmala Programme, and the UDAN schemes that focus on improving connectivity. Governments across the world are investing significantly in the development of sports infrastructure and facilities. The 2020 Olympics in Tokyo (Japan) and the 2022 FIFA World Cup to be held in Qatar have increased construction spending in the Asian and Middle Eastern regions. The spending on such capital-intensive projects and infrastructure development is expected to grow significantly in the next decade, which will augment the growth of the global market during the forecast period.

Regional Analysis

APAC is estimated to contribute 61% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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APAC constitutes the largest share of the global market. It is attributed to the rising infrastructural and residential construction activity in the region. The exponential population growth in APAC has led to an increase in demand for new residential houses. In addition, overpopulation in urban areas and increasing CO2 footprint in the region have increased the need for smart and sustainable infrastructure solutions. As a result, various enterprises in APAC are investing in the construction of residential buildings. Such new infrastructural development projects are likely to fuel the demand, which would subsequently drive the growth of the market in the region during the forecast period.

Technavio’s Exclusive Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Market Customer Landscape

Market Dynamics and Customer Landscape

The market is experiencing significant growth due to the expansion of the construction sector globally. With the increase in infrastructure development projects, the demand for motor graders has surged, particularly in emerging economies. Technological advancements from companies like Advantech have further propelled market growth, with innovations enhancing accuracy, efficiency, and energy performance.

Economic stability, government initiatives for infrastructure development, and private sector investments are driving the demand for motor graders. These machines play a crucial role in creating smooth surfaces on roads, highways, and construction sites, contributing to urbanization and economic growth. Additionally, the market is witnessing a shift towards environmental sustainability, with manufacturers focusing on integrating energy-efficient technologies and environmentally friendly features into motor graders to meet evolving regulatory standards and consumer preferences.

Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The operational benefits offered are pivotal in driving the growth of the market. These machines play a crucial role in various sectors, such as construction, mining, and road maintenance by efficiently performing tasks like grading, leveling, and earthmoving. Motor graders are essential for achieving precise grades and smooth surfaces, reducing the need for rework and enhancing overall productivity. Additionally, their versatility and ability to handle different types of terrain make them indispensable in various applications, further contributing to market growth.

Furthermore, advancements in technology, such as those introduced by companies like Advantech, have significantly enhanced the efficiency and accuracy of motor graders, making them even more attractive to industries seeking improved performance and cost-effectiveness. As infrastructure development projects continue to proliferate globally and the demand for efficient earthmoving equipment rises, the market is expected to witness sustained growth driven by their operational benefits and technological advancements.

Significant Market Trend

The integration of IoT and analytics in the construction industry is the primary trend for market growth.  The applications of IoT are limited in the construction business. The growing trend of the IoT will have sensors connected to all construction equipment. This integration of IoT will make construction sites as efficient as factory floors. These sensors will help to capture data for all activities. Data analytics has made decision-making easy. Microsoft Business Intelligence is a good example of how data analytics is commonly available. Companies can use this tool to represent their data sets as visualizations, stories, and reports. In the construction industry, data analytics will increase the efficiencies of operations in companies.

Artificial learning is increasingly being adopted in the construction industry. The ability of computers to learn and detect patterns is growing. Machine learning has an impact on construction project planning, fleet management, and structural damage assessment. R&D will make AI as easy to use as an iPhone. Therefore, the introduction of IoT and analytics in the construction industry is expected to increase the efficiency and productivity of work. Therefore, during the forecast period, an increasing number of companies are estimated to use robots in the manufacturing process.

Major Market Challenge

The uncertainty in the construction industry will be a major challenge impeding the market growth. Major construction companies have reduced their investments in new projects due to declining commodity prices. The COVID-19 pandemic resulted in a considerable decline in demand for house and commercial facilities such as hotels, lodges, and business parks, which led to a decrease in CAPEX by the construction company.

Furthermore, the slowdown in construction activity in H1 2020 drastically increased the price of construction materials. In addition, operational costs related to construction activities, such as labor, energy, and equipment, have increased drastically. This resulted in reduced revenues and profits for construction companies. The high operation cost has drastically impacted the profitability of construction companies. All these factors are expected to negatively impact the growth of the global market during the forecast period.

Who are the Major Motor Graders Market Players?

Market players are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Ae-cranes - The company offers water-cooled oxygen lances, carbon, and lime injection lances, oxy gas burners, and lances. Also, The company offers a wide range of products, such as blast furnaces, oxygen furnaces, electric arc furnaces, and many others.

Bemlindia- The company offers range of melting units high impedance AC electric arc furnaces. This organization is also involved in the manufacturing of value-added finished steel products.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market players, including:

• AB Volvo
• Action Construction Equipment Ltd.
• BEML Ltd.
• Caterpillar Inc.
• China National Machinery Industry Corp. Ltd.
• CNH Industrial NV
• Deere and Co.
• Guangxi LiuGong Machinery Co. Ltd.
• Hidromek
• J C Bamford Excavators Ltd.
• Komatsu Mining Corp.
• Mahindra and Mahindra Ltd.
• SANY Group
• Shandong Heavy Industry Group Co. Ltd.
• Singapore Technologies Engineering Ltd.
• Terex Corp.
• Veekmas Oy
• XCMG Group
• Xiamen Topway Machinery Co. Ltd.
• Xiamen XGMA Machinery Co. Ltd.

The report offers clients a deeper understanding of the market and its players through a combined qualitative and quantitative analysis of the vendors. The analysis classifies vendors into categories based on their business approach, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak to understand the dos and don’ts of business, which in turn can help a client make the best decision.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• Product Outlook 
  • MS motor graders
  • LS motor graders
  • SS motor graders

• End-User Outlook
  • Construction
  • Mining
  • Others

• Region Outlook 
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • South America
    • Chile
    • Argentina
    • Brazil
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

Market Analyst Overview

The market is witnessing significant growth driven by various factors, including technological advancements, increasing demand from the construction and mining industries, and government infrastructure development projects. Motor graders play a crucial role in maintaining and leveling earth surfaces, particularly in construction sites, dirt and gravel roads, and mining operations. With the rise in manufacturing activities and the expansion of the real estate sector, the demand for heavy construction equipment like motor graders is on the rise. Advantech, a key player in the market, continues to innovate with product launches and upgrades, ensuring enhanced accuracy, energy efficiency, and flexibility in grading processes. Additionally, factors such as dust control systems, blade lengths, and engine capacity contribute to the efficiency and performance of motor graders in various applications, from road construction to oil & gas sites.

The market thrives in the construction and mining industries, catering to infrastructure plans of various sizes, such as small, medium, and large motor graders. They effectively level flat surfaces, including gravel and dirt roads, using an articulated frame and rigid frame designs. These heavy earthmoving equipment ensure smooth surfaces for residential and commercial infrastructure setup. Economic situations and private sector investments impact the market's growth, influencing product upgrades and maintenance. Dump trucks, loaders, and bulldozers complement motor graders, enhancing efficiency in construction sites. With continuous advancements, the market adapts to evolving needs, from snow clearing to maintaining soil foundations.

Motor Graders Market Scope
Report Coverage	Details
Page number	166
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 3.57%
Market growth 2023-2027	USD 935.53 million
Market structure	Fragmented
YoY growth 2022-2023(%)	1.69
Regional analysis	APAC, North America, Europe, South America, and Middle East and Africa
Performing market contribution	APAC at 61%
Key countries	US, China, India, Germany, and UK
Competitive landscape	Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks
Key companies profiled	AB Volvo, Action Construction Equipment Ltd., BEML Ltd., Caterpillar Inc., China National Machinery Industry Corp. Ltd., CNH Industrial NV, Deere and Co., Guangxi LiuGong Machinery Co. Ltd., Hidromek, J C Bamford Excavators Ltd., Komatsu Mining Corp., Mahindra and Mahindra Ltd., SANY Group, Shandong Heavy Industry Group Co. Ltd., Singapore Technologies Engineering Ltd., Terex Corp., Veekmas Oy, XCMG Group, Xiamen Topway Machinery Co. Ltd., and Xiamen XGMA Machinery Co. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this Motor Graders Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the motor graders market between 2023 and 2027
• Precise estimation of the size of the motor graders market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive analysis of factors that will challenge the growth of motor graders market vendors

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