Motor Grader Market by Product Type, Capacity, Application: Global Opportunity Analysis and Industry Forecast, 2021-2031

Executive Summary

The Motor Grader Market is likely to experience a significant growth rate of 5.9% from 2022-2031 owing to increasing market demand from construction sector.

Motor grader is a type of heavy construction equipment which is used for grading the earth surface. It could be useful for grading or levelling of construction site, oil & gas sites, mining operations and levelling infrastructural surface. In addition, it is used for maintenance of earth surface which includes cleaning and removal of dust, snow and others.

Motor grader, often known as road grader, is a construction equipment used in the grading process to level soil or surface. It has a long blade that aids in the development of a flat surface. It is commonly used in the construction sector to build and maintain dirt and gravel roads. It is used for a variety of tasks in the mining and construction industries, and they are equipped with a variety of equipment and is also used to prepare soil foundation before constructing any structures. Motor graders with engine capacity ranging from 60 kilowatts to 373 kilowatts and blade lengths ranging from 2.5 meters to 7.3 meters are available on the global market. It is increasingly being utilized to provide a smooth surface throughout the building process, in mining and construction sectors.

Motor graders are employed to complete or modify the grading process. While other construction vehicles or heavy equipment, such as bulldozers and scrapers perform the rough grading process efficiently, motor graders are utilized in the construction sector for maintenance & building of gravel and dirt roads. They are used to create large level areas on which bitumen can be laid during the building of paved roadways. It is employed to lay dirt foundations before the construction of a building or structure. In summary, motor graders are used in construction and mining to create level surfaces at the beginning or end of a road or site. Furthermore, road motor graders are used in the maintenance for grading, applying materials, and compacting of roads. It can perform cutting or scraping operations on snow-covered surfaces. It can remove pebbles and offer smooth surface roads.

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.

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 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.

However, construction, manufacturing, hotel, and tourism industries were majorly affected, during the outbreak of the COVID-19 pandemic. Manufacturing activities were halted or restricted. This led to decline in manufacturing of various equipment used for dust control systems as well as their demand in the market, thereby restraining the growth of the motor grader market. Conversely, industries are gradually resuming their regular manufacturing and services. This is expected to lead to re-initiation of dust control systems companies at their full-scale capacities, that helped the motor grader market to recover by end of 2021.

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.

In March 2021, XMCG, China's leading construction machinery manufacturer, delivered GR2605 graders to Rio Tinto, which is utilized in Western Australia in mining sector. In addition, in January 2021, Gmmco Ltd. and Caterpillar Inc. launched SEM 915, a new generation motor grader. It is equipped with 150 HP motor and offers improved reliability and reduced operating costs. Moreover, in November 2020, Caterpillar Inc. introduced Cat 120 next generation motor grader. It offers higher fuel efficiency and lowers operating and maintenance costs. Moreover, the construction and mining industry witnessed growth over the years. This led to growth in the demand of dump trucks, loaders and excavators. In addition, this equipment is used for the demolishing and the quarrying activities. Hence this is driving the demand for earthmoving equipment such as motor graders and excavators.

Furthermore, the rental service of earthmoving equipment is gaining popularity. These rental services include services for large, medium & small contracts as these help save the price and provide timely application. There is a rise in urbanization in different countries. This led to the rise in the infrastructure development. The infrastructure development is responsible for the development of different new projects. Furthermore, different key players are adopting different strategies for their market growth owing to developments in technology. These strategies are bringing new products and their use is increasing. The growing use is expected to offer lucrative opportunities for the growth of the market.

The motor grader market is segmented on the basis of product type, capacity, application and region. By product type, the motor grader market is fragmented into rigid frame and articulated frame. By capacity, the market is categorized into small motor graders, medium motor graders and large motor graders. By application, the market is divided into infrastructure, construction, mining, oil & gas and others.

By region, the motor grader market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, the UK, France, Italy, and rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

he major players profiled in the motor grader market report included are Advantech, AB Volvo, Calder Brothers Corporation, Caterpillar Inc., CNH Industrial N.V., Deere & Company, Guangxi Liugong Machinery Co., Ltd., KOMATSU Ltd, Leeboy, Sany Group Co Ltd, and Veekmas Oy.

Major companies in the market have adopted product launch, partnership, business expansion, and acquisition as their key developmental strategies to offer better products and services to customers in the motor grader market.

Key Market Insights

• By product type, the articulated frame segment was the highest revenue contributor to the market and is estimated to reach $8.9 billion by 2031, with a CAGR of 6.3%. However, the ceramic growlers segment is estimated to be the fastest-growing segment with a CAGR of 6.9% during the forecast period.
• By capacity, the medium motor graders segment dominated the global market. However, the small motor graders segment is expected to be the fastest-growing segment with a CAGR of 7.5% during the forecast period.
• Based on application, the construction segment was the highest revenue contributor to the market with a CAGR of 4.6% during the forecast period.
• Based on region, Asia-Pacific garnered the largest revenue share in 2020, whereas LAMEA is anticipated to grow at the highest CAGR of 13.0% during the forecast period

Companies Mentioned

• Deere & Company
• AB Volvo
• Calder Brothers Corporation
• Sany Group Co Ltd
• Guangxi Liugong Machinery Co., Ltd.
• Veekmas Oy
• Caterpillar Inc.
• CNH Industrial N.V
• leeboy
• KOMATSU Ltd

Methodology

The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.

They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.

They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:

• Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
• Scientific and technical writings for product information and related preemptions
• Regional government and statistical databases for macro analysis
• Authentic news articles and other related releases for market evaluation
• Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast

Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.