Motor Grader Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, 2021-2031

The Global Motor Grader Market is projected to expand from USD 4.56 Billion in 2025 to USD 6.21 Billion by 2031, reflecting a compound annual growth rate of 5.28%. Motor graders are heavy construction machines equipped with long blades designed to create flat surfaces during grading, a process critical for road maintenance and foundation preparation. The market is chiefly sustained by significant government funding for infrastructure development, particularly the extension of highway systems and rural road connectivity, which requires precise ground leveling. Furthermore, the rising need for effective haul road maintenance within the global mining industry drives the acquisition of this equipment, serving as a key growth factor distinct from technological advancements such as automation.

Despite this positive outlook, the market faces considerable obstacles due to high upfront capital requirements and ongoing operational expenses, which can hinder purchasing among smaller contractors in developing regions. Highlighting the recent uptake in demand, the Indian Construction Equipment Manufacturers Association (ICEMA) reported that the road construction equipment sector, which largely comprises motor graders, achieved sales of 6,571 units in the 2024 fiscal year, representing a significant 40 percent rise from the prior year.

Market Drivers

Increasing government spending on road and transportation networks serves as a major driver for the motor grader sector, as this machinery is essential for establishing the flat, sturdy base layers needed for highway growth. Public funds are increasingly allocated to upgrading aging logistics routes and creating new rural connections, sustaining the demand for precision grading tools for large earthmoving tasks. For example, the U.S. Department of Transportation announced in October 2024 via its 'U.S. DOT Announces More Than $4.2B for National Infrastructure Projects' release that over $4.2 billion was awarded for 44 key infrastructure initiatives, including major highway and bridge upgrades. Such significant financial support guarantees a consistent volume of road projects, encouraging contractors to modernize their fleets with effective grading equipment to satisfy strict schedules and quality benchmarks.

Concurrently, growth in the mining and quarrying industries provides a substantial boost to the market, with motor graders playing a pivotal role in maintaining haul roads to preserve the safety and lifespan of heavy mining trucks. As extraction operations ramp up to satisfy global mineral needs, the requirement for robust graders to remove debris and smooth uneven ground remains high to maximize efficiency. Caterpillar Inc.'s 'Fourth-Quarter and Full-Year 2023 Results' from February 2024 noted that full-year sales for its Resource Industries segment, which covers mining, reached $13.583 billion. This sector strength is reflected in the wider heavy machinery market; Komatsu Ltd. reported in its 'Consolidated Business Results for the Fiscal Year Ended March 31, 2024' release in April 2024 that sales in its Construction, Mining and Utility Equipment division rose by 9.7 percent to JPY 3.61 trillion.

Market Challenges

The substantial initial capital outlay and significant operating costs linked to motor graders present a major hurdle to market growth. These machines represent capital-intensive investments, and the increasing costs of new units, along with climbing fuel and maintenance charges, drastically raise the total cost of ownership. For small to medium-sized contracting firms with narrow profit margins, these financial pressures frequently make purchasing new equipment impossible. As a result, many construction companies are forced to postpone fleet updates or depend on rental options instead of committing to costly acquisitions, which directly limits new equipment sales and retards overall market expansion.

The effect of these financial constraints is visible in recent industry data reflecting a slowdown in demand. According to the Japan Construction Equipment Manufacturers Association (CEMA), the total shipment value of construction machinery fell by 19.7 percent in August 2024 compared to the same month the prior year. This steep decline highlights a widespread reluctance among contractors to invest in heavy machinery due to cost burdens, thereby restricting the widespread adoption of specialized machinery like motor graders in major global markets.

Market Trends

The incorporation of Precision Grading and 3D Machine Control Systems is transforming the motor grader sector by shifting operations from a reliance on manual skill to technology-enabled precision. Contractors are increasingly utilizing mastless Global Navigation Satellite System (GNSS) technology and automated blade controls to decrease rework and material waste on complicated infrastructure jobs. This technological advancement enables operators with different levels of experience to attain exact grade requirements more effectively, helping to mitigate the industry's persistent labor shortage. The growing adoption of these digital tools is clear in recent manufacturer data; Komatsu Ltd. reported in its 'From Vision to Value' release in February 2025 that the use of its Smart Construction 3D Machine Guidance system grew by 37.21 percent year-over-year in 2024, underscoring the rapid shift toward digitized earthmoving processes.

At the same time, the deployment of IoT-Enabled Telematics for Predictive Maintenance is emerging as a standard practice to maximize fleet uptime and lower the total cost of ownership. Modern motor graders are fitted with sophisticated sensors that continuously broadcast performance metrics, allowing fleet managers to identify mechanical irregularities before they develop into serious failures. This move from reactive repairs to data-driven preventive measures greatly improves asset durability and operational readiness in isolated mining and construction locations. The extent of this connectivity is growing quickly among leading OEMs; Caterpillar Inc.'s '2024 Annual Report' from March 2025 states that the company now utilizes data from over 1.5 million connected assets to streamline fleet management and enhance equipment reliability for its global clients.

Key Players Profiled in the Motor Grader Market

• CNH Industrial N.V.
• Caterpillar Inc.
• Deere & Company
• Komatsu Ltd.
• SANY HEAVY INDUSTRY CO., Ltd.
• Mitsubishi Heavy Industries, Ltd.
• Liugong Machinery Co., Ltd.
• Terex Corporation
• AB Volvo
• Mahindra & Mahindra Limited

Report Scope

In this report, the Global Motor Grader Market has been segmented into the following categories:

Motor Grader Market, by Product Type:

• Rigid Frame
• Articulated Frame

Motor Grader Market, by Capacity:

• Small Motor Graders
• Medium Motor Graders
• High Motor Graders

Motor Grader Market, by Application:

• Infrastructure
• Construction
• Mining
• Oil and Gas
• Others

Motor Grader Market, by Region:

• North America
• Europe
• Asia-Pacific
• South America
• Middle East & Africa

Competitive Landscape

Company Profiles: Detailed analysis of the major companies present in the Global Motor Grader Market.

Available Customization

The analyst offers customization according to your specific needs. The following customization options are available for the report:

• Detailed analysis and profiling of additional market players (up to five).

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