Market Trends of Motor Graders Industry
This section covers the major market trends shaping the Motor Graders Market according to our research experts:
Government Spending on Infrastructure and Mining Activities Driving Demand
During the past few years, government spending on infrastructure and construction activities has been on the rise globally, especially in developing nations like India and China. The compact design of the grader is highly suitable for small to medium road projects in villages and cities, making it the most preferred choice of contractors for road projects like Pradhan Mantri Gram Sadak Yojna (PMGSY) schemes in developing countries like India.
For instance,
- The construction sector in India is expected to record a double-digit CAGR in FY 2022. In addition, the government announced INR 48,000 crore under the PM Awas Scheme, which may felicitate the construction of more than 80 lakh homes to provide affordable housing.
- Similarly, construction activity in China expanded by 8.1% Y-o-Y in 2021, increasing from 6.1% in 2020. In addition, China's Belt and Road Initiative project resulted in the country increasing its spending by USD 4 trillion projects since its introduction seven years back. Among these projects, 1,590 were net valued at over USD 1.9 trillion, which were BRI projects, while other 1,574 projects were summed up with a combined valuation of USD 2.1 trillion.
For the mining industry, the countries rich in mineral reservoirs are increasing their spending to meet the local and global demand. For instance,
- In New South Wales, Australia, the funding will be worth USD 705.3 million. The Federal government is pledging a further USD 1.06 billion for works in Western Australia and USD 37.4 million for the Northern Territory. The Australian Capital Territory will also receive USD 24.7 million for road development. This investment into the development of road infrastructure across the country is expected to boost the demand for motor graders in Australia.
- In 2021, CIL (Coal India Limited) sanctioned 32 upcoming coal mining projects worth INR 47,000 crore (USD 6.47 billion).
- In March 2020, the Indian government removed end-use restrictions for participating in coal mine auctions and opened the coal sector fully for commercial mining by domestic and global companies. With this step, the country is expecting to meet the demand for domestic mining of coal and export some portion of it. Though India has a huge coal reservoir, it imported coal to meet its domestic demand.
Asia-Pacific Remained the Largest Market
The Asia-Pacific region remained the largest market for motor graders market in 2021. This growth can be attributed to increasing construction activities in China and India, which are the fastest developing nations globally.
The governments in the region are spending heavily on developing world-class facilities like airports, sports complexes, hospitals, and the private sector activities in the construction of hotels, malls, etc., which are driving the demand for motor graders for leveling the soil so that the bitumen layer spreads uniformly throughout the surface and land grading.
Infrastructure spending by government and private players across the region witnessed a notable rise in the past few years, thereby offering several growth opportunities for construction equipment manufacturers, as the demand for construction equipment directly varies with the investments in infrastructure development.
Many major players in the region are spending heavily on the R&D of eco-friendly and technologically advanced motor graders to reduce the pollution in the region and enhance productivity in minimum time. For instance, in January 2020, Shandong Lingong Construction Machinery Co. Ltd (SDLG) announced the addition of its latest product, G9290, a heavy-duty motor grader. With a base operating weight of 22.9 ton and a 14' wide blade as standard, the impressive productivity of blade down force and blade pull makes the SDLG G9290 the best in its size class.
