Road Construction Machinery Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 189.16 Billion |
| Market Size (2029) | USD 231.81 Billion |
| CAGR (2024 - 2029) | 4.15 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Road Construction Machinery Market Analysis
The Road Construction Machinery Market size is estimated at USD 189.16 billion in 2024, and is expected to reach USD 231.81 billion by 2029, growing at a CAGR of 4.15% during the forecast period (2024-2029).
The increase in road construction activity is expected to drive the demand for road construction machinery. Various government programs, such as stimulus packages and infrastructure developments, encouraged road construction equipment to drive market expansion between 2024 and 2029.
Over the long term, increasing investments in road projects, the launch of electric road construction machinery, and the replacement of older fleets by newer machines are creating demand in the construction equipment industry with a surge in sales of road construction machinery. However, the increasing demand for rental machinery services is expected to act as a restraint for the market's growth, as renting machinery is preferred by small and medium-scale companies to lessen the costs of labor, training, and equipment purchases.
Furthermore, digitalization, connectivity, and automation are driving market development forward, substantially impacting construction projects. Construction and construction materials companies are geared up to invest in new technologies to cope with the increasing demand for advanced construction machinery and replace the older ones with new or upgraded machinery fleets. Additionally, an increase in the number of favorable government policies aimed at encouraging the Public-Private Partnership (PPP) model is also expected to bode well for the growth of the road construction equipment market from 2024 to 2029.
Road Construction Machinery Market Trends
The Motor Graders Segment is Expected to Register the Fastest Growth Between 2024 and 2029
The road construction industry is a significant driver of demand for motor graders across the world, with major projects such as highways, airports, and public facilities requiring the use of these machines for grading and leveling roads and other surfaces.
The increasing trend toward urbanization also fuels demand for motor graders as developers seek to build and maintain better roads and transport networks in crowded city centers. As a result of the evident need for motor graders, multiple equipment manufacturers across the world have been introducing new products to cater to the market demand. For instance,
- In April 2023, Bell Equipment’s new range of motor graders, G140, was announced. This new equipment is well suited to all maintenance and light to medium construction tasks and is fitted with the ZF Ergopower transmission.
- In March 2023, Clairemont Equipment Company is set to broaden its operational reach by extending its Komatsu territory from San Diego to Los Angeles. This expansion positions the company as the designated sales and service provider for Komatsu construction equipment across the entirety of southern California, United States.
Moreover, developing nations are undertaking large-scale projects such as highway extensions and expressways to connect towns and villages. As a result, road construction equipment is expected to see a significant demand between 2024 and 2029. The increase in motor graders, backhoe loaders, and excavators count indicates the road construction equipment market's incremental growth.
- In September 2023, the Government of Germany announced an investment of EUR 269.6 billion (USD 299.6 billion) for the development of road transport infrastructure across the country.
Due to such aforementioned factors and the rise in construction and infrastructure development activities, this market segment is anticipated to witness a significant growth rate between 2024 and 2029.
Asia-Pacific is Anticipated to Capture a Major Market Share in the Market
Asia-Pacific is expected to play a significant role, followed by North America and Europe. Asia-Pacific is a significant market for road construction machinery, such as motor graders, compactors, road rollers, and pavers. India and China are some of the largest markets for road machinery in the world, contributing more than 25% of the worldwide road machinery sales, thus making Asia-Pacific the most lucrative market for road construction machinery.
The Indian government aims to elevate the country to a multi-trillion-dollar economy by 2026, with infrastructure development playing a pivotal role. The construction sector, constituting about 8% of India's GDP and being the second-largest employer, is poised for significant growth, offering over 50 million job opportunities. With an expected valuation of USD 1.4 trillion in the coming years, the construction segment presents unprecedented opportunities. For instance,
- In June 2022, the Minister of Road Transport and Highways inaugurated 15 projects related to national highways in Patna and Hajipur, Bihar, with a total investment of USD 1.7 billion.
- India allocated USD 2.67 billion to expand its national highway networks by 25000 kilometers under the PM GATI SHAKTI initiative in 2022.
- Similarly, China had set up a USD 74.69 billion infrastructure fund to spur infrastructure spending in 2022. These initiatives are anticipated to further boost the demand for road construction machinery in Asia-Pacific.
Furthermore, several players in the Asia-Pacific road construction machinery market are establishing various business strategies to enhance the market offering, and a few companies are introducing new products. For instance,
- In March 2023, Sandvik AB, a Sweden-based construction and mining equipment manufacturer, announced the establishment of a new production unit in Malaysia for manufacturing underground loaders and construction dump trucks. Equipment production is planned to begin in Q4 2023. The company set an annual manufacturing capacity that is planned to increase gradually to 300 loaders and dump trucks and 500 battery cages by 2030.
- In September 2023, SANY Group, a China-based industrial and construction equipment manufacturer, opened its subsidiary in Quezon City, Manila, Philippines.
Considering the aforementioned factors and product launches in major international markets, like India, China, Japan, Malaysia, and the Philippines, the Asia-Pacific road construction machinery market is expected to have steady growth during the study period.
Road Construction Machinery Industry Overview
The road construction machinery market is moderately fragmented. The market is characterized by the presence of several players who have secured long-term supply contracts with major infrastructure companies and government agencies. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions. For instance,
- In July 2023, Volvo Construction Equipment, a Sweden-based construction equipment manufacturer, announced a new dealership facility in the Malaysian state of Borneo to better serve customers. The Borneo VCE dealership is a sub-dealer of Volvo Construction Equipment Malaysia, and it will be responsible for sales of articulated haulers, compact excavators, compact wheel loaders, crawler excavators, wheel loaders, and wheeled excavators. It will provide total sales and service support to the company’s product line.
- In April 2023, Nasser Bin Khaled Heavy Equipment, a subsidiary of NBK Group, announced the supply of the latest machinery and equipment from the prominent brand “Hixen” by Shandong Hixen Machinery to the Qatari market. Hixen machinery mainly includes crawler excavators, wheel excavators, wheel loaders, backhoe loaders, and skid steer loaders.
- In February 2023, CASE Construction Equipment launched the new joystick levers for the 836C and 856C motor graders. The new joystick control delivers improved moldboard control, along with a range of steering upgrades, which are an addition to the grader's already great features.
Road Construction Machinery Market Leaders
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Caterpillar Inc.
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Komatsu Ltd.
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Volvo Construction Equipment
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Wirtgen Group
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Fayat Group
*Disclaimer: Major Players sorted in no particular order
Road Construction Machinery Market News
- March 2023: Liebherr International AG launched its new mid-size wheel loader Xpower with increased performance due to new lift arms, more engine power, and optimized travel drive. The vehicle is also installed with intelligent assistance systems to increase safety and comfort for the operator.
- September 2023: LiuGong introduced a new 21-tonne electric wheeled loader in Europe. The electric wheel loader is equipped with a 423kWh large-capacity lithium iron phosphate battery.
- January 2023: Tadano Limited, a Japanese-based construction crane manufacturer, announced a new TM-ZX1205HRS loader crane in Thailand. The crane is launched for construction, road transportation, and logistics applications in the country.
Road Construction Machinery Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Infrastructure Development and Highway Construction Activities to Drive the Market
4.2 Market Restraints
4.2.1 Lack of Skilled Labor May Hamper the Market Expansion
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market size Value in USD billion)
5.1 By Machine Type
5.1.1 Motor Graders
5.1.2 Road Roller
5.1.3 Wheel Loaders
5.1.4 Concrete Mixer
5.1.5 Others
5.2 By Geography
5.2.1 North America
5.2.1.1 United States
5.2.1.2 Canada
5.2.1.3 Rest of North America
5.2.2 Europe
5.2.2.1 Germany
5.2.2.2 United Kingdom
5.2.2.3 France
5.2.2.4 Rest of Europe
5.2.3 Asia-Pacific
5.2.3.1 India
5.2.3.2 China
5.2.3.3 Japan
5.2.3.4 South Korea
5.2.3.5 Rest of Asia-Pacific
5.2.4 Rest of the World
5.2.4.1 South America
5.2.4.2 Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles
6.2.1 Sany Heavy Industry Co. Ltd
6.2.2 Caterpillar Inc.
6.2.3 Palfinger AG
6.2.4 Terex Corporation
6.2.5 Liebherr-International AG
6.2.6 Deere & Company
6.2.7 Zoomlion Heavy Industry Science and Technology Co. Ltd
6.2.8 Komatsu Ltd
6.2.9 Wirtgen Group
6.2.10 Fayat Group
6.2.11 Wacker Neuson Group
6.2.12 Ammann Group
6.2.13 CNH Industrial
6.2.14 Volvo CE
6.2.15 Hitachi Sumitomo Heavy Industries Construction Cranes Co. Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Road Construction Machinery Industry Segmentation
Road construction machinery is a type of earth-moving equipment used for the excavation, compaction, and transportation of clay, debris, soil, or rock on road construction projects. Some pieces of road construction machinery like pavers and compactors are used to pave and compress the road surfaces. The term is also applicable to equipment like cement mixers and hot mix or batching plants used to process essential road construction materials, like concrete and tar, on-site.
The road construction equipment market has been segmented by machinery type and geography. By machinery type, the market is segmented into motor graders, road rollers, wheel loaders, concrete mixers, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World.
For each segment, the market size and forecast are made on the basis of value (USD).
| By Machine Type | |
| Motor Graders | |
| Road Roller | |
| Wheel Loaders | |
| Concrete Mixer | |
| Others |
| By Geography | |||||||
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Road Construction Machinery Market Research FAQs
How big is the Road Construction Machinery Market?
The Road Construction Machinery Market size is expected to reach USD 189.16 billion in 2024 and grow at a CAGR of 4.15% to reach USD 231.81 billion by 2029.
What is the current Road Construction Machinery Market size?
In 2024, the Road Construction Machinery Market size is expected to reach USD 189.16 billion.
Who are the key players in Road Construction Machinery Market?
Caterpillar Inc., Komatsu Ltd., Volvo Construction Equipment, Wirtgen Group and Fayat Group are the major companies operating in the Road Construction Machinery Market.
Which is the fastest growing region in Road Construction Machinery Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Road Construction Machinery Market?
In 2024, the Asia Pacific accounts for the largest market share in Road Construction Machinery Market.
What years does this Road Construction Machinery Market cover, and what was the market size in 2023?
In 2023, the Road Construction Machinery Market size was estimated at USD 181.31 billion. The report covers the Road Construction Machinery Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Road Construction Machinery Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Road Construction Machinery Industry Report
Statistics for the 2024 Road Construction Machinery market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Road Construction Machinery analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
