Market Trends of Road Construction Machinery Industry
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.
