Market forecast
According to research completed by Persistence Market Research, the global motor grader market is set to experience high growth in the coming years. The market for motor graders is expected to grow from its current worth of $4.1 billion to a high of $5.8 billion by 2031. This represents a compound annual growth or CAGR of around 5% during this period.
Reasons for the growth of the motor grader market
This market is set to experience high growth in the coming years and this has been popularly attributed to infrastructure projects that are currently underway in different parts of the world. These projects are mostly underway in the construction and mining sectors. Both these sectors tend to rely heavily on motor graders to ensure the roads are built and maintained while adhering to standards of the highest quality.
So, the current market will continue to grow steadily as the demand for road construction and maintenance increases with increased infrastructure spending by governments all over the world.
Motor graders, also known as road graders are important because their role is indispensable in construction and mining projects as far as grading roads and leveling surfaces are concerned. They are also essential for preparing the ground for paving. Hence, due to the increase in infrastructure spending all over the world, the market will continue to grow. With the need for growing road development and urban expansion, the market will witness steady growth.
Here is a brief look at the different reasons why the market is enjoying a high growth rate.
Urban expansion and increasing infrastructure spending
The demand for improved infrastructure continues to increase. This is especially true for emerging economies that are now forced to increase their infrastructure spending in a bid to attract investments and support economic growth. Governments and private sectors have started to invest heavily in this direction to ensure highways and roads are built.
When it comes to building roads and urbanization, the motor graders have an important role to play. From leveling the surfaces to grading, they play a crucial role that makes them an integral part of road construction and maintenance projects.
Technological advancement is increasing the demand
The modern motor graders have continued to incorporate major technological innovations. As of now, the current motor graders come with improved technological features ranging from GPS to telematics and automated controls. All these features serve to improve efficiency and precision. This way they continue to fuel the economy.
These modern innovations have allowed motor graders to enhance performance and reduce operator fatigue. This way they boost productivity which makes them a valuable requirement to road contractors and construction companies.
Countries looking for efficient road solutions
Currently, there is a growing focus on benefiting from efficient and cost-effective road maintenance solutions. This is especially true when it comes to building extensive road networks. Motor graders are the prime equipment offering road contractors the precision and versatility that is required to ensure the success of grading operations. This feature enables the contractors to build and maintain roads in optimal conditions.
With road construction activities gaining momentum globally, the demand for this equipment will continue to rise in the coming years.
Challenges faced by the motor grader market
Despite the many benefits of these equipment and the benefits of using them, the motor grader market will be facing some challenges. Here is a brief look at these issues.
Shortage of skilled operators
Operating motor graders require a significant number of skills. A shortage faced by the industry in this regard poses a challenge for the motor grader market. The shortage of qualified operators to run motor graders must be addressed. There have been notable technological advancements that make the use of motor graders easy but nevertheless operators are still needed to run the machine.
To benefit the most from motor graders, experienced operators would be required. The current shortage of skilled operators limits the market’s potential to grow.
Regulations and environmental concerns
There are many environmental concerns that have been raised by activists over the course of the past few years. This includes calls to go green. Manufacturers face increasing pressure to come up with environment-friendly equipment. Some of the concerns that have been raised relate to emissions. Emissions occur from diesel-powered motor graders. Such calls have prompted stricter regulations. There has been a shift toward adopting more sustainable equipment.
Overall, this has made manufacturers increasingly turn towards green solutions with some of the top motor grader brands working to develop sustainable equipment. Due to the high pressure on them, the manufacturers are increasingly opting to figure out innovative solutions, such as developing electric or hybrid motor graders. This is not only meant to meet the regulatory standards but also to boost their public image by demonstrating them as being committed to the environment.
The impact of such activities would be an increase in development costs. This may delay market adoption and thereby affect the market growth of motor graders.
A high initial investment is required while maintenance costs are also expensive
Motor graders require a high upfront cost which coupled with maintenance expenses can exacerbate the problem. This can be a potential barrier to market growth and is especially the case for small to medium-sized enterprises. The cost of buying this equipment may turn away buyers. This is most likely to be the case in regions where the capital invested in infrastructure development is low.
Last word
The motor grader market with an expected CAGR of 5% in the coming years presents significant growth opportunities. This market is being primarily led by an increase in demand for infrastructure developments and technological innovations. The shift towards green practices is also driving the market.
With construction activities including building roads continuing to increase, the motor grader industry will remain important to the growth of the heavy equipment industry as well as the construction sector. The motor grader industry is expected to grow with a focus on improving efficiency and productivity while adopting sustainable practices. This means the motor graders will remain an integral part of modern construction projects.
