Road Construction Machinery Market Size
| Study Period | 2018 - 2028 |
| Base Year For Estimation | 2021 |
| CAGR | > 4.00 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | High |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Road Construction Machinery Market Analysis
The Road Construction Machinery Market was valued at USD 167.44 Billion in 2021 and is expected to reach USD 211.83 Billion by 2027, registering a CAGR of 4.05% during the forecast period , 2022-2027.
Road Manufacturing Machinery was affected very negatively during the COVID-19 pandemic because of subsequent market shutdowns, lockdowns, stoppage of construction activities, and trade restrictions during the COVID-19 in the year 2020. Furthermore, the fall in the announcement of new road projects and the lack of labor significantly impacted the market.
As road construction machinery manufacturers have resumed operations due to steadily rising road construction activities in countries with a limited number of COVID-19 cases in 2021, the market is likely to recover during the forecast market. The manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the construction equipment industry.
Over the long term, increasing investments in road projects, the launch of electric road construction machinery and replacement of older fleets by newer machines are creating demand in the construction equipmnet industry with a surge in sales of road construction machinery.
Key players in the market are new products to cater to the increased demand for road construction machinery. For instance, In September 2022, Dynapac, a Fayat Group company launched SD1800We, a fully electric paver designed to reduce emissions while working on projects located in inner areas of the cities. In August 2022, Vogele, a Wirtgen Group brand which is a subsidiary of John Deere announced to launch new Dash 5 generation of pavers and screeds at BAUMA 2022.
Asia-Pacific region expected to stand as significant region due to massive spending on road construction projects by the governments. Europe and North America likely to emerge as attractive destinations owing to better infrastructure such as houses, schools, hospitals, stadiums, government buildings, and airports. Additionally, an increase in the number of favorable government policies aimed to encourage the Public-Private Partnership (PPP) model is also expected to bode well for the growth of the construction equipment market over the forecast period.
Road Construction Machinery Market Trends
This section covers the major market trends shaping the Road Construction Machinery Market according to our research experts:
Growing Demand for Motor Graders and Compactors in the Market
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 during the forecast period. The increase in motor graders, backhoe loaders, and excavators count indicates the road construction equipment market's incremental growth.
Major Countries like the United States, China, and India are expected to invest USD 2.1 trillion, USD 1 trillion, and USD 1.4 trillion in mega infrastructure projects like Florida's I-4 Project and California's I-405 Widening Project, Belt and Road Initiative (BRI), and Bharatmala, etc. over a period of next five years.
Motor graders are used by many of large and smaller companies due to their higher usability. Road rollers and excavators accounted for over 30% of total sales of road equipment, and also, the market is expected to bounce back by 2022. While road rollers particularly road compaction equipment are incredibly versatile and used to improve the fit finish of the road projects by compressing the soil, thus experiencing growth. For instance, in China 4462 motor graders were sold in 2021 registering a growth of 4,7% over previuos year while India registerd around 1200 units of motor graders in 2021.
These equipment types will continue to see high demand in the road construction market for the forecasted period. Manufacturers are launching new models of motor graders and vibratory compactors in India and China to further cement their market positions in these countries and take benefit of growing infrastructure spend in these countries. For instance,
- In August 2021, Wirtgen Group india Pvt. Ltd. , a John Deere company launched HC119i range of vibratory soil compactors in India. These compactors are manufactured locally at Wirtgen Group's plant in Pune.
- In May 2022, Mahindra Construction Equipment Division , a part of Mahindra and Mahindra Ltd. launched their new family of motor graders named RoadMaster G75 Smart. This compact series of motor graders is specifically targeted at small contractors, who otherwise cannot afford to own regular motor graders.
Asia-Pacific Region Anticipated to Capture Major Market Share in the Market
The Asia -Pacific expected to play significant role followed by North America and Europe. Asia -Pacific is a huge market for road construction machinery, such as motor graders, compactors, and pavers. India and China are some of the largest markets for road machinery in the world which contribute to almost 25% of the worldwide road machinery sales thus making Asia-Pacific the most lucrative market for road construction machinery. For instance, 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 has 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.
Europe and North America are also major markets due to the large presence of road construction machinery OEMs and the undertaking of major infrastructure projects like California's I-5 North Road Corridor Project in the United States and the Aegean to Baltic Sea Connection project in the European Union which will further expand the road construction machinery sales in these geographies. Thus, with companies coming up with new innovations like electric road construction machinery, the market is expected to grow over the forecast period for the machinery segment. For instance, In July 2021, Dynapac, a Fayat Group company introduced CC900e, the world's first electric tandem vibratory roller in Sweden.
Road Construction Machinery Industry Overview
The road construction machinery market is highly consolidated. The market is characterized by the presence of considerably large 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.
Some of the major players dominating the global market are Caterpillar Inc, Komatsu Corp. Volvo Construction Equipment, Fayat Group ( BOMAG and Dynapac), and Wirtgen Group( HAMM, Vogele, Wirtgen, and Kleemann) which is a John deere company. Key players are launching new products to secure their market position and stay ahead of the market curve. For instance,
- In September 2022 Wirgen Group launched a new range of fully electric and hybrid tandem rollers which will significantly reduce the carbon footprint of the contractors using this equipment at BAUMA 2022.
- In September 2022 Ammann Group launched two new articulated tandem rollers ARX 140 and ARX 160 which offer better visibility to the operators.
Road Construction Machinery Market Leaders
Caterpillar Inc.
Komatsu Ltd.
Volvo Construction Equipment
Wirtgen Group
Dynapac
*Disclaimer: Major Players sorted in no particular order
Road Construction Machinery Market News
- In September 2022, Wirtgen Group introduced a new HAMM HX range of pivot steer tandem rollers featuring intelligent compaction technology under the name Smart Compact at BAUMA 2022.
- In June 2022, Ammann Group launched two new roller models ARS 30 and ARS 50. The new Ammann ARS 30 and ARS 50 single drum rollers utilise advanced technology, innovative engineering and robust engines to deliver high compaction output and are ideal for road construction businesses and rental fleets that need a small, durable and powerful product for success on a daily basis.
- In June 2022, Ammann Group introduced an advanced CCC (Continous Compaction Control) intelligent compaction system specifically designed for soil compaction and asphalt works.
- In January 2022, Case Construction, a subsidiary of CNH Industrial released two new variants of its E series single vibratory rollers named SV215E and SV217E. Both rollers operate at 154 horsepower and weigh in at 33,420 and 36,500 pounds, respectively, with centrifugal forces up to 73,063 and 74,861 pounds. Each model is also compatible with ACEforce intelligent compaction technology to further ensure compaction quality, documentation and productivity.
- In August 2021, Volvo Construction Equipment introduced P7920D ABG Tracked Paver and P5320D ABG, P8820D ABG and P4370D ABG wheeled paver as well as double drum DD90C & DD100C and single drum SD110C compactors in India. All these machines comply with the latest Stage IV emissions norms in India.
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
4.2 Market Restraints
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 & 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 Fayat Group
6.2.10 Wacker Neuson Group
6.2.11 Ammann Group
6.2.12 CNH Industrial
6.2.13 Volvo CE
6.2.14 Hitachi Sumitomo Heavy Industries Construction Cranes Co. Ltd.
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 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 global 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 Mixer 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 have be been done on basis of value (USD billion).
| By Machine Type | |
| Motor Graders | |
| Road Roller | |
| Wheel Loaders | |
| Concrete Mixer | |
| Others |
| By Geography | |||||||
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Road Construction Machinery Market Research FAQs
What is the current Road Construction Machinery Market size?
The Road Construction Machinery Market is projected to register a CAGR of greater than 4% during the forecast period (2023-2028).
Who are the key players in Road Construction Machinery Market?
Caterpillar Inc., Komatsu Ltd., Volvo Construction Equipment, Wirtgen Group and Dynapac 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 (2023-2028).
Which region has the biggest share in Road Construction Machinery Market?
In 2023, the Asia Pacific accounts for the largest market share in the Road Construction Machinery Market.
Road Construction Machinery Industry Report
Statistics for the 2023 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 to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
