Market Trends of Road Construction Machinery Industry
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.
