Graders Market

Graders Market Outlook (2022-2032)

Global sales of graders are currently valued at US$ 4.27 billion, and the market is forecast to close in on a valuation of US$ 5.6 billion by 2032, expanding a CAGR of 2.7%.

Report Attributes	Details
Graders Market Size (2021A)	US$ 4.17 Billion
Estimated Market Value (2022E)	US$ 4.27 Billion
Forecasted Market Value (2032F)	US$ 5.6 Billion
Global Market Growth Rate (2022-2032)	2.7% CAGR
North America Market Share (2021)	27%
North America Growth Rate (2022-2032)	2.7% CAGR
United States Growth Rate (2022-2032)	2.9% CAGR
Market Share of Top 5 Companies	22%
Key Companies Profiled	Caterpillar Inc. Deere and Company CNH Industrial N.V. Komatsu Ltd. Terex Corporation Volvo Construction Equipment and Services, Inc. Guangxi LiuGong Machinery Co. Ltd. Sany Group Co. Ltd. XCMG Construction Machinery Co. Ltd. Lonking Holdings Limited Shantui Construction Machinery Co. Ltd.

The graders market is likely to grow steadily as they are versatile machines used for the grading and levelling of land surfaces. Graders find application in several sectors such as mining, landscaping, construction, etc.

Revenue from the sales of graders accounted for 3.1% share of the global construction equipment industry in 2021. The global graders market is likely to create absolute opportunity worth US$ 1.33 billion during 2022-2032.

Sales Analysis of Graders (2017-2021) in Comparison to Market Growth Forecasts (2022-2032)

Graders are construction machines used to create flat surfaces and set pads for soil foundation before the construction of buildings. High number of infrastructure projects comprising construction of rail, roads, shopping centers, and commercial & residential complexes underway across countries is leading to enhanced demand for graders.

Manufacturers in the global graders market are focusing on providing advanced graders with added features such as large engines, anti-bounce systems, precise control technology, etc., which can help operators produce better results with minimum efforts.

They are also focusing on ease of operation, operator comfort, enhanced productivity with better outcomes, and at the same time, aiming to minimize costs.

• Short-run (2022 Q2 to 2025): Rising infrastructural and construction projects across will lead to enhanced demand for graders in the short term.
• Medium-run (2025-2028): In the medium term, demand is anticipated to grow due to the provision of advanced graders that are able to match the need of users in several applications, from construction to road maintenance.
• Long-run (2028-2032): The market is anticipated to witness moderate growth in the long term because of economies witnessing advancements in transportation infrastructure.

Fact.MR projects the graders market to exhibit growth at 2.7% CAGR during 2022 and 2032 in comparison to the CAGR of 1.6% from 2017 and 2021.

Image depicts market share analysis by base power, application, and region. Under base power, the above 200 HP segment dominated the market with 57.3% share in 2021.

Why is Demand for Graders Increasing Steadily?

“Increasing Road Infrastructural Development to Fuel Demand for Graders”

Transportation infrastructure plays an integral part in economic development as it controls exports and imports, thereby changing the appearance of developed and developing countries. Big infrastructural projects for the construction of railways, roads, ports, and bridges are in progress in developing countries to strengthen the backbone of transportation.

Graders are used extensively in road construction activities to make flat surfaces in the grading process before asphalt application. Furthermore, the availability of different sizes of grader blades allows the progression of construction work smoothly on even smaller roads.

These factors are likely to enhance grader demand by ~1/4 of current levels by the end of 2032.

“Versatility & Advancement in Grader Machines Driving Market Growth”

Several countries are focusing on developing new infrastructure or upgrading existing infrastructure. Graders are extremely beneficial to repair ditches formed between roads without blocking traffic.

Small optimized graders have smaller turning radiuses, enabling easy maneuvering in confined spaces, coupled with enabling easy logistics. In addition to this, advanced graders work with enhanced speed and efficiency, and are useful for road maintenance in crowded places.

This versatility and advancement in grader machines is likely to drive graders market growth by 1.2X over the assessment period.

Will Manufacturers of Graders Face Any Obstacles?

“Availability of Other Alternatives and High Equipment Cost to Hamper Market Expansion”

Graders have now become more efficient with developments in design and implementation of technology. However, there has been an increase in initial equipment and maintenance costs.

Also, the presence of other alternatives such as wheel loaders, which are equipped with grade blade attachments and come with low purchase and operating costs as compared to motor grader, can dent market expansion.

Consumers are easily attracted towards less costly alternatives, which is likely to hamper the sales of graders by 0.6X during the forecast years.

Region-wise Insights

Why are North America & Europe Prominent Markets for Graders?

The North America graders market accounts for the largest market share of 26.8% and is poised to register 2.7% CAGR during the forecast years.

The Europe graders market holds 23.1% market share and is projected to expand at 2.9% CAGR through 2032.

Rise in construction and infrastructural activities and steady growth in mining activities are driving the use of graders in the regions. Along with this, graders are also used for snow removal in both, residential and municipal spaces in these regions, thereby supporting demand growth for the future years.

Will Rising Construction Activities in Asia Pacific Benefit Grader manufacturers?

With all regions combined, the Asia Pacific graders market holds 42.1% market share. The East Asia and South Asia & Oceania graders market is expected to expand at 3.2% and 3.6% CAGRs, respectively, over the decade.

Infrastructural activities in Asia Pacific are rising, especially in emerging economies such as India and China, with high availability of raw materials, enhanced investments, easy implementation of technology, etc.

Augmented construction of highways, roads, bridges, and ports is paving the way for infrastructural transformation. On the back of rising infrastructure industry, sales of graders are set to rise steadily over the decade.

Category-wise Insights

Why are Above 200 HP Graders in Such High Demand?

The graders market, under base power, is segmented into up to 200 HP and above 200 HP. Above 200 HP graders dominate the market with 57.3% share, and the segment is projected to expand at 3.1% CAGR over the assessment period.

The market for above 200 HP graders is likely to gain traction owing to these offering better performance. Even manufacturers are focusing on improving horsepower ratings to drive overall sales of graders.

Which Application of Graders Will Drive Highest Revenue Generation?

Under application segment, the graders market is segmented into construction, mining, snow removal, and land grading and levelling. Amongst them, the construction sector leads the market with 41.2% share, and is poised to progress at 3.4% CAGR through 2032.

Rising construction industry coupled with governments across countries focusing on developing better transportation facilities is likely to create opportunities for suppliers of graders over the coming years.

Competitive Landscape: Top Companies in Graders Market

The global graders market is highly competitive and fragmented in nature as several local and international players operate in this space. Acquisitions, partnerships, collaborations, and new product development are being adopted as a strategic approach by companies to expand their market presence.

• In 2019, Komatsu Ltd. introduced the GD655-7 motor grader, which has low-effort based control levers, a steering wheel, a steering lever, and a comfortable cabin.
• In 2021, Deere and Company launched enhanced GP-Series motor graders. These come with technology innovations such as auto-shift PLUS, auto-pass, SmartGrade remote support, etc.

Fact.MR has provided detailed information about the price points of key manufacturers in the graders market positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Graders Industry Survey by Category

• Graders Market by Base Power :

  • Up to 200 HP Graders
  • Above 200 HP Graders

• Graders Market by Blade Pull :

  • Up to 15,000 lbs. Graders
  • Above 15,000 lbs. Graders

• Graders Market by Application :

  • Construction
  • Mining
  • Snow Removal
  • Land Grading and Levelling
  • Others

• Graders Market by Region :

  • North America Graders Market
  • Latin America Graders Market
  • Europe Graders Market
  • East Asia Graders Market
  • South Asia & Oceania Graders Market
  • MEA Graders Market