Off-Highway Electric Vehicles Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Off-Highway Electric Vehicles Market Size

Off-Highway Electric Vehicles Market Trends & Growth Drivers

Focus of Construction Industry on Sustainability Is Key Trend

• The construction industry is rapidly transitioning to hybrid and electric solutions, driven by the strict emission regulations and high fuel costs.
• Apart from the government regulations the lower operating costs and reduced maintenance of electric machinery, federal and tax credits, carbon credits and offsets, and environmental, social, and governance (ESG) goals are behind this shift.
• Fuel is one of the largest operating expenses for construction equipment owners, and the cost of diesel has increased in recent years. Powering machines with electricity offers a lower-cost option as many machines can be recharged using the energy already provided by the grid.
• Moreover, the components and systems within electric construction equipment, such as the hydraulic systems, are advancing. In addition, off-highway electric construction equipment can help reduce the amount of maintenance required. This is because electric machines comprise more electronic components, which have fewer moving parts and thus, are at a lower danger of constant wear.
• Furthermore, to help those interested in purchasing off-highway electric construction equipment, several state and federal government organizations are offering tax credits. Moreover, the use of electrically powered equipment can help construction and other companies with carbon credits and offsets as well.
• Over the past few years, sustainability has become a stronger focus for many companies, including those in the construction industry. As part of this, several have set ESG goals to encourage themselves to achieve sustainability and other targets.
• In regard to this, many firms have set timelines in the coming years for reducing their carbon emissions by a certain percentage.

Rising Demand for Low-Noise Machines Drives Market

• Infrastructure is the backbone of economic development. All kinds of construction equipment emit substantial levels of GHGs, which spread across large distances.
• To make matters worse, various activities, such as land clearing, demolition, burning, and working with toxic materials, contribute to air pollution.
• According to the WHO, every year, an estimated 7 million people die as a result of air pollution around the world.
• As a result, by 2030, Ireland, Norway, and the Netherlands will all have banned the sale of gas and diesel automobiles.
• Over the next two decades, several additional countries will impose or seek to impose similar prohibitions.
• Globally, infrastructure development activities are responsible for 11% of the energy-related carbon emissions, so countries will, at some point, ban the sale of heavy equipment with diesel engines.
• The benefits of all-electric heavy equipment include reduced noise, zero emissions, reduced service time, and a lower total cost of ownership.
• Moreover, prolonged exposure to loud noises can cause temporary or permanent hearing loss, or tinnitus.
• It is estimated that over 500,000 contractors in the U.S. are exposed to dangerous levels of noise on a daily basis.
• Further, the noise impacts those who live and work around the construction sites.

Long Charging Time Restrains Advance of Market

• The adoption of electric off-highway vehicles leads to the loss of production as the majority of them require 4–8 hours for a full charge.
• As construction and mining companies work 8–16 hours a day, the amount of space available for charging electric off-highway vehicles is limited.
• For instance, the JCB 19C-1E electric mini excavator takes 12 hours to be fully charged with a 110-Volt charger and 8 hours with a 230-Volt charger.
• Moreover, with a 240-Volt charger, the Volvo ECR25 electric excavator takes 6 hours for a full charge, whereas the L25 electric wheel loader takes up to 12 hours.
• Moreover, with a 120-Volt charger, the former takes 6 hours and the latter takes 24 hours.
• Therefore, the long charging time is a major challenge for the electric off-highway vehicles industry.

Off-Highway Electric Vehicles Market Analysis

Propulsion Analysis

• BEV is the largest category, with an estimated 40% market share in 2024.
• This will be due to the stringent emission regulations and increasing demand for low or zero-emission vehicles.

The report covers the following propulsions:

• Hybrid Electric Vehicle (HEV) (Fastest-Growing Category)
• Battery Electric Vehicle (BEV) (Largest Category)
• Others

Energy Storage Type Analysis

• Li-Ion is the largest category in 2024, with an estimated market share of 45%.
• Furthermore, this category is expected to grow at the highest CAGR, of 26.8%, during the forecast period by 2030.
• This will mainly be due to the lower weight, longer life, better temperature tolerance, and consistent power output of such batteries.

The following energy storage types have been analyzed:

• Lithium-Ion (Li-Ion) (Largest and Fastest-Growing Category)
• Lead–Acid

Energy Storage Capacity Analysis

• <50 kWh is the largest category in 2024, and is expected to grow at the highest CAGR, of 27.0%, during the forecast period.
• These variants offer space and weight advantages, are cost-effective, can be maintained easily, and do not pose as severe safety concerns and higher-capacity batteries.

We have studied the following battery storage capacities:

• <50 kWh (Largest and Fastest-Growing Category)
• 50–200 kWh
• >200 kWh

Power Output Analysis

• <50 hp is the largest category in 2024, and the category is expected to grow at the highest CAGR, during the forecast period.
• This is because of the requirement for low power in specific applications, high energy and cost-efficiency and ease of maintenance of these motors, low weight and easy maneuverability of these vehicles, their low purchase prices, and versatility.

The following are the power output ratings considered:

• <50 hp (Largest Category)
• 50–150 hp
• 150–300 hp (Fastest-Growing Category)
• >300 hp

Application Analysis

• In 2024, construction applications account for highest volume share.
• The industry utilizes a variety of equipment, such as electric loaders and electric excavators.
• The rapid urbanization is leading to the increasing demand for houses, thus propelling residential development across the globe.
• As per a study done by Oxford University, between 2022 and 2037, the value of the construction work done globally will rise by more than USD 4 trillion.
• Additionally, electric machines can be easily used in indoor settings as they do not pose a ventilation problem, unlike ICE vehicles.
• Indoor projects can now benefit from the low noise and zero emission levels provided by electrically propelled construction equipment.

The report offers insights for the below-mentioned applications:

• Agriculture
• Construction (Largest and Fastest-Growing Category)
• Mining

Regional Analysis

APAC Registers Highest Sales in Market

In 2024, APAC holds the major volume share, of around 35%, in the market. This was due to China being a key manufacturer of construction machinery owing to the presence of several OEMs, including Sany Heavy Equipment International Holdings Company Limited, Toyota Industries Corporation, Northern Heavy Industries Group Co. Ltd., Komatsu Ltd., and Hitachi Ltd.; low raw material and labor costs, and availability of superior facilities.

Moreover, China has the largest off-highway electric vehicles market share in APAC owing to its position as the world leader in the electrification of on- and off-highway vehicles, as well as the abundance of charging infrastructure and easy availability of aftermarket services. The Chinese government's support for infrastructure projects, as well as the rising demand for electric trucks in Japan and South Korea, is an important market driver in the region.

North America will be the fastest-growing market during the forecast period, with a CAGR of 27.2%. The key factors propelling the growth of the off-highway electric vehicles industry are the strong need for the electrification of equipment for higher productivity, fuel efficiency, and convenience with a reduced carbon footprint. Furthermore, the emission norms supporting the EV industry would be a convincing factor for entities to adopt off-highway electric vehicles for construction, mining, and agricultural uses.

Additionally, the continuous R&D and technological advancements in Li-ion batteries have increased the performance and efficiency of electrical construction equipment, thus further boosting its usage. Furthermore, since running electric motors does not contribute to pollution, all-electric machines may benefit construction companies down the line by entitling them to the tax incentives offered on reducing emissions.

The following regions and countries are covered in the report:

• North America (Fastest-Growing Regional Market)
  • U.S. (Larger and Faster-Growing Country Market)
  • Canada
• Europe
  • Germany (Largest Country Market)
  • France
  • U.K. (Fastest-Growing Country Market)
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest Regional Market)
  • Japan
  • China (Largest and Fastest-Growing Country Market)
  • India
  • Australia
  • South Korea
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Fastest-Growing Country Market)
  • Mexico (Largest Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • Saudi Arabia
  • South Africa (Largest and Fastest-Growing Country Market)
  • Rest of MEA

Electric Off-Highway Vehicles Market Share

The off-highway electric vehicle market’s consolidation is credited to the presence of major players, who enjoy strong technical prowess and economies of scale. Both of these factors make it difficult for new and smaller players to find adequate penetration. Additionally, the larger players also have a wide customer reach via authorized dealerships, factory outlets, online platforms, and other distribution channels. Additionally, their long-standing presence in the market means customers know their brand and products well and are loyal to them.

Off-Highway Electric Vehicle Market News

• In June 2024, J.C. Bamford Excavators Limited started work on its new San Antonio, Texas, being developed at a cost of USD 500 million. The 720,000-square-feet (67,000 square meters) factory being developed on 400 acres, will initially manufacture aerial access equipment and Loadall telescopic handlers, with plans to expand into other product lines in the future. Production will begin in 2026.
• In May 2024, Volvo Construction Equipment unveiled a new lineup of electric machines, including the EWR150 Electric electric wheeled excavators and the L120 Electric wheel loaders and L90 Electric.
• In April 2024, Kumatsu Limited exhibited 2- and 2.5-ton electric mini-excavators, as well as a 3-ton PC33E-6 electric mini-excavator with cab at INTERMAT Paris.
• In April 2024, Hyundai Doosan Infracore Do. Ltd. exhibited the DL250-FCEV at the INTERMAT Paris. This excavator can run on both hydrogen fuel and pure battery power.