Publishing: October 2021 | Report Code: AT12210 | Available Format: PDF
The global electric off-highway vehicle market was valued at ~$7 billion in 2020. The growing stringency of emission norms all over the world has shifted the focus of automotive manufacturers from internal combustion engine (ICE) vehicles toward vehicles with alternative powertrains. Furthermore, the rising demand for low-noise and emission-free construction machines in residential areas is contributing to the electric off-highway vehicle market advance.
The COVID-19 pandemic impelled governments all across the world to enforce lockdowns in their respective countries, thus resulting in factories being partially or completely shut down. Export and manufacturing businesses were compelled to temporarily suspend operations. As a result, the manufacturing industry was hit hard and experienced a heavy downfall in revenue. However, the situation is now moving toward normalcy, as vaccination drives are at their peak all over the world.
Lithium-ion batteries are expected to witness the fastest growth in the electric off-highway vehicle market during the forecast period, based on battery type. Electric excavators, electric dozers, electric loaders, electric dump trucks, and electric motor graders are examples of construction equipment that is used to process heavy raw materials and for onsite transportation. The Li-ion battery technology is expected to witness the high adoption in these vehicles due to its high energy density and longer backup compared to other battery technologies. Moreover, Li-ion batteries increase the performance and efficiency of construction equipment, which is why the category’s share in the market will increase substantially during the forecast period.
In 2020, the construction category accounted for the majority share in the market, on the basis of application. The rapid urbanization is leading to the increasing demand for houses, thus propelling residential development across the globe. Additionally, electric machines can also be easily used in indoor construction jobs 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. For instance, in places where it used to take multiple laborers with smaller electric tools, an electric compact excavator or an electric loader can now dig or carry material indoors without polluting confined environments and causing substantial interruptions.
Geographically, North America was the largest market for electric off-highway vehicles in 2020. The key factors propelling the growth of the electric off-highway industry here are the rising need for the electrification of equipment for higher productivity, fuel efficiency, and convenience, with a reduced carbon footprint. Furthermore, emission norms and norms supporting the electric vehicle (EV) industry would be a strong factor for end users to adopt electric off-highway vehicles.
The adoption of electric off-highway vehicles is expected to be driven by the increasing demand for low-noise and emission-free machines, such as electric excavators, electric loaders, and electric dozers. In addition, the need to follow the strict emission requirements for a greener future has shifted automakers' attention to EVs. For instance, in the European Union (EU), Regulation 2019/1242, implemented in August 2019, sets the CO2 emission standards for heavy-duty vehicles. Thus, the shift to emission-free off-highway vehicles with the introduction of regulations related to vehicular emissions is a major trend being witnessed in the market.
The electrification rate in off-highway vehicles, including those used in the construction industry, has been increasing. This is due to the necessary technologies becoming more mature and affordable, aided by their development and use in on-road vehicles. Several major original equipment manufacturers (OEMs) are already producing a variety of electric construction vehicles. For instance, AB Volvo offers a selection of electric compact equipment, including ECR25 electric compact excavator and L25 electric compact wheel loader. In the ECR25, the batteries are paired with an electric motor, which powers the hydraulics and enables a full 8-hour workday on a single charge. Therefore, the continuous technological advancements are expected to drive the market for electric off-highway vehicles throughout the forecast period.
|Base Year (2020) Market Size||~$7 Billion|
|Report Coverage||Market Trends, Drivers, and Restraints, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Impact of COVID-19, Companies’ Strategic Developments, Market Share Analysis, Company Profiling|
|Market Size by Segments||By Battery Type; By Propulsion; By Application; By Region|
|Market Size of Geographies||U.S., Canada, Germany, France, Italy, Spain, U.K., Japan, China, India, Australia, South Korea, Brazil, Mexico, Saudi Arabia, South Africa|
|Secondary Sources and References (Partial List)||American Trucking Associations (ATA), Automotive Parts Manufacturers’ Association (APMA), Bureau of Transportation Statistics (BTS), China Association of Automobile Manufacturers (CAAM), Connected Vehicle Trade Association (CVTA), International Organization of Motor Vehicle Manufacturers (OICA), Society of Automotive Engineers (SAE)|
The global electric off-highway vehicle market is fragmented in nature with the presence of players such as Caterpillar Inc., Komatsu Ltd., AB Volvo, Deere & Company, Sandvik AB, Hitachi Construction Machinery Co. Ltd., Epiroc AB, Doosan Corporation, CNH Industrial N.V, and J C Bamford Excavators Ltd.
The electric off-highway vehicle market report offers comprehensive market segmentation analysis along with market estimation for the period 2015-2030.
Based on Battery Type
Based on Propulsion
Based on Application
Market Segment Analysis of Countries
The value of the global electric off-highway vehicle market was ~$7 billion in 2020.
The electric off-highway vehicle industry surged sharply in North America in 2020 because of the availability of advanced electric vehicle technology in the region.
The construction application category held the largest share in the electric off-highway vehicle industry in 2020.
The implementation of strict vehicular emission regulations in several countries is currently trending in the market for electric off-highway vehicles.
The market for electric off-highway vehicles is expanding because of the burgeoning requirement for emission-free and low-noise construction machines.
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