Off-Highway Electric Vehicles Market Report: By Propulsion (HEV, BEV), Energy Storage (Lithium-ion, Lead-Acid), Energy Storage Capacity (<50 kWh, 50-200 kWh, >200 kWh), Power Output (<50 hp, 50-150 hp, 150-300 hp, >300 hp) – Recent Trends and Demand Analysis Through 2030

Market Overview

The global off-highway electric vehicles market size was estimated at $16,908.6 million in 2021, and it will advance at a CAGR of 21.5% during 2021–2030, primarily due to the rising demand for low-noise and emission-free machines.

The adoption of EVs is growing at a fast pace all over the world, and traditional automobiles are being phased out in an increasing number of countries. China, the European Union, and the U.S. collectively account for over 90% of the global EV sales; while Costa Rica and Colombia have lately established much-more-robust EV sales objectives. General Motors, BMW Group, Volkswagen AG, AB Volvo, Nissan, and Audi, among others, have vowed to invest a total of $150 billion in EV manufacturing and announced intentions to debut new EV models in the 2020s.

EVs are quiet, thus ideal for operation in densely populated regions, particularly in projects requiring midnight operations or operating in residential areas. Hence, digging or moving material from a house, school zone, or hospital becomes easier. For instance, 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 or causing substantial interruptions.

Demand for Electric Machinery Increasing Rapidly in Construction Sector

In 2021, construction applications accounted for over 46% of the revenue share. The utilizes 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. 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.

Major Opportunities Areas

• The electrification rate has been increasing in off-highway vehicles, including those used in the infrastructure sector. This is due to the necessary technologies becoming more mature and affordable, aided by their development and use in on-road vehicles. Several major OEMs are already producing a variety of electric vehicles for construction, mining, and agriculture. For instance, AB Volvo offers a selection of electric compact equipment, including the 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.
• Moreover, Wacker Neuson has an existing lineup of zero-emission machines, including two electric wheel loaders, two battery-powered rammers, and a dual-power excavator.
• Additionally, in September 2021, Sandvik launched electrification and technology solutions at MINExpo International 2021. The equipment is a battery-electric machine with autoswap capabilities, to minimize downtime, as well as the automation-ready technology. Therefore, the continuous technological advancements are expected to drive the market throughout the forecast period.

Stringent Emission Regulations Benefitting Off-Highway Electric Vehicle OEMs

In 2021, the HEV category dominated the market with more than 36% volume share. These types of vehicles are intended to enhance the use of the internal combustion engine by connecting it to an electric powertrain. Due to the stringent emission regulations imposed by government agencies, such as the European Commission and the U.S. EPA, the demand for hybrid-propulsion off-highway equipment is growing and driving manufacturers to develop more-environment-friendly off-road vehicles. Since 2017, off-highway vehicle manufacturers have been adopting a hybrid engine, a combination of the diesel–electric propulsion system.

APAC Generates Highest Revenue in Market

In 2021, APAC held the major revenue share, of around 37%, 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.

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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.

Market Players Involved in Product Launches to Gain Competitive Edge

The major trend being observed in the market is that the major companies are involved in product launches in order to stay ahead of their competitors. For instance:

• In January 2022, Volvo group launched an electric truck with a longer range in North America. This truck is an enhanced version of the Volvo VNR Electric, with up to 85% increased range and faster charging. This is a version of the class 8 electric truck, with an operational range of up to 440 km (275 miles) and increased energy storage of up to 565 kWh.
• In December 2021, XCMG launched its first plug-in double-drive hybrid crane, XCT25_ EV. It is a hybrid technology driven by electricity, can be fully charged in 1.5 hours, has an 800km range on a full tank, emits only 60 dB of noise.
• In March 2021, Hyundai Doosan Infracore Co. Ltd. launched a super-large 100-ton excavator model. The product applies the electronic-integrated hydraulic system and Smart Power Control and a fuel optimization system developed to increase fuel economy and provide optimal work performance with loss-free power and speed for harsh working conditions, such as in mines.

Key Players in Global Off-Highway Electric Vehicles Market Are:

• Hyundai Doosan Infracore Co. Ltd.
• AB Volvo
• Komatsu Ltd.
• Caterpillar Inc.
• J.C. Bamford Excavators Limited
• LIEBHERR-International Deutschland GmbH
• Sany Heavy Equipment International Holdings Company Limited
• Epiroc AB
• DEERE & COMPANY
• Hitachi Ltd.

The off-highway electric vehicles market report offers comprehensive market segmentation analysis along with market estimation for the period 2015–2030.

Based on Propulsion

• Hybrid Electric Vehicle (HEV)
• Battery Electric Vehicle (BEV)

Based on Energy Storage Type

• Lithium-Ion (Li-Ion)
• Lead–Acid

Based on Energy Storage Capacity

• <50 kWh
• 50–200 kWh
• >200 kWh

Based on Power Output

• <50 hp
• 50–150 hp
• 150–300 hp
• >300 hp

Based on Application

• Agriculture
• Construction
• Mining

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • Australia
  • South Korea
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa