The increasing investments in electric off-highway vehicles, increasing number of partnerships and collaborations, and advancements in technologies are some of the factors driving the electric off-highway vehicle market. As a result, the market generated $6,399.5 million revenue in 2020 revenue.
In 2020, due to the COVID-19 pandemic, the global market faced a negative impact due to multiple lockdowns, affected import and export services, stoppage in the functioning of manufacturing facilities, reduced workforce, and other factors. The manufacturing industry was particularly badly hit, and it suffered a significant decline in product sales. However, the situation in many countries is better now, thus helping the manufacturing industry recover.
The market has been categorized into construction, agriculture, and mining, on the basis of application. In 2020, construction was the major category in the market. The rapid urbanization is causing an increase in the demand for housing and other infrastructure all over the world. Thus, construction activities are booming, which will continue to drive the growth of this category in the market.
The market is divided into lithium-ion (Li-Ion) battery and lead–acid battery, based on battery type. Of these, the Li-ion battery category dominated the market in 2020. Furthermore, the same category is projected to dominate the market in the forecast period because these batteries have a higher power-to-weight ratio, better energy efficiency, and a lower self-discharge rate.
Geographically, North America is expected to be the largest market for electric off-highway vehicles till 2030. This will primarily be because of the environmental protection initiatives implemented to control the carbon footprint of the construction industry. For instance, fifteen states and the District of Columbia have already pledged to have 100% of all new medium- and heavy-duty truck sales of emissions-free variants by 2050. Furthermore, electric off-highway vehicles, such as electric excavators, electric loaders, electric dozers, electric mining dump trucks, electric lawnmowers, and electric tractors, are in great demand to minimize pollution and noise.
The players in the electric off-highway vehicle market are involved in technological advancements. In March 2020, Komatsu unveiled a new electric mini excavator in Japan. The PC30E-5 provides excavation performance comparable to internal combustion engine models with a similar power output, while generating no emission and being significantly quiet.
In April 2019, AB Volvo announced that the deliveries of its full-electric compact equipment, including wheel loaders (L20 to L28) and compact excavators (EC15 to EC27), will begin in 2021. Additionally, for these models, the production of diesel engines will be discontinued.
The major players operating in the global electric off-highway vehicle market are 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.