Electric Off-Highway Equipment Market

Residential Construction Machines with Low Noise and No Emissions to Fuel Growth of Electric Off-Highway Equipment Market

Construction equipment powered by diesel is one of the major sources of noise in residential areas. This causes irritation, poor concentration, general fatigue, and hypertension among residents living near construction sites. Off-highway equipment emission and noise control regulations are constantly being updated. According to EU emission regulations NOx and particulate matter (PM) levels for off-highway vehicles have been reduced by nearly 95.7 % and 97.2 %, respectively, from Stage I to Stage V. Similarly, according to the US EPA standards, NOx and PM levels have decreased by approximately 95.6 % and 96.2 %, respectively, from Tier I to Tier IV. Countries such as China, Japan, South Korea, and India are expected to adhere to the same standards as the EU and the U.S.

Emissions from diesel-powered construction equipment are driving the development of initiatives and policies to reduce emissions in residential areas. For instance, Oslo's municipal corporation plans to use emission-free machinery on all public construction sites by 2025. As a result, the city municipal corporation is working on a number of initiatives under the 'What Can Be Run on Electric, Shall Be Run on Electric' plan, including setting minimum standards for bidders on contracts it puts out to tender in order to create a market for electrified construction equipment.

The city of London is testing NRMM initiatives to reduce emissions from construction equipment. The city governments of London and Paris are collaborating on the most ambitious plans and strategies to ban or drastically decrease all polluting automobiles in residential zones. This is expected to prompt other big cities across Europe to establish zero or ultra-low emission zones, accelerating the growth opportunities for the electric off-highway equipment market.

Increasing Government Investment to Fuel Construction Category in Electric Off-Highway Equipment

The construction segment generated the most revenue over the forecast period. Electric construction equipment such as loaders and excavators are included in this segment. One of the primary factors driving the segment's growth is increasing government investment in developing public infrastructure around the world. The construction industry is focusing on the electrification of smaller types of equipment. However, due to the lower power requirements, battery technology and electric propulsion are well-suited to smaller machines. Underground mining equipment electrification helps to reduce exhaust emissions and improve worker safety. Several major mining companies have begun to address the issue of electrification and diesel displacement. Agriculture is expected to grow during the forecast period. Electric agricultural equipment such as harvesters and tractors are included in this segment. Electrification of farming equipment can also help overcome labor challenges by allowing laborers to focus on other important tasks. Demand for hybrid and electric tractors and other farm equipment is expected to rise over the forecast period.

Growing Environmental Protection Measures in North America to Drive Growth Electric Off-Highway Equipment Market

The North American market, particularly the US, is expected to be the largest in terms of market share over the forecast period. The area holds a dominant share in the forecast era due to the presence of key companies such as Caterpillar, Deere & Company, and CNH Industrial N.V. The North American construction industry is expanding, which is affecting the region's demand for off-highway electric equipment. Consumers have begun to embrace new farm machinery and advanced agricultural processes in order to achieve higher yields in this region. As a result, the demand for electric-off-highway equipment is expected to rise over the forecasted time frame.

The growth of the U.S. electric off-highway equipment market is primarily driven by environmental protection measures, with the country's upcoming stringent emission norms for fuel economy, and local companies are attempting to manufacture hybrid and electric equipment for the domestic market. Major electric off-highway equipment providers' presence in the U.S., as well as increased investments in electric off-highway vehicles, subsystems, and battery development, are expected to drive the electric off-highway equipment market growth during the forecast period. Companies like Caterpillar, which are developing advanced solid-state battery technology with the goal of reducing the drawbacks of conventional battery types in electric loaders and excavators, are expected to drive the growth of electric off-highway vehicles in the US. For instance, in June 2021, Caterpillar Inc. and Nouveau Monde Graphite Inc. announced a strategic partnership. Caterpillar Inc. planned to develop, test, and build Cat zero-emission machines for the Matawinie graphite mine as part of this agreement.

Moreover, the Asia Pacific electric off-highway equipment market is expected to grow at the fastest rate during the forecast period. Countries such as India and China outperformed due to increased infrastructure investment in 2020. China is a key contributor to construction equipment makers due to the availability of various OEMs, cheap labor costs, low production costs, and superior manufacturing facilities. The Chinese government is promoting the use of electric automobiles. The country has already begun to phase out diesel fuel, which is used to power today's tractors and construction equipment. By 2040, the country intends to totally outlaw diesel and gasoline automobiles. Agricultural machinery electrification is also gaining traction in the country. In June 2020, the National Institute of Agro-machinery, Innovation, and Creation (CHIAIC) in Luoyang, China, announced the release of the ET504H tractor, the world's first hydrogen fuel-cell electric tractor. All of these factors are expected to create a positive space for electric off-highway equipment market.

Global Electric Off-Highway Equipment Market: Competitive Landscape

Companies in the global electric off-highway equipment market are introducing new products alongside initiation collaborations, alliances and partnership agreements. For instance, in February 2022, Case Construction Equipment, a CNH Industrial N.V. trademark, displayed a compact excavator with a 16 kW electric motor called the Case CX15 EV. On the other hand, in July 2021, Komatsu Ltd. announced the introduction of a remote-controlled, all-electric (non-hydraulic drive) mini excavator. It's a fully electric 3-ton excavator with a lithium-ion battery.

A few of the players in the electric off-highway equipment market include Caterpillar (US), Komatsu Ltd. (Japan), Epiroc (Sweden), Hitachi Construction Machinery (Japan), Volvo Construction Equipment (Volvo CE) (Sweden), and Sandvik (Sweden).

Regional Classification of the Global Electric Off-Highway Equipment Market is Listed Below:

North America

• U.S.
• Canada

Europe

• Germany
• France
• Spain
• U.K.
• Italy
• Russia
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Southeast Asia
• Rest of Asia Pacific

 Latin America

• Brazil
• Mexico
• Rest of Latin America

Middle East and Africa

• GCC
• South Africa
• Rest of Middle East & Africa

*Regions and countries are subject to change based on data availability.

Key Elements Included In The Study: Global Electric Off-Highway Equipment Market

• Electric Off-Highway Equipment Market by Product/Technology/Grade, Application/End-user, and Region
• Executive Summary (Opportunity Analysis and Key Trends)
• Historical Market Size and Estimates, Value and Volume, 2018 - 2022
• Volume Consumption at Regional and Country Level, 2023 - 2030
• Market Dynamics and Economic Overview
• Market Size in Value and Volume, Growth Rates, and Forecast Figures, 2023 - 2030
• Competitive Intelligence with Financials, Key Developments, and Portfolio of Leading Companies 
• Regional and Product/Grade/Application/End-user Price Trends Analysis
• Value Chain and Five Force’s Analysis
• Regional/Sub-region/Country Market Size and Trend Analysis
• Company Market Share Analysis and Key Player Profiles

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