Electric Off-Highway Equipment Market Size & Share 2022 to 2028
Market Size by Type (Excavators, Loaders, Dump Trucks), by Propulsion (Electric, Hybrid Electric) & Forecast.
Report ID: GMI5261
|
Published Date: April 2022
|
Report Format: PDF
Download Free PDF
Authors:
Preeti Wadhwani, Aishvarya Ambekar
Electric Off-Highway Equipment Market Size
Electric Off-Highway Equipment Market size surpassed USD 1.5 billion in 2021 and is anticipated to grow at over 15% CAGR between 2022 and 2028. The rising consumer awareness regarding air pollution and high demand for low noise equipment will drive the industry growth.
Electric off-highway equipment is eco-friendly and requires low maintenance compared to its fuel-based counterparts, accelerating the market demand. Shifting construction companies focus toward sustainable operations will create a favorable environment for the electric off-highway equipment.
The electric off-highway equipment industry is benefiting from the increasing government initiatives for emission reduction. Various government organizations are focusing on reducing their carbon footprints to contribute to the establishment of a sustainable environment. For instance, the Europe commission has set a 2050 long-term strategy for greenhouse gas emission reduction. Through this strategy, by 2030 Europe will reduce 45% of its net emissions to achieve carbon neutrality.
The major factor boosting the adoption of electric off-highway equipment is the low maintenance cost of these machines. The rising fuel prices are compelling customers to switch to electric off-highway equipment. Industry participants are establishing strategic partnership to introduce new electric off-highway equipment.
The high market price of electric off-highway equipment is one of the key factors restraining its growth. These machines use expensive rechargeable lithium-ion batteries to deliver energy. The costliest component in each battery cell is the cathode, one of the two electrodes that stores and releases charge. The integration of innovative technologies and the high cost of batteries significantly add to the overall cost of the equipment. Market players are investing in R&D activities & innovations in battery technology to reduce the overall battery integration & maintenance costs.
The outbreak of COVID-19 pandemic disrupted the electric off-highway equipment market demand in 2020 and 2021. A slowdown in the industry is attributed to the government-imposed lockdown in several countries that resulted in disruptions in the supply chain of raw materials and shortage of labor. However, from mid-2021, the industry is witnessing high demand owing to significant government investments in infrastructure projects to revive the pandemic-affected economy. Moreover, electric off-highway equipment manufacturers are focusing on expanding their dealer network to achieve higher profitability from this potential market.
Electric Off-Highway Equipment Market Analysis
The excavators held more than 25% of the market share in 2021. Electric excavators’ robust digging efficiency and maneuverability over rough terrains are creating a positive market revenue. The maintenance cost of these electric excavators is low as compared to the conventional excavators due to reduced counterparts.
Manufacturers are focusing on the development of advanced electric excavators. For instance, in March 2022, Volvo launched ECR25 electric excavator in Asia with operating weight up to 2.7 tons. This electric excavator equipped with an integrated on-board charger allows customers to charge the battery from zero to 80% in under six hours. The development of advanced features in electric excavator by OEMs will foster the market growth for electric off-highway equipment.
Based on propulsion segment, the electric off-highway equipment market is expected to register a growth rate of nearly 25% through 2028. Companies are focusing on the development of technologically advanced off-highway equipment. The electric truck is equipped with autoswap capabilities and automation-ready technology. These dump trucks dissipate less heat and zero emission, making it suitable for working in underground mining facilities.
The industry leaders are highly emphasizing on improving the quality of their battery to enhance the equipment performance. Owing to this, battery manufacturers are investing in R&Ds as well as new plan construction to attract potential business clients. For instance, in April 2022, POSCO Chemical Co. commenced the construction of an EV & equipment battery material manufacturing plant in South Korea with the investment of USD 237.8 million. The plant is likely to be complete by mid-2024 and the production will start by early 2025, which will produce 30,000 tons of high nickel-cathode materials.
The North America electric off-highway equipment market size valued at around USD 800 million in 2021, with over 5,000 units of new equipment sold. Increasing number of projects and developments in the infrastructure sector, spurring the market statistics. The presence of established players in this region, such as Caterpillar, Inc., AB Volvo, Deere & Company, J C Bamford Excavators Ltd., Hitachi Construction Machinery Co., Ltd., and Komatsu Ltd., is playing a vital role in driving the market trend.
The government authorities are focusing on investments for the development of infrastructure in the residential and commercial sectors. For instance, in March 2022, the U.S. Department of Agriculture (USDA) invested USD 166.5 million in the development of 108 infrastructure projects, propelling the sale of electric off-highway equipment in the region. USDA’s Natural Resources Conservation Service (NRCS) invested in new flood prevention and dam projects in 23 states in country. The department is also investing in repairing and maintaining existing watershed infrastructure in the country.
Electric Off-Highway Equipment Market Share
Prominent players in the electric off-highway equipment market include
Companies are emphasizing on partnerships and new product launches to accelerate their share through 2028. In January 2022, Moog Inc. launched a business venture to develop electric and zero-emission systems for construction equipment. Moog Construction aimed to replace the diesel-powered engine and hydraulics of construction equipment with electrification systems.
This market research report on electric off-highway equipment includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD and shipments in units from 2018 to 2028 for the following segments:
Click here to Buy Section of this Report
Market, By Type:
Market, By Propulsion:
The above information has been provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
1. Research design & analyst oversight
At GMI, our research methodology is built on a foundation of human expertise, rigorous validation, and complete transparency. Every insight, trend analysis, and forecast in our reports is developed by experienced analysts who understand the nuances of your market.
Our approach integrates extensive primary research through direct engagement with industry participants and experts, complemented by comprehensive secondary research from verified global sources. We apply quantified impact analysis to deliver dependable forecasts, while maintaining complete traceability from original data sources to final insights.
2. Primary research
Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
3. Data mining & market analysis
Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
Our market sizing is built on a bottom-up approach, starting with company revenue data gathered directly through primary interviews, alongside production volume figures from manufacturers and installation or deployment statistics. These inputs are then pieced together across regional markets to arrive at a global estimate that stays grounded in actual industry activity.
5. Forecast model & key assumptions
Every forecast includes explicit documentation of:
✓ Key growth drivers and their assumed impact
✓ Restraining factors and mitigation scenarios
✓ Regulatory assumptions and policy change risk
✓ Technology adoption curve parameter
✓ Macroeconomic assumptions (GDP growth, inflation, currency)
✓ Competitive dynamics and market entry/exit expectations
6. Validation & quality assurance
The final stages involve human validation, where domain experts manually review filtered data to identify nuances and contextual errors that automated systems might miss. This expert review adds a critical layer of quality assurance, ensuring data aligns with research objectives and domain-specific standards.
Our triple-layer validation process ensures maximum data reliability:
✓ Statistical Validation
✓ Expert Validation
✓ Market Reality Check
Trust & credibility
Verified data sources
Trade publications
Security & defense sector journals and trade press
Industry databases
Proprietary and third-party market databases
Regulatory filings
Government procurement records and policy documents
Academic research
University studies and specialist institution reports
Company reports
Annual reports, investor presentations, and filings
Expert interviews
C-suite, procurement leads, and technical specialists
GMI archive
13,000+ published studies across 30+ industry verticals
Trade data
Import/export volumes, HS codes, and customs records
Parameters studied & evaluated
Every data point in this report is validated through primary interviews, true bottom-up modelling, and rigorous cross-checks. Read about our research process →