Electric Off-Highway Equipment Market Analysis

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.