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Electric Off-Highway Equipment Market worth $4.5 Bn by 2028
- Published Date: May 4, 2022
Electric Off-Highway Equipment Market size is set to cross USD 4.5 billion by 2028, according to a new research report by Global Market Insights Inc. The shipments are expected to reach 40,000 units by 2028.
The positive growth can be accredited to the upward industry trend of electrification of off-highway equipment in the global level. The low operating and maintenance costs of electric vehicles compared to Internal Combustion Engine (ICE) trucks, loaders, and excavators will enhance the electric off-highway equipment industry revenue. The growing consumer focus on clean transportation and sustainable field operation activities is boosting the demand of electric off-highway equipment as well as EVs.
The rising demand of electric off-highway equipment is encouraging manufacturers to improve their service offerings to gain a high market share. The companies, such as Hyundai Heavy Industries Holdings Co. (HHIH)., Deere & Company, and Sumitomo Heavy Industries, Ltd., are focusing on mergers & acquisitions to expand their product portfolio.
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Analyst view: “Stringent government regulations against fuel-powered off-highway equipment are driving the electric off-highway equipment market demand. Industry leaders are heavily investing in R&D for new product innovations to increase their sales.”
The high initial costs of equipment and the lack of charging infrastructure are the major restraints in the electric off-highway equipment market. The electric off-highway equipment, including dump trucks and loaders, require a high power supported charging eco system that is expensive as compared to public transport and passenger car charging stations. The lack of innovations to upgrade the battery performance is another key factor restricting the sales. Off-road highway equipment comprises high power construction-related machinery that requires high-capacity power with the ability to withstand high temperature, hindering the industry expansion.
The electric off-highway equipment industry faced several challenges amid COVID-19 pandemic. The global supply chain and the manufacturing operations in companies were disrupted due to lockdown. However, the market observed a recovery in 2021, with the easing of lockdown restrictions and resumption of manufacturing operations. The subsidies and low taxes will enhance the production as well as sales of EVs and electric off-highway equipment.
Browse key industry insights spread across 180 pages with 207 market data tables & 21 figures & charts from the report, “Electric Off-Highway Equipment Market Size By Type (Excavators, Loaders, Dump Trucks), By Propulsion (Electric, Hybrid Electric), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Price Trends, Competitive Market Share & Forecast, 2022 – 2028”, in detail along with the table of contents:
Higher productivity with low maintenance of electric loaders
The electric loader segment is poised to register above 15% gains through 2028. Electric loaders’ high payload capacity with compact design enables to work at highly constricted places in rough terrain, augmenting the market growth. Furthermore, the integration of telematics and fleet connectivity systems into electric loaders by OEMs to reduce their breakdowns is propelling the market trend.
Significant improvement in the performance of electric off-highway equipment including loaders is accelerating their adoption across the globe. Various participants are developing and launching these equipments to stay competitive in the market.
High energy capacity and integration of multiple features into hybrid electric off-highway equipment
Hybrid electric equipment segment achieved a sale of over 9,000 units in 2021. Hybrid electric off-road equipment comprises two drive systems that allow the equipment to work with higher efficiency as compared to electric or diesel-powered equipment. Additionally, the equipment can work for a longer period than other segments owing to the availability of multiple power sources.
The growing demand for hybrid electric construction equipment is encouraging manufacturers to introduce their futuristic models. The companies, such as KAMAZ PTC and Rolls-Royce Motor Cars Limited, are unveiling their new hybrid electric off-highway equipment to increase their representation.
Presence of established industry players and supportive government policies in Europe
The Europe electric off-highway equipment market is likely to witness 13% CAGR through 2028. The increasing demand can be attributed to the rapidly growing charging infrastructure and government policies promoting the adoption of electric equipment & vehicles across the region. Moreover, increasing landscaping activates and energy plant construction are a creating favorable environment for the industry.
Companies are participating in various tradeshows in the region to advertise their equipment to potential business clients and to achieve higher profitability.
Some of the top manufacturers in the electric off-highway equipment market include JCB, Hitachi Construction Machinery, XCMG Group, AB Volvo, Volvo Construction Equipment, Caterpillar Inc., Epiroc, Sennebogen Maschinenfabrik GmbH, BYD Company LTD, BEML Limited, Deere & Company, SANY Group, Komatsu Ltd., and Liebherr-International AG.