Electric Off-Highway Vehicle Market is anticipated to grow at 21.2% CAGR during the forecast period and expected to reach USD 24,200 Milllion by 2027.

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Market Dynamic

Key Drivers and Emerging Trends

The major factors propelling the growth of the global off-highway electric vehicles market are aggressive steps towards the reduction of carbon emissions and ventilation costs in underground mining. Diesel-powered vehicles, such as LHD loaders and dump trucks, emit massive amounts of harmful gases, which include nitrogen dioxide, carbon dioxide, carbon monoxide, among others. These gases affect workers as they are exposed to these harmful gases for a long time and hence, experience various health effects, including severe respiratory irritation, chronic bronchitis, emphysema, and effect on sensory perceptions. According to the International Council of Mining and Metals, 40% of an underground mine’s energy outlay is spent on ventilation systems to mitigate heat and pollutants from mining tunnels, which is another factor playing a crucial role in supplementing the growth of the global electric off-highway vehicles market.

As per the Global Electric Off-Highway Vehicle Market Analysis, increase in the environmental, social, and governance (ESG) investing to develop off-highway vehicles for mining and construction applications will drive the market growth. In addition, strict emission norms enforced by various government agencies, which include regulations for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), China VI, and India BS-VI have encouraged producers to emphasize on alternative sources of powertrain are forecast to augment the market growth over the forthcoming years. Moreover, strict emission norms enforced to minimize the Nitrogen Oxide (NOx) emissions have encouraged the off-highway vehicle producers to develop advanced ways in order to achieve zero emissions, will drive the Electric Off-Highway Vehicle Market Size.

Impact of COVID-19 on the Electric Off-Highway Vehicle Market

The COVID-19 pandemic has significantly impacted the growth of the global electric off-highway vehicles market. The widespread outbreak has affected the off-highway equipment manufacturers due to the shut down of the production plants across the globe. Moreover, due to the worldwide lockdown, mining and construction projects were halted, which is another factor that has negatively impacted the growth of the market.

Restraint in the Electric Off-Highway Vehicle Market

One of the biggest factors that are likely to hinder the growth of the market is the loss of productivity due to the high charging time spent in these vehicles. Mining and construction companies work for around 8-16 hours per day, which reduces the time required for charging an off-highway electric vehicle. Most electric off-highway vehicles take 4-8 hours to charge completely, decreasing the productivity due to the time lost in charging these vehicles. These factors might act as a restrain in the growth of the global electric off-highway vehicle market.

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Product – Segment Analysis

Based on the product, the excavators segment is anticipated to grow at a faster CAGR over the forecast period owing to the ease of operating electric excavators. Moreover, a fully electric excavator offers ten times higher efficiency, zero emissions, ten times lower noise levels, and reduced total cost of ownership when compared to traditional counterparts. These factors are significantly contributing to the growth of the excavators segment in the global electric off-highway vehicles market.

Application – Segment Analysis

On the basis of the application, the construction segment is expected to grow at a higher CAGR over the forecast period. This is majorly due to the growing investments by governments across the globe to develop public infrastructure owing to the rapid urbanization in developing nations. OEMs are investing in the research & development activities to launch off-highway electric vehicles to abide by the stringent emission norms. For instance, in 2021, Komatsu collaborated with Proterra, a leading innovator in commercial vehicle electrification technology, to develop Komatsu’s first zero-emission battery-electric hydraulic excavator. These factors are likely to boost the growth of the construction segment in the global electric off-highway vehicles market.

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Region – Segment Analysis

Based on the region, the North America region is projected to grow at a higher CAGR during the forecast period. This is majorly attributed to the environmental protection measures and strict emission norms for fuel economy. Moreover, these norms are encouraging local companies to manufacture hybrid and electric equipment for the domestic market. For instance, in 2019, Caterpillar launched the world’s biggest electric excavator, which comes with a 300-kWh battery pack. These factors play a crucial role in augmenting the growth of the electric off-highway vehicle market in North America. With the rising greenhouse gas emissions, government agencies have enforced strict regulations to curb harmful emissions as well as encouraged companies to launch electric models of off-highway vehicles, driving the market growth. According to the United States Environment Protection Agency (EPA), off-highway equipment constituted accounted for nearly 30% of the total greenhouse gas emission.

Top Market Players

Various notable players operating in the market include Caterpillar, Volvo, Deere & Company, Komatsu Ltd, Hitachi Construction Machinery Co., Ltd., Epiroc AB, J C Bamford Ltd., Doosan Corporation, LIEBHERR, BYD Company Ltd., among others.

Key Developments:

• • In 2022, Moog Inc. established a new business venture to produce electric, zero-emission systems for construction vehicles. The company will replace diesel engine and hydraulics of construction vehicles with automotive system and software.
  • In 2021, Sandvik Mining and Rock Solutions launched products and services and exhibited some of its advanced technologies at MINExpo INTERNATIONAL 2021, comprising battery-driven equipment to allow emission-free underground mining and help customers improve sustainability and profitability.
  • In 2021, Caterpillar Inc. collaborated with Nouveau Monde Graphite Inc. to develop, test, and manufacture Cat zero-emission machines for the Matawinie graphite mine.
  • In 2021, Komatsu Ltd. launched a unique remote-controlled and fully electric (non-hydraulic drive) mini excavator powered by a lithium-ion battery.
  • In 2020, Komatsu Ltd, a global leader in construction equipment, announced the launch of PC30E-5 Electric Mini Excavator in Japan, which offers zero-emission and quiet and simple operations without vibrations. This excavator comes with an 18.2 kW electric motor and a 36-kWh battery.
  • In 2020, Epiroc AB announced an agreement with Vale to provide 10 battery-electric vehicles for two Canadian mining sites, which includes four Scooptram ST14 loaders, two Boltec MC bolting rigs, two Minetruck MT42 trucks, and two Boomer M2C drill rigs. 

Segments covered in the Report:

The global electric off-highway vehicle market has been segmented on the basis of product, battery type, application, and regions. Based on product, the market is segmented into excavators, forklifts, harvesters, dumpsters, tractors and others. Based on battery type, the market is segmented into lead-acid and lithium-ion. Based on application, the market is segmented into construction, agriculture, mining, municipal, and others. 

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Key questions answered in this research report:

• • At what pace is global electric off-highway vehicle market growing? What will be the growth trend in the future?
  • What are the key drivers and restraints in electric off-highway vehicle market? What will be the impact of drivers and restraints in the future?
  • What are the regional revenues and forecast breakdowns? Which are the major regional revenue pockets for growth in the global electric off-highway vehicle market?
  • Which product generated maximum revenues in 2019 and identify the most promising product during the forecast period?
  • What are the various battery type areas of global electric off-highway vehicle market and how they are poised to grow?
  • What companies are the major participants in this market and their business strategies, how does the competitive landscape look like?

Market Segmentation

Global Electric Off-Highway Vehicle Market by Product

• • Excavators
  • Forklifts
  • Harvesters
  • Dumpsters
  • Tractors
  • Others

Global Electric Off-Highway Vehicle Market by Battery Type

• • Lead-Acid
  • Lithium-Ion

Global Electric Off-Highway Vehicle Market by Application

• • Construction
  • Agriculture
  • Mining
  • Municipal
  • Others

Global Electric Off-Highway Vehicle Market by Region

• • North America Electric Off-Highway Vehicle Market (Option 1: As a part of the free 25% customization)
    • By Product
    • By Battery Type
    • By Application
    • US Market All-Up
    • Canada Market All-Up
  • Europe Electric Off-Highway Vehicle Market (Option 2: As a part of the free 25% customization)
    • By Product
    • By Battery Type
    • By Application
    • UK Market All-Up
    • Germany Market All-Up
    • France Market All-Up
    • Spain Market All-Up
    • Rest of Europe Market All-Up
  • Asia-Pacific Electric Off-Highway Vehicle Market (Option 3: As a part of the free 25% customization)
    • By Product
    • By Battery Type
    • By Application
    • China Market All-Up
    • India Market All-Up
    • Japan Market All-Up
    • Rest of APAC Market All-Up
  • RoW Electric Off-Highway Vehicle Market (Option 4: As a part of the free 25% customization)
    • By Product
    • By Battery Type
    • By Application
    • Brazil Market All-Up
    • South Africa Market All-Up
    • Saudi Arabia Market All-Up
    • UAE Market All-Up
    • Rest of world (remaining countries of the LAMEA region) Market All-Up

Major Players Operating in the Electric Off-Highway Vehicle (Option 5: As a part of the Free 25% Customization – Profiles of 5 Additional Companies of your Choice)

• • Caterpillar
  • Volvo
  • Deere & Company
  • Komatsu Ltd
  • Hitachi Construction Machinery Co., Ltd.
  • Epiroc AB
  • J C Bamford Ltd.
  • Doosan Corporation
  • LIEBHERR
  • BYD Company Ltd.