Electric Components Market in Off-highway Vehicles, Global, 2024–2035

Electric Components Market in Off-highway Vehicles, Global, 2024–2035

Electrification Trends and Regulatory Frameworks in the Industry will Drive Transformational, Long-term Growth by 2035

The electric components industry within the off-highway segment has grown significantly in recent years, with a global market size of $7.05 billion in 2023. Frost & Sullivan projects a 12.8% compound annual growth rate (CAGR), reaching $30.04 billion in revenue in 2035. Factors driving the industry growth include BEV market growth (electric/hybrid), government incentives, technological advancements in battery/efficient drivetrain, sustainability/emission regulations, and cost-efficiency perspective for BEVs.

Frost & Sullivan forecasts that global electric/hybrid equipment unit sales will register a high CAGR of 13.4% between 2023 and 2035. For the same period, India, China, North America, and Europe will likely record strong CAGRs of 28.7%, 20.1%, 19.2%, and 13.2%, respectively, because of increased competition and technological advancements.

The electric components market is predominantly segmented into batteries, DC-DC converters, inverters, motors, and battery chargers. The market is competitive, with many manufacturers wanting a piece of the action. Eaton, AVL, Dana, Cascadia Motion, Moog Construction, Kreisel (John Deere), ABB, Bosch Rexroth, FPT Industrial, Modine, and TE Connectivity have a presence in multiple markets and offer a range of products. A trend that is characterizing the industry is toward more sustainable and efficient vehicles, with an increasing focus on reducing emissions and improving fuel efficiency. This trend is driving innovation, with manufacturers developing electrification and autonomous technologies.

Major innovations will likely be in the areas of system efficiency, battery and energy storage systems, thermal management systems, distribution units, battery swapping strategies, and charging infrastructure. Frost & Sullivan expects industry growth will be propelled by high-tech innovations, a sustainability push, and the need for electric equipment.