Compact Electric Construction Equipment Market Size, Share & Trends Analysis Report By Product (Forklift, Loader, Excavator, AWP), By Ton (Below 5 Ton, 6 To 8 Ton, Above 8 Ton), By Region, And Segment Forecasts, 2023 - 2030

Compact Electric Construction Equipment Market Growth & Trends

The global compact electric construction equipment market size is expected to reach USD 138,748.4 million by 2030, advancing at a CAGR of 13.9% during the forecast period, according to a new study by Grand View Research, Inc. The need for more infrastructure, including homes, offices, schools, hospitals, and sports facilities is rising, as urbanization defines developing nations.

Thus, there is an exponential increase in demand for compact construction equipment that can work in small spaces, is portable, and has minimal maintenance and operating expenses, which is expected to hasten the growth of the market for compact electric construction equipment. For instance, in 2019, the government of India announced an investment of USD 1.4 trillion for infrastructure projects during the 2019-2023 period. This signifies the imminent demand for compact construction equipment in the country.

Increased environmental concerns and governmental laws, which are encouraging manufacturers to invest in creating new eco-friendly products like electric vehicles for construction applications, are a factor for this strong growth. Additionally, the increased urbanization in emerging economies is significantly pushing the demand for compact electric construction equipment, because it enables building projects to advance more quickly and with less effort.

Major players are moving towards online channels to push sales, which is anticipated to drive market growth. For example, in March 2022, Volvo CE made available a 2.5-ton battery-powered compact Volvo electric excavator in Asia. By releasing the product, the corporation anticipates increased sales and brand value in Western markets. Rapid urban infrastructural investments and a move towards adopting smart construction equipment to combat rising pollution are likely to lead countries like India and Japan to rapid economic growth. This is expected to enhance the demand for smart electric excavators.

Another factor anticipated to contribute to the compact electric construction equipment market's expansion is the exponential rise in demand from the warehouse sector for small, battery-powered forklifts that enable them to reduce operational costs and do away with the need for labor. To address escalating environmental issues, governments worldwide are outlawing the usage of ICE engines. The strategy that automakers are using to create and introduce electric vehicles is shifting as a result of the ban on fossil fuel vehicles.

Compact Electric Construction Equipment Market Report Highlights

• In the market for compact electric construction equipment, it is especially important to understand consumer behavior since it is a relatively new and rapidly evolving industry. The primary motivation for consumers is the desire to reduce their environmental impact
• Based on product, the forklift segment held the largest revenue share in 2022 and is expected to continue its dominance over the forecast period. Electric forklifts are generally cheaper to operate than their traditional counterparts. They have fewer moving parts, require less maintenance, and are more energy-efficient, resulting in lower operating costs
• The loader segment is expected to witness rapid growth over the forecast period due to the high demand for compact loaders from the construction sector. Electric loaders have lower maintenance costs with fewer moving parts and require less frequent servicing than diesel engines
• Based on ton, the below 5-ton segment held the largest revenue share of over 38.0% in 2022. This can be attributed to the increasing demand for compact construction machinery to increase operational efficiency and lower the environmental impact
• The above 8 ton segment is expected to witness significant growth in the global market due to high demand from industries for compact electric excavators and loaders that have a high load-carrying capacity
• Asia Pacific is expected to advance at a substantial CAGR of over 17.0% over the forecast period, which can be attributed to rapid infrastructure development activities in the region. The governments in several Asia Pacific countries, including China, Japan, and South Korea, have introduced initiatives and policies to promote the adoption of electric vehicles and equipment

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