Global Electric Off-Highway Vehicle Market 2022-2028

Global Electric Off-Highway Vehicle Market 2022-2028

The global electric off-highway vehicle market is projected to have a market value of nearly $3.0 billion in 2021 growing at a CAGR of 18.7%, escalating to nearly $9.9 billion during the forecast period (2021-2028). Electrification has been noticed as being a crucial trend in the global electric off-highway vehicle industry. As per the US Environment Protection Agency (EPA), the US adopted rigorous emission requirements in 2021; off-highway equipment accounted for almost 30.0% of overall emissions of greenhouse gases. Stringent emission standards across the globe especially in major economies such as the US, Germany, China, and India among others are encouraging the higher scale adoption of electric equipments for off-highway applications. Additionally, the governments of different countries are offering lucrative subsidies, conducting awareness programs, and offering funding & subsidies for purchase of electric off-highway vehicles. For instance, the Volvo VNR Electric trucks offered by Volvo Group are eligible for funding programs throughout the US and Canada including:

Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) from California, offering up to $120,000 per electric truck

South Coast Air Quality Management District Proposition 1B 2021 Goods Movement Emission Reduction Program from California, offering up to $200,000 per electric truck

Southeastern Alternative Fuel Deployment Partnership Project (SEAFDP) from Georgia, offering up to 100.0% of the incremental cost of the electric truck

Such kind of cohesive incentives offered by governments are expected to fuel the market growth during the forecast period. With no exhausts, net-zero carbons emissions, and much less sound and vibration these vehicles are safer to work in underground application than diesel-powered alternatives. Although, electric off-highway vehicles offer huge benefits over traditional diesel engine off-highway vehicle they are facing huge challenges to gain traction in the global off-highway vehicle market.

Lack of proper charging infrastructure is one the key issue in bringing electro-mobility to its apex position. As construction and mining companies work 8-16 hours a day, it decreases the space for the charging time required to charge electric off-highway vehicles fully. Most electric off-highway vehicles take between 4-8 hours to charge completely, thereby decreasing productivity due to time lost in recharging these vehicles. Research and development are moving fast in this area, and in the near future options such as mobile power banks are also anticipated to be available for charging in remote locations. The development of long-lasting compact battery packs with higher capacity is anticipated to offer lucrative opportunity to the growth of the electric off-highway vehicle market.

 Segment Analysis

The global electric off-highway vehicle market is segmented on the basis of equipment type and application. Based on equipment type, the market is sub divided into excavator, truck, LHD loader, tractor, and others. The others equipments include (Motor Grader, Lawnmower, Sprayer, Dozer). Based on equipment type, the excavator held major market share of 65.8% in 2021.The electric off-highway excavator was valued at nearly $1.9 billion in 2021 and is anticipated to reach nearly $5.3 brillion by 2028; at a CAGR of 15.1%. The high application of excavators in construction and mining sector across the globe and high inclination of excavator manufacturers towards its electrification is one of the key factors contributing to the high share of the electric off-highway excavator market. Electric off-highway trucks are anticipated to exhibit highest CAGR of 28.9%. The growing demand for battery powered hauling trucks in mining applications is one of the prominent factor driving the growth of this market segment. The electric off-highway truck market was valued at $296 million and is anticipated to reach nearly $1.8 billion by 2028. Each equipment type has been further segmented based on battery capacity, battery pack voltage, output power, and application.

 Segment Analysis

The global electric off-highway vehicle market is segmented on the basis of equipment type and application. Based on equipment type, the market is sub divided into excavator, truck, LHD loader, tractor, and others. The others equipments include (Motor Grader, Lawnmower, Sprayer, Dozer). Based on equipment type, the excavator held major market share of 65.8% in 2021.The electric off-highway excavator was valued at nearly $1.9 billion in 2021 and is anticipated to reach nearly $5.3 brillion by 2028; at a CAGR of 15.1%. The high application of excavators in construction and mining sector across the globe and high inclination of excavator manufacturers towards its electrification is one of the key factors contributing to the high share of the electric off-highway excavator market. Electric off-highway trucks are anticipated to exhibit highest CAGR of 28.9%. The growing demand for battery powered hauling trucks in mining applications is one of the prominent factor driving the growth of this market segment. The electric off-highway truck market was valued at $296 million and is anticipated to reach nearly $1.8 billion by 2028. Each equipment type has been further segmented based on battery capacity, battery pack voltage, output power, and application.

 Regional Analysis

Geographically, the market is segmented based on the major regions that include North America (the US and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, and Rest of Asia-Pacific), and Rest of the World (RoW). North America held major market share of 35.1% in the global electric off-highway vehicle market. The North American electric off-highway vehicle market was valued at nearly $1.1 billion in 2021 and is anticipated to reach nearly $2.8 billion by 2028; at a CAGR of 15.2%. The existence of stringent emission standards, growing construction industry, and presence of key electric off-highway vehicle manufactures across the region are key contributing factors to the high share of the regional market. Caterpillar Inc. and Agco Corp. are some of the key players operating in the regional market. These players are adopting different growth strategies such as geographical expansion and new product launches among others to strengthen their market share.

Followed by North America, Asia-Pacific is another major market for electric off-highway vehicles. Asia-Pacific electric off-highway vehicle market is anticipated to exhibit highest CAGR of 21.8% during the forecast period. Asia-Pacific electric-off-highway vehicle market was valued at $963 million in 2021 and is anticipated to reach nearly $3.8 billion by 2028. The growing construction industry of Asia-Pacific due to growing urbanization and industrialization along with growing investment in mining sector are some of the key factors contributing to the high share of the regional market.

 Key Player Analysis

AB Volvo, Komatsu Ltd., Sandvik SA, Caterpillar Inc., and Hitachi Ltd. are some of the key players operating in the global electric off-highway electric vehicle market. These players are making huge contribution in the electrification of the off-highway vehicles by setting electrification goals for their vehicles, investing in pilot projects, and launching application specific electric equipments among others. Moreover, these players are actively engaged in doing partnership for the electric equipment development to lower down the equipment cost while meeting product requirements.

 Recent Development:

● In September 2021, Sandvik SA had launched Sandvik TH550B, its latest 50-ton battery-electric truck; Toro LH514BE, an AutoMine compatible cable-electric loader, and Sandvik DS412iE, its first battery-powered rock bolter at MINExpo INTERNATIONAL 2021. The company also showcased Sandvik LH518B, the industry’s largest battery-electric loader; Sandvik DR410i rotary blasthole drill rig; Leopard DI650i down-the-hole drill rig; and Pantera DP1600i top hammer drill rig, part of the Top Hammer XL system at the same expo.

● In April 2021, Volvo had announced to acquire 60% shares of Designwerk Technologies AG. With this acquisition the Volvo Group will complement its current capabilities when it comes to niche products and solutions. This transaction has no significant impact on the Volvo Group’s earnings or financial position.