Which Vertical Led The Off-Highway Electric Vehicle Market By 2030?

 Off-highway Electric Vehicle Industry Overview

The global off-highway electric vehicle market size was valued at USD 4.42 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 31.7% from 2022 to 2030. Stringent emission norms for off-highway vehicles have been implemented by various government establishments, such as regulations for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA), China VI, and India BS-VI. This has encouraged equipment manufacturers to focus on alternative powertrain sources such as full and hybrid off-highway electric vehicles, thus driving market growth.

The electrification of off-highway heavy-duty vehicles is increasing and OEMs are keen to discover how this new trend can complement their existing business models. With factors such as battery technology, supply, and overall economics favoring electric vehicles, the trend for electrification of vehicles is expected to gain traction in the coming years. Charging infrastructure, battery technology, and total development cost play a significant role in the adoption of electric solutions. The electrification of off-highway vehicles assures long-term cost savings owing to less maintenance and reduced fuel consumption.

Gather more insights about the market drivers, restrains and growth of the Global Off-highway Electric Vehicle market

Rapid growth in ESG investing, which uses environmental, social, and governance criteria, promotes the development of off-highway vehicles for construction and mining applications. Stringent emission norms restrict the emission of Nitrogen Oxide (NOx) and particulate matter. To reduce such emissions, off-highway vehicle manufacturers are developing innovative ways to accomplish zero emissions.

According to Construct Connect, the construction industry is responsible for at least 11% of CO2 emissions. The European Union (EU) established a stage 5 emissions standard, which came into effect in 2019. Since European emission norms keep changing, equipment powered by diesel engines could be discontinued in the future. Electric alternatives for such equipment in mining and construction applications are expected to drive the demand for off-highway electric equipment.

The world economy has witnessed a setback due to the COVID-19 pandemic. Lockdowns implemented in various parts of the world led to disruptions in the supply chains and a temporary ceasing of production at several production facilities. The market was considered most vulnerable during the pandemic owing to its dependency on global sourcing for its fundamental technology-batteries.

Europe, one of the most prominent regions in the acceptance of off-highway electric vehicles, is witnessing a sharp decline in equipment sales. In April 2020, the Europe forestry and agricultural machinery production decreased by around 10%. Moreover, new orders for construction machinery in the U.S. reduced by approximately 12% in April 2020 compared to the previous year.

 

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• Battery Market - The global battery market size was valued at USD 108.4 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 14.1% from 2020 to 2027. The market growth is attributed to the high demand for automotive applications. The automotive application includes rechargeable batteries used in non-rechargeable batteries and electric vehicles.

 

• Electric Powertrain Market - The global electric powertrain market size was valued at USD 86.71 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 36.7% from 2022 to 2030. The COVID-19 pandemic affected the overall automotive sector, with a subsequent decline in the growth of the market for electric powertrains due to low automotive sales and new requirements.

 

Off-highway Electric Vehicle Market Segmentation

Grand View Research has segmented the global off-highway electric vehicle market based on application, electric vehicle outlook, and region:

• Application Outlook (Revenue, USD Billion, 2018 - 2030)
  • Construction
  • Agriculture
  • Mining

 

• Electric Vehicle Outlook (Revenue, USD Billion, 2018 - 2030)
  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle (HEV)

 

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)
• North America
• Europe
• Asia Pacific
• Rest of the World (RoW)

Market Share Insights

• July 2021: Komatsu Ltd. announced the launch of an exclusively remote-controlled and fully electric (non-hydraulic drive) mini excavator. It is a fully electric 3-ton class excavator powered by a lithium-ion battery.
• June 2021: Caterpillar Inc. announced a strategic collaboration with Nouveau Monde Graphite Inc. With this collaboration, Caterpillar Inc. planned to develop, test, and manufacture Cat zero-emission machines for the Matawinie graphite mine.

 

Key Companies profiled:

Some prominent players in the global off-highway electric vehicle market include:

• Caterpillar
• Volvo Construction Equipment AB
• Komatsu Ltd.
• Deere & Company
• Sandvik AB
• Hitachi Construction Machinery Co., Ltd.
• Epiroc AB
• Doosan Corporation
• J C Bamford Excavators Ltd.
• CNH Industrial N.V.

 

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