Growing demand for low-emission and low-noise machines in the construction sector that can operate even in densely populated areas and indoors, and also the technological advancements in electric propulsions, which have already been widely tested and adopted in on-road vehicles, drive the demand for the off-highway electric vehicles market to reach $ 97.75 billion by 2030.
According to the latest report published by P&S Intelligence, the off-highway electric vehicles market was estimated at $ 16.91 billion in 2021, and it will witness a 21.5% CAGR between 2021 and 2030.
The growth is also due to higher battery capacity and power output, which are essential for the success of EVs. Moreover, all this must happen without increasing the price of batteries, which remains a key concern for those switching or seeking to switch to electric mobility for on- and off-road purposes.
The BEV category dominates the off-highway electric vehicles market in the propulsion segment. The absence of the diesel engine not only makes BEVs emission-free, but also extremely quiet.
This is consistent with construction being the largest application area of off-highway electric vehicles. In addition, the global population boom is making the construction of civic, industrial, commercial, and residential infrastructure necessary.
The report noted that the stringent emission regulations being implemented on conventional vehicles worldwide are playing a significant part by making these automobiles increasingly expensive.
During the COVID-19 pandemic, the sale of such equipment witnessed a massive downfall due to the closure of construction sites, mines and oil & gas projects, and many manufacturing plants, including these vehicles themselves. However, the race to finish the delayed infrastructure projects as soon as possible benefits the off-highway electric vehicles market in the post-lockdown era, with many OEMs launching new vehicle models suited to different purposes.
Asia Pacific
The research firm finds that APAC will continue to witness the highest demand for off-highway machines with fully electric or hybrid-electric propulsion. The region is the world's largest construction market and also the most polluted, led by China and India in both these aspects. Therefore, the focus on integrating electric drivetrains in off-highway vehicles has become strong here in the recent past. Additionally, APAC is the largest manufacturer of EVs, thus leading to their easy availability.
These factors present lucrative opportunities for key off-highway electric vehicles market players, including Hyundai Doosan Infracore, Komatsu, AB Volvo, Caterpillar, Liebherr-International Deutschland, J C Bamford Excavators, Sany Heavy Equipment International Holdings, Deere, Epiroc AB and Hitachi. Thus, they have begun entering into partnerships and collaborations, merging with and acquiring similar firms, and expanding their geographical presence, apart from launching new vehicle models, the research firm noted.
Courtesy: P&S Intelligence. NB: Photo is representational; courtesy: Volvo CE.