Electric Construction Equipment Market

The global Electric Construction Equipment Market is valued at USD 10.5 Billion in 2023 and is projected to reach a value of USD 70.1 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 23.5% between 2024 and 2032.

Key highlights of Electric Construction Equipment Market

• Europe accounted for a revenue share of 37.8% in global Electric Construction Equipment market in 2023
• In 2023, the electric dump truck segment led the market with 71.5% of revenue share
• In 2023, the battery electric segment held a notable 52.1% revenue share in the Electric Construction Equipment market
• Based on Battery Capacity, 50-200KwH segment dominated with revenue share of 32.7% in 2023
• By Power Output, 50-150 HP segment led the Electric Construction Equipment market in 2023
• In 2023, lithium-ion phosphate segment accounted to have potential growth of global Electric Construction Equipment market
• Volvo Construction Equipment teams up with Beam Global to offer off-grid EV charging at 245 dealer locations in North America, enabling quick setup without electrical work or grid connections, powering solar-driven, zero-emission machinery.

Electric Construction Equipment Market: Regional Overview

Europe led the Electric Construction Equipment market with a revenue share of 37.8% in 2023. There is a significant effort in the European Union to address climate change by lowering greenhouse gas emissions. The EU has implemented regulations to promote using electric equipment and transportation to make this happen. For instance, the region set a goal for new vehicles to emit 37.5% less CO2 by 2030 compared to 2023. In addition, countries like London have formed low-emission zones with restricted diesel-powered equipment. The usage of zero-emission equipment has increased as a result of the increased focus on greener solutions, particularly in conjunction with the surge in infrastructure projects taking place in cities like Oslo, Helsinki, London, Copenhagen, Amsterdam, and Stockholm. The Electric Construction Equipment market is booming due to more construction projects, a move toward eco-friendly building practices, and the switch to electric equipment. People also demand electric construction gear to help cut emissions and follow strict environmental guidelines.

U.S. Electric Construction Equipment Market Overview

The U.S. Electric Construction Equipment Market is valued at USD 1.1 Billion in 2023 and is projected to reach a value of USD 6.6 Billion by 2032 at a CAGR (Compound Annual Growth Rate) of 22.1% between 2024 and 2032. The U.S. is witnessing a surge in the adoption of Electric Construction Equipment driven by the authorities inclination to reduce emissions. The key factors propelling this trend are lower operating costs, stringent emission protocols, and lower worksite conditions. Additionally, government incentives, subsidies, and ongoing infrastructure projects are further fuelling the market's growth. The performance and efficiency of electric equipment are being improved by advancements in battery technology, making them more and more appealing to construction enterprises. These factors collectively accelerate to the rapid expansion of the Electric Construction Equipment market in the U.S.

The global Electric Construction Equipment market can be categorized as Equipment Type, Propulsion, Battery capacity, Power Output, Battery chemistry, Application, and Region.

Electric Construction Equipment Market: Equipment Type Overview

In 2023, Electric dump truck segment led the market and accounted for a revenue share of 71.5%. Based on Equipment Type, the Electric Construction Equipment market is divided into electric excavator, electric motor grader, electric dozer, electric loader, electric dump truck, and electric load-haul-dump truck.

The electric dump truck segment is witnessing significant growth in the Global Electric Construction Equipment market. Electric dump trucks offer reduced emissions and operational costs as a result of the demand for environmentally friendly alternatives. Companies like Volvo Construction Equipment are leading the charge with innovations such as the Volvo E-Dumper, an all-electric and autonomous dump truck tailored for mining operations. The segment of electric dump trucks is on the verge of further expansion, driving sustainability and efficiency in construction projects worldwide because of its zero tailpipe emissions and impressive load capacity.

Electric Construction Equipment Market: Propulsion Overview

The battery electric segment accounted for the revenue share of 52.1% in 2023. By Propulsion, the Electric Construction Equipment market is classified into hybrid electric, battery electric, and hydrogen.

As electric vehicles become more and more popular and battery technology advances, the market for Electric Construction Equipment is expected to rise in the battery segment. Though challenges like replacement prices and spare parts continue to be significant obstacles, the rapid spike in sales of electric vehicles, more than 70% from 2017 to 2018 and a remarkable 120% increase between 2020 and 2021 indicates an encouraging future. Major automakers have devoted themselves to determined targets, aiming for over 15 million electric vehicle sales by 2025, which are expected to drive down battery prices in the coming years. The development of electric cars, particularly battery electric vehicles(BEVs), has accelerated the growth of Electric Construction Equipment market. As BEVs dominate the electric vehicle market, progress in the battery sector is crucial, laying the foundation for the growth of the hybrid segment in the constructionequipment market.

Electric Construction Equipment Market: Battery Capacity Overview

The 50-200KwH segment accounted to have 32.7% of total revenue share in 2023. Based on Battery Capacity, the Electric Construction Equipment market is classified into <50KwH, 50-200KwH, 200-500KwH, and >500KwH.

The market for construction equipment ranging from 50 to 200 kWh is anticipated to enlarge significantly, indicating a shift towards more efficient and environmentally friendly construction methods. This growth is propelled by various factors, including the minimizing maintenance and operating costs, initiative to lessen greenhouse gas emissions, and the growing awareness of sustainable building practices. The development of Electric Construction Equipment with more capacity and advancements in battery technology are also propelling this market's expansion. Demand for Electric Construction Equipment, especially in the 50-200 kWh range, is predicted to increase as the construction sector adopts more electric and hybrid powertrains to reduce costs and environmental effect.

Key Trends

1. Developing advanced battery technology is crucial for the growth of Electric Construction Equipment. Enhanced battery capacities and performance improvements enable longer operational durations and increased efficiency, driving adoption across the industry.
2. Stricter government regulations aimed at reducing greenhouse gas emissions and noise pollution are accelerating the adoption of Electric Construction Equipment. Initiatives such as the European Union's emission targets and regulations on diesel engine emissions in the U.S. are shaping the market landscape.
3. The market for Electric Construction Equipment is expanding quickly in Europe due to infrastructure developments in places such as Oslo, Helsinki, London, Copenhagen, Amsterdam, and Stockholm, as well as strong environmental standards. Subsidies from countries like France and Italy further incentivize the transition to electric equipment.
4. Electric Construction Equipment is increasingly preferred due to its contribution to emission reduction and noise pollution mitigation. Stricter regulations and technological advancements facilitate the shift towards cleaner and quieter construction practices.

Premium Insights

The Electric Construction Equipment market has witnessed significant advancements, particularly from key players like Komatsu and Deere and Company. Komatsu's introduction of electric models such as the PC05E-1 Electric Micro Excavator and the PC200LCE-11 and PC210LCE-11 Electric Excavators signifies a significant shift towards zero-emission construction equipment. These models promise comparable performance to their diesel counterparts while emitting zero emissions, catering to the increasing demand for environmentally friendly solutions. Furthermore, unveiling the HB365LC-3 Hybrid Excavator at CONEXPO 2023 demonstrates a commitment to improved fuel efficiency and reduced emissions through innovative integration of diesel engines with electric motors and batteries. Similarly, Deere and Company's contributions, including the 310 X-Tier E-Power Backhoe and the 244 X-Tier Compact Wheel Loader, showcase a dedication to advancing Electric Construction Equipment with zero emissions, reduced noise, and enhanced operator comfort. These developments highlight a growing trend towards electrification in the construction industry, driven by the need for sustainable solutions and increased efficiency.

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Market Dynamics

Innovative Solutions for Sustainable Construction Drives the Market

The growing attention on accomplishing net zero CO‚ emissions is driving the transition from conventional diesel engines to alternative drive systems in the Off-road segment of the construction machinery industry. With 90% of companies in the sector accelerating significant impacts from CO‚ regulations, there is a rising demand to meet emission requirements for public sector projects. For instance, Oslo mandates emission-free operation at government building sites by 2025 and all other sites by 2030. While current emission restrictions can be met with exhaust gas after-treatment, achieving net zero emissions necessitates ground-breaking alternatives. Electric motors are a common element in various alternative driving techniques, whether powered by fuel cells, external sources, hybrid cars, or battery-operated machinery. This shift indicates a move towards revolutionary and innovative system solutions in the construction industry.

Emission Regulations Drive Electric Construction Equipment Adoption

The stringent government regulations on emissions and noise pollution, particularly in regions like the United States and the European Union, compel the construction industry to adopt electric equipment. Environmental Protection Agency regulations in the United States and similarly rigorous regulations in the European Union have limited new diesel engines to almost zero emissions, which led to an evolution towards electric alternatives. Lithium-ion batteries are used more often by electric construction vehicle makers because they are more compact, lighter, and more efficient than lead-acid batteries. These advancements in battery technology enable electric equipment to achieve the same operational capabilities as traditional internal combustion engine (ICE) equipment.

Competitive Landscape

Beam Global and Volvo Construction Equipment (Volvo CE) have teamed to deliver off-grid charging systems for Beam EV ARC, expanding Volvo CE's product line in North America's Electric Construction Equipment market. This collaboration allows building sites to quickly set up EV charging without necessitating electrical work or utility grid connections. On the other hand, Caterpillar expanded its portfolio in October 2022 by introducing four battery-powered machines, including excavators and wheel loaders. These prototypes feature onboard AC chargers powered by Caterpillar battery prototypes and offer an offboard DC rapid charging option, strengthening Caterpillar's presence in the Electric Construction Equipment sector.

The key players in the global Electric Construction Equipment market include - Volvo CE (Sweden), Komatsu Ltd. (Japan), JCB (UK), Caterpillar Inc. (U.S.), Sunward Intelligent Equipment Co. Ltd. (China), Atlas Copco (Sweden), CNH Industrial N. V. (UK), John Deere (U.S.), Doosan Corporation (South Korea), Schaffer Corporation (Australia), Kuhn Schweiz (Switzerland), Hyundai CE (South Korea) among others.

Recent Development

• In January 2024, Caterpillar Inc. has entered into a strategic partnership with CRH to promote the use of Caterpillar's emission-free solutions. CRH, the top aggregates producer in North America, is the first company in its industry to collaborate with Caterpillar in this manner. The partnership aims to speed up the adoption of Caterpillar's battery electric off-highway trucks, ranging from 70 to 100 tons, along with charging infrastructure at a CRH site in North America.
• In September 2023, Komatsu Ltd. introduced the PC05E-1 electric micro excavator in Japan, developed in collaboration with Honda Motor Co., Ltd. In the Japanese construction equipment market, which hasn't fully embraced electrified models, Komatsu aims to pioneer this new market swiftly. Their goal is to achieve carbon neutrality by 2050 by offering a range of models tailored to meet customer demands.
• In June 2023, JCB unveiled its inaugural fully electric wheeled loader, designed to offer top-notch performance and can be used for a full working day. It operates quietly with zero emissions, providing an eco-friendly solution for customers. Equipped with the largest standard battery pack in its category, boasting a 20kWh capacity, this machine matches the productivity levels of the popular diesel model, ensuring efficiency without compromising on power.