Global off-highway electric vehicle (OHEV) market was valued at USD 5.48 Billion in 2019. It is projected to grow at a compound annual rate of 21.2% between 2020 and 2027. The government has increased the stringency of emission standards for off-highway vehicle. This includes emission standards for greenhouse gases (GHG) by the U.S. Environmental Protection Agency, BS-VI in India, and China VI. Due to increasing stringency in emission standards, OEMs have shifted their focus towards alternative powertrain sources. This is leveraging global demand for hybrid and full-electric off-highway vehicles.
Companies are keen to explore how electrification of off-highway heavy duty vehicles can complement their business models. There are many benefits to using an electric system in heavy-duty trucks. However, it is important to consider factors like infrastructure, battery technology, and overall cost of development when researching and adopting an electric solution. Electrification of off-highway cars promises lower fuel consumption and longer-term cost savings due to less maintenance. The off-highway electric car will continue to grow as engineers, OEMs and designers make improvements in battery technology.
The EPA (Environmental Protection Agency), has been firm in its support for the strict emission standards for off-highway Diesel vehicles, mainly for heavy-duty construction and mining vehicles. Some regulations limit the use or particulate matter and nitrogen oxides due to the stringent regulations. Off-highway vehicle OEMs have come up with innovative ways to reduce emissions. According to Construct Connect, at least 11 percent CO 2 emissions are caused by construction companies. In 2019, the European Union adopted a stage 5 emission standard. The European emission regulations are constantly changing so diesel-powered machines may be stopped altogether. They could be replaced by electric alternatives that leverage the market for off-highway electrical equipment.
The rapid growth of the coronavirus pandemic is a shock to the global economy. Due to its dependence on global sourcing of its core technology, the battery, the off-highway electric car market is the most vulnerable to the COVID-19 crises. Europe has seen a significant decline in equipment sales and is the region most likely to adopt off-highway electric cars. Europe Forestry and Agricultural Machinery Production were both down around 10% through April 2020. Other factors that could cause further fall include labor disruptions, shifting consumer demand, and COVID-19 shut downs which negatively affected the industry and plummeting demand for new machinery. In April 2020, the U.S. saw a drop in new orders for building machinery compared to last year.
In 2019, the construction off-highway segment of electric vehicles accounted for 38.2% of the total revenue. This segment comprises electric construction equipment like electric loaders and electric excavators. This equipment is in high demand because of the increasing investments made by governments around the world to develop public infrastructure. To comply with stricter emission norms, OEMs have launched electric off-highway vehicles. Future regulations could mandate zero emission on heavy-duty construction equipment. This would allow OEMs to stop producing diesel-powered engines entirely and make way for all-electric models.
Underground mining is the most electrified type of mines because it produces less exhaust and offers better worker safety. Mining companies are pursuing deeper resources to find them. Diesel equipment results in an increase in operational costs due to the large investment required to maintain a safe working environment. Atlas Copco estimates that up to 30% of underground mines' total operating costs are spent on large-scale ventilation systems. The operational cost of mining could be decreased by using electric equipment.
From 2020 to 2027, the agriculture segment is expected to grow at a compound annual growth rate 22.3%. This segment includes electric agricultural equipment, such as electric harvesters and electric tractors. To increase yields, consumers in North America and Europe have begun to adopt modern farm equipment and advanced agricultural processes. Accordingly, electric and hybrid tractor demand and other farm equipment will rise over the next few years.
In 2019, the HEV segment was responsible for the largest revenue share at 66.1% and will continue to dominate the market over the forecast period. These vehicles combine the benefits of an internal combustion engine with an electric powertrain. Due to the stringent emission regulations of government agencies like the U.S. EPA and the European Commission, demand for hybrid propulsion off the highway equipment is increasing. This drives manufacturers to create more environmentally-friendly off-highway vehicles. Off-highway vehicle manufacturers use a hybrid engine. This is a combination of the diesel and electric propulsion system. These hybrid diesel-electric drive systems enable the user to use a smaller engine with a lower rpm. This allows for greater fuel efficiency and less parts movement.
Over the forecast period, the BEV segment will grow at a highest CAGR (30.5%). This growth is due to a slowdown in internal combustion engine vehicle adoption and limitations on CO2 targets. The power needed to operate most off-highway vehicles is too high, so fully electric BEVs are still in limited supply. BEV demand will increase due to the expected decrease in lithium-ion battery costs and improvements in battery technology.
In 2019, North America accounted for 42.7% of the total market revenue and will continue to be dominant over the forecast period. Due to the presence key companies like Caterpillar, Deere & Company and CNH Industrial N.V., the region has a dominant share over the forecast period. North American construction is expanding, which has a positive impact on the demand for off-highway electrical equipment. According to the United States Environment Protection Agency, (EPA), the U.S. has imposed strict emission norms in 2018. Off-highway equipment accounted for nearly 30% of total greenhouse gas emissions. Companies have launched new electric models for off highway vehicles as a result of the increased greenhouse gas emissions.
From 2020 to 2027, the Asia Pacific region's off-highway electric vehicle market is expected to grow at a 34.4% CAGR. Due to infrastructure investment, the countries of the Asia Pacific region such as India and China saw strong performances in 2019. China is a major contributor to the production of construction equipment due to its many OEMs, low production costs, and low labor costs, as well as the availability of excellent manufacturing facilities. The Chinese government encourages the adoption of electric equipment. In China, the National Institute of Agro-machinery and Innovation and Creation, Luoyang, announced in June 2020 the launch of the first hydrogen-fuel-cell electric tractor, named ET504H.
The key players offer a wide range of electrically-propelled off-highway vehicles for construction, agriculture, and mining applications. Companies are focusing on the provision of technologically-driven and advanced equipment in order to reduce carbon footprint and comply with emission norms and regulations in countries such as North America, Europe and Asia.
These players have continued to focus on new product launches and upgrading the product portfolio. Doosan Bobcat, for example, announced in August 2020 a strategic partnership to Green Machine Equipment Inc. in order to produce compact electric excavators for North American markets. Green Machine Equipment Inc. would assist Doosan Bobcat in custom retrofitting its excavators using their proprietary battery technology. This will replace the standard diesel power source. Chinese OEM Sany Heavy Industry Co., Ltd. achieved success in electric mining automation using two unmanned electric SKT90E wide body mining trucks. These wide-body mining trucks were connected to a remote-controlled 5G excavator. The following are some of the major players in the off-highway electric vehicle market:
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.
Up Market Research published a new report titled “Off-highway Electric Vehicle Market research report which is segmented by Application (Mining, Agriculture, Construction), by Electric Vehicle (HEV, BEV), By Players/Companies J C Bamford Excavators Ltd, Deere & Company, CNH Industrial NV, Hitachi Construction Machinery Co Ltd, Caterpillar, Volvo Construction Equipment AB, Komatsu Ltd, Sandvik AB, Doosan Corporation, Epiroc AB”. As per the study the market is expected to grow at a CAGR of XX% in the forecast period.
Report Attributes | Report Details |
Report Title | Off-highway Electric Vehicle Market Research Report |
By Application | Mining, Agriculture, Construction |
By Electric Vehicle | HEV, BEV |
By Companies | J C Bamford Excavators Ltd, Deere & Company, CNH Industrial NV, Hitachi Construction Machinery Co Ltd, Caterpillar, Volvo Construction Equipment AB, Komatsu Ltd, Sandvik AB, Doosan Corporation, Epiroc AB |
Regions Covered | North America, Europe, APAC, Latin America, MEA |
Base Year | 2020 |
Historical Year | 2018 to 2019 (Data from 2010 can be provided as per availability) |
Forecast Year | 2028 |
Number of Pages | 244 |
Number of Tables & Figures | 171 |
Customization Available | Yes, the report can be customized as per your need. |
The report covers comprehensive data on emerging trends, market drivers, growth opportunities, and restraints that can change the market dynamics of the industry. It provides an in-depth analysis of the market segments which include products, applications, and competitor analysis.
The market is segmented by Application (Mining, Agriculture, Construction), by Electric Vehicle (HEV, BEV).
Off-highway Electric Vehicle Market research report delivers a close watch on leading competitors with strategic analysis, micro and macro market trend and scenarios, pricing analysis and a holistic overview of the market situations in the forecast period. It is a professional and a detailed report focusing on primary and secondary drivers, market share, leading segments and geographical analysis. Further, key players, major collaborations, merger & acquisitions along with trending innovation and business policies are reviewed in the report.
Key Benefits for Industry Participants & Stakeholders:
Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa (MEA). North America region is further bifurcated into countries such as U.S., and Canada. The Europe region is further categorized into U.K., France, Germany, Italy, Spain, Russia, and Rest of Europe. Asia Pacific is further segmented into China, Japan, South Korea, India, Australia, South East Asia, and Rest of Asia Pacific. Latin America region is further segmented into Brazil, Mexico, and Rest of Latin America, and the MEA region is further divided into GCC, Turkey, South Africa, and Rest of MEA.
We have studied the Off-highway Electric Vehicle Market in 360 degrees via. both primary & secondary research methodologies. This helped us in building an understanding of the current market dynamics, supply-demand gap, pricing trends, product preferences, consumer patterns & so on. The findings were further validated through primary research with industry experts & opinion leaders across countries. The data is further compiled & validated through various market estimation & data validation methodologies. Further, we also have our in-house data forecasting model to predict market growth up to 2028.
How you may use our products:
Reasons to Purchase the Off-highway Electric Vehicle Market Report:
Some other reports from this category!