The global electric construction vehicles market is poised for remarkable growth, with a projected CAGR of 21.8% during the assessment period from 2023 to 2030. By the end of 2030, the market is anticipated to reach a valuation of approximately US$35.8 billion.
The electrification of construction vehicles is transforming the construction industry by offering several advantages, including reduced fuel consumption and long-term cost savings. This shift is driven by stringent emission regulations and a growing awareness of the environmental impact of construction operations. Approximately 11% of carbon dioxide emissions are attributed to the construction industry. In response to these challenges, Original Equipment Manufacturers (OEMs) are developing strategies to achieve zero emissions. The market is witnessing notable innovations, such as fully battery-powered dump trucks, electric loaders, and a shift towards quieter and eco-friendly construction equipment.
Key Findings from the Report:
- The electric construction vehicles market is expected to exhibit substantial revenue growth over the next decade, from 2023 to 2030.
- Battery powertrains are gaining popularity compared to hybrid counterparts.
- The fast-charging category accounted for the highest revenue share in the electric construction vehicles market in 2022.
- Excavators remain the most widely used electric construction vehicles across major regions.
- Europe is leading in the electrification of construction vehicle fleets, while Asia Pacific is set to experience the strongest growth through 2030.
Increasing Need for Low-Noise Construction Operations in Residential Areas:
The rise in building projects within city limits has led to heightened concerns about noise pollution in residential areas. Diesel-powered construction equipment is a primary source of noise at construction sites. Many large cities have implemented noise regulations and restrictions for construction sites. Excessive noise from diesel-powered equipment has been linked to negative health effects, with the World Health Organization (WHO) reporting that road and vehicle noise significantly impacts the health of 44% of people in Europe. Initiatives and regulations aimed at reducing noise in residential areas have been introduced, prompting construction companies to adopt electric construction trucks and equipment designed to operate quietly within city limits. These electric vehicles enable construction companies to work more efficiently and cost-effectively within municipal boundaries.
Governments worldwide have set goals to reduce vehicle emissions by 2050, leading to increased support for the development and adoption of electric construction vehicles and charging infrastructure. Government initiatives include financial incentives, such as reduced registration fees, exemptions from import taxes, purchase taxes, and road tolls. For example, the U.S. government invested US$5 billion in 2017 to promote infrastructure development for electric construction vehicles, including charging stations. European countries like Norway and Germany offer substantial incentives and subsidies to boost electric vehicle sales. The European Union (EU) is also making significant investments in promoting the electrification of construction vehicle fleets. These government actions are expected to drive demand for electric construction equipment over the next decade.
Overview of Key Segments:
Plug-in Hybrid and Hybrid Electric Vehicles (HEVs) Lead in Sales:
Strict emission control regulations and the growing demand for low- or zero-emission equipment, especially in urban areas, have led to the dominance of plug-in hybrid and hybrid electric construction vehicles. Governments in several countries offer tax breaks and grants for the purchase of hybrid vehicles, including Hybrid Electric Vehicles (HEVs) and Plug-in Hybrid Electric Vehicles (PHEVs). These vehicles combine internal combustion engines (ICEs) and electric motors, delivering improved fuel economy, increased power, and reduced emissions. Hybrid vehicles harness electrical energy from various systems, including regenerative braking and engines.
Long-Range, Fast-Charging Batteries Sought-After:
The fast-charging battery category is expected to dominate the electric construction vehicles market during the forecast period. Lithium-ion batteries have gained popularity due to their advantages over lead-acid and nickel-metal hydride batteries. However, lithium-ion batteries have limitations, including limited power density, short lifespan, high cost, and sensitivity to overcharging and over-discharging. Solid-state batteries are emerging as an alternative to lithium-ion batteries, offering up to ten times the charging capacity and a longer lifespan of up to 10 years. These batteries also provide higher energy density, making them an attractive choice for electric construction equipment.
Excavator and Loader Maintain Dominant Market Position:
Excavators, wheel loaders, dump trucks, and forklift trucks are among the most widely used electric construction vehicles. As battery technology advances, OEMs are electrifying larger equipment such as concrete mixers, cranes, and other construction vehicles. In 2022, crawler excavators and mini excavators combined held the largest market share, accounting for over 40% of the global electric construction vehicles market. Large-size loaders are gaining momentum in the market, with companies like Caterpillar, XCMG, Volvo, and Komatsu focusing on electrifying larger construction vehicles.
Growth Opportunities Across Regions:
Europe Leading the Way:
Europe is expected to continue its leadership in the electric construction vehicles market. The region boasts the largest market for electric construction equipment, driven by factors such as the electrification trend in developed nations, strong demand for mining and construction equipment, stringent emission regulations, and government sustainability initiatives. Germany, in particular, dominates the European market due to its commitment to less expensive, emission-free, and eco-friendly construction and mining equipment. The governments support for EV development and its role as a hub for top electric off-highway vehicle manufacturers further contribute to Germanys market dominance.
Asia Pacifics Construction Sector Offers Growth Potential:
The Asia Pacific region is poised for significant growth in the electric construction vehicles market. China, Japan, and South Korea are leading the way in electric vehicle adoption. China, as the worlds largest EV manufacturer and consumer, has implemented measures such as subsidies, mandates, and infrastructure development to promote EV adoption. Japan and South Korea have also seen robust growth in their EV markets, thanks to government support and initiatives.
India is actively working to increase its EV market demand through policies like the car scrappage policy, which incentivizes the replacement of old vehicles with low-emission ones. Other countries in the region, including Thailand, Indonesia, Malaysia, and Vietnam, are also taking steps to reduce auto emissions and promote electric vehicles.
Electric Construction Vehicles Market: Competitive Landscape:
Leading players in the electric construction vehicles market include Hitachi, Caterpillar, John Deere, Volvo, Atlas Copco, CNH Industrial N.V., Komatsu, Merlo J C Bamford Excavators Ltd., SUNWARD, and Doosan Corporation. These industry leaders are driving innovation in the construction equipment sector, advancing the development and adoption of electric construction vehicles, and contributing to a more sustainable construction industry.
Browse Global Electric Construction Vehicles Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2030 (By Propulsion Type Coverage, By Charging Type Coverage, By Product Type Coverage, By Geographic Coverage and By Company): https://www.fairfieldmarketresearch.com/report/electric-construction-vehicles-market
Construction Equipment Aftermarket: https://www.fairfieldmarketresearch.com/report/construction-equipment-aftermarket
Tunnel Construction Market: https://www.fairfieldmarketresearch.com/report/tunnel-construction-market
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