Multiple advantages are offered by electricity-based machinery as such maneuverability, high overall performance, and accuracy during operations. The electrification of off-highway vehicles has many such perks but however due to numerous variations such as limited storage capacity of the batteries and infrastructure for the charging vehicles, also the slow acceptance in the automobile industry.
The worldwide market size for the off-highway electric vehicle will be approximately $17.5 billion by the year 2027 from $5.5 billion in 2019, which is growing at a CAGR of 21.4% from 2020 to 2027.
Growth Factor Of EV Market
The increasing growth of the infrastructure in the developing markets and the introduction of provisioning projects in the developed countries are boosting the sales of electric highway vehicles. Government agencies that have strict emission standards such as Environmental Protection Agency (EPA) and the European Commission are both main factors influencing the global market for off-highway electric vehicles. Electrification of heavy-duty off-highway vehicles is on the trend, and businesses are highly interested in exploring how this ongoing development will complement their current business. There are various advantages to the electrical system of heavy-duty vehicles. While conducting research and implementing the electrical solution, factors like battery technology, infrastructure, and overall cost of production play an important role in the scenario.
The market for off-highway EVs is also powered by the factors such as improved electrical machinery performance, lower noise, and vibration levels, lower overhaul costs, and others. Government officials have introduced increasing stringency in emission standards for off-highway vehicles such as the emission standards for greenhouse gas (GHG) emission by the U.S., India, and China VI Environmental Protection Agency (EPA), BS-VI. The rising strictness of emissions standards has shifted the acknowledgment of the OEMs towards alternative powertrain sources such as the hybrid electric and the full electric off-highway vehicles which coup global demand.
Report Highlights Of EV Market
– The global off-highway vehicle market was accounted for USD 5.5 billion in 2019 and is expected to take a peek at a CAGR of 21.2% over the forecast period.
– The BEV segment is expected to grow over the forecast CAGR of 30.5% over the forecast period. The slow adoption of internal combustion engine vehicles and the limitation of CO2 targets are expected to boost segmental expansion.
– The construction sector has emerged as the largest sector in 2019 and by the end of the year 2027, it is aimed to produce the revenue o over $6.68 billion.
Electric Vehicle Insights Of EV Market
The HEV segment is accounted for the largest revenue share of 66.2% and is assumed to retain its dominance over the forecast period. These vehicles are intended to increase the usage of the internal combustion engine in combination with the electric powertrain. The harsh emission regulations by different government authorities such as European Commission and the United States. The demand for hybrid off-highway pull throw equipment from the EPA is on the rise and pushing manufacturers to construct a more environment-friendly off-highway vehicle. A hybrid engine is a variant of the diesel-electric propulsion system and has been adopted by off-highway vehicle manufacturers since 2017.
The BEV off-highway electric vehicle segment is likely to rise at the maximum CAGR of 29.5% over the following years. The growth can most likely take a down road in the adoption of the internal combustion engine vehicles and the CO2 aims restrictions. The power required for the majority of the off-highway vehicles to operate is too high and the use of fully electric BEV is still limited. The reduction in the lithium-ion battery prices and the advancements in battery technology would weigh the demand for BEVs in the coming years.
Regional Snapshots Of EV Market
The North American region accounted for the largest sales share of the market and the rising dominance is expected to take a projectile growth in the coming years. Due to the existence of key companies such as Caterpillar, Deere, and CNH Industrial N.V., the area holds a significant share in the forecast era. In the North American region, the construction industry affects the region’s demand for off-highway equipment.
The off-highway EV market is expected to rise from 2020 to 2027 at the highest CAGR of 34.4%in the Asia Pacific region. Asia-Pacific countries, such as China and India have reported a strong performance in 2019 due to the rise in investments in the infrastructure. Due to the existence of various OEMs, low-production prices, low labor costs, and the availability of outstanding manufacturers, China is one of the major participants in the production of construction equipment.
Key Players And Strategies In EV Market
The off-highway automobile industry is extremely opportunistic and competitive in nature because of its important advancements and developments in the product to cater to the ever-changing consumer demand. Furthermore, the technological advancements, the shape of the consumer products is changing faster than ever that again trigger the rate of competition in the market. Currently, the consumers are more bent towards battery charger vehicles that have led the manufacturers in the industry to innovate new and flexible technology. In the same reference, the industry players invest considerably in the market to develop new and advanced products.
Some of the important players operating in the market are 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., and CNH Industrial N.V.