Off-highway Electric Vehicle Industry Growth Trends By 2022 - 2030.

The global off-highway electric vehicle market size is expected to reach USD 42.70 billion by 2030, registering a CAGR of 31.7% during the forecast period, according to a new report by Grand View Research, Inc. The commencement of re-development projects and growing infrastructural developments in developing countries are significant factors driving the market growth.

Moreover, stringent emission regulations by government agencies, such as emission standards for Greenhouse Gas (GHG) emissions by the U.S. Environmental Protection Agency (EPA) and European Commission, are driving the demand for off-highway EVs worldwide. Factors such as lower noise levels and vibrations, lower overhaul cost, and improved efficiency of these vehicles are further contributing to their demand.

Electrically-propelled equipment offers advantages such as enhanced overall efficiency and accuracy and high maneuverability during operations. The electrification of off-highway vehicles provides multiple benefits; nonetheless, its penetration in the market is expected to be slow owing to factors such as inadequate charging infrastructure and limited storage capacity of batteries. The limitations of electrically-propelled equipment have provided an advantage to hybrid off-highway electric vehicles, which are considered a feasible option.

Off-highway Electric Vehicle Market Segmentation

Grand View Research has segmented the global off-highway electric vehicle market based on application, electric vehicle, and region:

Based on the Application Insights, the market is segmented into Construction, Agriculture and Mining.

• The construction segment accounted for the largest revenue share of around 38.2% in 2021. The segment includes electric construction equipment such as electric loaders and electric excavators. Increasing investments by governments worldwide in developing public infrastructure is one of the primary factors driving the growth of the segment.
• The electrification of underground mining equipment helps to reduce exhaust emissions and improve worker safety. Several large mining companies have started addressing the challenge of electrification and diesel displacement.
• The agriculture segment is projected to register a CAGR of 32.8% from 2022 to 2030. The segment includes electric agricultural equipment such as electric harvesters and electric tractors. Consumers in North America and Europe are adopting modern farm equipment and advanced agriculture processes to gain higher yields.

Based on the Electric Vehicle Insights, the market is segmented into Battery Electric Vehicle (BEV) and Hybrid Electric Vehicle (HEV).

• The Hybrid Electric Vehicle (HEV) segment accounted for the largest market share of 58.8% in 2021 and is anticipated to dominate the market from 2022 to 2030. The hybrid electric vehicle is designed to augment the use of the internal combustion engine in collaboration with the electric powertrain.
• off-highway vehicle manufacturers have been adopting hybrid engines featuring diesel-electric propulsion systems. These diesel-electric hybrid drive systems enable engine down speeding, allowing users to run a smaller engine at a lower rpm and, thereby, providing fewer parts movement and high fuel efficiency. All these factors are expected to contribute to the growth of the hybrid electric vehicle segment.
• The BEV segment is projected to register the highest CAGR of 40.0% from 2022 to 2030. The growth of the segment can be attributed to the restrictions on CO2 emission and the slowdown in the adoption of Internal Combustion Engine (ICE) vehicles. However, most off-highway vehicles require high power to function, thus the use of BEV is still limited.

Off-highway Electric Vehicle Regional Outlook

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa (MEA)

Key Companies Profile & Market Share Insights

Major strategies adopted by key market players include new product launches and expansion of product portfolios. For instance, in July 2021, Komatsu Ltd. announced the launch of an exclusively remote-controlled and fully electric (non-hydraulic drive) mini excavator. It is a fully electric 3-ton class excavator powered by a lithium-ion battery. Market players are also focused on consolidating their market shares by undertaking M&A activities. For instance, in June 2021, Caterpillar Inc. announced a strategic collaboration with Nouveau Monde Graphite Inc. With this collaboration, Caterpillar Inc. planned to develop, test, and manufacture Cat zero-emission machines for the Matawinie graphite mine.

Some prominent players in the Global Off-highway Electric Vehicle market include:

• 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.

Order a free sample PDF of the in Off-highway Electric Vehicle Market Intelligence Study, published by Grand View Research.