Global Off-highway Electric Vehicle Market 2024 – 2033

Reports Description

Stringent government regulations curbing carbon emissions boosting the off-highway electric vehicle market

The Off-highway Electric Vehicle market size was estimated at USD 4.3 billion in 2021 and is anticipated to grow to approximately USD 42.4 billion by 2030, witnessing a CAGR growth of roughly 30% between 2022 and 2030. The report examines the off-highway electric vehicle market’s driving and restraining factors and the impact analysis throughout the projection period. Further, the report observes global opportunities worldwide in the off-highway electric vehicle market.

Off-highway Electric VehicleMarket: Overview

Off-highway vehicles are used in many industries, including mining, construction, forestry, and agriculture. This includes lighter gear, specialist heavy machinery, and others. Electric trucks and other vehicles used in off-highway activities are yet to be adopted on a large scale. However, these vehicles are witnessing high adoption across the world.

Off-highway Electric Vehicle Market: COVID-19 Impact Analysis

The outbreak of COVID-19 resulted in disruption of the supply chain, which impacted off-highway electric vehicles and resulted in the temporary cessation of production facilities. The pandemic also impacted the overall availability of labor forces, reducing activities in various industries using off-highway vehicles. However, with the ease of lockdown restrictions, the market is anticipated to accelerate in the coming years. The COVID-19 pandemic significantly affected the market during 2020-2021.

Off-highway Electric Vehicle Market: Growth Drivers

Advancements in battery technology, supply, as well as overall economics

Battery technology, supply, and overall economics are constantly pushing the deployment of off-highway electric vehicles globally, and this trend is projected to accelerate during the coming years. Further, growth in Environmental, Social, and Governance (ESG) investing is rapidly boosting this development as it achieves regulatory targets concerning reduced carbon emissions across varied geographies and industries. For instance, the European Union is focused on reducing carbon emissions by around 30% by 2030.

Also, the Advanced Clean Truck regulation in California, US, will limit the number of diesel-powered vehicle sales from 2024. Government regulations are expected to increase demand for these vehicles during the forecast period. However, the high cost of these vehicles may hinder their deployment in developing economies.

Increasing demand for low-noise construction machines

One significant cause of noise pollution in residential areas is the use of diesel-powered construction machines, which results in disturbances such as poor concentration, irritation, hypertension, and general fatigue among residents.

According to the WHO, around 44% of the European population is impacted by vehicle and road noise, which creates several health issues. Further, according to an HSE report, around 17,000 people in the UK suffer from severe ear conditions due to excessive noise pollution. Thus, governments are taking various initiatives to reduce the noise generated by construction machinery and equipment.

Emissions from these machines propel policies and initiatives to reduce emissions, particularly in residential areas. For example, Oslo’s municipal corporation is projecting all public construction sites to be operated using emission-free equipment by the end of 2025. Such initiatives are anticipated to push other governments in the major cities to adopt similar policies, thus influencing the market for off-highway vehicles.

Off-highway Electric VehicleMarket: Segmentation Analysis

The Off-highway Electric Vehicle Market is segmented based on application.

The application segment comprises agriculture, mining, construction, and others. In 2021, the construction segment was estimated to hold the largest market share, whereas the agriculture segment is expected to witness a high CAGR growth. The construction segment comprises various electric equipment, including electric-powered excavators and loaders.

One of the key factors influencing the growth of off-highway electric vehicles in the construction sector is the rapidly increasing investments in public infrastructure. Also, the majority of growth in the agriculture segment is witnessed in North America and Europe. These regions include several developed economies investing heavily in advanced agricultural equipment to achieve high yields.

Report Scope

Key Insights:

• As Per the analysis shared by our research analyst, the Off-highway Electric Vehicle Market is estimated to grow annually at a CAGR of around 30% over the forecast period (2022-2030).
• In terms of revenue, the Off-highway Electric Vehicle Market was valued at around USD 4.3 billion in 2021 and is projected to reach USD 42.4 billion by 2030. Due to various driving factors, the market is predicted to rise significantly.
• The construction segment was predicted to show maximum market share in 2021 based on application segmentation.
• Based on region, the North American region was the leading revenue generator in 2021.

Recent Development

• July 2022: Illinois, US, launched a rebate program to encourage people to buy electric vehicles. This includes a rebate of US$ 4,000 for each vehicle purchase. The category also includes off-highway vehicles.
• July 2022: HUSCO International, Inc., a company that manufactures off-highway vehicles, received a US$50 million contract from an undisclosed company to build a system that enhances electric vehicles’ battery efficiency.
• June 2021: caterpillar, Inc. partnered with Nouveau Monde Graphite Inc. to develop Cat zero-emission machines for use in the Matawinie graphite mine.

Regional Landscape

In 2021, North America dominated the Off-highway Electric Vehicle market, with the US holding the largest share. The country is the base for several off-highway vehicle manufacturers, such as Caterpillar, Inc., CNH Industrial N.V., and Deere & Company. Further, the federal government has imposed various stringent regulations concerning harmful regulations. According to stats released by the Environment Protection Agency (EPA), off-highway equipment accounted for around 30% of overall greenhouse gas emissions in the country.

Moreover, being the US, an early adopter of modern technologies coupled with high spending capabilities, the region is expected to dominate throughout the forecast period. Moreover, companies present in the region, such as Caterpillar, Inc., are focused on developing an advanced solid-state battery technology to minimize the downsides of the conventional battery types in electric excavators and loaders, which are further expected to drive the growth of the electric off-highway vehicles in the US. The Asia Pacific is anticipated to witness high growth during 2022-2030.

Competitive Landscape

Caterpillar, Inc., Volvo Construction Equipment AB, Sandvik AB, and Deere & Company dominate the Off-highway Electric Vehicle Market. The players focus on enhancing their production capabilities by launching technology-advanced equipment. Another key strategy these players adopt is collaboration with various industries and designing equipment customized to their requirements.

The global off-highway electric vehicle market is segmented as follows:

By Application

• Construction
• Agriculture
• Mining
• Others

By Propulsion

• HEV
• BEV

By Energy Storage

• Lithium-ion
• Lead-Acid

By Energy Storage Capacity

• <50 kWh
• 50-200 kWh
• >200 kWh

By Power Output

• <50 hp
• 50-150 hp
• 150-300 hp
• >300 hp

Based on Geography

North America

• U.S.
• Canada
• Mexico
• Rest of North America

Europe

• Germany
• France
• U.K.
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• New Zealand
• Australia
• South Korea
• Rest of Asia Pacific

The Middle East & Africa

• Saudi Arabia
• UAE
• Egypt
• Kuwait
• South Africa
• Rest of the Middle East & Africa

Latin America

• Brazil
• Argentina
• Rest of Latin America