The market for electric construction heavy machinery is being driven by rising government initiatives and public awareness of environmentally friendly alternatives. The market for electric construction heavy machinery is expanding as a result of rising infrastructure development and energy efficiency demands. The high cost of these machines is a significant barrier to their growth because they require a large initial capital investment, which could slow the expansion of their market. Also, given their high cost-efficiency and environmentally friendly qualities, these machines may still find a market.
The market is necessary since it offers electric heavy construction equipment that enables numerous operations like excavation, drilling, and transporting. These devices are quite effective and provide the environment with a green alternative. It aids in lowering greenhouse gas emissions, such as CO2, which are essential for maintaining a healthy ecosystem. Due to its energy-efficient characteristics, it also lowers fuel costs and increases the site's productivity.
Building using electricity Heavy Machinery is a term used to describe large pieces of equipment that are utilised in civil engineering and construction but are powered by electricity rather than diesel or gasoline. They include energy-efficient machineries like electric excavators, motor graders, dozers, dump trucks, and other similar equipment that can easily do a variety of jobs. These devices have a variety of uses, including transportation, logistics, engineering, etc. Additionally, they have little maintenance expenses and are very cost-effective. They are thus a realistic solution for many modern construction sites.
The market for electric construction heavy machinery is anticipated to grow at a CAGR of 6.2% from 2021 to 2031, from a value of USD 24.7 billion in 2021 to USD 40.2 billion in 2031.
The demand for electric construction heavy equipment is rising as a result of the increased demand for solutions that are effective, economical, and environmentally friendly.
One of the main obstacles to market expansion is the high cost of electric construction heavy equipment. Heavy electric construction equipment is expensive up front, which presents a problem for small and mid-sized firms. They are also more expensively constructed than diesel-powered equipment, making maintenance and repairs on them challenging in isolated areas. Additionally, the adoption of electric construction heavy gear is being hampered by the dearth of electric infrastructure in several nations. Yet, it is anticipated that there will be expansion opportunities in the near future due to the rising demand for battery technology and the increase of the infrastructure for charging.
The Electric Excavator Segment emerged as the Most Lucrative Type
The electric excavator, electric motor grader, electric dozer, and electric dump truck are the types into which the market is divided. The electric excavator has the biggest revenue and volume share of any of these. During the projected period, the rising demand for environmentally friendly solutions is anticipated to drive this segment's growth. Additionally, this market's expansion is being fueled by the increased demand for electric machinery in applications related to engineering and logistics.
The Most Prominent Application is the Logistics and Transportation Segment
It is divided into three categories based on application: engineering transportation, logistics and transportation, and others. Due to its many uses, which include loading, unloading, and delivery of commodities, logistics and transportation account for the majority of the contribution. Additionally, these machines have a high weight capacity, which greatly increases demand for them.
The Asia Pacific Region to render Ample Financing Opportunities
The market is examined in each of the following regions: North America, South America, Asia Pacific, Europe, and the Middle East and Africa. Asia Pacific is leading the pack of these due to its booming infrastructure development initiatives and strong economic expansion. The need for electric construction heavy equipment in this region is also being driven by the rising awareness of environmentally friendly alternatives.
COVID-19 Impact and Market Status
Construction is one of many industries that has undergone significant change as a result of the coronavirus pandemic. Due to the COVID-19 crisis's disruption, the market for electric construction heavy machinery saw a large drop. However, there has recently been a significant resurgence as a result of increased public and private investments in infrastructure projects around the world. The government’s plans to increase infrastructure spending are causing a rise in demand for electric construction heavy machines.
Komatsu Ltd., VOLVO Construction Equipment, Caterpillar Inc., AB Volvo, JCB, Hitachi Construction Machinery Co., Ltd., and Hyundai Heavy Industries are a few of the major companies competing in the global market for electric construction heavy machinery (HHI). To improve their product range and obtain a competitive edge in the market, the big firms are concentrating on invention as well as working with other industry leaders.
Recent Developments in the Electric Construction Heavy Machinery Market
• The first electric excavator for quarrying activities was created by Kawasaki Heavy Industries, Ltd. in May 2019. To improve worker safety and lower fuel expenses related to running diesel equipment, this is done. The business disclosed that it would introduce two additional electric versions of heavy construction equipment: an electric wheel loader and a hybrid skid steer loader (electric and hydraulic).
• The world's first electric wheel loader, the L509, was released by Liebherr in June 2019. This device was created for demanding daily uses and comes with an electric drive with outstanding performance. It uses up to 90% less energy than traditional drives, has almost no emissions, and has very low noise levels.
• Volvo Construction Equipment debuted its first line of compact wheel loaders that are entirely electric in May 2020. The smallest in their lineup, their compact wheel loader has a Volvo engine coupled to an electric motor that operates without emitting any emissions or consuming any gasoline. It provides operators with a high level of precision and control, which lowers operating expenses and enables them to work more effectively and productively.
• Caterpillar unveiled three new electric drive wheel loader versions for the H-Series in March 2021. The new innovations incorporated into the machines include a dual-mode hydraulic system, an improved motor, and a diesel exhaust fluid system. Comparing the H-Series to conventional diesel-powered models reveals that it offers increased fuel efficiency, decreased emissions, and lower maintenance costs.
Electric Construction Heavy Machinery Market Scope
|Revenue forecast in 2031
|USD 40.2 billion
|CAGR of 6.2 % during 2021-2031
|by Type, By Application, Regions
|North America, Europe, Asia Pacific, Middle East and Africa, South America
|Key Players Profiled
|Komatsu Ltd., VOLVO Construction Equipment, Caterpillar Inc., AB Volvo, JCB, Hitachi Construction Machinery Co., Ltd., and Hyundai Heavy Industries
Key Segments of the Electric Construction Heavy Machinery Market
Type Overview (USD Billion)
- Electric Excavator
- Electric Motor Grader
- Electric Dozer
- Electric Dump Truck
Application Overview (USD Billion)
- Logistics and Transportation
- Engineering Transportation
Regional Overview (USD Billion)
- Rest of Europe
- Rest of Asia Pacific
- Rest of South America
Middle East and South Africa