Automotive and Transportation

Electric Construction Equipment Market is Expected to Reach USD 81.58 Billion by 2031

Mar 2024

Automotive and Transportation

As per the report published by Kings Research, the global Electric Construction Equipment Market was valued at USD 13.44 billion in 2023 and is projected to reach USD 81.58 billion by 2031, growing at a CAGR of 25.72% from 2024 to 2031.

Electric construction equipment refers to machinery and vehicles utilized in construction activities that are powered by electric sources, typically batteries or electric motors. These equipment offers various advantages over traditional diesel-powered counterparts, including lower emissions, reduced operating costs, quieter operation, and improved efficiency. There are several types of batteries used in electric construction equipment, including lithium-ion, lead-acid, and nickel-cadmium batteries, among others. Each type of battery has its own set of characteristics and suitability for different applications within the construction industry. Industries such as building construction, infrastructure development, mining, and landscaping utilize electric construction equipment for tasks such as excavation, material handling, earthmoving, and demolition. Key driving factors boosting the adoption of electric construction equipment in these industries include regulatory pressures to reduce emissions, the need for cost-effective and efficient solutions, and the growing awareness of environmental sustainability.

Key Insights

  • Based on vehicle, the forklift segment is expected to register the highest CAGR of 28.98% over the forecast period
  • Based on battery, the lithium-ion segment generated the highest revenue of USD 8.72 billion in 2023
  • By end-use, the industrial segment is expected to witness the highest CAGR of 28.40% over the projected timeframe
  • On the basis of region, Asia Pacific is anticipated to grow at the highest CAGR of 27.47% through the projected period

Doosan Launches Two New Electric Excavators

March 2023: Doosan Bobcat introduced two concept loaders and various lineups of electric excavators. Additionally, the company unveiled a prototype of the world’s first all-electric skid-steer loader, known as ‘S7X’.

Rising Focus on Electric and Hybrid Equipment to Create Prominent Growth Opportunities for Electric Construction Equipment Industry

Increasing focus on electric and hybrid equipment in the construction industry presents new growth opportunities for the market. As construction companies and contractors seek to reduce their carbon footprint and comply with stringent emission regulations, there is a growing demand for electric and hybrid construction equipment. This trend creates lucrative opportunities for manufacturers to innovate and develop advanced electric and hybrid solutions to meet the evolving needs of the industry. Additionally, government incentives and subsidies aimed at promoting the adoption of electric and hybrid vehicles are benefitting manufacturers and suppliers in the electric construction equipment sector. Moreover, the rising awareness of environmental sustainability among construction industry stakeholders drives the demand for electric and hybrid equipment, positioning the market for significant growth in the coming years.

Lack of Charging Infrastructure to Hinder Electric Construction Equipment Market Expansion

The lack of charging infrastructure to support continued development could present a significant challenge to market expansion. Unlike traditional diesel-powered equipment that can be refueled quickly at existing fueling stations, electric construction equipment requires access to charging stations for recharging their batteries. Establishing a robust charging infrastructure capable of supporting the widespread adoption of electric construction equipment across construction sites and job locations requires significant investment and coordination among stakeholders. The availability of charging infrastructure is crucial for ensuring the uninterrupted operation of electric equipment and overcoming range limitations. Moreover, the deployment of charging infrastructure must address factors such as charging time, compatibility with different types of electric equipment, and scalability to meet the growing demand. Addressing the challenge of charging infrastructure development is essential for unlocking the full potential of electric construction equipment and driving market growth.

Asia Pacific to Witness Substantial Growth in the Market with the Highest Forecasted CAGR of 27.47% Over 2024-2031

Based on region, the global advanced materials for flying cars market is classified into North America, Europe, Asia Pacific, MEA, and Latin America. The region's rapid economic growth, urbanization, and infrastructure development projects are driving the demand for construction equipment, including electric variants. Additionally, governments in countries such as China, India, and Japan are implementing policies and incentives to promote the adoption of electric vehicles, including construction equipment, to address environmental concerns and reduce dependency on fossil fuels. Furthermore, the increasing focus on sustainable development and infrastructure projects, such as renewable energy installations, smart cities, and transportation networks, contributes to the growing demand for electric construction equipment in the Asia Pacific region. Moreover, the presence of major construction equipment manufacturers and suppliers, coupled with technological advancements and investments in charging infrastructure, support the growth of the electric construction equipment market in the region. As a result, Asia Pacific presents significant opportunities for market players looking to capitalize on the growing demand for electric construction equipment in the region.

Market Players Concentrating on Innovative Product Launches to Drive Market Development

The global electric construction equipment market is fragmented with key players such as AB Volvo, Caterpillar, BYD Group, Hitachi Construction Machinery Co. Ltd, Komatsu Ltd., Wacker Neuson Group, Deere & Company, J C Bamford Excavators Ltd., Doosan Corporation, KUBOTA Corporation, CNH Industrial N.V., Kobelco Construction Machinery Co., Ltd., and others. Companies employ a variety of strategic measures such as acquisitions, mergers, partnerships, product introductions, and collaborations to expand their business globally and enhance their competitive position.

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