Northbrook, IL -- (SBWIRE) -- 09/18/2019 -- The Off-Highway Electric Vehicle Market is projected to reach USD 29.8 billion by 2027 from an estimated USD 4.9 billion in 2019 at a CAGR of 25.2%. With the increase in global emission levels and stringency of emission norms, manufacturers face operational issues in reaching an optimum balance between the output received, cost incurred, and profit margins. Growing stringency of emission norms for off-highway vehicles has shifted the focus of manufacturers on alternate powertrain sources such as their electrical counterparts. Such factors are driving the market.
The off-highway hybrid electric vehicle is estimated to be the largest segment, by propulsion type.
Off-highway hybrid electric vehicles are equipped with a diesel engine along with the regenerative energy storage system that helps increase the fuel efficiency by 40–50%. Developed countries in Europe and North America have a higher demand for electric and hybrid equipment due to their well established and robust electricity grid. However, in developing countries, demand for off-highway hybrid electric vehicles is lower than in developed countries. High capital cost is the major reason behind the low acceptance of off-highway electric vehicles in Asian countries.
The electric tractor is projected to be the fastest-growing segment for the off-highway electric vehicle market.
Farmers have started adopting advanced agricultural processes and modern farm equipment to gain higher yield. Also, governments around the world are focusing on increasing food productivity. Thus, the demand for farm equipment with modern technologies like electric and hybrid tractors is expected to rise. There are limited manufacturers such as John Deere and Solectrac who are working on electric tractors. As the population in Asia Pacific continues to increase at a rapid pace, countries such as China and India would observe a significant growth in the demand for food consumption, which, in turn, will drive the demand for electric tractors with high-power capacity.
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Asia Pacific is estimated to be the fastest-growing market during the forecast period.
The Asia Pacific has experienced growth in terms of a number of projects such as dams, airports, and hydroelectric because of which many international companies have started their manufacturing plants in this region. Some of the man-made marvels and remarkable construction projects such as Beijing New International Airport (China) and South to North Water Transfer Project (China) are set up in the region. Also, the region is estimated to be the most populated in the world. However, a large part of the population in the region still does not own a house, which gives an immense opportunity for construction activities in the region. Such factors, along with the increasing emission norms, are expected to drive the Asia Pacific off-highway electric vehicle market.
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Key Market Players
Some of the key off-highway electric vehicle manufacturers and suppliers include Volvo CE (Sweden), Caterpillar (US), Komatsu (Japan), Hitachi Construction Machinery (Japan), JCB (UK). Hitachi Construction Machinery adopted a mix of the contracts & agreements and mergers & acquisitions strategies to retain its market position, while Caterpillar also followed these strategies to remain a prominent player in the market. For instance, In January 2019, Caterpillar, along with Pon Equipment, unveiled an all-electric, 26-ton excavator with a 300-kWh battery pack to electrify construction equipment.
Recent Developments
- In 2019, JCB announced that the 19C-1E, the company's first fully electric mini excavator, entered production. The company said that it is the first electric excavator to be put into production by an OEM.
- In April 2019, Komatsu developed an electric mini excavator—designed to set the course for next-generation construction equipment—and was unveiled at bauma 2019, a leading international trade fair for construction equipment held in Munich, Germany, on April 8.
- In March 2019, CASE Construction Equipment, a brand of CNH Industrial, expanded its commercial network in Latin America with the inauguration of a new concessionaire in the metropolitan region of Asunción, Paraguay.
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