According to a research report "Electric Construction Equipment Market by Equipment Type, Battery Capacity, Battery Type, Power Output, Application, Propulsion, Electric Tractor Market, Electric Construction & Mining Equipment Market and Region - Global Forecast to 2027" published by MarketsandMarkets, the electric construction equipment market is estimated to grow from USD 9.2 billion in 2022 to USD 24.8 billion by 2027 at a CAGR of 22.0% over the forecast period.
Browse 331 market data Tables and 58 Figures spread through 342 Pages and in-depth TOC on "Electric Construction Equipment Market by Equipment Type, Battery Capacity, Battery Type, Power Output, Application, Propulsion, Electric Tractor Market, Electric Construction & Mining Equipment Market and Region - Global Forecast to 2027"
View detailed Table of Content here - https://www.marketsandmarkets.com/Market-Reports/off-highway-electric-vehicle-market-129288251.html
The increasing demand to minimize exhaust emissions, ventilation costs in underground mining and preference for the low noise construction machines in residential areas would create growth opportunities for the electric construction equipment market.
The mining equipment would hold the largest market share among the electric off-highway equipment types
The mining application segment is currently leading the market in terms of value generation, globally. This is mainly because of the initiatives by the mining corporations and governments about the safety, environmental, and financial advantages of electric and hybrid-electric mining equipment.
Particularly, in the underground mining activities, harmful dust and gases are produced and usually has a hot to very hot temperature. One of the major reasons for this heat and other toxic gases in the underground mines are the diesel-powered mining equipment. This demands a very efficient ventilation system with huge capital maintenance expenses. According to the International Council on Mining and Metals (ICMM), 40% of an underground mine’s energy outlay is spent on operating ventilation systems to remove pollutants and heat from mining tunnels. Such factors increase the overall operational cost of the mine while decreasing its production efficiency.
There are various regulations for the mine ventilation systems and are usually monitored by the ventilation pressure. The United States regulations of the Mine Safety Health Administration (MHSA) has set the minimum air quantity for safe mining operations. To meet the mandatory standards, it is necessary to maintain higher airflow quantities than the minimum values. Along with this, the diesel engine vehicles along with emissions and heat, produce noise, especially within the narrow mining channels. For these reasons and to achieve the sustainability goals, manufacturers and the mine owners have started to prefer the electrification of these mining vehicles. Especially in the designing of new mining site, the incorporation of the electric fleet of vehicles and equipment can drastically reduce the capital and maintenance costs. Though the ventilation system cannot be eliminated, the electric mining vehicles reduces the load on the system as it produces zero emissions and less heat. In such cases, the capacity of the ventilation systems can be reduced, thereby reducing the capital investment.
The major cost savings are in the fuel and ventilation costs when using an electric equipment for mining operations. Therefore, the miners find the electric mining vehicles more profitable and apt for their large underground mining operations. Moreover, many leading miners including Anglo American (AAL.L), Rio Tinto (RIO.L) and BHP (BHPB.L), have already committed to net zero emissions by the year 2050 and these companies prefer the electric mining fleet to reach their sustainability goals. These factors expected to rise the demand for electric mining equipment such as dump trucks and loaders during the forecast period.
Europe would showcase highest demand for electric off-highway equipment
The stringent emission norms in the European region along with many sustainability initiatives by the government are some of the key reasons due to which Europe would be the largest market for electric off-highway equipment.
The increasing noise pollution in cities has made most metropolitan cities to impose noise regulations and restrictions in the urban construction sites. The main reasons for the generation of noise in residential construction sites are the diesel-powered construction equipment.
According to the World Health Organization (WHO), approximately 44% of the European population is affected by road and vehicle noise, leading to severe health issues among people. An Health and Safety Executive (HSE) report also states that in the UK alone, nearly 17,000 people suffer from deafness, ringing in the ears, or other ear conditions caused by excessive noise. To counter this, countries are working toward regulations to control the noise generated by construction equipment.
The MHSA regulations also mandates that the air reaching each of the mine’s working face must travel with a velocity such that it can cover at least 60 feet in a minute. These air velocities are controlled by the various types of ventilation systems and balance the air flow with the correct ratio. Poor air mixing can be dangerous and lead to fluctuation in the methane concentration causing potential ignition. The blowing fans and exhaust fans regulate the air flow and minimizes the dust transport. Though the ventilation system cannot be eliminated, the electric mining vehicles reduce the load on the system as they produce zero emissions and very less heat. In such cases, the capacity of the ventilation systems can be reduced, thereby reducing the capital investment.
AN Emission Control Technology (ECT) is used to control and reduce the emission from an engine, without changing much of the engine design. Some of the modern ECTs are Selective Catalytic Reduction (SCR), Gasoline Particulate Filter (GPF), Exhaust Gas Recirculation (EGR), Diesel Particulate Filter, various sensors (including oxygen sensors and NOx sensors), and thermal management technologies. Though ECTs are one of the cost-effective solutions to meet the rising emission norms, there is an increased manufacturing cost of the equipment. Some ECT devices lead to loss of power and other downfalls such as reduction in fuel economy, varied back pressure in prolonged usage, increased maintenance activities, etc. All these expenses, including the increased capital for the vehicle, result in extended return on investment (ROI) duration of the customers.
To overcome these difficulties and the costs associated with it, the manufacturers and customers opt for an alternative sustainable mode of mobility. This greatly aided the development of the hybrid and electric off-highway equipment and equipment that is emission free, noise free, and more efficient than its IC engine counterparts
Key Market Players
The electric construction equipment market is dominated by a few globally established companies such as Hitachi Construction Machinery (Japan), Caterpillar Inc. (US), Komatsu Ltd. (Japan), JCB (UK), Volvo Construction Equipment (Volvo CE) (Sweden).
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