According to the report, the global off-highway electric vehicle market is likely to grow from USD 1.3 Billion in 2025 to USD 4.7 Billion in 2035 at a highest CAGR of 12.2% during the time period. Sustainability pressure, changes in technology and regulatory momentum are all factors accelerating the global market of off-highway electric vehicle (OHEV). Governments around the world are increasingly imposing tighter restrictions in the areas of construction, agriculture and mining, forcing the operators to use cleaner alternatives, thus driving rapid adoption to OHEV. Electric models are also appealing because of increasing fuel prices and the necessity to minimize operational costs since they maintain lower lifetime maintenance and energy costs than the equipment that uses diesel. The increased battery technologies, including increased energy density and rapid charge capabilities, are increasing the range and usability of vehicles, and are now viable in heavy-duty use. Also, the inclusion of telematics and smart fleet management systems in OHEVs increases the levels of productivity and efficiency, increasing their popularity in the market. The commitment of the industry to develop more advanced prototypes by such giants as Caterpillar, Komatsu, and Volvo CE and the increasing interest in green mining and sustainable agriculture leave the long-term market expansion perspectives.
One of the market motivations towards the global off-highway electric vehicle market is the increased need to use noisy construction and agricultural process in the city. Compared to diesel equipment, electric models are also much quieter, which is in line with the increased noise pollution requirements in urban areas and enhanced safety and comfort of workers in highly restrictive settings.
The limitations are the lack of electric infrastructure that is specifically tailored to off-highway settings such as remote mines and big farms. Such a gap in infrastructure prevents operators to switch to a large-scale implementation of electric fleets, instead resorting to the use of traditional vehicles that use fuel.
A key opportunity is that the increasing trend in the integration of renewable energy in mining and farming sites. Using OHEVs in conjunction with on-site solar or wind energy systems enables the operators to have increased energy autonomy, smaller carbon footprints, and a more predictable overall long-term operating expense, which formidably offers incentives to move toward faster market adoption.
The presence of tariff rates affects the global off-highway electric vehicle (OHEV) market directly because it affects the equipment cost, supply chains, and cross-border trade flows to a considerable extent. Tariffs on imports of electric vehicle components like the batteries, motors, and control systems can also increase the cost of manufacturing them and consequently OHEVs will be less competitive in prices than the diesel-powered machinery. As an example, U.S. tariffs on Chinese-made lithium-ion batteries have added expenses to construction and agricultural OEMs to procure essential parts, and thus drove up prices to end-users. This poses obstacles to fleet operators who wish to use OHEVs, especially in those cost-sensitive sectors such as agriculture and small-scale construction.
In addition, positive tariff regulations would be able to trigger market growth as it would lower the cost of equipment and transfer of technology. The opening of tariffs on imported battery cells by the European Union, in Asia, has enabled local OEMs, such as Volvo CE and Liebherr to increase their electric excavator and loaders manufacturing. On the same note, the gradual introduction of tariffs on the elements of EVs is an opportunity that India has provided its local players to connect with global gamblers, thus fostering their more rapid uptake in the mines and agriculture industries. In this way, tariff configurations are a potent tool that determines global OHEV affordability, competitiveness, and rates of regional adoption.
Prominent players operating in the global off-highway electric vehicle market are AGCO Corporation, Caterpillar Inc., CNH Industrial (Case IH, New Holland), Doosan Infracore, Epiroc AB, FPT Industrial (CNH), Hitachi Construction Machinery, JCB, John Deere, Komatsu Ltd., Kubota Corporation, Liebherr Group, Lion Electric Co., Sandvik Mining and Rock Technology, SANY Group, Terex Corporation, Tesla, Inc. (Tesla Energy & Tesla Semi for off-road applications), Volvo Construction Equipment, Wirtgen Group, and Other Key Players
MarketGenics is a global market research and management consulting company empowering decision makers from startups, Fortune 500 companies, non-profit organizations, universities and government institutions. Our main goal is to assist and partner organizations to make lasting strategic improvements and realize growth targets. Our industry research reports are designed to provide granular quantitative information, combined with key industry insights, aimed at assisting sustainable organizational development.
We serve clients on every aspect of strategy, including product development, application modeling, exploring new markets and tapping into niche growth opportunities.
800 N King Street Suite 304 #4208 Wilmington, DE 19801 United States.
+1(302)303-2617
info@marketgenics.co
3rd floor, Indeco Equinox, Baner Road, Baner, Pune, Maharashtra 411045 India.
sales@marketgenics.co
Table of Contents
Note* - This is just tentative list of players. While providing the report, we will cover a greater number of players based on their revenue and share for each geography
We will customise the research for you, in case the report listed above does not meet your requirements.
Get 10% Free Customisation