Electric Off Highway Equipment Machinery Market Size

Electric Off-Highway Equipment Market Analysis

The Electric Off Highway Equipment Machinery Market size is estimated at USD 13.5 billion in 2024, and is expected to reach USD 29.25 billion by 2029, growing at a CAGR of 16.72% during the forecast period (2024-2029).

Over the long term, growing preference for the reduction in carbon emissions, improvements in charging infrastructure, and the government’s aggressive push towards promoting the usage of electric-powered construction and agricultural equipment will serve as major catalysts for the growth of the off-highway electric equipment market.

The European Union announced its commitment to reduce its net greenhouse gas emissions by at least 55 percent by 2030, compared to 1990. Further, under the European Climate Law, the union established its aim to reach net zero greenhouse gas emissions by 2050.

The adoption of electric propulsion for heavy equipment requires efficient charging infrastructure, which can provide fast charging services. Therefore, various companies are actively developing solutions to address the equipment charging needs of off-highway equipment. For instance,

In September 2023, Amazon published a new, open-source tool, CHALET, to help private industry, governments, electricity network operators, and local authorities determine where electric charging points for heavy goods vehicles should be built across the European region.

Even with the increasing effort by the public and private players to promote the usage of electric equipment for agricultural and off-road works, the adoption of electric propulsion medium has faced challenges. Firstly, the cost of electric equipment is comparatively higher than its counterparts. Secondly, electric propulsion is not suitable for machinery that requires higher energy since they generally operate for a longer time, thus shooting up the charging time of this machinery. However, with the advancement of technology, various manufacturers are establishing products that can cater to the increasing needs of agricultural and off-road operators. For instance,

In June 2023, Volvo CE launched its first mid-size electric excavator, the EC230 Electric, exclusively in the European market to deliver low-noise and zero-emission solutions to end-users. Further, the company stated that the 23-ton EC230 Electric excavator will deliver the same performance as its conventional diesel counterpart but with the added benefit of lower total cost of ownership.

Asia-Pacific is expected to remain the epicenter of ongoing demand for electric off-highway equipment. This is attributed to large-scale construction, mining, and infrastructure development projects which are under the pipeline in the region. In addition, major players in the region have increased their R&D expenditure exponentially to integrate innovation with performance excellence. The demand for high-performance, highly efficient, and safe handling equipment from the end market is expected to make the market more competitive over the forecast period.