Global Off-highway Electric Vehicles Market Grows at a Staggering CAGR of 30.42%

Introduction

Off-highway electric vehicles are designed for use in off-road environments. These electric vehicles also use a variety of batteries to store energy, including lead acid, nickel metal hybrid, and lithium-ion. Electric off-road vehicles are frequently used in the mining and construction sectors, where the roads are not always straight and convenient. In addition to transporting loads from one place to another, these vehicles are used for various tasks in the mining and construction industries.

Market Dynamics

Advantageous Government Policies and Regulations Drives the Global Market

Governments worldwide provide tax breaks and subsidies for off-road electric vehicles due to their environmental and sustainable benefits. In order to stimulate the market for electric vehicles, nations are developing policies. Mining and construction in China and India are driving demand for effective electric vehicles. Construction machinery will be needed to complete India's 50 trillion INR infrastructure development project. The government has announced numerous infrastructure plans, one of which is the "Bharatmala Yojana" to upgrade India's roads. Due to their high return on investment (ROI), electric cars also appeal to consumers despite the volatile price of crude oil.

Growing Intention for Electrification of Construction Equipment Creates Tremendous Opportunities

Equipment like backhoes, loaders, graders, and excavators are among those that will probably switch from diesel to electric power. According to the US Environmental Protection Agency (EPA), transportation contributed 29% of the world's Green House Gas (GHG) emissions in 2019, while agriculture contributed almost 10%. Leading government regulatory agencies have started to impose strict emission standards for diesel engines used in the construction industry in response to this recognition. As a result, manufacturers of electric vehicles can now gain a competitive edge by creating entirely electric construction machinery. For instance, Volvo CE declared in 2019 that it would stop developing small excavators, loaders, and other equipment with diesel engines. Another area of focus for businesses like J C Bamford Excavators Ltd., Caterpillar Inc., and Hyundai Construction Equipment Co., Ltd. is the development of all-electric construction equipment.

Regional Analysis

North America is the most significant shareholder in the global off-highway electric vehicles market and is expected to grow at a CAGR of 29.8% during the forecast period. The off-highway electric vehicle market is dominated by North America, with the United States playing a significant role. The government intends to invest USD 906 million in the nation's infrastructure through the INFRA discretionary grant program, the U.S. Department of Transportation (DoT) announced in June 2020. The government places a high priority on the nation's infrastructure. As a result, it is anticipated that over the forecast period, opportunities will present themselves for market participants in off-road electric vehicles.

Europe is expected to grow at a CAGR of 25.50%, generating USD 14,010.53 billion during the forecast period. The market for off-highway electric vehicles in Europe is anticipated to grow soon due to regulations controlling diesel emissions from heavy equipment and increasing infrastructure investments. The German government has consistently invested in top-notch infrastructure over the last few years. Due to Germany's rapidly expanding infrastructure market, which is particularly strong in the area of roads, highways, and transportation infrastructure, other concrete and road machinery markets in the country may experience significant growth.

Key Highlights

• The global off-highway electric vehicles market was valued at USD 4,420.2 million in 2021. It is expected to reach USD 46,874.00 million by 2030, growing at a CAGR of 30.42% during the forecast period (2022–2030).
• Based on application, the global off-highway electric vehicles market is bifurcated into construction, agriculture, and mining. The construction segment is the highest contributor to the market and is expected to grow at a CAGR of 30.12% during the forecast period.
• Based on electric vehicle type, the global off-highway electric vehicles market is bifurcated into battery electric vehicles (BEV) and hybrid electric vehicles (HEV). The battery electric vehicles (BEV) segment owns the highest market share and is expected to grow at a CAGR of 29.10% during the forecast period.
• North America is the most significant shareholder in the global off-highway electric vehicles market and is expected to grow at a CAGR of 29.8% during the forecast period.

Competitive Players

1. Caterpillar
2. Ab Volvo
3. Deere & Company
4. Komatsu Ltd
5. Sandvik Ab
6. Hitachi Construction Machinery Co.LTD
7. Epiroc Ab
8. Doosan Corporation
9. J C Bamford Excavators Ltd
10. CNH Industrial N.V.

Recent Developments

• April 2024 - With the 2024 Beijing auto show quickly approaching, Fang Cheng Bao, the customized sub-brand of BYD (OTCMKTS: BYDDY), had shown two concepts, the Super 3 and Super 9, along with its new crossover SUV (sport utility vehicle) model, the Bao 8. At its spring launch event in ShenzhenFang Cheng Bao debuted its whole product matrix, which included the initial model, the Bao 5.
• June 2024 - A new off-road electric car charging network was established in Michigan's Upper Peninsula by Polaris, Inc. and the State of Michigan to accommodate off-road electric vehicles. On June 6, Miller's Cottages in Ontonagon, Michigan, hosted a kickoff celebration.

Segmentation

1. By Applications
   1. Construction
   2. Agriculture
   3. Mining
2. By Electric Vehicle Type
   1. Battery Electric Vehicle (BEV)
   2. Hybrid Electric Vehicle (HEV)
3. By Energy Storage
   1. Lithium-Ion (Li-Ion)
   2. Lead–Acid