Electric Construction Equipment Market Surge Towards Solid Growth by 2027

Electric Construction Equipment Market

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. The market growth is primarily driven by the increasing demand to minimize exhaust emissions from off-highway equipment, reduce ventilation costs in underground mining, and the preference for low-noise construction machines in residential areas.

The stringent emission and noise regulations in urban or closed construction areas have a significant effect on the development of electric construction equipment including compact electric excavators, electric loaders, and electric dozers. The incorporation of electric equipment in the mining industry greatly reduces the expenses associated with the ventilation of underground mines. Electric mining equipment including electric dump trucks and electric excavators drives the electric mining equipment market. In the agriculture segment, electric equipment helps improve efficiency and productivity by accelerating farm mechanization. Electric tractors and electric sprayers are the key electric agriculture equipment categories.

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Market Dynamics

DRIVER: Rising demand for low-noise construction activities in residential areas would drive the demand for the electric construction equipment market

The increasing noise pollution in cities is becoming a potential hazard because of a greater number of constructions within the city limits. Most metropolitan cities have imposed noise regulations and restrictions on construction sites. It is mainly the diesel-powered construction machines that are the major reason for the noise generated on residential construction sites.

According to the WHO, ~44% of the European population is affected by road and vehicle noise, leading to severe health issues. Moreover, an HSE reports states that in the UK alone, nearly 17,000 people have deafness, ringing in the ears, or other ear conditions caused by excessive noise. To overcome this, countries are working toward regulations to control the noise generated by construction equipment.

OPPORTUNITY: Development of long-range and fast charging battery technology

In the initial times, electric vehicles were working on lead-acid and nickel-metal hydride batteries. But now, electric off-highway vehicles are largely equipped with lithium-ion batteries due to their numerous advantages over lead-acid and nickel-metal hydride batteries. However, lithium-ion batteries have several limitations that can affect battery performance. The lithium-ion batteries are limited to issues such as poor robustness (require protection from being overcharged and excessive discharge), limited power density, short lifespan (often 600–1,000 charge-discharge cycles before their capacity degrades), performance fluctuations with changing temperatures, rigidness, and high cost.

Europe is estimated to have the largest market in 2027

With the high electrification trend in developed countries and high demand for construction and mining equipment, Europe is predicted to lead the electric construction equipment market with a CAGR of 24.2%. The stringent emission norms from this region, along with many sustainability initiatives by the government, are some of the key reasons for this region to have the largest market for electric construction equipment, with USD 9,512.3 Million in 2027.

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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