Electric Construction Equipment Market (By Vehicles: Excavators, Loaders, Cranes, Others; By Source: Lithium-Ion, Lead Acid, Others; By End use: Residential, Construction, Industrial) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2024-2033

The global electric construction equipment market size was valued at USD 10.32 billion in 2023 and is anticipated to reach around USD 86.01 billion by 2033, growing at a CAGR of 23.62% from 2024 to 2033.

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Key Takeaways

• Asia Pacific contributed 34% of market share in 2023.
• North America is estimated to expand the fastest CAGR between 2024 and 2033.
• By vehicles, the excavators segment held the largest market share of 30% in 2023.
• By vehicles, the cranes segment is anticipated to grow at a remarkable CAGR of 25.2% between 2024 and 2033.
• By source, the lithium-ion segment generated over 44% of market share in 2023.
• By source, the lead acid segment is expected to expand at the fastest CAGR over the projected period.
• By end use, the construction segment generated over 32% of market share in 2023.
• By end use, the industrial segment is expected to expand at the fastest CAGR over the projected period.

Electric Construction Equipment Market Size in Asia Pacific 2024 to 2033

The Asia Pacific electric construction equipment market size was estimated at USD 3.51 billion in 2023 and is projected to surpass around USD 29.67 billion by 2033 at a CAGR of 23.79% from 2024 to 2033.

Asia-Pacific held a share of 34% in the electric construction equipment market in 2023 due to several factors. The region experiences rapid urbanization, leading to increased construction activities and infrastructure development. Additionally, governments in countries like China, India, and Japan are implementing stringent regulations to curb pollution, driving the adoption of electric construction equipment. Moreover, Asia-Pacific has a robust manufacturing sector, facilitating the production and distribution of electric machinery. The region's large population and rising disposable income further contribute to the demand for sustainable and efficient construction equipment, cementing its significant market share.

North America is experiencing rapid growth in the electric construction equipment market due to several factors. Firstly, stringent environmental regulations are driving the demand for cleaner, emissions-free construction equipment. Additionally, the region's advanced technological infrastructure supports the development and adoption of electric machinery. Moreover, increasing awareness of sustainability and the benefits of electric equipment among construction companies and government initiatives promoting renewable energy contribute to the market's growth. Finally, incentives and subsidies offered by governments further incentivize the transition towards electric construction equipment, fueling its rapid expansion in North America.

Meanwhile, Europe is experiencing notable growth in the electric construction equipment market due to several factors. Stringent environmental regulations, coupled with increasing sustainability initiatives, are driving the adoption of electric machinery. Additionally, advancements in battery technology and government incentives further promote the shift towards electric construction equipment. Rising fuel costs and growing public awareness of environmental impact also contribute to the market's expansion. As a result, construction companies in Europe are increasingly embracing electric alternatives to traditional fuel-powered machinery to meet sustainability goals and reduce carbon emissions.

Electric Construction Equipment Market Overview

The electric construction equipment market offers solutions in the form of machinery used in construction and excavation projects that operate using electricity rather than traditional fuel sources like diesel or gasoline. These machines utilize electric motors powered by rechargeable batteries to perform various tasks such as digging, lifting, and moving materials on construction sites. By employing electric power, this equipment produces zero emissions during operation, making them environmentally friendly alternatives to conventional diesel-powered machinery.

Additionally, electric construction equipment often produces less noise pollution compared to their fuel-powered counterparts, contributing to quieter and more pleasant working environments. The adoption of electric construction equipment is steadily increasing due to growing concerns about environmental impact and the desire for more sustainable construction practices. As technology continues to advance, electric machinery is becoming more efficient, cost-effective, and widely available, offering construction companies a greener and more sustainable option for their projects.

Electric Construction Equipment Market Data and Statistics

• The European Union has pledged to decrease its net greenhouse gas emissions by a minimum of 55 percent by 2030, compared to levels in 1990. Additionally, as part of the European Climate Law, the EU has set the ambitious target of achieving net zero greenhouse gas emissions by 2050.
• Volvo CE, in June 2023, introduced its inaugural mid-size electric excavator, the EC230 Electric, exclusively within the European market. This initiative aims to provide end-users with solutions that are both low-noise and emissions-free.
• In July 2023, the Brazilian government disclosed plans for a series of road auctions valued at USD 13 billion for the year, aimed at enhancing the maintenance and expansion of the transportation network. This effort seeks to facilitate cross-border trade activities and enhance mobility for consumers.
• A new metro development project, with an estimated investment of Euro 36.1 billion (USD 47.7 billion), has been outlined. The French Government, through Societe du Grand Paris (SGP), is contributing 30% of the funding, with the remaining 70% coming from local authorities through various sources such as taxes, subsidies, and loans.
• Caterpillar announced in November 2023 the initiation of a three-year program aimed at demonstrating an advanced hydrogen-hybrid power solution based on its new Cat C13D engine platform. This endeavor focuses on developing a system capable of meeting transient needs for off-highway applications.
• Volvo Construction Equipment unveiled a 38-tonne class EC380E hybrid excavator model in September 2022, marking one of the largest offerings in the company's hybrid product line. This launch not only expands Volvo's hybrid range but also boosts fuel efficiency by 17%.
• India's government announced its ambition to achieve net zero emissions by 2070 while targeting a reduction of one billion metric tons in projected carbon emissions by 2030. Similarly, China aims to peak CO2 emissions before 2030 and attain carbon neutrality before 2060.
• In June 2023, XCMG, a Chinese heavy machinery manufacturer, launched the XES35, a next-generation super 35m³ electric shovel excavator designed for loading approximately 65 tons of ore per cycle. This excavator is intended for deployment alongside mining dump trucks ranging from 220 to 330 tons.
• The National Highways Authority of India (NHAI) revealed plans in September 2023 to construct 27 new roads in Kerala, with a total project cost of INR 70,114 Crore (USD 8.4 million). These projects will cover a distance of 960.27 km, including the development of greenfield highways and the ongoing construction of National Highway 66.

Growth Factors

• Increasingly stringent environmental regulations and sustainability initiatives drive the adoption of electric construction equipment due to their lower carbon emissions and reduced environmental impact compared to traditional fuel-powered machinery.
• Electric construction equipment offers potential cost savings over time through reduced fuel expenses, lower maintenance costs, and longer equipment lifespan. This financial benefit attracts construction companies looking to optimize operational efficiency and reduce long-term operating expenses.
• Ongoing advancements in battery technology, electric motors, and charging infrastructure improve the performance, efficiency, and reliability of electric construction equipment. These technological developments enhance the appeal and competitiveness of electric machinery in the construction industry.
• Growing awareness of environmental issues and increasing demand for sustainable construction practices stimulate the electric construction equipment market. Customers, including construction companies, contractors, and governments, seek greener alternatives to meet sustainability goals and reduce their carbon footprint.
• Various government incentives, subsidies, and grants encourage the adoption of electric construction equipment by offering financial support or tax benefits to businesses investing in environmentally friendly machinery. These incentives help offset the initial higher purchase costs of electric equipment and accelerate market growth.
• Expansion of charging infrastructure and support networks for electric vehicles and machinery facilitates the widespread adoption of electric construction equipment. Investments in charging stations, grid capacity, and renewable energy sources enable seamless integration and operation of electric machinery on construction sites, driving market growth.

Electric Construction Equipment Market Scope

Electric Construction Equipment Market Dynamics

Driver: Government incentives and subsidies

Government incentives and subsidies play a crucial role in boosting the market demand for electric construction equipment. These incentives typically come in the form of financial assistance, tax breaks, or rebates offered by governments to businesses and individuals investing in environmentally friendly machinery. By providing financial support, governments aim to encourage the adoption of electric construction equipment, which helps to reduce carbon emissions and mitigate environmental impact. These incentives make electric construction equipment more affordable and economically attractive for businesses, as they offset some of the initial higher costs associated with purchasing electric machinery compared to traditional fuel-powered alternatives. As a result, construction companies and contractors are more inclined to invest in electric equipment, leading to increased market demand.

Additionally, government subsidies create a favorable business environment for manufacturers and suppliers of electric construction equipment, stimulating innovation and technological advancements in the industry. Overall, government incentives and subsidies act as powerful drivers in accelerating the transition towards sustainable construction practices and promoting the widespread adoption of electric construction equipment.

Restraint: Concerns about equipment durability and longevity

Concerns about equipment durability and longevity act as significant restraints on the market demand for electric construction equipment. Some potential buyers hesitate to invest in electric machinery due to uncertainties surrounding the durability and lifespan of these newer technologies. Construction companies rely heavily on their equipment to withstand harsh working conditions and maintain high levels of productivity over extended periods. If there are doubts about the durability of electric construction equipment or concerns about its ability to endure heavy usage, businesses may opt to stick with traditional fuel-powered machinery that has a proven track record.

Additionally, the perception that electric construction equipment may require more frequent repairs or replacements compared to their diesel counterparts can deter potential buyers. Businesses are wary of potential downtime and maintenance costs associated with less durable electric equipment, which could impact project timelines and overall profitability. Until electric construction equipment can demonstrate comparable durability and longevity to traditional machinery, concerns in this area will continue to restrain the market demand for electric alternatives.

Opportunity: Growth of rental and leasing services for electric equipment

The growth of rental and leasing services for electric equipment presents significant opportunities in the electric construction equipment market. Rental and leasing options allow businesses to access electric machinery without the need for a substantial upfront investment, making it more accessible to a wider range of construction companies. This lowers the barrier to entry for adopting electric equipment, particularly for smaller firms or those hesitant to make a long-term commitment to purchasing new machinery.

Furthermore, rental and leasing services offer flexibility and scalability to construction businesses, enabling them to adjust their equipment fleet according to project requirements and demand fluctuations. As more rental companies add electric construction equipment to their offerings, it increases exposure and familiarity with these technologies among contractors and encourages trial usage. This, in turn, can drive broader acceptance and adoption of electric machinery within the construction industry, fostering growth and expansion opportunities for manufacturers and rental service providers alike.

Vehicles Insights

The excavators segment held the highest market share of 30% based on the vehicles. In the electric construction equipment market, the excavators segment refers to machinery used for digging, lifting, and moving materials on construction sites. Trends in this segment include a shift towards electric-powered excavators, driven by increasing environmental concerns and regulatory pressure to reduce emissions. Electric excavators offer zero-emission operation, lower operating costs, and quieter performance compared to traditional diesel models. As technology improves and charging infrastructure expands, the adoption of electric excavators is expected to continue growing in the construction industry.

The cranes segment is anticipated to witness rapid growth at a significant CAGR of 25.2% during the projected period. In the electric construction equipment market, cranes refer to heavy machinery used for lifting and moving materials on construction sites. A notable trend in this segment is the increasing adoption of electric-powered cranes due to their lower emissions and operational costs compared to traditional diesel-powered counterparts. Electric cranes leverage advanced battery technology and electric motors to provide efficient and environmentally friendly lifting solutions. This trend aligns with the broader industry shift towards sustainability and green construction practices.

Battery Insights

The lithium-ion segment held a 44% market share in 2023. The lithium-ion battery segment in the electric construction equipment market refers to machinery powered by rechargeable lithium-ion batteries. These batteries offer higher energy density, longer lifespan, and faster charging capabilities compared to traditional lead-acid batteries. As technology advances, lithium-ion batteries are becoming more cost-effective and efficient, driving their widespread adoption in electric construction equipment. Additionally, advancements in battery management systems and safety features contribute to the growing popularity of lithium-ion batteries, making them a key trend in the market.

The lead-acid segment is anticipated to witness rapid growth over the projected period. The lead-acid battery segment in the electric construction equipment market refers to batteries that utilize lead plates immersed in an acidic electrolyte solution to store and discharge electrical energy. Despite being one of the oldest battery technologies, lead-acid batteries continue to find applications in electric construction equipment due to their affordability and reliability. However, there is a growing trend towards the adoption of more advanced lithium-ion batteries in the industry, driven by their higher energy density, longer lifespan, and superior performance.

End Use Insights

The construction segment has held a 32% market share in 2023. The construction segment in the electric construction equipment market refers to the industry sector that utilizes machinery and equipment for various construction activities such as building, infrastructure development, and earthmoving projects. Trends in this segment include a growing preference for electric machinery due to environmental concerns, tightening regulations, and cost-saving opportunities. Construction companies are increasingly adopting electric excavators, loaders, and other equipment to reduce emissions, lower operating costs, and align with sustainability goals.

The industrial segment is anticipated to witness rapid growth over the projected period. The industrial segment in the Electric Construction Equipment market refers to the use of electric machinery in various industrial applications such as manufacturing, warehousing, and logistics. A notable trend in this segment is the increasing adoption of electric forklifts, pallet jacks, and other material handling equipment to enhance efficiency and reduce carbon emissions within industrial facilities. Companies are increasingly prioritizing sustainability and seeking electric alternatives to traditional fuel-powered machinery to align with environmental goals and regulations.

Recent Developments

• In 2023, Komatsu achieved significant strides in the electric construction equipment sector. Key releases included the PC05E-1 Electric Micro Excavator, offering zero emissions in Europe for their 3-ton mini excavator range. Additionally, Komatsu introduced the PC200LCE-11 and PC210LCE-11 Electric Excavators, their initial large electric models, promising performance comparable to diesel equivalents but with zero emissions. At CONEXPO 2023, they unveiled the HB365LC-3 Hybrid Excavator, enhancing fuel efficiency and reducing emissions by integrating a diesel engine with an electric motor and battery.
• In June 2022, Cummins and Komatsu signed a memorandum of understanding to collaborate on zero-emission haulage equipment development. Komatsu had previously announced a power-agnostic truck concept in 2021, capable of utilizing various power sources such as diesel-electric, trolley, battery power, and hydrogen fuel cells.
• In the same month of June 2022, John Deere announced a global partnership with Wacker Neuson to develop excavators ranging from 0 to 9 metric tons. Wacker Neuson will manufacture excavators under five metric tons, while John Deere will oversee design, manufacturing, and technology innovation for models between 5 to 9 metric tons.
• In May 2022, Volvo Construction Equipment (Volvo CE) made an investment in Dutch firm Limach, specializing in electric excavators for the domestic market. This investment supports Volvo CE's long-term electrification strategy and expands its electromobility product range.
• March 2022 saw the joint development showcase of the PC01E-1 by Honda and Komatsu. This electric micro excavator, powered by portable and interchangeable mobile batteries, represents Komatsu's first foray into electric micro excavators, developed in collaboration with Honda.
• In December 2021, Volvo Construction Equipment (Volvo CE) collaborated with partners across the electric ecosystem to deliver a comprehensive site solution for real urban applications. This project involved machine demonstrations in Gothenburg, supported by entities such as Gothenburg City, NCC, Gothenburg Energy, Lindholmen Science Park, Chalmers University of Technology, and ABB Electrification Sweden, with funding from the Swedish Energy Agency.
• In October 2021, Caterpillar Venture Capital Inc. (Caterpillar) and another venture invested USD 16 million in BrightVolt, Inc. BrightVolt Inc. is renowned for designing, developing, and manufacturing safe, high-energy, low-cost solid-state lithium-ion batteries. This funding aims to advance larger form-factor products catering to industrial electrification and e-mobility markets.

Electric Construction Equipment Market Companies

• Volvo Construction Equipment
• Komatsu
• Caterpillar
• John Deere
• Honda
• Cummins
• Wacker Neuson
• XCMG
• Hitachi Construction Machinery
• Liebherr
• JCB
• Doosan Infracore
• Hyundai Construction Equipment
• Kobelco Construction Machinery
• Sany Group

Segments Covered in the Report

By Vehicles

• Excavators
• Loaders
• Cranes
• Others

By Source

• Lithium-Ion
• Lead Acid
• Others

By End-use

• Residential
• Construction
• Industrial

By Geography

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa