Off-highway Electric Vehicle Market (By Application: Construction, Agriculture, Mining; By Electric Vehicle: Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV)) - Global Industry Analysis, Market Size, Share, Growth, Trends, Regional Outlook and Forecasts 2020 - 2027

The global Off-highway Electric Vehicle market was valued at US$ 5.5 billion in 2019 and expected to reach US$ 17.5 billion by 2027, with at a compound annual growth rate (CAGR) of 21.4% during the forecast period 2020 to 2027.

Off Highway Electric Vehicle Market Size 2016-2027

The growing growth of infrastructure in developing markets and the introduction of redevelopment projects in developed countries are boosting sales of electric highway vehicles. Strict emission standards by government agencies, such as emission standards for greenhouse gas ( GHG ) emissions by the U.S. The Environmental Protection Agency ( EPA) and the European Commission are both main factors influencing the global market for off-road electric vehicles ( EVs). In addition , the market for off-highway electric vehicles is also leveraged by factors such as improved electrical machinery performance , lower noise and vibration levels , lower overhaul costs, and others.

Government authorities have introduced increasing stringency in emission standards for off-highway vehicles, such as emission standards for greenhouse gas (GHG) emissions by the U.S. India and China VI Environmental Protection Agency (EPA), BS-VI. The increasing strictness of emission standards has shifted the attention of OEMs towards alternative powertrain sources such as hybrid electric and full electric off-highway vehicles that exploit global demand. Electrification of heavy-duty off-highway vehicles is on the rise, and businesses are highly interested in exploring how this emerging development will complement their current business models. There are many advantages to the electrical system of heavy duty vehicles. However, in conducting research and implementing the electrical solution, factors such as battery technology, infrastructure, and overall cost of production play a vital role.

Application Insights

The construction segment accounted for highest share of around 38.2% in 2019, The segment includes electric construction equipment, such as electric loaders, electric excavators, and more. One of the key factors driving the market demand for this equipment has been growing investments by governments worldwide to build public infrastructure. In order to comply with the tougher emission requirements, OEMs are introducing electric off-highway equipment. In the future, legislation could mandate zero emissions on heavy-duty construction equipment to pave the way for OEMs to drop diesel-powered engine output and go all-electric.

The agriculture off-highway electric vehicle segment is expected to grow at a CAGR of 22.1% from 2020-2027. The segment covers electric agricultural equipment such as electric tractors, electric harvesters, etc. Consumers have begun embracing new farm machinery and advanced agricultural processes to achieve higher yields in regions such as North America and Europe. Thus, the demand for electric and hybrid tractors and other farm equipment is expected to rise in the forecasted timeline.

Electric Vehicle Insights

The HEV segment accounted for the biggest revenue share of 66.2% and is predicted to retain its dominance over the forecast period. These vehicle types are intended to increase the use of the internal combustion engine in combination with the electric powertrain. The stringent emission regulations by different government agencies such as the European Commission and the United States The demand for hybrid off-highway propulsion equipment from the EPA is rising and pushing manufacturers to build more environmentally friendly off-highway vehicles. A hybrid engine, a variation of the diesel-electric propulsion system, has been adopted by off-highway vehicle manufacturers since 2017.

The BEV Off- highway electric vehicle segment is likely to expand at the maximum CAGR of 29.5% over the forecast period. Growth can be likely to downturn in the adoption of internal combustion engine vehicles and CO2 aim restrictions. The power needed for the majority of off-highway vehicles to operate is, however, too high; the use of fully electric BEV is therefore still limited. The reduction in lithium-ion battery prices and advancements in battery technology would leverage the demand for BEVs in the forecast period.

Global Off Highway Electric Vehicle Market 2020-2027

Regional Insights

North America showed prominent growth in the global Off-highway Electric Vehicle market accounting for significant market share in 2019. Due to the presence of key companies such as Caterpillar, Deere & Company, and CNH Industrial N.V., the area holds a dominant share in the forecast era. In the North American region, the construction industry is increasing, affecting the region's demand for off-highway electric equipment. According to the United States Environment Protection Agency (EPA), the U.S. adopted rigorous emission requirements in 2018; off-highway equipment accounted for almost 30 percent of overall emissions of greenhouse gases. The increased emissions of greenhouse gases have pushed companies to introduce new electric models for off-highway vehicles. In the Asia Pacific region, the off-highway EV market is projected to grow from 2020 to 2027 at the highest CAGR of 34.4 percent. Asia Pacific countries, such as China and India, reported a strong performance in 2019 due to the increase in investment in infrastructure. Due to the existence of numerous OEMs, low production prices, low labour costs, and the availability of excellent facilities, China is one of the major contributors to the production of construction machinery.

Key Companies & Market Share Insights

The global Off-highway Electric Vehicle market seeks intense competition among the market players owing to rapid changing consumer preference. Further, the industry participants are prominently adopting inorganic as well as organic growth strategies that include partnership, collaboration, merger & acquisition, and many others to maintain their competitive edge in the global market. Apart from this, they invest prominently in the R&D activity for new product development & advancements.

Some of the prominent players in the Off-highway Electric Vehicle market include:

  • Caterpillar
  • Komatsu Ltd
  • Volvo Construction Equipment AB
  • Deere & Company
  • Sandvik AB
  • Hitachi Construction Machinery Co., Ltd
  • Epiroc AB
  • Doosan Corporation
  • CNH Industrial N.V
  • J C Bamford Excavators Ltd.

Report Scope of the Off-highway Electric Vehicle Market

Report Highlights Details
Market Size USD 17.5 Billion by 2027
Growth Rate CAGR of 21.4% from 2021 to 2027
Largest Market North America
Fastest Growing Market Asia Pacific
Base Year 2021
Forecast Period 2021 to 2027
Segments Covered Electric Vehicle, Application, Region
Companies Mentioned B. Braun Melsungen AG, Merck KGaA, Thermo Fisher Scientific, Inc., Baxter International, Inc., Intermountain Life Sciences, Cytiva (Danaher), Standard Reagents, Pvt. Ltd., FUJIFILM Irvine Scientific, CovaChem, LLC, Pfizer, Inc and Fresenius Kabi AG.


Segments Covered in the Report

This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of material, application, and region:

By Application

  • Construction
  • Agriculture
  • Mining

By Electric Vehicle

  • Battery Electric Vehicle (BEV)
  • Hybrid Electric Vehicle (HEV)

By Regional

  • North America
    • U.S.
    • Canada
  • Europe
    • U.K.
    • Germany
    • France
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
  • Rest of the World

Frequently Asked Questions

What is the current size of the global off-highway electric vehicle market?
The global Off-highway Electric Vehicle market size was valued at US$ 5.5 billion in 2019 and expected to reach US$ 17.5 billion by 2027.
What is the CAGR of off-highway electric vehicle market?
The global off-highway electric vehicle market is growing at a compound annual growth rate (CAGR) of 21.4% during the forecast period 2020 to 2027.
Which region accounted for the largest sales share of the off-highway electric vehicle market?
The North America region accounted for the largest sales share of the market and its dominance over the projected period is expected to continue.
How much is the CAGR of Asia Pacific region in the off-highway EV market?
In the Asia Pacific region, the off-highway EV market is projected to grow from 2020 to 2027 at the highest CAGR of 34.4%.
Which segment accounted for the largest off-highway EV market share?
The BEV segment is expected to grow over the forecast period at the fastest CAGR of 30.5 percent. The slowdown in the adoption of internal combustion engine vehicles and the limitation of CO2 targets are expected to encourage segmental expansion.
Which key players are operating in the off-highway EV market?
Some of the key players operating in the market are Caterpillar, Volvo Construction Equipment AB, Komatsu Ltd, Deere & Company, Sandvik AB, Hitachi Construction Machinery Co., Ltd, Epiroc AB, Doosan Corporation, J C Bamford Excavators Ltd, and CNH Industrial N.V.
  • Report Code:1161
  • Category:Automotive
  • No. of Pages:150+
  • Format:PDF/PPT/Excel
  • Published:October 2020


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