Published Date : 24 Mar 2023
The off-highway electric vehicle market drives growth due to the rise in demand for electric machinery and vehicles. Governments are enforcing automobile emission standards to preserve the ecological balance
The rise in demand for electric machinery in the construction industry, along with rising sales of electric vehicles, is what is driving the off-highway electric vehicle market expansion.
Market Overview
Electric automobiles intended to operate off-road are known as OHEVs. Moreover, these electric automobiles store energy utilizing a range of batteries, including lead acid, nickel metal hybrid, and lithium-ion. Off-road vehicle emissions are carefully regulated by several regulatory organizations, including the China VI and India BS-VI emission standards. Sales of electric highway vehicles are increasing as a result of expanding infrastructure in developing markets and the launch of reconstruction initiatives in industrialized nations.
Government agencies have severe emission guidelines, such as those for greenhouse gas emissions in the US (GHGs). Two important entities that have an impact on the world market are the European Commission and the Environmental Protection Agency (EPA).
Reports Highlights:
Off-Highway Electric Vehicle Market Report Scope:
| Report Coverage | Details |
| Market Size in 2022 | USD 8.49 Billion |
| Projected Forecast Value in 2027 | USD 17.5 Billion |
| Growth Rate | 21.4% from 2020 to 2027 |
| Largest Market | North America |
| Base Year | 2022 |
| Forecast Period | 2020 to 2027 |
| Segments Covered | By Application and By Electric Vehicle |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America and Middle East & Africa |
Regional Insight:
In 2022, North America held the largest market share, and it is anticipated that this pattern will carry throughout the forecast period. The growth in the region is attributed to the presence of well-established players such as Caterpillar, Deere & Company, CNH Industrial N.V., and others.
The construction industry in the North American region is increasing due to increased GHG emissions, businesses have put electric versions of their off-highway vehicles on the market. Thus, the aforementioned facts support the market growth over the forecast period.
On the other hand, the Asia Pacific region is expected to grow at the highest CAGR over the forecast period. Due to an increase in infrastructure spending, nations like China and India performed well in 2020. Due to the presence of several OEMs, such as Sany Heavy Equipment International Holding Company Limited, Toyota Industries Corporation, and Northern Heavy Industries Group Co. Ltd. the low cost of materials, and the accessibility of top-notch facilities, China is a major producer of construction machinery.
Market Dynamics:
Drivers
Increasing customers are using electric vehicles in the agriculture industry
A lot of machinery and equipment are required to succeed in the objective of maintaining farmland in excellent working order. It takes a lot of space to run even a modest farm; therefore, getting about the fields requires automobiles in the first place. Electric utility vehicles are becoming more common on farms and pastures across the country, and they are also a popular option for private estate owners. Farmers may drastically reduce their dependency on fuel and diesel by lowering operating expenses. These extra characteristics allow farmers to move valuable goods across the farm without consuming a lot of energy. While being used to traverse a range of terrains, electric farm vehicles are not the only ones that are employed on agricultural land.
Restraints
Short battery life of off-highway electric vehicle
The off-highway electric vehicle's battery life is a significant market limitation. The range of the car will be decreased, and more frequent charging will be required. With time, the battery's capacity will likewise decline, significantly reducing the vehicle's range. The battery's performance will also be influenced by the temperature, with moderate temperatures being preferable. The performance of the battery will also be impacted by the weight of the vehicle, as bigger cars require more energy to move and have shorter ranges. The vehicle's speed will also have an impact on the battery's performance, as faster speeds use more energy and have a shorter range.
Opportunities
Off-highway electric vehicle technology development
In terms of technical advancement, the off-highway electric vehicle industry has seen significant changes. Due to their high output efficiency and low weight, electrical components are frequently used by market participants in this segment to meet customer demands for transportation that are both affordable and functionally competent as well as fuel-efficient.
For instance, at an international trade show sponsored by the National Mining Association, Caterpillar launched the R1700 XE LHD battery electric vehicle at MINExp in June 2021. The production of dangerous greenhouse gases from moving automobiles, however, is a significant consideration since it raises worries for the environment and human health. As a result, governments all over the world are enforcing automobile emission standards to limit greenhouse gas emissions and preserve the ecological balance.
Challenges
Costly off-highway electric vehicle maintenance
Off-highway electric vehicles have a long operating life because they have to operate in difficult terrain, but they are susceptible to part breakage, component failure, and overheating. In contrast to older utility vehicles like ATVs, UTVs, and snowmobiles, which require completely different maintenance procedures, both new and used cars experience wear and tear over time.
Vehicle system and tire rotation checks must be performed twice a year on EVs. Vehicle system and tire rotation checks must be performed twice a year on EVs. They support the lifetime of the EV and optimal battery performance. If the manufacturer's warranty has expired and the EV has been in use for more than 8 to 10 years, the battery will likely need to be replaced at some point as well. A brand-new battery might cost between $5,000 and $10,000.
Recent Development:
Major Key Players:
Market Segmentation:
By Application
By Electric Vehicle
Buy this Research Report@ https://www.precedenceresearch.com/checkout/1161
You can place an order or ask any questions, please feel free to contact at sales@precedenceresearch.com| +1 9197 992 333
