Electric Construction Equipment Market Size, Share, and COVID-19 Impact Analysis, By Vehicle Type (Excavators, Loaders, Cranes, and Others), By Battery (Lithium-Ion, Lead Acid, and Others), By End Use (Residential, Construction, and Industrial), and by Regional Forecast, 2024-2032

Electric construction equipment refers to machinery and vehicles used in the construction industry that are powered by electricity instead of traditional fossil fuels. These machines are designed to operate using an electric motor and rely on rechargeable batteries to provide power.

They include a range of machines such as loaders, excavators, cranes, and rollers. These machines are used in various construction applications such as construction, infrastructure development, mining, and forestry. Many construction equipment manufacturers are investing in electrifying their machinery, which is expected to boost the market's growth. For instance, Volvo Construction Equipment unveiled EC55Electric Compact Excavator, which Volvo claims assures at least a 50% reduction in energy costs and over 30% savings in maintenance expenses. The EC55 model will be available by early 2024.

Electric construction equipment produces zero emissions and reduces a construction project's carbon footprint, improving workers' air quality on a construction site. They are also energy efficient, have noise reduction motors, and lower maintenance costs. Overall, the electric construction equipment market is a promising alternative to traditional diesel-powered machines and is poised to have the largest market share in upcoming years.

Impact of COVID-19 on the Electric Construction Equipment Market

COVID-19 had a significant impact on the Automotive segment, and the electric construction equipment market was also affected by it; the disruption in the supply chain and decreased demand for vehicles was the critical point. Like many others, the construction industry experienced a slowdown as projects were postponed or canceled due to economic uncertainty and restrictions on non-essential activities. This decline in construction activity resulted in decreased demand for electric construction equipment. Many construction companies faced financial challenges during the pandemic, as cash flow was affected and access to capital became more difficult. This situation made it challenging for businesses to invest in new equipment, including electric construction machinery.

The pandemic brought environmental concerns to the forefront, and there has been a growing emphasis on sustainability in various sectors. With its reduced emissions and lower noise levels, electric construction equipment aligns with these sustainability goals. As the industry recovers, there may be an increased demand for electric machinery due to its environmental advantages.

Key Insights

The report will cover the following key insights:

• Key Industry Developments – Mergers, Acquisitions, and Partnerships.


• Porter's Five Forces Analysis.


• Technological Developments.


• Impact of COVID-19 on the Electric Construction Equipment Market.

Analysis by Battery

The demand for lithium-ion batteries is anticipated to grow at a healthy pace. Lithium-Ion batteries are one of the most widely used in electric construction equipment. This is due to their high energy density, long battery cycle, high efficiency, and fast charging capabilities. The market for lithium-ion batteries is expected to grow at a higher rate due to the growing demand for sustainable, efficient electric construction equipment. The IEEE standard 1188–1996 recommends replacing Lithium-ion batteries in an electric vehicle when their charge capacity drops to 80% of the nominal value since it's a much longer cycle than traditional lead-acid batteries; they are preferred more nowadays. The government subsidy for purchasing electric construction vehicles and equipment will help increase the profit and sales for manufacturers and reduce energy costs and carbon footprint. These factors are anticipated to boost the segment growth.

Analysis by End Use

The construction industry is one of the largest end-user of electric construction equipment. Vehicles such as excavators, loaders, and cranes are used on various construction sites. The industry's market for electric construction equipment is to grow significantly due to traditional gasoline-powered vehicle manufacturers shifting towards boosting the sustainable electric construction equipment category. The companies are investing in electric construction equipment as they will reap large profits and sales.

Analysis by Region 

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The North American electric construction equipment market has been experiencing steady growth in recent years. This growth includes environmental awareness, government regulations promoting clean energy, and technological advancements. Governments in North America, particularly in the United States and Canada, have been implementing policies and regulations to promote clean energy and reduce carbon emissions. These initiatives include incentives for adopting electric vehicles and equipment, including electric construction machinery. Such supportive measures have encouraged construction companies to consider electric alternatives. Electric construction equipment offers several environmental benefits compared to traditional diesel-powered machinery. It reduces carbon emissions, improves air quality by minimizing pollutants, and decreases noise levels at construction sites. These advantages have attracted construction companies and project owners who prioritize sustainability and want to meet green building standards. All these factors are positively contributing to the growth of the regional market.

Key Players Covered

Caterpillar (U.S.), Volvo Construction Equipment (Sweden), Hitachi Construction Machinery Co. Ltd (Japan), Komatsu Ltd. (Japan), Deere & Company (U.S.), JCB (U.K.), Doosan Intracore (Korea), Kobelco Construction Equipment (Japan)

Segmentation

Key Industry Developments

• Mar 2021: Caterpillar Inc. launched Cat 794AC, an electric drive articulated truck with improved efficiency and productivity in the construction industry.


• Sep 2021: Volvo achieved the target of a 45% reduction in CO2 emissions from their vehicles. The company is heavily investing in electric and hybrid construction equipment.


• Dec 2021: Hitachi developed an electric excavator that can operate for 10 hours on a single charge. The excavator is expected to be a game-changer in the construction industry.