How Has the Off-Highway Electric Vehicle Market Size Evolved in Recent Years?
The off-highway electric vehicle market has seen considerable growth due to a variety of factors.
• The size of the off-highway electric vehicle market has seen a significant increase in recent years. It is predicted to expand from $8.64 billion in 2024 to $10.92 billion in 2025, indicating a compound annual growth rate (CAGR) of 26.3%.
Factors such as environmental policies, fuel efficiency, total cost of ownership, and noise reduction have contributed to the expansion witnessed during the historic period.
What are the Market Size and Expected Growth Rates for the Off-Highway Electric Vehicle Market?
The off-highway electric vehicle market is expected to maintain its strong growth trajectory in upcoming years.
• The market size of off-highway electric vehicles is projected to undergo significant expansion over the upcoming years. The market is predicted to reach $25.27 billion by 2029, with a Compound Annual Growth Rate (CAGR) of 23.3%.
Factors contributing to this growth in the forecasted period include trends in electrification, governmental incentives, an enhanced consciousness and goals for sustainability, infrastructural development, adaptability and flexibility, the advancement of rapid charging infrastructure, along with autonomous and semi-autonomous operations. Prominent trends during this forecast period incorporate improvements in battery technology, autonomous and linked technologies, collaborations and partnerships in the industry, multi-purpose and modular patterns, in conjunction with regenerative braking systems.
Which Key Drivers Are Propelling The Off-Highway Electric Vehicle Market's Growth?
The escalation in the demand for electric vehicles is anticipated to drive the expansion of the off-highway electric vehicle market forward. Electric vehicles, which are either partially or fully powered by a rechargeable battery, have been recognised. These vehicles utilise renewable energy, resulting in a decrease in CO2 emissions and air pollution, considerable efficiency improvements, and the capacity to store renewable electricity. This, in turn, heightens the demand for off-highway electric vehicles. For example, a report by the International Renewable Energy Agency, an intergovernmental organization for renewable and sustainable energy based in the UAE, suggests that by 2030, the count of electric passenger cars could hit the 200 million mark and electric buses and light-duty vehicles could approach 10 million. This underscores how the growing demand for electric vehicles is fuelling the off-highway electric vehicle market's demand.
What Are The Key Segments Within The Global Off-Highway Electric Vehicle Market?
The off-highway electric vehicle market covered in this report is segmented –
1) By Type: Battery Electric Vehicle (BEV), Hybrid Electric Vehicle (HEV), Plug-In Hybrid Electric Vehicles (PHEV)
2) By Battery Type: Lithium-Ion, Lead-Acid, Other Batteries
3) By Application: Mining, Construction Agriculture: Gardening or Landscaping, Other Applications
Subsegments:
1) By Battery Electric Vehicle (BEV): Fully Electric Off-Highway Vehicles, Electric Forklifts, Electric Construction Equipment, Electric Agricultural Vehicles
2) By Hybrid Electric Vehicle (HEV): Diesel-Electric Hybrid Vehicles, Gasoline-Electric Hybrid Vehicles, Electric-Powered Hybrid Agricultural Equipment
3) By Plug-In Hybrid Electric Vehicles (PHEV): Plug-In Hybrid Construction Equipment, Plug-In Hybrid Agricultural Vehicles, Plug-In Hybrid Utility Vehicles
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How Are New Trends Impacting The Size Of The Off-Highway Electric Vehicle Market?
The prominent trend in the off-highway electric vehicle market currently is the advancement in technology. Key players are focusing on unveiling new technological innovations to fortify their market position. A case in point, in September 2024, Japan's Komatsu Limited, rolled out its PC4000-11E hydraulic mining excavator. This excavator, powered by electricity, merges the excavation capabilities of diesel machinery with the environmental benefits of electric power, and reduces emissions by a staggering 95%. It not only offers reduced operational costs but could also slash overall ownership costs by about 50%, thereby encouraging eco-friendly mining practices.
Who Are the Key Players in the Off-Highway Electric Vehicle Market?
Major companies operating in the off-highway electric vehicle market include:
• Caterpillar Inc.
• Volvo Construction Equipment Ab
• Deere And Company
• Komatsu Ltd.
• Hitachi Construction Machinery Co. Ltd.
• Doosan Corporation
• JC Bamford Excavators Ltd.
• Cnh Industrial NV
• Kubota Corporation
• Duetz AG
• Sumitomo Heavy Industries Ltd.
• Stihl Holding AG and Co. Kg
• Solectrac LLC
• Terex Corporation
• Liebherr Group
• Xuzhou Construction Machinery Group Co. Ltd.
• Wacker Neuson SE
• Sany Heavy Industry Co. Ltd.
• Manitou Group
• Bell Equipment Ltd.
• ASV Holdings Inc.
• Epiroc AB
• Hyundai Construction Equipment Co. Ltd.
What are the Regional Insights into the Off-Highway Electric Vehicle Market?
North America was the largest region in the off-highway electric vehicle market in 2024.The regions covered in the off-highway electric vehicle market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
