Construction Electric Vehicle Market Outlook 2030 -
The electrification of construction vehicle is on the rise, and companies are showing a keen interest in exploring how this new trend can complement their existing business models. The electric system in heavy-duty vehicles provides several benefits. Nevertheless, factors such as battery technology, s solutions. The pursuit of electrification of construction vehicles is expected to reduce fuel consumption and long-term cost savings. The EPA (Environmental Protection Agency) has always held a positive attitude towards strict emission standards for off-highway diesel vehicles, mainly heavy vehicles used in construction and mining applications. Original equipment manufacturers have been developing innovative methods to achieve zero emissions. Construction companies are responsible for at least 11% of carbon dioxide emissions. The European Union established a stage 5 emissions standard, which took effect in 2019. Since European emission regulations keep on changing, diesel-powered machines could be discontinued all together in the future. They would be replaced with electric alternatives leveraging the market for electric construction vehicle.
COVID-19 Impact analysis
The manufacturers in construction electric vehicle industry across the globe is being affected severely due to the restrictions on producers as well as the declared lockdowns which in turn is affecting the manufacturers worldwide. Industry executives are anticipating delivery and construction slowdowns, either because nations have shuttered industries to slow the spread of coronavirus or because the workers have tested positive. Many components and parts for manufacturing of electric construction vehicle come from China, the US and some parts of Europe. Manufacturing disruptions in China and the US could contribute to a significant fall in the electric construction vehicle market over the next one or two years. Moreover, new orders for construction machinery in the U.S. were down by around 12% in April 2020 compared to the previous year. Due to the COVID-19 pandemic, local currencies of many countries have depreciated. There is misalignment of supply and demand, leading to financial losses for components/parts manufacturers. Key components used in manufacturing electric construction vehicle are typically procured in US dollars, which results in increased component cost.
Top Impacting Factor
- Decrease in cost of EV batteries, technological development, and transition of global automotive industry toward electric vehicles are driving the growth of the market.
- Lack of EV charging infrastructure is expected to hamper the growth of the market.
- Government initiatives pertaining to electric construction vehicles, and increasing FDI in automobile sector can be seen as an opportunity for the market investments.
The construction electric vehicle market trends are as follows:
Decrease in cost of EV batteries
Due to technological progress and mass production of electric vehicle batteries, the cost of electric vehicle batteries has been decreasing. This event has led to a decrease in the cost of the electric vehicles (EV) as EV batteries are one of the most expensive parts of an electric vehicle. In 2010, the price of electric vehicle batteries was approximately US$1,100 per kilowatt-hour. However, by 2020, their prices will drop to around US$137 per kWh, while prices in China will be as low as US$100 per kWh. This is because the manufacturing cost of these batteries has been reduced, the price of cathode materials has been reduced, and the output has been increased. Various companies around the world are cooperating together to reduce R&D cost. For instance, in January 2021 Proterra, a leading innovator in commercial vehicle electrification technology, and Komatsu, a global leader in construction equipment, announced an agreement to leverage Proterra’s best-in-class battery technology for the development of Komatsu’s first battery-electric middle class hydraulic excavator. The prices of EV batteries are expected to fall to around USD 60 per kWh by 2030, which will greatly reduce the price of EV’s making them cheaper than conventional ICE vehicles.
Government initiatives pertaining to electric construction vehicles
Countries around the world have set target to reduce vehicle emissions by around 2050. They have started promoting the development and sales of electric construction vehicle’s and related charging infrastructure. For example, the U.S. government invested 5 billion U.S. dollars in 2017 to promote the creation of electric construction vehicle infrastructure such as charging stations. Some governments are offering various incentives, such as low or zero registration fees and exemptions from import taxes, purchase taxes, and road taxes. In addition, countries such as Norway and Germany are investing heavily in promoting the sales of electric vehicles. Thus, due to the large incentives and subsidies in Europe, a high growth rate in the sale of electric vehicles is observed. The government is investing heavily in providing incentives and subsidies to encourage the sale of electric construction vehicles. The steps taken by governments around the world will help in increasing demand for electric construction vehicles in the coming decade.
Key benefits of the report:
- This study presents the analytical depiction of the construction electric vehicle market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with challenges of the construction electric vehicle market.
- The current market is quantitatively analyzed to highlight the construction electric vehicle market growth scenario.
- The report provides a detailed construction electric vehicle market analysis based on competitive intensity and how the competition will take shape in coming years.
Questions answered in the construction electric vehicle market research report:
- Which are the leading market players active in the construction electric vehicle market?
- What would be the detailed impact of COVID-19 on the market?
- What current trends would influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the construction electric vehicle market?
- What are the projections for the future that would help in taking further strategic steps?
Construction Electric Vehicle Market Report Highlights
By Propulsion Type
By Charging Type
Key Market Players
SUNWARD, Doosan Corporation, Merlo J C Bamford Excavators Ltd., CNH Industrial N.V., Atlas Copco, Caterpillar, John Deere, Volvo, Komatsu, Hitachi