Electric Construction And Agriculture Equipment Market Expected to Reach $24271.2 Million by 2032—Allied Market Research

According to a new report published by Allied Market Research, titled, “Electric Construction And Agriculture Equipment Market," The electric construction and agriculture equipment market size was valued at $3661.3 million in 2022, and is estimated to reach $24271.2 million by 2032, growing at a CAGR of 21.1% from 2023 to 2032. 

Europe dominated the electric construction and agriculture equipment market, in terms of revenue, followed by North America, Asia-Pacific, and LAMEA The construction industry, that is often referred to as a heavyweight in terms of carbon emissions, is embracing the electric revolution. Battery-operated vehicles are breaking boundaries and transforming the construction industry. Moreover, excavators, loaders, bulldozers, and other types of electric construction equipment are becoming increasingly common in the business. This transition is majorly attributed to various advantages provided by these eco-friendly options.

This development includes a wide range of devices intended to replace traditional fossil fuel-powered vehicles. Electric tractors, harvesters, and precise tools are pivotal for this advancement, providing appealing benefits such as zero emissions, decreased noise pollution, and increased efficiency. These battery-powered solutions include not just autonomous agricultural equipment for duties such as sowing and crop monitoring but also electric utility cars for farm transportation. This decision is consistent with the agriculture industry's commitment to environmental care and resource efficiency. Despite possibly higher initial costs, the long-term benefits ranging from lower fuel costs to reduced environmental impact position, these battery-powered tractors act as critical assets for modern and environmentally friendly farming methods. Such factors fuels  electric construction and agriculture equipment market growth.

In comparison to standard diesel-powered engines, battery-powered construction machinery results in a 100% reduction in exhaust emissions. As the only need is power, these greener alternatives contribute to international carbon reduction efforts and meet the public and commercial sectors' demand for more sustainable industry practices. According to the World Green Building Council's 2019 study, the building and construction industry can cut carbon emissions by 40% by 2030 and attain zero emissions by 2050. In addition, although this is not an easy undertaking, it does emphasize the potential of lithium-ion batteries as one approach to focus on.

In terms of electric fuel type, the plug-in hybrid segment is expected to contribute the highest electric construction and agriculture equipment market share in the coming years, as expansion in the construction industry is estimated to fuel the market growth.  Electrification of construction equipment is both more feasible and desired than electrification of agricultural equipment. The reason behind this is that electrifying construction equipment is easier than electrifying other sorts of off-road vehicles. Considering that most development occurs in cities, obtaining infrastructure is less difficult than in more isolated off-road applications. There is also the added benefit of noise reduction, which is a big deal in cities where most construction equipment is employed. Agricultural vehicles, on the other hand, often operate in more rural locations where noise pollution is not necessarily a serious problem. Rapid charging systems have emerged, making it possible to replace electric construction equipment batteries more quickly. These high-power charging stations and fast-charging capabilities shorten charge times dramatically, allowing for increased productivity on construction sites. Intelligent controls and remote monitoring are made possible by the incorporation of contemporary digital technologies into smart charging infrastructure. For instance, in August 2023, The Revolutionary T4 Electric Power Tractor was launched from New Holland Agriculture it is the industry's first all-electric utility tractor with autonomous features.

Furthermore, smaller excavators, loaders, tractors, and larger construction equipment are all included in the low power electric vehicle  category of electric construction and agriculture equipment market. Lower end machines, typically rated at 75 kW, are frequently employed for lesser agricultural jobs or compact construction tasks, enabling mobility and agility in smaller scale operations. As the power capacity exceeds 150 kW, these machines are geared at heavier duty operations, such as larger excavators, heavy loaders, or specialized agricultural equipment designed to handle more demanding construction and agricultural tasks.

Electric charging technology offers lower connection costs and energy constraints on the power system. Electric machines mitigate noise pollution generated by large construction machinery and pollutants from combustion in urban areas. The electric excavator offers lower running costs, less noise, more dependability, and zero emissions on building sites. International regulatory pressures, exponential growth in suppliers and services catering to the increasing demand for electric construction equipment, and new technologies that provide options for original equipment manufacturers (OEMs) are some of the current trends in the construction vehicle electrification. Such factors will postively impact the electric construction and agriculture equipment market.

Construction firms working in disconnected or inaccessible areas depend on solar-powered EV charging or portable power storage and charging as a solution.  Portable power storage and charging options also allow construction equipment to be used in distant places, with trailer-mounted batteries and EV charging stations becoming more widespread on construction sites. As rules regulating lower emissions become more stringent, the increased acceptance of solar-powered EV charging and portable charging for off-grid construction sites offers a green alternative for construction equipment. In addition, businesses are joining the electric construction and agriculture equipment market, providing OEMs with additional alternatives and pricing. Furthermore, the total cost of electric construction machines is declining, and advances in battery and charging technology are improving, making electrification more accessible to end users such as construction businesses and equipment of all sizes. Thus, the construction sector is quickly switching to electric solutions.

Key Benefits for Stakeholders

• The report provides an extensive analysis of the current and emerging electric construction and agriculture equipment market trends.
• In-depth electric construction and agriculture equipment market analysis is conducted by constructing market estimations for the key market segments between 2022 and 2032.
• Extensive analysis of the market is conducted by following key product positioning and monitoring of the top competitors within the market framework.
• A comprehensive market analysis of all the countries is also provided in the report.
• The electric construction and agriculture equipment market forecast analysis is from 2022 to 2032
• The key market players within the market are profiled in this report and their strategies are analyzed thoroughly, which help understand the competitive outlook of the electric construction and agriculture equipment industry.