The report “Electric Off-Highway Vehicle Market by Propulsion (Hybrid-Electric, Battery-Electric), by Battery Capacity (<50 kWh, 50–200 kWh, 200–500 kWh, >500 kWh), by Application (Construction, Mining, Agriculture, Gardening), by Battery Type (Lithium-Ion, Lead-Acid, Other Batteries), by Equipment Type (Excavator, Motor Grader, Dozer, Loader, LHD, Dump truck, Lawnmower, Sprayer, Tractor) - Global Forecast to 2025" is anticipated to reach 17.5 billion USD by 2025, up from an expected 6.3 billion USD in 2020 at 22.8% CAGR for the said period.
The key factors responsible for this growth would be development of advanced and new products, the post-2020 recovery of end-use sectors and upcoming norms of emission for the off-highway vehicles.
Then OEMs have lately delayed their new vehicle developments and their launches. Taking into account the global financial slowdown, the manufacturers of electric off-highway vehicle will abstain from adding up extra cost to these vehicles by installing hybrid powertrain systems and batteries.
The OEMs might also reduce some financial investments in the R&D activities that are related to the electric off-highway vehicle if the impact of COVID-19 is prolonged. With the decrease in demand for Electric Off-Highway Vehicles across the globe might also delay the shift to standard and large electric off-highway vehicles from mini electric off-highway vehicles. As the growth of EOHV market is directly proportional to the production of vehicles, the electric off-highway vehicle market is expected to be affected by this.
But, many off-highway vehicles OEM’s like manufacturers of electric loaders, electric excavators, electric tractor, electric dump trucks, and electric lawnmower have their production resumed since the May of 2020. Although, China started their production in early February, with XCMG Group and BYD Auto Co., Ltd. by reopening their plants at full capacity. While in the US, large OEMs, just like John Deere, who had temporarily halted their production in May, are expected to be resuming their operations by 2020’s third quarter.
Browse 73 market data Tables and 45 Figures spread through 201 Pages and in-depth TOC on “Electric Off-Highway Vehicle Market by Propulsion (Hybrid-Electric, Battery-Electric), by Battery Capacity (<50 kWh, 50–200 kWh, 200–500 kWh, >500 kWh), by Application (Construction, Mining, Agriculture, Gardening), by Battery Type (Lithium-Ion, Lead-Acid, Other Batteries), by Equipment Type (Excavator, Motor Grader, Dozer, Loader, LHD, Dump truck, Lawnmower, Sprayer, Tractor) - Global Forecast to 2025"
Impact of COVID-19 on the Electric Off-Highway Vehicle Market:
Due to the COVID-19 pandemic, the global off-highway vehicles industry is estimated to see a decent of –3.3% in 2020. This pandemic has significantly affected the heavy equipment industry because some of the manufacturers are having to shutting down their plant operations while others are still considering to use their efforts to cater to the demand for the medical supplies. As lockdowns have been put up around the world to contain spread of this disease, the mining and construction projects are being greatly affected. Almost all scheduled projects are expected to be held up, which is might also affect the sales of equipment, along with the demand for regularly replaced products, such as lubricants from existing fleets. The key players in this market are well aware that when this market reopens, in order to adhere to safety measures, the production levels will be reduced. And also, the customers’ spending’s, whose business has been affected due to the pandemic will be less.
Although, with the production facilities resumption across the world, the off-highway equipment’s market is expected to be boosted by the opening of mines globally, the season of planting & harvesting and utilization of digital services in order to help customers. A few China-based players showed a positive stance in the March of 2020, therefore representing a revival of the off-highway industries in the country. Also, the lockdown restrictions’ relaxation in Japan and the facilities in India gradually opening may highly boost the demand for the electric off-highway vehicle market by 2021.
Aggressive step toward ventilation costs and minimizing emissions in underground mining
LHD loaders and Diesel-powered vehicles emit large amounts of harmful gasses, that includes nitrogen dioxide, carbon dioxide, carbon monoxide, and others. Miners experience several lethal health effects, that include adverse effect on sensory perceptions, chronic bronchitis, severe respiratory irritation, and emphysema, as they are exposed to such harmful emissions for a long time because of long shifts. Also, these emissions increase heat generated in the underground mines. As per the International Council on Mining and Metals (ICMM), to remove heat and pollutants from the mining tunnels, nearly 40% of an underground mine’s energy’s outlay is spent on the operating ventilation systems. These factors decrease efficiency of their production while increasing the mine’s overall operational costs.
The disposition of electric-mining vehicles like electric LHD loader and electric dump truck, provides significantly improved energy efficiency, lower maintenance time, decreased heat dissipation and harmful emissions, decreased ventilation requirements, improved working environment (air quality), reduced operating costs, improved mining profit and mitigated the environmental impact. As per Mobile Equipment Design and Automation Technology, substitution of the diesel-powered vehicles with the electric-mining vehicles can greatly reduce nearly 7,500 tons of carbon dioxide and also save diesel fuel of approximately 3 million litres and propane of nearly 1 million litres every year.
Development of fast charging and long-ranged battery technology
Most of the electric off-highway vehicles are presently working on using lithium-ion batteries because of their various advantages over the nickel-metal and lead-acid hydride batteries. The Lithium-ion batteries have numerous drawbacks that greatly affects its battery performance. These limitations of the lithium-ion batteries are - issues related to its robustness, shorter lifespan, performance fluctuations due to changing temperatures, limited power density, high cost and rigidness.
The solid-state batteries that are manufactured in lithium metal with the stabilized solid electrolytes offer nearly 10 times the charging capacity as compared to the graphite-based Li-ion batteries. And, the solid-state batteries also offer higher energy density, like double the energy for the same volume, and also up to 10 years of increased lifespan. Therefore, many of the companies that manufacture electric off-highway vehicle are now investing in the solid-state batteries’ development. For an example, Caterpillar has joined hands with the Fisker for solid-state batteries development that are designed to outperform the currently used Li-ion batteries.
High charging time decreasing productivity
One of the major factors restricting the growth of electric off-highway vehicles in both construction and mining applications is the loss of productivity because of its high charging time. As mining and construction companies work nearly 8–16 hours per day, it reduces the chance for the required charging time of electric off-highway vehicles fully. Most of the electric off-highway vehicles take up to 4–8 hours to completely charge, thus decreasing the productivity because of the time that is lost in recharging the vehicles. For an example, the JCB’s 19C-1E, a mini excavator, requires around 8 hours to charge fully from empty by using a supply of 230V 16A, or 12 hours by using a supply of 110V 16A. While, a Volvo CE 2.5-tonne ECR25, a compact excavator, requires nearly 6 hours of charging time for only 8 hours of runtime.
Issues related to interchangeability, standardization, and compatibility
Electric off-highway vehicles have very limited affinity for long run applications. Dump trucks, for example, carries dumping materials to the dumping area from the mining site. Here, the distance plays a crucial role, as it is difficult for vehicles to cover such long distances because of its limited battery capacity. But mining companies that manufacture equipment’s are working developing equipment’s that are cable connected. Nevertheless, such cable connected equipment also lack in terms of versatility.
This lack of standardization and interchangeability in terms of charging electric off-highway vehicles is restricting the growth of the electric off-highway vehicle market. The charging of electric off-highway vehicles, at any given station with a only single identification or payment method, is referred to as Interchangeability, which is not the case right now.
Based on Geography, the Electric Off-Highway Vehicle Market is segmented into-
The growth of the US market is majorly due to the environmental protection measures, with the help of upcoming stringent emission norms that looks after the for-fuel economy in the country, and also the efforts taken by local companies to manufacture hybrid and electric equipment’s for the domestic market. The North American market is estimated to cover the highest market share for the forecast period. The Caterpillar newly launched the world’s biggest electric excavator equipped which had a300-kWh battery pack with it. With the major electric off-highway vehicle providers having increasing investments in battery developments, the electric off-highway vehicles, and subsystems, the US is estimated to increase the market growth during the forecast period. Also, one of the key factors leading the growth for the electric off-highway vehicles market in the US is, players like Caterpillar who are developing advanced solid-state battery technology that aims to considerably reduce the drawbacks of the conventional battery types in electric loaders and excavators.
The electric off-highway vehicle market is largely dominated by a few globally established companies like:
Global Electric Off-Highway Vehicle Market Coverage
Propulsion Insight and Forecast 2015-2025
Battery Capacity Insight and Forecast 2015-2025
Application Insight and Forecast 2015-2025
Battery Type Insight and Forecast 2015-2025
Equipment Type Insight and Forecast 2015-2025
Global Electric Off-Highway Vehicle Market by Region
Rest of the World (RoW)