Electric Construction Equipment Market is Transforming the Industry through Sustainability

The electric construction equipment market is transforming the construction industry through sustainability by reducing reliance on diesel. Electric construction equipment such as excavators, loaders, dump trucks, and dozers are being adopted at a growing rate owing to their zero emissions and low operational costs. These equipment help construction companies meet sustainability targets and reduce environmental footprint of construction activities by curbing noise and air pollution from combustion engines.

The electric construction equipment market is estimated to be valued at USD 12.75 Bn in 2024 and is expected to reach USD 56.04 Bn by 2031, growing at a compound annual growth rate (CAGR) of 23.55% from 2024 to 2031.

Key Takeaways

Key players operating in the electric construction equipment are Caterpillar, Hitachi, Komatsu, Volvo Construction Equipment, and Liebherr. Caterpillar unveiled its first full battery electric excavator in 2021 and expects 25% of its machine sales to be electric powered by 2030.

The growing demand for sustainable infrastructure development is fueling adoption of Electric Construction Equipment across regions. Government incentives and subsidies in countries like China, US, India and Germany towards use of electric equipment for infrastructure projects are contributing greatly to market growth.

Construction giants like Skanska, VINCI and Balfour Beatty are partnering with OEMs to adopt electric fleets for their projects globally in regions like Europe, Asia Pacific and North America to reduce carbon footprint of construction activities. Standardization of technologies and development of charging infrastructures are projected to accelerate global expansion of electric construction equipment market over coming years.

Market Key Trends

One of the major trends gaining traction in the electric construction equipment market is increasing battery autonomy and capacity. OEMs are focusing on developing larger battery packs and improving battery technologies to offer equipment with extended operating cycles before recharge. For instance, Komatsu's electric excavator model PC210E-11 launched in 2021 has increased operating time of 4-5 hours on a single charge compared to previous 2-3 hour models. Growing research on lithium-ion and solid-state batteries is expected to further boost equipment uptime over the forecast period.

Porter's Analysis

Threat of new entrants: High capital requirement and established networks of existing players make entry difficult. Bargaining power of buyers: Large buyers can negotiate on price due to bulk buying. Bargaining power of suppliers: Suppliers have less influence due to availability of substitutes and fragmented supplier base. Threat of new substitutes: Threat is moderate as construction equipment has few close substitutes. Competitive rivalry: Intense competition among existing industry players to gain market share.

Geographical Regions

Asia Pacific region holds the largest share of the global electric construction equipment market in terms of value, owing to ongoing infrastructure development projects and growth in residential & commercial construction in countries such as China and India. North America region is expected to grow at the fastest rate during the forecast period, supported by stringent emission norms for construction equipment and rising environmental awareness.

Author Bio:

Money Singh is a seasoned content writer with over four years of experience in the market research sector. Her expertise spans various industries, including food and beverages, biotechnology, chemical and materials, defense and aerospace, consumer goods, etc. (https://www.linkedin.com/in/money-singh-590844163)