Electric Construction Equipment Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (2024 - 2031)

Electric Construction Equipment Market Size - Analysis

Electric Construction Equipment Market Trends

The transition to more eco-friendly electric construction equipment has been gaining momentum in recent years. Many governments around the world have started introducing subsidies and incentive programs to promote the adoption of electric machinery in the construction industry. Authorities realize that construction activity has significant impact on the environment and climate change. Thus, supporting manufacturers and customers to shift to electric powered options can meaningfully contribute to emission reduction targets.

Original equipment manufacturers now have greater confidence to extensively test new electric models and mass produce them. Subsidies help mitigate risks and reassure manufacturers about return on investments in electric technology. Over time, with more robust support schemes and increasingly competitive total cost of ownership, adoption rates are expected to pick up at a stronger pace.

Market Driver - Cost Savings Drive Adoption over Long Run

Maintenance needs are also far lesser for electric powertrains that have far fewer moving parts than engines. Electric vehicles have fewer unscheduled downtimes which enhance productivity and reduce costs associated with equipment failure or breakdowns. Fewer fluid changes further minimize workshop expenditures.

Market Challenge - Concerns about the Durability and Longevity of Electric Equipment Compared to Traditional Machinery

With the current battery technology, there are doubts regarding how long the batteries in electric equipment would last under such intensive usage conditions. Additionally, the high upfront costs of electric vehicles also contribute to perceptions about whether they are robust enough to deliver a long duty cycle comparable to conventional equipment.

The electric construction equipment market is poised to benefit significantly from the rising popularity of rental and leasing models available for machinery. Given the high upfront procurement costs of electric vehicles, renting, or leasing provides businesses the flexibility to try out new electric alternatives. This lowers the entry barrier for contractors and construction companies to experiment with green technologies and incorporate electric construction equipment into their fleets.

As rental players expand electric construction equipment offerings across different vehicle categories, it will help boost overall market exposure and acceptance of these technologies.

Key winning strategies adopted by key players of Electric Construction Equipment Market

One of the primary strategies adopted by major players is developing technologically advanced electric equipment to gain an edge over competitors. For instance, Caterpillar launched its electric compact excavator in 2021 equipped with the latest lithium-ion battery technology offering longer runtime. This has helped the company capture a major share of the growing electric construction equipment market.

Establishing dedicated brands for electric models has also proven successful. For example, Volvo CE created its Volvo CE Green Line in 2021 solely focused on electric equipment.

Segmental Analysis of Electric Construction Equipment Market

In terms of equipment, electric excavators contribute 36.7% share of the electric construction equipment market in 2024, owning to their versatility and suitability for a wide range of projects. Their versatile design with an adjustable arm and bucket at the end enables them to perform digging, lifting, and material handling functions.

Mini electric excavators have gained rapid adoption for residential and lightweight commercial tasks that don't require heavy-duty capabilities. Their compact size allows maneuvering in tight spaces like between buildings. Large electric excavators deliver power and capacity on par with large diesel excavators. Their ability to efficiently handle bulk earthworks and heavy lifting duties makes them ideal for large commercial and infrastructure projects.

In terms of application, residential construction contributes 40.5% share of the electric construction equipment market in 2024, owing to the ongoing housing boom across major global economies. Rising incomes and urbanization are driving massive demand for new residential units in countries like China, India, Indonesia, and several others.

Electric equipment helps lower operating expenses significantly relative to diesel alternatives through benefits like lower fuel and maintenance costs. This cost advantage, coupled with growing customer demand for green housing, is driving greater electric equipment adoption in the residential segment of the electric construction equipment market.

Insights, By Source: Dominance of Lithium-Ion Batteries

The lithium-ion chemistry also delivers superior cycle life with battery charge retaining over 80% capacity even after 1000s of charge-discharge cycles. This translates to much lower replacement needs versus short-lived lead-acid batteries and reduces the total cost of ownership. Electric construction equipment with lithium-ion batteries can work longer before batteries need swapping, again enhancing uptime.

Additional Insights of Electric Construction Equipment Market

• Asia-Pacific Market Share (2023): 34%, driven by urbanization and environmental regulations in countries like China and India.
• Lithium-Ion Battery Segment: Held 44% share in electric construction equipment market in 2023, preferred for its energy density and longer lifespan compared to lead-acid batteries.
• Europe's Climate Goals: The EU targets a reduction of greenhouse gas emissions by at least 55% by 2030 and aims for net zero by 2050, bolstering electric construction equipment demand.
• India’s Sustainability Goals: India aims for net zero by 2070, with ambitious reductions in carbon emissions by 2030, fostering a push for growth of electric construction equipment market.

Competitive overview of Electric Construction Equipment Market

The major players operating in the electric construction equipment market include Caterpillar Inc., Volvo Construction Equipment, Komatsu Ltd., Hitachi Construction Machinery Co., Ltd., J.C. Bamford Excavators Limited (JCB), Liebherr Group, Doosan Infracore, Hyundai Construction Equipment, Takeuchi Manufacturing, Zoomlion Heavy Industry Science & Technology Co., Ltd., John Deere, Honda Motor Co., Ltd., Cummins Inc., Wacker Neuson, Xuzhou Construction Machinery Group Co., Ltd., Doosan Infracore, Kobelco Construction Machinery, and Sany Group.

Recent Developments in Electric Construction Equipment Market

Electric Construction Equipment Market Segmentation

• By Equipment
  • Electric Excavators
    • Mini Electric Excavators
    • Large Electric Excavators
  • Electric Loaders
    • Skid Steer Loaders
    • Wheel Loaders
  • Electric Dump Trucks
  • Electric Dozers
  • Others
    • Electric Cranes
    • Electric Forklifts
• By Application
  • Residential Construction
  • Commercial Construction
  • Industrial Construction
  • Infrastructure Development
• By Source
  • Lithium-Ion
  • Lead Acid
  • Others