Electrification of powertrains of off-highway vehicles (such as construction and mining machinery) has been in focus owing to concerns of emissions and noises generated by conventional diesel powered machinery. Electrically propelled off-highway vehicles offer various advantages, such as high overall efficiency, high maneuverability, and accuracy during operations. Although electrification of off-highway vehicles has many advantages, its adoption in the industry is expected to be slow paced, due to various technological factors, such as limited storage capacity of the batteries. Owing to the shortcomings of electrically propelled off-highway vehicles, the usage of hybrid off-highway vehicles is currently considered as a viable option, although the growth of the hybrid off-road vehicles market is restrained by high costs of development. The global electric off-highway vehicles market is growing at a CAGR of 3.56% over the forecast period.
Stringent Emission Norms have Encouraged Equipment Manufacturers to Develop Hybrid and Electric Machinery
The increasing demand for machinery that generates low emissions and low noise pollution has led the manufacturers to develop and manufacture electric and hybrid off-highway machinery. Equipment manufacturers have been investing in these technologies to gain consumer acceptance as these machines offer many advantages. Besides low emissions and low noise pollution, the machinery propelled by hybrid and electric drives will significantly lower operational costs, as the energy utilization of electrically powered drives is high. The electrically powered off-highway vehicles also offer high efficiency, compared to their hydraulic counterparts, as hydraulic machinery utilize less than 10% of the energy generated by the fuel. Also, the electrically powered machinery have less moving parts compared to conventional machinery, which consequently results in low wear and tear, thereby increasing the life of the equipment.
Off-highway Vehicles Powered by Hybrid and Electric Drives have their own Limitations
One of the significant restraining factors for the growth of the market is the high production cost of electric machinery. From the perspective of a customer, though the operating cost of an electric or hybrid off-highway machinery is low, the cost of purchasing the machinery is very high compared to the conventional machinery. The construction and mining sector across the world is dominated by major companies, but small contractors and companies also hold a significant share in the sector. These small and medium sized entities do not have the financial capability to purchase such equipment and are more likely to continue to adopt conventional machinery. Furthermore, the lack of infrastructure to charge the vehicles at the site of their operation will also hamper the adoption of these vehicles by the construction and mining industry. Some of the equipment are operated for longer hours, sometimes 24 hours a day depending on the requirement. This cannot be fulfilled by electric drives as the current battery technology does not have the capacity to store such huge amounts of energy. These factors are responsible for low adoption of all electric drives but these requirements can be currently fulfilled by hybrid off-highway vehicles.
Major Players: Hitachi Construction Machinery, Volvo CE, Caterpillar Inc., and Sennebogen Maschinenfabrik GmbH, among others.
Key Developments in the Market:
- Jun 2018: Battery Power Industries, a South Africa-based battery driven machinery developer has launched a zero emission underground mining equipment with its advanced battery energy systems. The company develops battery systems, electrical traction systems, and charging systems for underground mining equipment.
- Aug 2017: Caterpillar has launched 988K XE, its electric drive loader which delivers 25% greater overall efficiency in load-and-carry applications than its 988K loader run by conventional diesel engine.
Reasons to Purchase this Report:
- Provides latest insights into the global electric off-highway market.
- Gives a detailed analysis of the competitive landscape in the electric off-highway market.
- Analyzes the market scenario with the help of Porter’s five forces analysis.
- Forecasts the market value by assessing the impact of the market drivers and constraints.
- Answers questions like
- How the launch of off-highway hybrid and electric vehicles by various equipment manufacturers has impacted the market?
- What are the new hybrid and electric off-highway technologies developed by the equipment manufacturers?
- Three months analyst support, along with the Market Estimate Sheet in Excel
Report Customization and Benefits:
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1.1 Scope of the Market
1.2 Executive Summary
2. RESEARCH METHODOLOGY
2.1 Study Deliverables
2.2 Study Assumptions
2.3 Research Methodology
3. MARKET OVERVIEW
3.1 Current Market Scenario
3.2 Technology Trends
3.3 Industry Attractiveness – Porter’s Five Forces Analysis
3.3.1 Bargaining Power of Suppliers
3.3.2 Bargaining Power of Buyers
3.3.3 Threat of New Entrants
3.3.4 Threat of Substitute Products and Services
3.3.5 Competitive Rivalry Within the Industry
4. MARKET DYNAMICS
5. MARKET SEGMENTATION AND ANALYSIS (MARKET SIZE, GROWTH, AND FORECAST)
5.1 By Equipment
5.1.2 Dump Trucks
5.2 By Application
6. REGIONAL MARKET ANALYSIS (MARKET SIZE, GROWTH, AND FORECAST)
6.1 North America
6.1.1 United States
6.1.4 Rest of North America
6.2.2 United Kingdom
6.2.6 Rest of Europe
6.3.5 South Korea
6.3.7 Rest of Asia-Pacific
6.4 South America
6.4.3 Rest of South America
6.5 Middle East and Africa
6.5.1 Saudi Arabia
6.5.3 South Africa
6.5.5 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.2 Market Share Analysis
8. COMPANY PROFILES (OVERVIEW, FINANCIALS**, PRODUCTS & SERVICES, SWOT ANALYSIS, AND RECENT DEVELOPMENTS)
8.1 Hitachi Construction Machinery
8.2 Volvo CE
8.3 Caterpillar Inc.,
8.4 Sennebogen Maschinenfabrik GmbH
8.5 OJSC Belaz
8.6 BEML Limited
8.7 Komatsu LTD.
8.8 Voltas Limited
8.9 Terex Corporation
8.10 XIANGTAN ELECTRIC MANUFACTURING GROUP
9. FUTURE OF THE MARKET
** Subject to Availability on Public Domain