Electric Construction Equipment Market is Estimated to Witness High Growth due to Rising Environmental Concerns
The construction equipment market is shifting focus towards eco-friendly equipment with technological advancements in lithium-ion batteries extending operating capacities of electric equipment. Electric construction equipment such as excavators, loaders, dump trucks, dozers and cranes provide zero tailpipe emissions along with low noise and vibration levels, making them suitable for urban construction sites. Governments across major economies have implemented stringent emission norms promoting electrification of construction activities. The adoption of electric construction equipment is also driven by their lower operating and maintenance costs compared to diesel equivalents over the equipment's lifespan.
The Global Electric Construction Equipment Market is estimated to be valued at US$ 15 Billion in 2024 and is expected to exhibit a CAGR of over 25% over the forecast period 2024-2030.
Key Takeaways
Key players operating in the Electric Construction Equipment are Caterpillar, Komatsu, Hitachi Construction Machinery, Volvo Construction Equipment, and Liebherr.
The market provides lucrative opportunities for OEMs with the increasing investments by governments and real estate developers in sustainable infrastructure projects. Adoption of advanced energy storage technologies is further enhancing capabilities of electric equipment.
North America and Europe have emerged as leading regional markets due to stringent emission regulations. However, Asia Pacific is expected to witness the fastest Electric Construction Equipment Market Growth owing to the expansion of electric vehicle markets in China and India as well as rising construction activities in the region.
Market Drivers
Stringent emission norms enacted by regulatory bodies such as the USEPA and EU to curb air pollution from diesel equipment are a major market driver. Governments across the globe are promoting electrification of construction activities through subsidies and tax incentives for electric equipment purchases. Additionally, lower operating costs of electric equipment over their lifecycles compared to diesel equivalents is encouraging infrastructure developers and construction companies to adopt electric fleets.
PEST Analysis
Political: Construction equipment market is regulated by government for emissions standards. New regulations can impact manufacturers.
Economic: Macroeconomic factors like GDP growth, construction spending affects demand for electric equipment. Cost of raw materials and components impacts manufacturers.
Social: Growing focus on environment protection and sustainability increases adoption of electric equipment over diesel variants. Safety standards drive innovations.
Technological: Advanced lithium-ion batteries provide higher capacity and faster charging. Sensor technologies and telematics enhance productivity and fleet management. Connected technologies open new opportunities.
Geographical regions of concentration
The market in terms of value is highly concentrated in few regions with established construction industries and supportive government policies for sustainable infrastructure. North America accounts for over 30% share due to investments in public infrastructure upgrade. Europe is another major region adopting electric equipment to meet climate targets for buildings and transportation sectors. Growing demand from China, which contributes around 25%, is driven by urbanization and mega construction projects.
Fastest growing region
The Asia Pacific region excluding China and Japan is expected to be the fastest growing market for electric construction equipment during the forecast period. This is attributed to rapid urbanization and increased public and private investments in infrastructure development across countries like India and Southeast Asia. Favorable government policies promoting clean construction sites and green buildings are encouraging adoption of electric equipment over conventional models.
About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)
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