Electric Construction Equipment Market by Equipment Type, Battery Capacity, Battery Type, Power Output, Application, Propulsion, Electric Tractor Market, Electric Construction and Mining Equipment Market, and Region
The Off-Road Power Equipment Market is expected to grow from USD 9.2 Billion in 2022 to USD 24.8 Billion by 2027 at a CAGR of 22.0% over the forecast period. All key countries have established programs/regulations to manage GHG emissions in the transportation industry.
New York, Sept. 28, 2022 (GLOBE NEWSWIRE) — Reportlinker.com announces the release of the report “Electrical Construction Equipment Market by Equipment Type, Battery Capacity, Battery Type, Power Output, Application, Propulsion, Electric Tractor Market, Construction & Mining Equipment Market & Region – Global Forecast to 2027” – https://www.reportlinker.com/p05974226/?utm_source=GNW
Most countries follow Euro-equivalent standards, such as Stage IV or V. The Stage V particulate limit is 97% lower than the Stage I standard, and the hydrocarbon limit (HC ) + nitrogen oxides (NOx) is 94% lower. China, Japan, South Korea and India also follow the Euro Equivalent regulation. Emission Control Technologies (ECT) such as Selective Catalytic Reduction (SCR), Gasoline Particulate Filter (GPF), Exhaust Gas Recirculation (EGR), Diesel Particulate Filter (DPF), various sensors, including the oxygen sensor, NOx sensors and thermal management technologies – are used to control and reduce emissions from off-road equipment. Some ECTs also cause loss of power and other disadvantages such as reduced fuel economy, reduced back pressure during prolonged use, more maintenance activities, etc. All of these expenses, including the increased capital of the vehicle, resulted in an extended return on investment for customers (return on investment).
To overcome these difficulties and the associated costs, manufacturers and customers are opting for an alternative mode of sustainable mobility. This has greatly contributed to the development of hybrid and electric off-road gear and equipment, which are more efficient, emission-free and quieter than their combustion engine counterparts.
In addition, the initial cost of off-road electric equipment is approximately 140% to 170% higher than that of conventional equipment due to the high cost of batteries. However, with advances in battery technology, the cost of the battery and overall equipment is expected to decrease.
Due to the high cost of electrical equipment, demand is expected to be stable in the near future; the market would show promising long-term growth. In the near future, OEMs are expected to favor hybrid or alternative fuel engines to balance equipment limitations and costs.
Underground mining activities produce noxious dusts and gases and are generally hot to very hot in temperature. Diesel-powered mining vehicles and equipment are one of the main producers of heat, nitrogen dioxide and other toxic gases in underground mines.
These emissions also increase the heat generated in underground mines, which requires a crucial ventilation system with huge maintenance expenses. According to the International Council on Mining and Metals (ICMM), 40% of the energy expenditure of an underground mine is devoted to the operation of the ventilation systems. to remove pollutants and heat from mining tunnels.
Such factors increase the overall operational cost of the mine while decreasing its production efficiency.
The regulations also require the air reaching the working faces of each mine to travel at a velocity covering at least 60 feet in one minute. These air speeds are controlled by various ventilation systems and balance the airflow with the correct ratio.
Diesel-powered vehicles not only produce emissions and heat, but also produce loud sounds in narrow mine channels. For these reasons and to achieve sustainability goals, manufacturers and mine owners have begun to favor the electrification of these mining vehicles.
Especially when designing a new mine site, incorporating a fleet of vehicles and electrical equipment can significantly reduce investment and maintenance costs. Although the ventilation system cannot be eliminated, electric mining vehicles reduce system load because they produce zero emissions and less heat.
In such cases, the capacity of the ventilation systems can be reduced, thus reducing the capital investment.
As a result, miners find electric mining vehicles more cost effective and suitable for their large underground mining operations. Additionally, many leading miners, including Anglo American (AAL.L), Rio Tinto (RIO.L) and BHP (BHPB.L), have already committed to net zero emissions by 2050, and these companies prefer electric mining. fleet to achieve their sustainability goals.
“Battery electric off-road equipment is said to dominate the market due to strict noise and emissions regulations.”
The demand for durable equipment in the mining industry to reduce ventilation costs is expected to drive the electrification of mining equipment over the forecast period. equipment.
Although such electrical equipment faces challenges such as higher cost than their ICE counterparts or longer charging time, advancements in battery technology would make electrical equipment popular in the long run.
The Americas is expected to be the second largest market for off-road power equipment
Major countries such as the United States, Canada, Mexico, Brazil, and Argentina are considered in the Americas region. The demand for off-road power equipment in the Americas is increasing rapidly due to the environmental protection measures adopted in these key countries.
Additionally, with the region’s upcoming stringent emissions standards for fuel economy, companies are scrambling to manufacture electric and hybrid equipment for the domestic market. Recent power equipment launches by major off-road equipment manufacturers have promised the growth of the on-road equipment market in this region.
Some of the major companies operating in this region are Caterpillar Inc. (USA), Deere & Company (USA), Soletrac Inc. (USA), Dana Limited (USA) and others.
In addition, the region has significant deposits of coal, iron, zinc, copper, cement, lithium and precious metals. The mining industry in this region is large and many prominent players who hold a major share of the mining equipment market are present in this region. Region.
The Americas off-road electrical equipment market is estimated to be the second largest market in the world. Strong demand for mini construction equipment including mini excavators, loaders and bulldozers is driving the growth of the off-road power equipment market in the Americas.
The United States is expected to dominate the Americas off-road electrical equipment market with a value of USD 6,793.0 million by 2027. This is primarily driven by the growing demand for electrification in construction vehicles, operating mining and agriculture, due to its various benefits, including zero emissions. and quiet operation. The presence of major off-road electrical equipment manufacturers in the United States and their increasing investments in off-road electrical equipment, subsystems and battery developments are other key reasons for the growth of the off-road electrical equipment market. road in the United States.
For example, in 2021 The Caterpillar Inc., along with another company, invested $16 million in a Series B financing for BrightVolt, Inc., a global leader in the design, development, and manufacturing of rugged safe, high energy and low cost. condition of lithium-ion batteries. This funding is intended to be used for the development of larger form factor products for the industrial electrification and electric mobility markets.
Such developments by leading companies with the aim of minimizing the disadvantages of conventional battery types in electric loaders and excavators are further expected to boost the growth of off-road electric equipment in the United States.
In-depth interviews were conducted with CEOs, CMOs, other chief innovation and strategy officers, and executives from various key organizations operating in this market.
• By Business Type: Off-Road Electrical OEM – 40%, Tier 1 – 20%, Tier 2 – 40%
• By designation: C level – 30%, administrators – 20% and others – 50%
• By region: Asia-Pacific – 50%, Europe – 20%, North America – 30% Rest of the world – 10%
The off-road electrical equipment market is dominated by a few globally established companies such as Hitachi Construction Machinery (Japan), Caterpillar Inc. (USA), Komatsu Ltd. (Japan), JCB (UK), Volvo Construction Equipment (Volvo CE) (Sweden).
The study segments the off-road power equipment market and forecasts the market size based on the type of equipment (electric excavator, electric motor grader, electric bulldozer, electric loader, electric dump truck, electric loader loader, mower electric lawn mower, electric sprayer, and electric tractor), battery capacity (500 kWh), battery type (lithium-ion, lead-acid and other batteries), output power (300 hp), Application (Construction, Mining, Agriculture & Gardening), Propulsion (Hybrid Electric and Battery Electric), Electric Tractor Market, By Propulsion Type (Hybrid Electric and Battery Electric), Construction Electric Equipment Market and mining, by type of propulsion (hybrid electric and battery electric) and by region (Asia-Pacific, Europe and Americas)
The study also includes an in-depth competitive analysis of leading Off-Road Power Equipment manufacturers in the market along with their company profiles, key observations related to product and business offerings, recent developments and key strategies. Steps.
Key Benefits of Purchasing the Report:
The report will assist market leaders/new entrants in this market with the information on the closest approximations of revenue figures for the overall Off-Road Power Equipment Market and sub-segments. This report will help stakeholders understand the competitive landscape and gain more insights to better position their businesses and plan suitable go-to-market strategies.
The report also helps stakeholders understand the pulse of the market and provides them with insights into key market drivers, restraints, challenges, and opportunities.
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