HOW ELECTRIC CONSTRUCTION EQUIPMENT IS RISING? REPORT REVEALED

The construction equipment industry has been experiencing rapid and substantial growth in the last few years. With each passing day, we get to see new and more advanced machinery in the market, ready to outright the specific issue. 

To cater for this immediate fluctuation in the sales of electric construction equipment, Off-Highway has just released their report, indicating what’s happening in the industry making everyone amazed and more thrilled about the electric equipment trends in the next few years.

Diesel-operated equipment has been now marked as a non-eco-friendly product and consumes a lot of money on diesel consumption. After the rise in fuel prices around the globe, electric-driven equipment has gained popularity.

How does the global market take electric equipment sales?

Electric equipment is not only popular in one region of the country but it has been witnessed that almost everywhere in the world, the products are making a strong impression. 

At first, the prices of these pieces of equipment might be fairly high but it is likely to drop as the manufacturers start making them in bulk. According to the off-highway report, almost 7,283 units of electric equipment were sold around the world. This overall sale brought revenue of around $894 million to the construction equipment industry. 

Although these market data may seem quite lower in sales, the trend is still growing high. This makes the expert more thoughtful of the demand and sales of construction equipment running on electric batteries. 

This growth suggests that as industries strive for sustainable solutions, there is a growing interest in electric equipment.

However, even with these advancements, electric equipment still only makes up a small portion of the industry. Electric versions only make up 0.8% of all construction machines sold in areas where they are available. 

Their market share falls to 0.6% if we consider all categories where electric equivalents are not yet available. 

Industry experts say that considering the growing demand for electric equipment, OEMs should start making these machines at low price ranges. Whereas the next few years are going to be super favourable for the sales of electrically driven heavy equipment.

How did China and Europe take the lead?

Can you imagine, which country or region is in the frontline of selling more electric equipment units?

It is China that is the clear master and the leader of the electric equipment seller with almost 67% of the overall global sales of electric equipment. The Chinese nation takes environmental concern very seriously and tries every possible thing to mitigate the environmental risk.

On the other hand, Europe is standing just behind China in the second position for selling most electric equipment in the region. The European market is contributing around 27% of the global demand for electric equipment. 

With 90% of the 2,000 machines sold in the region being models weighing less than 10 tons, it is clear that Europe prefers smaller, more compact machines. 

Market penetration in Europe varies greatly, ranging from 0% in Ireland to a high of 8% in the Netherlands. 

Besides these differences, Europe still holds 39% of the world market value, which is second only to China's 52%. In contrast, North America trails behind, accounting for only 6% of the worldwide market value in 2023. 

This discrepancy is a reflection of regional variations in the acceptance and preparedness of electric construction equipment.

The global demand for electric equipment is going to rise in future

Electric construction equipment has a bright future ahead of it as sales are predicted to reach 33,130 units by 2028, bringing in over $4 billion. 

With this expansion, the market penetration rate would increase to 2.6% for the entire construction equipment industry or 3.1% for categories with electric choices.

However, the absence of comprehensive historical data makes predicting difficult. Taking a cautious stance, Off-Highway Research has positioned its forecasts in the low- to mid-range of potential outcomes. 

Adoption rates could be greatly increased by elements like strict net-zero emissions laws, but a lot depends on how rapidly the industry adopt this technology.

What do you need to take away from this forecast?

Being an industry contributor or part of the construction equipment industry, you must be aware of all the ins and outs of the market growth and trends. This is because you can stay ahead of the time and can make more informed decisions about your next purchase. 

Regional Dynamics

China and Europe are the two regions with the highest concentrations of demand. This emphasizes how producers must use customized approaches to accommodate local tastes.

Dominance of Particular Machine Types

At the moment, sales of electric wheel loaders for sale are the most common, highlighting the need of concentrating on the most sought-after machine types.

User Challenges

The limited market penetration indicates that more technology developments, cost reductions, and supportive policies are required to promote broader use.

Future Prospects

As global sustainability initiatives gain traction, the sector is expected to experience significant expansion.

Bottom line

Although it is still in its early stages, the worldwide market for electric construction equipment has huge potential. 

Electric machinery use is predicted to increase gradually as producers innovate and governments enact laws to support greener technologies. 

Now is the moment for companies and other players in the construction industry to remain aware and adjust to the changing equipment demand situation.