Electric Construction Equipment Market Size, Share, Analysis, Trends, Growth, 2032

Electric Construction Equipment Industry Prospective:

The global electric consumption equipment market size was worth around USD 9.87 billion in 2023 and is predicted to grow to around USD 35.56 billion by 2032 with a compound annual growth rate (CAGR) of roughly 15.30% between 2024 and 2032.

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Electric Construction Equipment Market: Overview

Electric construction equipment are machines and tools used in construction-related businesses powered by electric batteries or power connections. Traditionally, the most commonly used construction equipment is powered by petrol and diesel. However, electric construction equipment does not rely on non-renewable sources of energy. The electric construction equipment industry consists of a wide range of machines, including wheel loaders, excavators, forklifts, and mining trucks. The demand for electric construction machinery has grown over the years, driven by an increasing focus on achieving energy efficiency across major industries.

In addition, electric construction equipment tends to offer several long-term benefits that further help the market thrive. For instance, market research indicates that investment in electric construction equipment helps companies reduce overall operational costs in the long run. Additionally, changing government regulations concerning the use of non-renewable energy sources is expected to encourage more players to opt for electricity-powered construction equipment. However, the high initial investment due to greater costs of electric equipment for construction purposes may impact the overall revenue,

Key Insights:

• As per the analysis shared by our research analyst, the global electric consumption equipment market is estimated to grow annually at a CAGR of around 15.30% over the forecast period (2024-2032)
• In terms of revenue, the global electric consumption equipment market size was valued at around USD 9.87 billion in 2023 and is projected to reach USD 35.56 billion by 2032.
• The electric consumption equipment market is projected to grow at a significant rate due to the intensifying pollution levels due to the excessive use of fuel-powered tools.
• Based on battery type, the lithium-ion segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on application, the construction segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Electric Construction Equipment Market: Growth Drivers

Intensifying pollution levels due to excessive use of fuel-powered tools will drive market demand rate

The global electric construction equipment market is expected to grow due to the intensifying pollution levels across the globe. According to market analysis, excessive use of fuel such as petrol, diesel, and gas is a leading cause of several types of pollution, including air, water, and soil quality deterioration. In addition, the overexploitation of natural reserves to obtain large quantities of fuel directly impacts the ecological conditions. The steady but concerning changes in climate conditions in the form of global pollution are evidence of the impact of excess dependence on non-renewable sources of energy.

According to the National Institutes of Health (NIH), fossil-fuel combustion for energy-related demands across middle-income and high-income countries, along with the burning of biomass in low-income nations, contributed to nearly 85% of airborne respirable particulate pollution.

Furthermore, these activities also led to the emission of almost all sulfur dioxide and nitrogen oxide gasses. The impact of non-renewable energy sources is also witnessed in the form of increasing health concerns among humans. Long-term exposure to harmful gasses is often associated with several types of cancer, including lung cancer. Such extreme statistics related to the increased use of unsustainable energy sources will prompt greater demand for electric equipment across industries, including building & construction.

Growing government regulations promoting energy-efficient technological solutions will generate higher market revenue

The global electric construction equipment industry is expected to be positively impacted by the changing government regulations promoting the use of energy-efficient solutions. In September 2023, Europe witnessed the official launch of the Energy Efficiency Directive (EU) 2023/1791 in the EU Official Journal. The directive concerns a list of measures directed toward accelerating the adoption of energy-efficient solutions. In addition, regional governments are becoming stringent with penalties and fines against companies that do not have environmental impact mitigation policies in place.

Electric Construction Equipment Market: Restraints

High initial cost of the tools to limit the industry's expansion rate

The global industry for electric construction equipment is projected to be restricted due to the high cost of the tools. Electric construction equipment manufacturers are currently limited in the market compared to producers and sellers of traditional construction equipment. In addition to this, construction equipment powered by electricity is designed using sophisticated technology further leading to increased cost. For instance, the average cost of a small to medium-sized electric bulldozer is between USD 350,000 and USD 610,000. The cost increases further with the addition of advanced features and extended applications.

Electric Construction Equipment Market: Opportunities

Rising advancements in battery technology create growth opportunities

The global electric construction equipment market is expected to generate growth opportunities due to the growing advancements in battery technology. Market players are actively working toward developing long-lasting and highly powerful electric batteries that can be used in heavy-duty machines or equipment. In a recent event, Toyota announced that it plans to launch solid-state electric vehicle batteries that can deliver a range of 750 miles on a single charge. The company is expected to make the technology commercial by 2027 or 2028.

According to official claims, the novel batteries will be made using solid electrolytes and promise greater energy density compared to traditionally used lithium-ion batteries. In September 2024, researchers developed a novel technique for next-generation batteries in the form of a vacuum thermal evaporation method. The solution is expected to aid the production of ultra-thin lithium metal anodes with higher performance. In addition, the steadily rising production rate of electric batteries for several end-user verticals will also be crucial to shaping the industry’s growth rate in the long term.

Electric Construction Equipment Market: Challenges

Lack of awareness and competition from traditional equipment will challenge the market expansion rate

The global electric construction equipment industry is expected to be challenged by limited awareness about the availability of the tools. In addition, industry players face tough competition from manufacturers of traditionally used equipment. The latter has an extensive market presence and deeper penetration, which further impacts the overall revenue.

Electric Construction Equipment Market: Report Scope

Electric Construction Equipment Market: Segmentation

The global electric consumption equipment market is segmented based on battery type, type, application, and region.

Based on the battery type, the global market segments are lead acid, lithium-ion, and others. In 2023, the highest demand was listed in the lithium-ion segment, driven by the extensive use of the battery type across industries, equipment, and vehicles. The production infrastructure for lithium-ion batteries is extensive, leading to improved accessibility. Additionally, lithium is abundantly available in the environment, which assists in enhancing the production rate of lithium-ion batteries. According to official records, the world has more than 27.9 million metric tons of lithium.

Based on type, the global electric construction equipment industry is divided into cranes, loaders, excavators, dozers, and others.

Based on the application, the global market divisions are material handling, mining, construction, and others. In 2023, the largest revenue share was dominated by the construction segment. Increasing emphasis on the global construction industry to improve energy efficiency and reduce environmental pollution is fueling the demand for electric construction equipment. According to the United Nations Environment Program, around 37% of global emissions are from the buildings and construction industry.

Electric Construction Equipment Market: Regional Analysis

Asia-Pacific to hold dominance over the largest market share during the forecast period

The global electric consumption equipment market is expected to witness the highest revenue in Asia-Pacific. One of the key reasons for higher regional market revenue is the presence of an excellent manufacturing industry. China, for instance, is the world’s leading producer of electric vehicles. China has been a leading exporter of high-end electric vehicles to domestic and international customers.

Recently, Yuchai Heavy Industry, China’s leading original equipment manufacturer (OEM), launched a large range of electric products, including the S35MAX Long-Endurance Electric Skid Steer Loader, S150 Electric Skid Steer Loader,  S35Pro Electric Skid Steer Loader, and X35 MAX Electric Skid Steer Loader. According to company claims, the machines are equipped to deliver faster responses as compared to conventionally used drive axles. In October 2024, SANY, another leading Chinese manufacturer of equipment, launched an all-new electric excavator. The product is equipped with a ‘double-gun- charger. It helps the machine to achieve full charge in 70 minutes.

Furthermore, the growing infrastructure development projects across major Asian countries, including India, China, and South Korea, have also been crucial regional market growth drivers. Additionally, the demand for energy-efficient technical solutions has surged across Asian countries, further prompting growth in the regional market.

Electric Construction Equipment Market: Competitive Analysis

The global electric consumption equipment market is led by players like:

• Doosan Infracore
• Volvo Construction Equipment
• Manitou Group
• Kubota Corporation
• Caterpillar Inc.
• Clark Equipment
• Bobcat Company
• Komatsu Ltd.
• Terex Corporation
• CASE Construction Equipment
• SANY Group
• Hitachi Construction Machinery
• XCMG
• JCB
• Liebherr Group.

The global electric consumption equipment market is segmented as follows:

By Battery Type

• Lead Acid
• Lithium-Ion
• Others

By Type

• Cranes
• Loaders
• Excavators
• Dozers
• Others

By Application

• Material Handling
• Mining
• Construction
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa