The global off-highway EV component market size reached USD 25.7 billion in 2022. Revenue is estimated to reach USD 29.2 billion in 2023. Over the assessment period from 2023 to 2033, sales are projected to exhibit a 13.9% CAGR. It will likely result in a market size of USD 106.2 billion by 2033.
Key Highlights Driving Demand for Off-highway EV Component Market
| Attributes | Key Insights |
|---|---|
| Off-Highway EV Component Market Size(2022A) | USD 25.7 billion |
| Off-Highway EV Component Market Estimated Valuation (2023E) | USD 29.2 billion |
| Off-Highway EV Component Market Projected Valuation (2033F) | USD 106.2 billion |
| Value-based Off-Highway EV Component Market CAGR (2023 to 2033) | 13.9% |
| Collective Value Share: Top 3 Countries (2023E) | 46.7% |
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The market witnessed a CAGR of 11.2% over the historical period of 2018 to 2022. The global off-highway EV component market reached USD 25.7 billion in 2022.
| Historical Off-Highway EV Component Market (2018 to 2022) | CAGR of 11.2% |
|---|---|
| Historical Market Value (2022) | USD 25.7 billion |
The global off-highway EV component market witnessed growth due to increasing electrification of vehicle fleets during the forecast period. Governments worldwide are imposing strict emissions regulations, encouraging the adoption of electric vehicles (EVs) in various sectors. It includes off-highway vehicles such as construction equipment and agricultural machinery.
Off-highway equipment operators are increasingly considering the TCO of EVs, which can be lower due to reduced fuel and maintenance costs. This cost savings is a significant driver for adopting EV components in off-highway vehicles.
Businesses and organizations are placing a strong emphasis on sustainability and reducing their carbon footprint. Electrification aligns with these goals, driving demand for EV components in off-highway equipment. Improvements in battery technology have increased the energy density and lifespan of batteries, making them more suitable for off-highway applications. This drives the demand for battery components in off-highway EV component market.
Advances in electric drive systems, including motors and power electronics, have made them more robust and suitable for heavy-duty off-highway use, further driving market demand. Key players in the automotive and industrial equipment sectors are entering the off-highway EV market, further validating its potential and driving component demand.
The growth of charging infrastructure for electric vehicles, including off-highway equipment, supports the increased adoption of EVs and their components. Electric off-highway vehicles can offer improved operational efficiency, a critical factor in industries where equipment uptime and productivity are paramount.
From 2023 to 2033, the market is expected to register a CAGR of 13.9%. The market is anticipated to expand significantly, driven by several factors. Growth is anticipated to be fueled by the rising demand for eco-friendly and reusable products.
Battery Advancements:
Advances in battery technology are a significant trend, leading to improved energy density, longer battery life, and faster charging capabilities for off-highway EVs.
Electrification of Heavy Machinery:
Construction, agriculture, and mining industries are increasingly adopting electric powertrains to reduce emissions and operating costs.
Hybrid Solutions:
Various off-highway vehicles are transitioning to hybrid systems, combining traditional engines with electric power for enhanced efficiency and reduced environmental impact.
Efficiency and Performance:
Components are being developed to enhance the efficiency and performance of off-highway EVs, including electric motors, power electronics, and energy management systems.
Automation and autonomy are becoming more common in off-highway applications, driving the development of electric components that support these technologies.
Telematics and Connectivity:
Integration of telematics and connectivity features in off-highway EVs is enabling remote monitoring, predictive maintenance, and data-driven insights.
Principal Consultant
Limited Infrastructure:
The lack of charging and maintenance infrastructure for off-highway EVs in remote or construction sites can be a significant barrier.
Battery Technology:
Batteries' energy density, lifespan, and charging times need to improve for off-highway applications, where longer operation and quick refueling are critical.
Range and Efficiency:
Off-highway vehicles require extended ranges, and the efficiency of EVs in these applications may not yet match that of conventional machines.
Lack of Customization:
A range of off-highway applications require highly specialized equipment, and off-the-shelf EV component are not designed to meet these unique needs.
Maintenance and Repair Knowledge:
Various operators and maintenance personnel are experienced with ICE vehicles, and transitioning to vehicles with EV components requires retraining and certification.
Environmental Concerns:
Despite being eco-friendly, there are concerns about the environmental impact of battery production and disposal.
China is proactively pushing for the uptake of electric vehicles across different industries, including off-highway use. The government is incentivizing and supporting the development and use of off-highway EVs and their component through subsidies and regulations.
China's warehousing and logistics sector is seeing substantial expansion, resulting in a high need for electric forklifts and material handling equipment. This increased demand is fueling the market for electric motors, controllers, and batteries across China. Chinese companies and research institutions are actively involved in researching and advancing off-highway EV components. It includes innovations in electric motor technology, power electronics, and battery management systems. East Asia is set to register a significant CAGR of 15.5% between 2023 and 2033. China is considered a leading country in East Asia in terms of sales and revenue by 2033.
More stringent emissions regulations and an increasing emphasis on carbon footprint reduction are becoming the norm across the United States. This will increase the acceptance of off-highway EVs and their constituent parts in the country. Off-highway equipment manufacturers are progressively shifting towards electric alternatives to meet emissions requirements and minimize environmental harm.
The United States federal and state governments provide a range of incentives and tax credits to incentivize the adoption of electric vehicles, including those designed for off-highway use. These incentives lower the initial expenses associated with EVs and motivate manufacturers to create components for this particular market.
In the United States, the agriculture industry substantially influences the demand for off-highway equipment. Electric tractors and agricultural machinery are becoming increasingly popular due to their cost-efficiency, reduced noise emissions and environmental advantages. The United States remains committed to investing in construction and infrastructure ventures that necessitate efficient and eco-friendly machinery. Off-highway electric vehicles, including excavators, bulldozers, and loaders, are particularly well-suited for these purposes. The market in the United States is expected to expand at a CAGR of 14.6% during the forecast period from 2023 to 2033.
Germany will likely spearhead the Europe off-highway EV component market during the forecast period. Europe is anticipated to register a CAGR of 10.1% from 2023 to 2033.
The off-highway EV component market in Germany is driven by increasing demand for electric vehicles in mining industry. The German government has supported the off-highway EV sector through incentives, grants, and subsidies. This is aimed at reducing emissions and promoting sustainable transportation solutions.
Ongoing advancements in battery technology were critical for the off-highway EV market, as they enable longer operational hours and improved efficiency in heavy machinery. A robust charging infrastructure was essential to support the widespread adoption of off-highway electric vehicles. Investments were being made to expand charging stations in key areas.
Off-highway EV components are often required for customization to meet the specific needs of different industries. This presents opportunities for EV component businesses specializing in tailored solutions. Germany's off-highway EV component market has contributed significantly to the global shift towards electrification in industries beyond passenger cars.
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The table below highlights the global demand for off-highway EV components based on category. The earthmoving segment is likely to lead market during the forecast period. This segment is set to showcase a CAGR of 14.8% between 2023 and 2033.
| Category | Application |
|---|---|
| Sub-category | Earthmoving |
| Value-based CAGR (2023 to 2033) | 14.8% |
Based on application, the earthmoving application is anticipated to expand at a CAGR of 14.8% between 2023 and 2033. This is due to the increasing adoption of EVs in construction sector.
These vehicles are preferred for heavy-duty tasks in challenging terrains, offering numerous advantages over traditional diesel-powered equipment. This class primarily comprises heavy-duty vehicles such as excavators, bulldozers, loaders, and dump trucks. The key benefits of these vehicles, which are increasing in electrification in this particular application, are reduced emissions, low operating costs, silent operation, and vibrations.
Regarding earthmoving applications, technological progress is a crucial driver in the expansion of off-highway electric vehicles used in earthmoving. Electric motors and power electronics have advanced, delivering better performance and enhanced energy management.
Regenerative braking systems have been developed to capture and save energy when the vehicle slows down, further boosting energy efficiency per consumer demand. Telematics and connectivity solutions offer immediate information on vehicle performance. This allows operators and fleet managers to fine-tune operations and enhance maintenance practices.
The table below highlights the global demand for off-highway EV components under component type. Based on component type, the electric drive system segment is set to showcase a significant CAGR of 15.8% from 2023 to 2033. The battery packs drivetrain and transmission component segment follows this.
| Category | Type |
|---|---|
| Sub-category | Electric Drive System Component |
| Value-based CAGR (2023 to 2033) | 15.8% |
In terms of component type, the electric drive system component segment will likely dominate the global market in 2023. The segment is anticipated to propel at a CAGR of 15.8 % during the forecast period.
EV components have scheduled service and replacement cycles. This is expected to increase the demand for their component in the aftermarket, thereby boosting market growth. In the off-highway industry, there is an increasing need for reliable and scheduled maintenance cycles. EV component application in this space involves construction equipment, agricultural vehicles, and mining trucks, which need reliable and scheduled maintenance cycles to ensure continuous operations.
The increasing uptake of electric off-highway vehicles (OHVs) represents an attractive opportunity for suppliers of EV components. This is especially significant in the aftermarket segment, which shows massive potential for growth. With the rising popularity of electric off-highway vehicles, components such as batteries, electric motors, and power electronics play a vital role in ensuring their dependable operation. As these component approach their operational limits or necessitate maintenance, a significant demand arises in the aftermarket segment.
The global off-highway EV component market is anticipated to witness robust investment opportunities over the forecast period. This is owing to increased demand in applications such as earthmoving, transportation, utility vehicles, etc. The commercial and service sectors have increasingly adopted off-highway EV components, including electric forklifts, cranes, and loaders, in the supporting storage facilities for raw materials and warehousing.
Key manufacturers are focusing on developing and improving off-highway EV components. It includes batteries, electric motors, and power electronics to enhance performance, efficiency, and durability. They are forming strategic partnerships with other companies, including technology providers and vehicle manufacturers. This is used to leverage their expertise and resources in developing off-highway EVs.
Recent Developments in the Off-Highway EV Component Market:
| Attribute | Details |
|---|---|
| Estimated Off-highway EV Component Market Size (2023) | USD 29.2 billion |
| Projection Off-highway EV Component Market Valuation (2033) | USD 106.2 billion |
| Value-based Off-highway EV Component Market CAGR | 13.9% |
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Industry Analysis | USD million/billion for Value and (Units) for Volume |
| Key Countries Covered | United States, Canada, Mexico, Brazil, Germany, Italy, France, United Kingdom, Spain, BENELUX, Russia, India, Association of Southeast Asian Nations, Australia and New Zealand, China, Japan, South Korea, Gulf Cooperation Council countries, Türkiye, Northern Africa, South Africa |
| Key Segments Covered | Component type, Propulsion type, Application, Sales Channel and Region. |
| Key Companies Profiled | Caterpillar Inc.; Komatsu Ltd.; Volvo Construction Equipment; John Deere; Hitachi Construction Machinery Co., Ltd.; Liebherr Group; Terex Corporation; Doosan Infracore; Bell Equipment; JCB; Wacker Neuson Group; Bobcat Company; Manitou Group; XCMG Group; SANY Group; Hidromek; Takeuchi Manufacturing; Hyundai Construction Equipment; Kubota Corporation; Sandvik; Atlas Copco |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Driver Restrain, Opportunity, and Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The global off-highway EV component market was valued at US$ 25.7 billion in 2022.
The off-highway EV component market is estimated to reach a valuation of US$ 29.2 billion in 2023
Sales are anticipated to expand at a CAGR of 13.9% between 2023 and 2033.
The off-highway EV component market is expected to reach US$ 106.2 billion by 2033.
Wacker Neuson Group and Bobcat Company are the leading companies.
1. Executive Summary 2. Market Overview 3. Key Market Trends 4. Key Success Factors 5. Global Market Demand Analysis 2018 to 2022 and Forecast, 2023 to 2033 6. Global Market - Pricing Analysis 7. Global Market Demand (in Value or Size in US$ million) Analysis 2018 to 2022 and Forecast, 2023 to 2033 8. Market Background 8.1. Macro-Economic Factors 8.2. Forecast Factors - Relevance & Impact 8.3. Value Chain 8.4. COVID-19 Crisis – Impact Assessment 8.5. Market Dynamics 8.6. Global Supply Demand Analysis 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Component Type 9.1. Electric Drive System Components 9.2. Battery Packs 9.3. Drivetrain and Transmission 9.4. On-board Chargers 10. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Propulsion Type 10.1. Pure Electric 10.2. Hybrid 11. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 11.1. Earthmoving 11.2. Transportation 11.3. Utility Vehicles 11.4. Others 12. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Sales Channel 12.1. OEM 12.2. Aftermarket 13. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 13.1. North America 13.2. Latin America 13.3. Europe 13.4. Middle East and Africa (Middle East & Africa) 13.5. East Asia 13.6. South Asia and Pacific 14. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. Western Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. South Asia and Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033 18. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 19. Middle East and Africa Market Analysis 2018 to 2022 and Forecast 2023 to 2033 20. Country-wise Market Analysis 21. Market Structure Analysis 22. Competition Analysis 22.1. Parker Hannifin 22.2. Siemens Mobility 22.3. Eaton 22.4. Cummins 22.5. Bosch Rexroth 22.6. Mitsubishi Electric 22.7. Dana Incorporated 22.8. Hitachi Construction Machinery 22.9. Xerotech 22.10. Caterpillar 22.11. Komatsu 22.12. Hyundai Construction Equipment 22.13. Volvo Construction Equipment 22.14. Kubota 22.15. Wacker Neuson 22.16. John Deere 22.17. Terex 22.18. Liebherr 22.19. BOMAG 22.20. Allison Transmission 22.21. Mecalac 22.22. Hyster-Yale Group 22.23. Transfluid 22.24. Zero Motorcycles 22.25. ZF Friedrichshafen 23. Assumptions and Acronyms Used 24. Research Methodology
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Off-highway EV Component Market
