Several initiatives by the government are among the key factors contributing to the adoption of electric off-highway vehicles, triggering the global electric off-highway vehicle market to reach $14-18 billion by 2025. According to the recent MarketsandMarkets analysis, the growth is also due to the development of long-range and fast charging battery technology and rising demand for low noise and emission-free construction machines in residential areas.
The report identified that more than half of $14-18 billion is contributed by electric construction equipment. Though Li-Ion batteries dominate the e-OHV segment, solid-state batteries are the next potential technology worth $300 million post 2023.
Currently, businesses have low access to primary intelligence to clarify some unknowns and adjacencies in these opportunity areas on how OEMs deal with a limited driving range and long charging time of eOHVs, which would be the applications and regional/country level eOHV markets to target first and what will be the potential markets for hybrid and all-electric battery and powertrain in next five years.
Some of the growth problems encountered by off-highway vehicle companies include customer prioritisation and assessing unmet needs, disruptions in their clients' businesses and their support, the key stakeholders in different settings, vendor selection criteria and new product features to be added to the existing products, the research firm said.
The high growth and niche markets, such as construction equipment telematics, mining equipment telematics, electric bus, electric off-highway vehicle, and related markets, which will become ~80% of the revenues of the off-highway vehicle ecosystem in the next 5-10 years, the report noted.
Courtesy: MarketsandMarkets. NB: Photo is representational; courtesy: Volvo.