. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well.
The Compact Electric Construction Equipment Market is experiencing rapid expansion due to an increasing demand for energy-efficient solutions that are environmentally friendly. Companies are launching new electric machinery to comply with stringent emissions regulations and raise environmental awareness; innovations such as compact electric excavators and loaders have proven popular with urban construction projects.
Compact electric construction equipment belongs to a range of specialized machinery employed in construction & other industrial activities, characterized by their smaller size, efficient design, & dependency on electric power for operation. These
machines, like excavators, loaders, forklifts, & other construction tools, are designed to execute tasks in compact spaces & environments where larger equipment might be impractical.
In addition, the main feature of these machines is their usage of electric motors for propulsion & operation, which provide benefits like reduced emissions, lower operational costs, & noise-free performance compared to traditional fuel-powered alternatives.
As per volvogroup Electric construction equipment, like skid steer loaders and compact track loaders, is gaining traction due to reduced emissions and lower operational costs. Volvo reported a 20% drop in maintenance and 40% energy savings with electric models. With strong investments from Japan and Germany, the push for sustainability is creating growth opportunities for eco-friendly equipment manufacturers.
Recently, industry leaders have made significant investments in electric construction equipment. Companies such as Caterpillar and Volvo have introduced electric-powered models in key regions around the world as sustainable alternatives without compromising performance for contractors. Events like Conexpo-Con/AGG 2023 highlighted these innovations to spark interest in green building technologies.
As governments impose stricter environmental policies and the construction industry strives to reduce its carbon footprints, demand for compact electric construction equipment should increase significantly. Urbanization's increasing population density provides manufacturers with an opportunity to meet specific equipment needs using compact solutions powered by electricity - this shift may continue as battery technologies advance further.
Market Dynamic
The increasing need for compact electric
construction equipment can be said owing to the significant increase in global construction projects & more stringent environmental regulations. Moreover, governments are constantly investing in infrastructure development to assist the rapid growth. As construction activities increase, there is a growing requirement for compact equipment that can effectively operate in closed spaces, is easily transportable, & has lower maintenance & operational expenses.
These factors are anticipated to drive the growth of the global market for compact electric construction equipment. Moreover, there is a significant expansion in the trend of renting construction equipment. Many customers now prefer equipment rental as a way to reduce costs related to equipment purchase & maintenance.
However, the market's growth could counter a challenge owing to the higher costs associated with such equipment. However, the ongoing technological advancements in Li-ion technology are anticipated to gradually bring down battery prices, thereby lowering total product costs in the near future. Moreover, the growing focus of governments on achieving net-zero emissions opens up new opportunities for industry players in this sector.
Research Scope and Analysis
By Product
In 2023, the forklift segment has the most significant portion of revenue & is anticipated to maintain its leading position throughout the projected period. Electric forklifts, which are known for their economical operations, are anticipated to sustain their popularity.
With fewer components in motion, lower maintenance needs, and superior energy efficiency compared to standard models, electric forklifts translate to reduced operational expenditures, which makes them appealing to enterprises focusing on curtailing operating costs. Moreover, electric forklifts find their ideal utility within indoor settings, particularly in factories with even flooring surfaces.
Further, the loader segment is also set to experience fast growth in the coming years. This growth can be said due to the construction sector's high demand for compact loaders. Electric loaders are especially appealing owing to their cost-effectiveness.
They have minimal maintenance costs since they have low moving parts & need less frequent servicing in comparison to diesel-powered engines. Additionally, the cost of electricity is generally lesser than that of diesel fuel, which translates to high savings for construction companies over the equipment's lifespan and is anticipated to drive the future of the market as well.
By Ton
In 2023, the under-5-ton segment captures the majority of the revenue share of the overall global market, which can be credited to the increasing need for smaller construction equipment that improves operations & reduces environmental footprint. Electric conversion is quick for lighter excavators & loaders compared to larger ones.
As a result, the move by manufacturers towards electrifying compact excavators is anticipated to gain momentum gradually during the forecast duration.
Moreover, a large growth is also anticipated in the global market for the above 8-ton segment. Industries are driving this increase owing to their strong need for powerful compact electric excavators & loaders that can contain heavy loads. Additionally, the aim of safety in construction is increasing the need for compact electric equipment. These machines operate much more quietly than diesel ones, which not only reduces noise on construction sites but also improves overall safety.
The Global Compact Electric Construction Equipment Market Report is segmented on the basis of the following:
By Product
- Loader
- Forklift
- Excavator
- AWP
By Ton
- Less than 5 Ton
- 6 – 8 Ton
- 8 – 10 Ton
Regional Analysis
The European region has a significant market share, commanding around
39.2% of the total revenue in the Global Compact Electric Construction Equipment Market. The European Union has set ambitious goals focused on reducing greenhouse gas emissions & addressing climate change. To meet these targets, the EU has introduced rules that encourage the adoption of
electric vehicles & machinery.
Moreover, initiatives like London's Low Emission Zone have caused restrictions on diesel machinery in specific zones. This trend of regional advancement is driven by the increasing adoption of zero-emission machinery & the growth in infrastructure projects in urban centers like Helsinki (Finland), Oslo (Norway), Copenhagen (Denmark), London (UK), Amsterdam (Netherlands), & Stockholm (Sweden).
Further, the Asia Pacific region is also experiencing rapid growth with significant growth expected during the forecast period, which is driven by the region's strong infrastructure development activities. Mainly, governments in countries such as China, Japan, & South Korea have taken active measures to boost the adoption of electric vehicles & equipment. Through incentives & subsidies, they are constantly supporting the use of environmentally conscious products, including compact electric construction equipment.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
In the competitive landscape of the Global Compact Electric Construction Equipment Market, various industry players compete for dominance, as their emphasis lies in developing electric construction equipment solutions through constant research, sustainability focus, strategic collaborations, & innovation evolving landscape is anticipated to further increase competitiveness, driving the further advancements & affordability in the sector.
For instance, in February 2022, Takeuchi Mfg. Co., Ltd., a Japanese construction equipment manufacturer, introduced the TB20, an electric compact excavator crafted for the North American market, this calculated product introduction is anticipated to secure the company's standing in the regional industry.
Some of the prominent players in the Global Compact Electric Construction Equipment Market are:
- JCB
- Caterpillar
- Volvo CE
- Hyundai CE
- Bobcat
- Sany Group
- Toyota Motor Corp
- Wacker Neuson SE
- Haulotte Group
- Hyster Yale Group Inc
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Compact Electric Construction Equipment Market:
The global compact electric construction equipment market was significantly impacted by the COVID-19 pandemic & the following recession. The market saw a decline as construction projects faced delays & cancellations during lockdowns. However, there emerged an importance on sustainability & environmentally-conscious practices, which played to the force of electric construction equipment.
These machines, producing lower emissions & being more cost-effective to operate, gained traction. Despite initial setbacks, the market showed adaptability in adhering to new regulations & leveraging the increasing preference for greener approaches within the construction sector.
| Report Characteristics |
| Market Size (2023) |
USD 62.6 Bn |
| Forecast Value (2032) |
USD 195.7 Bn |
| CAGR (2023-2032) |
13.5% |
| Historical Data |
2017 - 2022 |
| Forecast Data |
2023 - 2032 |
| Base Year |
2022 |
| Estimate Year |
2023 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Product (Loader, Forklift, Excavator (Mini, Midi),
AWP (Boom, Scissor and Telehandler)), By Ton (Less
than 5 Ton, 6 – 8 Ton and 8 – 10 Ton) |
| Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
| Prominent Players |
JCB, Caterpillar, Volvo CE, Hyundai CE, Bobcat, Sany
Group, Toyota Motor Corp, Wacker Neuson SE,
Haulotte Group, Hyster Yale Group Inc, and Other
Key Players |
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