The global electric off-highway vehicle market was USD 6.1 billion in 2020 and is anticipated to grow to USD 20.1 billion by 2027, growing at a CAGR of 22.5% during the forecast period 2021-2027. Factors attributing to the growth of the electric-off highway vehicle market includes aggressive steps towards minimizing emissions and decreasing ventilation cost by adopting electric dump truck and electric LHD in underground mining, mounting demand for less noise, and emission-free construction machines like electric excavators, electric loaders, etc., in residential areas, and increasing demand to enhance efficiency and productivity by adopting agriculture mechanization via electric tractors and electric lawnmowers will significantly lead to the growth of electric off-highway vehicle market. Furthermore, the rising pollution from the diesel-powered vehicles as it emits gases such as carbon monoxide, carbon dioxide, nitrogen oxide, and others which pollute the air, growth in the mining industry post-COVID-19 crisis, the revolution in the automotive industry will accelerate the growth of off-highway vehicle market.

The COVID-19 pandemic has delayed new vehicle developments and launches and reduced financial investments in R&D activities, thus OEMs will try not to add additional cost to vehicles by installing batteries and high powertrain systems. Furthermore, the strict lockdown has put a halt to mining and construction projects, thus negatively impacting the off-highway vehicle market.

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Based on propulsion type, the global off-highway electric vehicle market is bifurcated into hybrid-electric and battery-electric. The battery-electric segment is anticipated to have the highest CAGR share during the forecast period owing to the slowdown in the usage of internal combustion engines and restrictions on CO2 targets. Moreover, the reduced prices of lithium-ion batteries and development in battery technology will increase the demand for BEV during the projected period. The hybrid-electric holds the largest share of 67.1% in 2020 as it enhances the use of internal combustion engines in interaction with the electric powertrain. Thus, demand for hybrid off-highway propulsion equipment is increasing and manufacturers are focusing to build environmentally friendly off-highway vehicles.

North America dominates the off-highway electric vehicle market owing to the rising environmental protection measures, stringent emission norms, and domestic companies are manufacturing electric and hybrid equipment. Moreover, the increasing requirement for electrification of equipment for high productivity, fuel efficiency, convenience, and decreased carbon footprint will fuel the growth of the off-highway electric vehicle market in the region. Caterpillar launched the world's largest electric excavator with a 300kWh battery pack.

Komatsu had shown a new electric mini excavator in Japan, mainly focusing on rental industry. The PC30E-5 delivers excavation performance comparable to ICE models with a similar power output, while emitting no exhaust and reducing the vehicle’s noise tremendously.

Some of the key players operating in the electric off-highway vehicle industry: Caterpillar, Komatsu Ltd., Hitachi Construction Machinery Co., Ltd., AB Volvo, Soletrac INC, Daana Limited, Deutz AG, Fendt, Kobelco Construction Machinery Europe, Sky-well New Energy Automobile Group, Doosan. BEML, Sany Heavy Industries, Exel Industries, XCMG, CRRC, and Kubota.