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The compact electric construction equipment market size is estimated to grow by USD 43.39 billion at a compound annual growth rate (CAGR) of 13.15% between 2022 and 2027. The growth of the market depends on several factors such as increasing urbanization and infrastructure development, the cost-effectiveness of using compact electric construction equipment over time and rising awareness of environmental sustainability.
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Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
Rapid urban population and the rising number of infrastructure development projects around the globe are driving the expansion of the market. This significant shift in the global environment is marked by the growth of urban areas and the urgent requirement for eco-friendly and sustainable construction solutions. Cities are undergoing rapid growth and modernization at an unprecedented rate as the global population continues to gravitate towards urban centres. This upsurge in urbanization necessitates construction equipment that can effectively navigate through congested areas, fulfil stringent emissions standards, and lower noise and pollution.
Moreover, due to its compact size and ability to manoeuvre in tight spaces, compact electric construction equipment is well-suited to address such challenges which makes it an ideal option for urban construction sites, where larger equipment may not be practical. Also, electric machinery provides quieter operation and produces fewer emissions, therefore addressing environmental concerns and enhancing the quality of life of urban dwellers. Such factors will fuel the growth of the market during the forecast period.
The ongoing advancement of battery technology is one of the most significant market trends. For small-scale compact electric construction equipment, companies are largely investing in the development of more efficient and long-lasting batteries. Due to the higher energy density and quicker charging speeds, lithium-ion batteries are becoming increasingly popular. Such advances are leading to extended equipment runtimes, lessened downtime, and expanded overall efficiency on construction sites. Battery technology, to run for longer operating hours, particularly the introduction of high-density lithium-ion (HLC) batteries has allowed compact construction equipment.
In addition, compact construction equipment can operate for longer periods of time between charges with extended battery life and faster charging speeds, resulting in lowered downtime and increased overall productivity on the construction site. This enables operators to finish more work in one charge cycle, resulting in increased efficiency and cost savings. Such factors will increase the growth of the market during the forecast period.
The pivotal issue in the market is the development and availability of the necessary infrastructure, particularly the necessary charging infrastructure. The transition to electric machinery in construction is not only environmentally friendly but also depends largely on the availability of dependable and efficient charging solutions on construction sites. Electric construction equipment is different from conventional equipment in that it needs a charging station to be powered. This is because electric equipment cannot be refuelled in a short amount of time with either gasoline or diesel fuel.
Consequently, to meet the power requirements of large-scale construction equipment, it is a challenge to ensure that the required charging stations are established strategically and cost-effectively. Such factors will limit the growth of the global compact electric construction market during the forecast period.
The forklift segment is estimated to witness significant growth during the forecast period. In recent years, the market has witnessed considerable expansion and various product segments have been developed to fulfil the changing needs of the construction sector. Among these, for material processing and logistics on construction sites, forklifts have a major position as necessary equipment.
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The forklift segment was the largest segment and was valued at USD 13.14 billion in 2017. As electric forklifts help meet global sustainability goals, they are becoming more popular as they help meet global sustainability goals. Also, they are great for construction sites because they are versatile and efficient. They are perfect for urban projects where noise and air quality regulations are high with their low noise and environmental impact. Such factors will drive the growth of the market during the forecast period.
Based on application, the market has been segmented into commercial, residential, and infrastructure. Over the past few years, the commercial segment has seen significant growth in the market. It is one of the most prominent market segments by application. Electric construction equipment of a compact size is commonly used in a variety of industries in the commercial sector, such as landscaping, property management, and urban development. For instance, landscaping companies often use electric skid steer loaders or mini excavators to dig trenches, move materials, and grade landscapes. Not only do these machines lower emissions at job sites, but they also operate in a quiet manner, reducing disruption in residential areas. Thus, such factors will boost the growth of the market during the forecast period.
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APAC is estimated to contribute 33% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period. In the vast and dynamic landscape of the market, the APAC region is a pivotal market segment. In APAC, the construction equipment rental market region is highly competitive, permitting smaller contractors and businesses to access compact electric machinery without having to make an initial capital investment.
As it enables businesses to test and assess the advantages of these machines without having to make a long-term investment, the popularity has been driven by the rental trend. Governments in APAC are implementing more strict emissions norms and providing incentives to promote the use of equipment. For instance, India's FAME scheme has been instrumental in driving the adoption of compact electric equipment in the country. Such factors are expected to drive market growth in the region during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company offers the EC15E mini excavator, the EC20E mini excavator, and the EC25E mini excavator.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
AB Volvo, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Guangxi LiuGong Machinery Co. Ltd., Haulotte Group, HD Hyundai Co. Ltd., Hidromek Hidrolik ve Mekanik Makina Imalat Sanayi ve Ticaret A.S., Hitachi Ltd., J C Bamford Excavators Ltd., Kobe Steel Ltd., Komatsu Ltd., Kubota Corp., Liebherr International Deutschland GmbH, Manitou BF SA, NACCO Industries Inc., SANY Group, Takeuchi Mfg. Co. Ltd., and Wacker Neuson SE
Technavio's market forecasting report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The Global Compact Electric Construction Equipment Market is experiencing significant growth due to rapid urbanization in developing countries. This market includes a range of equipment such as pallet jacks, standup riders, and compact electric excavators, which are ideal for constructing houses, schools, hospitals, stadiums, government buildings, airports, and other infrastructure projects. The Indian government, in particular, is investing heavily in urban infrastructure, creating a surge in demand for compact construction machinery.
Operational costs are a major consideration for warehouse owners, and the use of electric compact construction equipment offers transparency and cost savings. Stringent environmental regulations in various regions have led to an exponential increase in the demand for electric construction equipment, which produces fewer vibrations and emits no diesel fumes.
Electric compact construction equipment, including electric excavators and compact track loaders like the Volvo CE electric excavator, are revolutionizing the construction industry with their advanced hydraulic systems and online sales channels. The revenue share of the loader segment is expected to grow as more projects adopt electric construction equipment to meet the demands of urbanization and economic growth.
The market growth and forecasting report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Compact Electric Construction Equipment Market Scope |
|
Market Report Coverage |
Details |
Page number |
164 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 13.15% |
Market growth 2023-2027 |
USD 43.39 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
12.47 |
Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
Performing market contribution |
APAC at 33% |
Key countries |
US, China, India, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Caterpillar Inc., CNH Industrial NV, Deere and Co., Doosan Corp., Guangxi LiuGong Machinery Co. Ltd., Haulotte Group, HD Hyundai Co. Ltd., Hidromek Hidrolik ve Mekanik Makina Imalat Sanayi ve Ticaret A.S., Hitachi Ltd., J C Bamford Excavators Ltd., Kobe Steel Ltd., Komatsu Ltd., Kubota Corp., Liebherr International Deutschland GmbH, Manitou BF SA, NACCO Industries Inc., SANY Group, Takeuchi Mfg. Co. Ltd., and Wacker Neuson SE |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our market growth analysis report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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