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The compact electric construction equipment market size is estimated to grow by USD 67.1 billion at a compound annual growth rate (CAGR) of 16.81% between 2023 and 2028. The compact electric construction construction industry is undergoing a significant transformation, driven by urbanization and infrastructure development. One key trend emerging in this sector is the increasing adoption of compact electric construction equipment. This shift is due to several factors, including the cost-effectiveness of electric equipment over time, as they require less maintenance and have lower fuel costs. Additionally, there is a growing awareness of environmental sustainability, making electric construction equipment an attractive option for companies seeking to reduce their carbon footprint. These electric machines offer the same power and performance as their diesel counterparts but with the added benefits of being quieter, cleaner, and more energy-efficient. As urbanization continues to expand and the importance of sustainability becomes increasingly apparent, the use of electric construction equipment is poised to become the norm in the industry.
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The Compact Electric Construction Equipment Market is experiencing significant growth due to several key factors. Emission standards are driving the demand for low-emission electric vehicles, making battery electric machines an attractive alternative to traditional diesel-powered equipment. Safety is another major consideration, with electric motors offering increased safety features and reduced risk of fuel spills. Emerging economies are also adopting electric construction equipment due to their lower cost and ease of use. Innovations in autonomous and connected technologies, fleet management, and rental machines are further enhancing the market's growth. Joint ventures and collaborations between industry leaders are also contributing to the development of advanced battery electric machines, including medium and compact wheel loaders. These advancements are transforming the construction equipment industry, offering cost-effective, safe, and eco-friendly solutions for businesses and governments alike.
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 centers. This upsurge in urbanization necessitates construction equipment that can effectively navigate through congested areas, fulfill stringent emissions standards, and lower noise and pollution.
Moreover, due to its compact size and ability to maneuver 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 14.40 billion in 2018. 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 38% to the growth by 2028. 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 market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
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In developed economies, urban expansion drives the demand for compact electric construction equipment, particularly for road-like activities and commercial infrastructure development. Low-cost rental machines, such as skid steers and backhoes from manufacturers like JCB, are increasingly popular due to their initial investment savings and industrialization's sustainability focus. State-of-the-art buildings prioritize innovation and efficiency, leading to product innovations like medium wheel loaders powered by electric energy and sustainable practices. Versatile and capable small-scale construction equipment is essential for housing, industrial, and tourist infrastructure projects. The environmental awareness of people further fuels the market's growth, making electric power a preferred choice over traditional fuel sources.
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Market Scope |
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Report Coverage |
Details |
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Page number |
172 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.81% |
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Market growth 2024-2028 |
USD 67.1 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
14.01 |
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Regional analysis |
APAC, North America, Europe, Middle East and Africa, and South America |
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Performing market contribution |
APAC at 38% |
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Key countries |
US, China, India, Japan, and Germany |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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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 AG, Manitou BF SA, NACCO Industries Inc., Sany Group, Takeuchi Mfg. Co. Ltd, and Wacker Neuson SE |
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Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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