Interact Analysis Projects 150% Growth By 2030 for Off-Highway Electrified Components Market

SOURCE: Equipment Today | October 25, 2021

Unlike in the road vehicle sector, there is great diversity of equipment in the off-highway vehicle market, from forklift trucks to heavy-duty dump trucks. Off-highway vehicles don’t form a group of uniform applications, and each vehicle type has a relatively low-customer base compared to road vehicles. This means that it is much more difficult for off-highway OEMs and related component producers to achieve the economies of scale gained by their on-road counterparts, and this is a key factor when considering the issue of electrification of off-road vehicles. Barriers such as sheer vehicle size and power requirements, charging infrastructure, the wide range and intensity of duty cycles and the length of down-time for charging have meant electrification of off-highway vehicles has seen slow take-up.

Nonetheless, almost every OEM has produced an electrified off-highway vehicle of some description, and the market for electrified componentry is forecast to grow. But the success of the electrified powertrains market in off-highway vehicles will not only be determined by purchase cost and fuel consumption issues. Better performance, controllability and flexibility, and reduced maintenance costs will also be key considerations, not to mention the environmental advantages. Here, we take a more detailed look at the electrified components market.

Our analysts have found that the global market for electrified components in off-highway vehicles was approximately $10 billion in 2020. We project that this figure will rise to $25 billion by 2030, increasing with a CAGR of 8%, with total revenues between 2019 and 2030 standing at $186 billion. The forklift market, being by far the most mature where electrification is concerned, currently accounts for the great majority of electrified component sales, but this will change as new electrified technologies suited for other applications such as excavators and tractors come on stream.

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