Trendlines: Power cut

Just over 38,700 pieces of electric construction equipment were sold around the world last year, according to Off-Highway Research. The company’s coverage looks entirely at machines that have historically been diesel powered (as opposed to machines like scissor lifts, which have been largely electric for a long time), so this is a clear indication of the level of penetration in the market.

Although not a huge proportion of sales – 3% of the global market – that number is probably higher than many people expect. So here come the all-important details...

Source: Off-Highway Research

Percentage vs. reality

A big caveat is that 80% of the world’s electric construction equipment is sold in China. Mid- to large-sized electric wheel loaders will outsell diesel machines there this year and about a fifth of dump truck sales will be electric wide-bodied trucks.

A further 10% of the world’s sales will be made in emerging markets by Chinese OEMs along exactly the same lines. The focus on mining and quarries is a good fit for electric equipment, where high utilization leads to a quicker payback on the purchase price and customer facilities are on the electrical grid so charging logistics are simpler. The same factors also explain why there is a high take-up of electric construction equipment in heavy industry in China.

So, while we talk about electric “construction” equipment, the truth is it is mining and quarries and certain industries adopting this new power source. Off-Highway Research’s studies indicate only around 7% of electric construction machines are sold to traditional construction customers such as contractors and rental companies. In contrast, these two buyer groups purchase around 65% of the diesel-powered machines sold around the world each year.

This means that worldwide only about 0.3% of the construction machines sold to core construction customers are electric. The practical reality is, of course, that these are not evenly spread around the world. Most of these sales are in Norway and the Netherlands, where legislation demands to some extent that zero tailpipe emission machines are used and where subsidies support their adoption.

Benefits outweighed by costs

Chris Sleight is the managing director of Off-Highway Research, a market research and forecasting business specializing in analysis of the global construction and agricultural equipment markets. Formed in 1981 as part of The Economist Intelligence Unit (EIU), it is now the largest consultancy of its kind in the world, with offices in Chile, China, Germany, Japan, India, the U.K. and the U.S. OHR is part of the KHL Group. www.offhighwayresearch.com

Electric machines are expensive, but such a low penetration rate is surprising given that there are so many applications where they should be a no-brainer – urban fixed sites like waste handling stations; sensitive environments; indoor, underground or confined sites; work around combustible dusts, gases & vapors; and so on.

There are also objective benefits to electric equipment – low noise and vibration, no hot and toxic exhaust gasses, greater reliability, lower parts count (and thus maintenance costs), instant torque from motors and therefore faster response.

For most construction customers, these factors are clearly still outweighed by high purchase prices and questions around the logistics of charging. OEMs and their dealers need to provide a solution to these two problems, rather than just trying to sell machines.

Click here to learn more in Off-Highway Research’s The Global Construction Equipment Industry 2026 report.