Electric Construction Equipment: The Future of Construction
The construction industry has come a long way from using
manual tools to modern equipment, and it continues to evolve. With the
increasing demand for sustainable practices, the use of electric construction
equipment is gaining popularity. This type of equipment runs on electricity
rather than fossil fuels, reducing carbon emissions and contributing to a
greener environment. In this essay, we will explore the benefits of electric
construction equipment, its current state, and its future prospects.
Benefits of Electric
Construction Equipment
One of the most significant advantages of electric
construction equipment is its eco-friendliness. Compared to traditional
diesel-powered equipment, electric machinery has zero emissions, contributing
to a cleaner environment. Besides, electric equipment is quieter than diesel
engines, reducing noise pollution in construction sites.
Electric construction equipment is also more cost-effective
in the long run. While the initial investment may be higher than diesel
equipment, electric machinery's maintenance costs are lower. Electric equipment
has fewer parts, which means fewer repairs and replacements, and it has a
longer lifespan.
Electric construction equipment is also more efficient.
Electric machinery can perform the same tasks as diesel equipment with less
energy. Electric equipment has high torque at low speeds, which makes it ideal
for heavy-duty tasks. It can also charge faster and operate for more extended
periods, reducing downtime.
Current State of
Electric Construction Equipment
Electric construction equipment is not new, and it has been
around for some time. However, the technology has only recently gained traction
due to the increasing demand for sustainable practices. Currently, electric
construction equipment is being used for tasks such as excavation, demolition,
and material handling. Some of the most popular electric equipment include
excavators, bulldozers, and cranes. The use of electric construction equipment
is not limited to developed countries. Developing countries such as India and
China are also adopting electric machinery due to the need for cleaner air and
lower carbon emissions.
Market Dynamics of Electric Construction Equipment Market
DRIVERS in Electric
Construction Equipment Market
The demand for electric construction equipment is expected
to increase due to the rising need for low-noise construction activities in residential
areas. The increase in noise pollution in urban areas caused by construction
activities has led to regulations and restrictions on noise levels in
construction sites. Diesel-powered construction machines are the main culprits
behind the noise generated on residential construction sites, leading to severe
health issues. To address this concern, countries are implementing regulations
to control noise levels generated by construction equipment.
The need for low-noise construction activities has resulted
in initiatives and policies aimed at reducing noise levels in residential
areas. The Oslo municipal corporation plans to operate all public construction
sites using electric machinery during the forecast period, while the London and
Paris city corporations are collaborating on ambitious plans to ban or reduce
polluting vehicles in residential areas. Such initiatives have prompted
construction companies to prefer electric construction vehicles and equipment.
These machines have decibel levels that make them suitable for use within city
limits without restrictions. Furthermore, electric equipment enables
construction companies to work during the daytime, complete their work faster,
and save costs.
Leading manufacturers are introducing compact electric equipment
designed for city applications. These machines operate within restricted noise
decibel levels and produce less noise. Manufacturers claim that some vehicle
models produce less noise than traditional diesel-powered construction
machines.
RESTRAINTS in Electric
Construction Equipment Market
The extended charging time required for electric off-highway
equipment is causing a loss of productivity. The batteries used in these
vehicles have large capacities, which means they take a long time to charge
fully. As a result, the equipment must remain stationary while charging,
leading to a reduction in productivity. This is one of the major reasons why
the adoption of electric off-highway equipment in mining and construction
applications is slow. Another factor is that construction and mining companies
are typically required to work long hours, leaving little time for the required
charging of electric off-highway equipment. This extended charging time
decreases productivity due to the time lost during recharging. However, some
manufacturers offer electric equipment models with less charging time, such as
JCB's 19C-1E mini electric excavator, which takes eight hours to charge
completely using a 230V 16A supply or 12 hours using a 110V 16A supply.
In the case of residential lawnmowers, charging time is less
of an issue as they are used for an average of half an hour per week. However,
commercial users of lawnmowers require machines that can operate for 8-10 hours
per day, six days a week, making it more practical for them to use
gasoline-powered mowers instead of continually recharging batteries. Thus, the
demand for electric off-highway equipment is currently limited. To address this
issue, manufacturers are developing fast-charging technologies and swappable
battery packs. However, the batteries used in these machines must be able to
withstand quick charging without overheating. The introduction of fast chargers
and swappable batteries is expected to overcome the loss of productivity caused
by extended charging times.
OPPORTUNITIES in
Electric Construction Equipment Market
The electric vehicle industry has seen a significant shift
from lead-acid and nickel-metal hydride batteries to lithium-ion batteries due
to their multiple benefits over the former. However, lithium-ion batteries are
not without limitations that can affect their performance. They are susceptible
to issues such as low robustness, limited power density, short lifespan,
performance fluctuations with temperature changes, rigidity, and high cost. To
overcome these limitations, solid-state batteries are being developed with
stabilized solid electrolytes in lithium metal. Solid-state batteries offer up
to 10 times more charging capacity than graphite-based lithium-ion batteries
and a lifespan of up to 10 years, making them an attractive alternative to
lithium-ion batteries. Despite their advantages, the development of solid-state
batteries is challenging due to issues related to building materials, design
safety, cost, and production techniques.
One of the biggest challenges faced by the construction and
mining industries is the loss of productivity due to prolonged charging times.
To address this issue, manufacturers are investing in the development of fast
charging methods and chargers. DC fast chargers with a capacity of 350 kW can
charge a 300-kWh battery in less than an hour. However, the availability of
large electricity capacity is still a significant hurdle to the development of
such chargers. To overcome this limitation, some manufacturers offer a series
of battery packs that can be swapped when the vehicle's battery runs out of
charge. The swapped battery can then be charged separately, while the vehicle
can continue to operate with the newly installed battery pack. The battery
packs must have more range than the time required for charging the vehicle
fully. Once the vehicle's original battery is fully charged, the battery packs
can be swapped again with the original battery in place. This technology can
significantly reduce productivity losses, but the vehicle must be designed to
make the swapping process easy, less time-consuming, and fool-proof.
The demand for electric construction equipment, including
compact electric excavators, loaders, and dozers, has been significantly
affected by stringent emission and noise regulations in urban or closed
construction areas. In the mining industry, the use of electric equipment
reduces expenses related to the ventilation of underground mines. Electric dump
trucks and excavators drive the electric mining equipment market, while
electric tractors and sprayers are key electric agriculture equipment
categories that improve efficiency and productivity in the agriculture segment.
To facilitate the use of electric off-highway equipment
across multiple brands and equipment types, battery packs can be designed for
universal compatibilities, such as universal chargers. The adoption of
universal chargers and battery packs can greatly facilitate the charging
infrastructure at various locations within mining sites, reducing the return to
grid time for charging and increasing productivity. Large mining operations
with hundreds of vehicles and equipment deployed can benefit significantly from
these developments, resulting in increased efficiency and strengthened product
portfolios.
These developments offer promising growth opportunities for
global players in the market. By investing in such innovations, manufacturers
can improve the efficiency of electric off-highway equipment and cater to the
growing demand for low-emission and low-noise construction and mining
equipment.
The mining industry is anticipated to be the primary driver
of growth in the electric construction equipment market during the forecast
period. Currently, mining companies and governments are actively promoting the
use of electric and hybrid-electric mining equipment due to their safety,
environmental, and financial benefits, which has resulted in the mining
application segment generating the most value globally. The mining segment is
predicted to maintain its dominance, becoming the largest electric construction
equipment market.
Europe is expected to have the largest electric construction
equipment market during the forecast period, with a projected CAGR of 26%. This
is due to the high demand for construction and mining equipment in developed
countries with a strong trend towards electrification. The European region has
stringent emission norms and many sustainability initiatives by the government,
which are driving the adoption of zero-emission equipment. Cities such as Oslo,
Helsinki, London, Copenhagen, Amsterdam, and Stockholm are witnessing a surge
in infrastructure projects, resulting in the increasing adoption of electric
excavators. The region is estimated to have a market value of USD 10 billion
during the forecast period.
Germany is projected to lead the highway electric vehicles
market in Europe. The demand for emission-free, noiseless, and eco-friendly
construction and mining equipment that are cost-effective to operate is driving
growth in the country. Additionally, many leading electric off-highway
equipment manufacturers are located in Germany, and the government is actively
promoting sustainable mobility, contributing to the country's dominance in the
European market.
The Asia Pacific region is expected to witness rapid growth
in the electric construction equipment market during the forecast period due to
rapid infrastructure development and strict government norms related to
environmental protection. The Chinese government has recently signed a free trade
agreement, the Regional Comprehensive Economic Partnership (RCEP), with Asia
Pacific countries, including Japan, South Korea, Australia, and other smaller
Southeast Asian countries, aimed at developing transportation infrastructure
without compromising environmental regulations.
Warehouse owners are increasingly turning to forklifts such
as pallet jacks and stand-up riders due to their efficient design, which
enables them to lift heavy weights and be flexible at greater heights. As
warehouse owners seek to reduce operational costs and increase transparency
within the warehouse, demand for compact electric construction equipment is
expected to rise. Furthermore, renting construction equipment is becoming
increasingly popular as customers prefer to hire construction equipment rather
than bear the costs associated with procuring and maintaining the equipment.
This trend has led to collaborations between construction equipment companies
such as Komatsu Ltd, Mitsubishi Corporation, and Hyundai Construction Co., Ltd,
and rental companies to introduce new products and gain a higher market share.
The high demand for electric excavators, loaders, and forklifts from the rental
industry is expected to drive the growth of the industry.
However, the global market growth may face challenges due to
the fluctuating price of raw materials and the high cost of products.
Nonetheless, rapid advancements in battery technology, coupled with high
investment in charging infrastructure development, are expected to create new
opportunities for players operating in the global compact electric construction
equipment industry.
Dominating Companies in Electric Construction Equipment
Market
- HITACHI CONSTRUCTION MACHINERY
- CATERPILLAR INC.
- KOMATSU
- JCB
- VOLVO CONSTRUCTION EQUIPMENT
- DEERE & COMPANY
- SANDVIK
- EPIROC
- LIEBHERR
- DOOSAN
- SOLETRAC INC.
- DANA LIMITED
- DEUTZ AG
- FENDT
- HUSQVARNA
- STIHL HOLDING AG AND CO. KG
- XUZHOU CONSTRUCTION MACHINERY GROUP (XCMG)
- SANY HEAVY INDUSTRIES
- KUBOTA CORPORATION
- KOBELCO CONSTRUCTION MACHINERY EUROPE B.V.
- BHARAT EARTH MOVERS LIMITED
- CRRC CORPORATION
- CNH
- WACKER NEUSON
- TAKEUCHI
- HYUNDAI HEAVY INDUSTRIES
- LUIGONG
- HAULOTTE GROUP
- Toyota Motor Corporation
- Hyster-Yale Group, Inc.
- Bobcat
Recent Developments in Electric Construction Equipment
Market
Volvo Construction Equipment acquired the electric compact
equipment manufacturer, Terex Corporation in 2020. The acquisition enabled
Volvo to expand its electric construction equipment product line.
In 2020, Caterpillar Inc. announced its partnership with
Arizona-based electric powertrain manufacturer, Fisker Inc. The collaboration
aimed to develop a new line of zero-emissions construction equipment, such as
electric compact loaders and excavators.
The Japanese construction equipment manufacturer, Komatsu
Ltd, acquired Joy Global, an American mining equipment manufacturer in 2017.
The acquisition strengthened Komatsu's electric mining equipment product line,
including electric dump trucks and excavators.
In 2021, Hitachi Construction Machinery Co. Ltd announced
its partnership with the electric vehicle manufacturer, ABB Ltd. The
partnership aimed to develop an electric powertrain system for large-sized
excavators, targeting the mining and construction industries.
In 2020, John Deere Construction & Forestry announced
its acquisition of the Illinois-based electric construction equipment
manufacturer, Norwood Sales Inc. The acquisition allowed John Deere to expand
its product portfolio with electric construction equipment such as trenchers
and vibratory plows.
In 2021, the German engineering and technology company,
Siemens AG, announced its partnership with the Swiss mining equipment
manufacturer, Epiroc AB. The collaboration aimed to develop an electric mine
truck with a trolley system for overhead power supply, allowing for emissions-free
and efficient transportation in underground mines.
In 2022, JCB, the British construction equipment
manufacturer, announced its acquisition of the electric mini-excavator
manufacturer, AUG, based in Austria. The acquisition allows JCB to expand its
electric construction equipment product line and provides a foothold in the electric
mini-excavator market.
Electric construction equipment is the future of
construction. Its eco-friendliness, cost-effectiveness, and efficiency make it
a compelling alternative to diesel-powered equipment. While electric machinery
may have a higher initial cost, its long-term benefits outweigh the cost. As
the demand for sustainable practices increases, we can expect to see more
electric construction equipment on construction sites worldwide.