Europe Electric Construction Equipment Market - Strategic Assessment & Forecast 2025-2030

Recent Developments in Europe Electric Construction Equipment Market:

• Hitachi Construction Machinery collaborated with a Dutch charging equipment maker and Japanese trading house, Itochu, on mobile charging systems for construction sites in October 2023.
• North Volt secured a USD 5 billion non-recourse project funding to expand North Volt Ett, marking the largest green loan in Europe in January 2024.
• Volvo Group completed the acquisition of the battery business of US-based Proterra Inc. in February 2024 for USD 210 million.
• Urban Mobility Systems (UMS) and Ampowr confirmed a partnership in May 2023 to provide advanced energy storage systems to various sectors.
• In February 2024, ACC - Automotive Cells Company secured USD 4.7 billion to build four new gigafactories (battery manufacturing plants) in Europe.
• In collaboration with Gotion High-Tech, ABB signed an MoU in December 2023 to support the development of large-scale lithium-ion battery factories for the European and US EV markets.

MARKET TRENDS & DRIVERS

High Electrification Rate in Compact Construction Equipment

• European industry witnessed growth in electrification majorly in the compact construction equipment segment. There is a sharp demand for compact construction equipment such as mini excavators, wheel loaders, track loaders & telehandlers in the Europe electric construction equipment market.
• The reason for high electrification in the compact construction equipment segment as these machines are among the simplest to electrify. Their relatively modest power demands make it easier to develop electric alternatives compared to their larger counterparts.
• Additionally, due to their compact size, these machines can operate indoors whether in basements or during demolition which helps reduce emissions and improve health conditions.

Growing Demand for Electric Wheel Loaders in the Europe Electric Construction Equipment Market

• Wheel Loaders witnessed a high electrification rate in European countries in 2024. Electrification penetration of wheel loaders is expected to reach around 25% by 2030.
• Wheel loader is versatile equipment that can operate across construction, mining, & agriculture industries. The utilization of electric wheel loaders is higher as compared to other equipment in the Europe electric construction equipment market due to its extensive usage across different industries. Moreover, electric wheel loaders operate at mining sites that have ample space to install fixed high-power sources to charge wheel loaders.

Rise of Fossil Fuel-Free Construction Sites

• There is a growing demand for fossil-fuel-free construction sites across the European countries. The rise in fossil fuel construction sites is aligned with European government sustainability goals.
• Prominent cities like Helsinki, Oslo, Copenhagen, Vantaa, and Barcelona are dedicated to goals that require fossil-free construction machinery for public projects, striving to reduce emissions and promote the use of zero-emission construction equipment by 2025.
• In 2024, European countries have planned to reduce 20% of carbon emissions from construction machinery by 2025 and reduction of 50% of carbon emissions by 2030 in public projects. This encourages an immediate transition to cleaner technologies driving the Europe electric construction equipment market growth.

Government Support for Sustainable Battery Manufacturing

• The evolution of battery technology played a crucial role in promoting the Europe electric construction equipment market. Electrification of construction machinery is required to reduce carbon emissions and achieve the sustainability target set by the governments. Also, battery technology is required to improve energy density, power capacity, long life span, safety & ecological sustainability.
• Several new initiatives are being promoted by the European Government to support the battery production industry. For instance, Battery 2030+ is a European research initiative aimed at creating sustainable batteries in line with the European Green Deal. It emphasizes the swift discovery of battery interfaces and materials, the integration of cutting-edge functionalities, and interdisciplinary approaches for developing new chemistries.

INDUSTRY RESTRAINTS

Lack of Charging Infrastructure

• Lack of charging infrastructure is one of the major challenges that can impact the Europe electric construction equipment market growth. Urban construction sites currently do not have the essential electric charging infrastructure to support electric construction machinery. This presents a limitation, as the adoption of electric construction machinery in the industry may hinder the overall accessibility and practicality of these machines in urban locations.
• Several infrastructure development projects happen in underdeveloped regional locations. Therefore, establishing charging infrastructure can be costly due to the need for extensive electrical and network enhancements, limited electricity availability, and high installation expenses.

High Cost of Electric Construction Equipment

• Transitioning to electric construction machinery offers potential benefits for the construction sector, but it also entails significant initial costs. The increased initial expense of electric machinery is primarily due to expensive batteries and advanced technology, necessitating intricate engineering and costly materials. Furthermore, the limited production scale increases the unit costs, making electric equipment pricier than the well-established diesel technology.
• As per estimates from Volvo CE, a leading manufacturer of construction machines, the average cost of an electric mini excavator is around (~$66,000), whereas its diesel counterpart costs only ($26,000). Conventional machinery is priced at less than half that of electric models based on these average price points. The ownership cost of electric construction equipment is higher than diesel counterparts. Such factors can also hamper Europe electric construction equipment market growth.

SEGMENTATION INSIGHTS

• Electric wheel loaders accounted for the largest market share in the Europe electric construction equipment market in 2024. These equipment are extremely flexible and can operate in construction & mining sites.
• Electric excavators are also gaining a good share of the Europe electric construction equipment industry. The demand for compact & small-segment excavators is more prominent as compared to medium and large ones. Electrification of large excavators requires high-capacity batteries that will push up the overall price of excavators.
• Backhoe loaders and dump trucks have witnessed low electrification rates as these equipment have complex structures and are required for special purposes at construction and mining sites. So, contractors don’t prefer electric dump trucks & backhoe loaders due to their lower utilization rate in the Europe electric construction equipment market.
• The Europe electric construction equipment market witnessed strong growth in the low battery capacity segment as it is cost-efficient and is used in compact equipment.
• Demand for electric construction equipment is strongest in the construction industry. There is a surge in carbon-free construction sites in various countries across Europe. Furthermore, electric construction equipment is greatly used in construction sites.
• The Europe electric construction equipment market also has a strong presence in the warehouse & logistics segment. Several large logistics companies are focusing on the construction of carbon-neutral warehouses that drive demand for electric construction equipment such as telehandlers in warehouses.
• The electrification process is faster in the Netherlands & Norway than in large economies Germany, France & UK. The demand for electric construction equipment in the Netherlands and Norway is expected to grow faster during the forecast period.

Segmentation By Equipment

• Excavators
• Wheel Loaders
• Backhoe Loader
• Dump Truck
• Telehandlers
• Aerial Platform
• Others

Segmentation By Battery Capacity

• Below 50 KWH
• 50 KWH -200 KWH
• 201 KWH- 500 KWH
• Above 500 KWH

Segmentation By Battery Chemistry

• Nickle Manganese Cobalt (NMC)
• Lithium Ferro Phosphate (LFP)
• Others

Segmentation By End User

• Construction
• Warehouse & Logistics
• Mining
• Others

Segmentation By Geography

• Europe
  • Netherlands
  • Norway
  • Germany
  • United Kingdom
  • Sweden
  • France
  • Others

VENDOR LANDSCAPE

• At SaMoTer 2023, Bobcat unveils its latest products, including the robust T86 compact tracked loader catering to the compact track loader demand of Italy. Updates on the Ground Maintenance Equipment (GME) range are highlighted, featuring compact tractors, mini-track loaders, and more.
• Volvo is actively advancing its transition to electric machinery, aiming for 35% of machine sales to be electric by 2030. With one of the broadest electric ranges, the company stands out as the first to commit to converting its entire compact range to electric.

Key Company Profiles

• Bobcat
• Caterpillar
• Volvo Construction Equipment
• Komatsu
• Hitachi Construction Machinery
• Liebherr
• JCB
• Kobelco
• HD Hyundai Construction Equipment
• Kubota
• Wacker Neuson

Other Prominent Vendors

• John Deere
• SANY
• Xuzhou Construction Machinery Group (XCMG)
• Kramer
• Limach
• Schaffer
• Manitou
• MECALAC
• Yanmar
• SUNCAR

Component Suppliers

• ABB
• Eaton
• Ecovolta
• Epiroc
• Instagrid GmbH
• North Volt

KEY QUESTIONS ANSWERED