Off-Highway Electric Vehicle Market Report 2026

The off-highway electric vehicle market size has grown exponentially in recent years. It will grow from $10.82 billion in 2025 to $13.29 billion in 2026 at a compound annual growth rate (CAGR) of 22.8%. The growth in the historic period can be attributed to diesel powered off highway dominance, fuel cost volatility, early hybrid equipment adoption, mining automation trends, agricultural mechanization growth.

The off-highway electric vehicle market size is expected to see exponential growth in the next few years. It will grow to $29.95 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. The growth in the forecast period can be attributed to emission regulations for off road vehicles, battery energy density improvements, electrification of construction fleets, mining sustainability targets, total cost of ownership reduction. Major trends in the forecast period include electrification of off road equipment, high torque electric powertrains, ruggedized battery systems, low noise and zero emission operations, integration of advanced vehicle controls.

The rising demand for electric vehicles is expected to drive growth in the off-highway electric vehicle market. Electric vehicles (EVs) are powered partially or fully by electricity stored in rechargeable batteries. They leverage renewable energy, which reduces CO₂ emissions and air pollution, increases energy efficiency, and serves as a storage medium for renewable electricity - factors that are boosting the adoption of off-highway electric vehicles. For example, in April 2024, the International Energy Agency (IEA), a France-based energy-analysis organization, reported that nearly 14 million new electric cars were registered globally in 2023, a 35% increase from 2022, accounting for about 18% of all cars sold, up from 14% in 2022, bringing the total number of electric cars on the world’s roads to roughly 40 million. Therefore, growing electric vehicle demand is fueling the off-highway electric vehicle market.

Key companies in the market are focusing on advanced technologies such as electrified propulsion systems to improve sustainability, energy efficiency, and lower operating costs. Electrified propulsion systems replace traditional diesel engines with high-voltage electric motors powered by external electrical infrastructure, reducing carbon emissions, lowering fuel dependency, and optimizing lifecycle efficiency. For instance, in September 2024, Komatsu Limited, a Japan-based manufacturer, launched the PC4000-11E hydraulic mining excavator, an electrically powered machine that combines the digging capabilities of conventional diesel equipment with electric power, reducing emissions by up to 95% and lowering total ownership costs by up to 50%, supporting sustainable mining operations.

In January 2024, Caterpillar Inc., a US-based heavy-equipment and construction machinery company, partnered with CRH plc to accelerate the deployment of 70-100-ton-class battery-electric off-highway trucks and charging solutions. This collaboration aims to integrate battery-electric off-road vehicles and charging infrastructure to improve operational efficiency, reduce emissions, provide cleaner and quieter working conditions, and promote long-term sustainability. CRH plc is an Ireland-based building-materials company specializing in aggregates, cement, asphalt, and construction-materials supply.

Major companies operating in the off-highway electric vehicle market report include Caterpillar Inc., Volvo Construction Equipment Ab, Deere And Company, Komatsu Ltd., Hitachi Construction Machinery Co. Ltd., Doosan Corporation, JC Bamford Excavators Ltd., Cnh Industrial NV, Kubota Corporation, Duetz AG, Sumitomo Heavy Industries Ltd., Stihl Holding AG and Co. Kg, Solectrac LLC, Terex Corporation, Liebherr Group, Xuzhou Construction Machinery Group Co. Ltd., Wacker Neuson SE, Sany Heavy Industry Co. Ltd., Manitou Group, Bell Equipment Ltd., ASV Holdings Inc., Epiroc AB, Hyundai Construction Equipment Co. Ltd.

North America was the largest region in the off-highway electric vehicle market in 2025. The regions covered in the off-highway electric vehicle market report include Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the off-highway electric vehicle market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The off-highway electric vehicle market consists of sales of off-highway all-electric vehicles. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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