With increased demand for sustainability initiatives, a new report predicts electric machinery will more than double in the next five years
Construction equipment manufacturers have significantly shifted their focus from diesel to electric machinery in recent years, to reduce their emissions and meet sustainability goals.
In light of this, a report titled Europe Electric Construction Equipment Market – Industry Outlook & Forecast 2024-2029 forecasts electric machinery will become much more prominent within the next five years.
The report states the European electric construction equipment market totalled 6,300 units in 2023, with this number expected to more than double, reaching 12,990 units by 2029 – rising at a compound annual growth rate (CAGR) of 12.81 per cent.
With most original equipment manufacturers (OEMs) releasing their new machines in Europe before Australia, it can be expected that a similar trend will be seen Down Under.
The report states it is evident that OEMs are making a push towards sustainable construction practices which emphasise decarbonisation, energy efficiency and adoption of innovative technology.
Solution
The shift towards electric construction equipment is a key solution to reducing overall emissions during construction work. As of 2020, it was estimated that electric construction equipment helped by saving around two-million tonnes of carbon dioxide emissions, further reinforcing electric alternatives as the way to go, the report says.
Leading electric OEM Volvo Construction Equipment (Volvo CE) has already introduced three electric units Down Under through its Australian dealer CJD Equipment.
Currently offering two electric compact excavators – ECR18 and ECR25 – and the L25 electric compact wheel loader, CJD says the machines can help businesses meet their sustainability goals.
“While environmental regulations and requirements are more prevalent in Europe, they are gaining traction in Australia, prompting significant businesses, mining companies and local governments to embrace sustainable objectives,” CJD says.
“By embracing electric solutions pioneered by Volvo CE, businesses can achieve environmental benefits without comprising performance.”
Volvo CE’s electric machines produce zero emissions, allowing access to environments that their diesel counterparts would not be able to, CJD says, including indoors and underground, densely populated areas or emission-free regulated areas.
The electric construction equipment report states excavators hold the largest market share of the different categories of electric equipment, including wheel loaders, skid steers, backhoe loaders, dump trucks and telehandlers – to name a few.
This was no surprise for CJD, saying electric excavators were among the first all-electric machines to debut in the construction industry.
Compact
In 2017 Volvo CE unveiled its EX02 compact electric excavator prototype, and although the EX02 model never became commercially available, the ECR18 and ECR25 were developed and made available in Australia – in the first quarter of 2024.
It goes to show that we can expect more electric equipment to be made available in the coming years, as more prototypes are developed.
“Volvo CE has also deployed several electric mining vehicle prototypes to reduce carbon emissions in the mining industry,” CJD says.
Based on the European report, OEMs are particularly focusing on compact and medium sized electric equipment as opposed to larger ranges for the foreseeable future.
“This trend is primarily attributed to challenges associated with developing batteries suitable for large equipment and establishing adequate charging infrastructure on construction sites,” the report states.
Leader
Volvo CE continues to be a leader in the electric equipment space, unveiling three new electric machines at Volvo Days 2024 in Eskilstuna, Sweden. The company’s first electric short tail wheeled excavator – EWR150 – and the electric L120 and L90 wheel loaders are expected to be available in select markets by the end of 2025.
“We’re excited to introduce new models as Volvo expands their availability throughout international markets,” CJD electric and sustainable technologies product manager Reid Gibson says.
“We continue to collaborate with Volvo on introducing new models and anticipate the availability of the L120 electric wheel loader in Australia by mid 2025.”
Diesel-powered equipment has long been the industry standard, however, the rise of electric construction equipment is challenging this status, CJD says.
“Volvo has committed to Science Based Targets, aiming for 35 per cent of their machine sales to be electric or alternative powered by 2030 and to achieve net-zero by 2040,” Gibson says.
“We fully support these ambitious goals and are dedicated to promoting the uptake of electric machines within the Australian market.”
Key OEMs
Although Volvo CE and other OEMs are focusing on compact and medium-sized electric equipment, the forecast report predicts that larger versions of electric equipment, such as cranes, will be introduced by 2030.
Apart from Volvo CE, some of the other key electric OEMs identified by the report include Komatsu, Liebherr, Caterpillar, Kobelco, Kubota, HD Hyundai, Bobcat and JCB. John Deere, XCMG, Sany and Yanmar were also listed as other prominent OEMs in the electric construction equipment market.
“Electric construction equipment has already started being introduced into the Australian market,” CJD says.
“With increasing environmental concerns and regulatory pressures, the construction industry will likely witness a rapid shift towards electric machinery in the coming decades.”
- Subscribe to our free weekly newsletter to receive the latest news in the earthmoving industry
- Never miss a great deal and subscribe to our monthly magazine
- Download a free copy of our latest digital magazine to catch up on the biggest news and developments in the earthmoving industry