Electric vehicles transform construction industry

Construction vehicles powered by diesel engines contribute to significant costs and environmental pollution, impacting both nearby communities and ecosystems

IDTechEx’s report, Electric Vehicles in Construction 2024-2044: Technologies, Players, Forecasts, explores the accelerating shift toward electric construction vehicles, focusing on advancements in battery technologies, key industry players, and the societal benefits of electrification.

Cost reduction and efficiency

Electric construction vehicles are designed to maximise productivity, reliability, and efficiency while significantly reducing operational costs. Choosing the right battery chemistry is critical to achieving cost-effective electrification, ensuring the total cost of ownership is lower than that of diesel-powered alternatives.

Construction machines, unlike passenger vehicles, require sustained power over extended periods, which means lower power densities are sufficient. Additionally, electrification could replace traditional hydraulic systems with electric linear actuators, reducing maintenance needs, improving vehicle durability, and further lowering operational expenses.

Lithium Iron Phosphate (LFP) batteries are the leading choice for electric construction vehicles due to their durability and cost-effectiveness. In comparison, Nickel Manganese Cobalt (NMC) batteries, with higher energy and power density, are more suitable for compact machines but are more expensive. While NMC batteries are prevalent in Europe, LFP batteries dominate the Chinese market. Over 75% of pack manufacturers in Europe and North America currently use NMC batteries.

Innovations such as fast charging, battery swapping, and tethering address concerns about electric machines running out of power during a workday. Many new machines now feature larger batteries, enabling them to complete a typical day’s tasks without interruptions.

Worker and Community Benefits
Electric construction vehicles bring transformative advantages, particularly in noise and air quality. Noise pollution is drastically reduced, allowing operators to communicate more effectively and minimizing disruptions to nearby communities. Improved air quality, thanks to the elimination of harmful diesel emissions, benefits workers' health and surrounding populations.

IDTechEx forecasts that by 2044, annual sales of electric construction vehicles will surpass 650,000 units, with the market valued at over $126 billion.