OFF-HIGHWAY ELECTRIC VEHICLE MARKET OUTLOOK: TRENDS, GROWTH, AND FORECAST (2025–2035)

Off-Highway Electric Vehicle Market Outlook: Trends, Growth, and Forecast (2025–2035)

Off-Highway Electric Vehicle Market Outlook: Trends, Growth, and Forecast (2025–2035)

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What are off-highway electric vehicles? 

Off-highway electric vehicles (OHEVs) are non-road vehicles powered by electric drivetrains designed for industrial applications such as construction, mining, and agriculture. These vehicles, including excavators, loaders, and haul trucks, operate in environments where traditional road-based electric vehicles are not feasible. OHEVs reduce emissions, noise, and maintenance costs compared to their diesel-powered counterparts, making them a sustainable alternative for industries seeking to meet environmental regulations and improve operational efficiency.

 

What is the expected CAGR of the off-highway electric vehicle market over the next decade?

The off-highway electric vehicle market is projected to grow at a robust CAGR of 26.26% from 2024 to 2034, driven by sustainability goals and technological advancements. It is expected to rise from $5,485.5 million in 2024 to $56,483.7 million by 2034.

 

What are the key trends in the off-highway electric vehicle market? 

Key trends in the off-highway electric vehicle market include the increasing adoption of electric drivetrains in construction, mining, and agriculture, driven by stricter environmental regulations and sustainability goals. Innovations in battery technology, mobile charging solutions, and renewable energy integration are enhancing the viability of electric vehicles in remote areas. Additionally, regulatory pressure for reduced emissions and noise pollution is accelerating the shift toward electrification, while advancements in vehicle-to-grid (V2G) systems further support market growth.

Which regions are leading in the adoption of off-highway electric vehicles?
•    North America
•    Europe
•    Asia-Pacific
•    Rest-of-the-World

North America Region to Lead the Market.

Recent developments


  • In August 2024, Fortescue Metals partnered with Liebherr Mining to develop and validate a fully integrated autonomous haulage solution (AHS) at the Christmas Creek mine. This system, which includes a fleet management system, an onboard autonomy kit for the Liebherr T 264 truck, and a high-precision machine guidance system, will coordinate diverse autonomous vehicles. The initiative aims to support Fortescue Metal’s goal of zero Scope 1 and 2 emissions by 2030 and will eventually be available globally as part of Liebherr Group’s expanding technology portfolio.

  • In July 2024, Eleo, a Yanmar company, launched a new range of modular battery packs for off-highway applications. These packs are designed for low-volume, high-diversity vehicles and offer a scalable voltage range (50V to 720V) and up to 90 kW of continuous power, with flexible integration, easy serviceability, and industry-standard protocols.

  • In January 2024, Caterpillar partnered with CRH to introduce electric off-highway trucks, contributing to the decarbonization of the construction sector.

  • In December 2022, Nidec announced a $715 million investment to establish an electric motor manufacturing plant in Mexico, strengthening the region’s supply chain for electrified vehicles. In early 2022, John Deere expanded its battery production capacity by over 2 GWh through Kreisel Electric, reinforcing the push for electrified off-highway equipment.


Who are the major players in the off-highway electric vehicle market?

  • AB Volvo

  • PristenBully

  • Hitachi Construction Machinery Co., Ltd.

  • Caterpillar

  • CNH Industrial N.V.

  • Epiroc AB

  • Deere & Company


What strategies are existing market players adopting to strengthen their market position? 

Existing market players are strengthening their positions by investing in advanced battery technologies, expanding electric vehicle offerings, and enhancing charging infrastructure. Strategic partnerships, such as collaborations for mobile charging solutions and renewable energy integration, are also being pursued. Additionally, companies are focusing on innovation to meet stricter emission regulations and reduce operational costs. These players aim to capture a larger share of the growing off-highway electric vehicle market by developing scalable, sustainable solutions and addressing infrastructure challenges.

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Conclusion

The off-highway electric vehicle market is set for transformative growth, fueled by the global shift toward cleaner energy, regulatory pressures, and technological advancements in electrification. The market is growing quickly across industries like mining, construction, and agriculture as major players like AB Volvo, Caterpillar, and Hitachi Construction Machinery spur innovation. Electric off-highway vehicle adoption positions the market as a pillar of the future of heavy-duty transportation and industrial mobility by lowering long-term costs, improving operational efficiency, and supporting environmental goals.




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