Electric Construction And Agriculture Equipment Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented, By Battery Capacity (75kW up to 100 kW, 101 kW up to 125kW, 126 kW to 150kW), By Electric Fuel Type (Battery Electric, Plug-in Hybrid, Fuel Cell/Hydrogen), By Region, By Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 37.12 Billion
CAGR (2026-2031)	10.62%
Fastest Growing Segment	Battery Electric
Largest Market	North America
Market Size (2031)	USD 68.02 Billion

Market Overview

The Global Electric Construction And Agriculture Equipment Market is projected to grow from USD 37.12 Billion in 2025 to USD 68.02 Billion by 2031 at a 10.62% CAGR. The Global Electric Construction and Agriculture Equipment Market comprises heavy machinery, such as excavators, loaders, tractors, and harvesters, that utilize battery-electric or hybrid powertrains instead of traditional internal combustion engines. The growth of this sector is primarily supported by stringent government regulations aimed at reducing carbon emissions and the operational necessity for noise abatement in urban construction zones. Furthermore, the market is driven by the potential for a lower total cost of ownership, as operators seek to capitalize on the substantial reduction in fuel and maintenance expenses associated with electric drivetrains compared to diesel alternatives.

One significant challenge that could impede market expansion is the lack of adequate charging infrastructure, particularly in remote agricultural fields and off-grid construction sites where power accessibility is limited. This infrastructure gap creates logistical complexities and range anxiety for operators, potentially delaying widespread adoption. To illustrate the rapid uptake where conditions are favorable, according to the China Construction Machinery Industry Association, in the first seven months of 2024, sales of electric loaders reached 6,431 units, representing a 354.8% increase compared to the same period in the previous year.

Key Market Drivers

Government Subsidies and Financial Incentives for Electrification act as a critical catalyst for the Global Electric Construction and Agriculture Equipment Market by offsetting the high upfront acquisition costs of battery-operated machinery. While electric equipment offers long-term operational savings, the initial capital expenditure remains a significant barrier for many operators, making grant programs and vouchers essential for early adoption. The intense demand for such financial support underscores its pivotal role in market acceleration. For instance, according to the California Clean Off-Road Equipment (CORE) Voucher Incentive Project, in December 2025, the program reported that requested vouchers for the latest funding cycle exceeded the available $36 million budget by four times, highlighting the heavy reliance of fleet operators on fiscal support to transition away from diesel.

Corporate Sustainability Goals and Green Procurement Policies are equally influential, as major construction firms and agricultural enterprises increasingly mandate the use of zero-emission machinery to meet decarbonization targets. Manufacturers are responding to this shift by aggressively expanding their portfolios to ensure compliance with stricter environmental criteria mandated by their clients. This trend is evident in product development strategies; according to Construction Briefing, in May 2025, Caterpillar reported that 100% of its new products launched in the previous year met enhanced sustainability criteria, ranging from improved efficiency to lower emissions. This strategic pivot is translating into tangible market volume, as demonstrated by the rapid scaling of electric fleets. According to Global Construction Review, in May 2025, Sany Heavy Industry revealed that its sales of electric machines exceeded 6,200 units for the 2024 financial year, reflecting the robust global appetite for green technology.

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Key Market Challenges

The inadequacy of charging infrastructure represents a substantial barrier hindering the expansion of the Global Electric Construction and Agriculture Equipment Market. This deficit is most detrimental in remote agricultural fields and off-grid construction environments where grid connectivity is largely unavailable. Operators are reluctant to transition from diesel to electric powertrains due to the logistical complexity of transporting charging solutions to these isolated locations and the significant financial risks associated with equipment downtime. Consequently, market growth is currently restricted primarily to machinery that operates within confined yards with established power access, leaving heavy-duty field equipment unable to achieve the same rate of commercial adoption.

The direct impact of this infrastructure gap is evident in the stark contrast between sales of stationary-friendly equipment and mobile field machinery. While yard-based units like loaders are seeing uptake, range-dependent heavy equipment struggles to gain traction. According to the China Construction Machinery Industry Association, in February 2025, sales of electric excavators reached only 19 units. This minimal sales volume demonstrates that without the ability to reliably charge in the field, the industry cannot support the widespread deployment of energy-intensive mobile applications, effectively capping the market's potential growth.

Key Market Trends

The Emergence of Hydrogen Fuel Cell Electric Vehicle (FCEV) Technologies is reshaping the market by offering a viable alternative to battery-electric systems for energy-intensive, heavy-duty applications. While battery-operated machinery is effective for compact, intermittent tasks, it often struggles with the weight penalties and long charging downtimes required for continuous, high-load operations in remote areas. Hydrogen combustion and fuel cell technologies resolve this by mimicking the rapid refueling cycles and high torque output of traditional diesel engines, allowing operators to maintain existing productivity levels without range anxiety. The commercial viability of this trend is rapidly materializing through regulatory milestones; according to OEM Off-Highway, February 2025, in the 'JCB Emphasizing Hydrogen Technology at bauma 2025' report, JCB confirmed that its hydrogen combustion engine had secured certification from 11 licensing authorities across Europe, with over 130 evaluation engines already produced for field machines like backhoe loaders.

Simultaneously, the Transition to High-Voltage Architectures for Heavy-Duty Machinery marks a critical evolution from small urban equipment to massive, industrial-grade assets capable of underground and large-scale infrastructure work. Manufacturers are deploying advanced high-voltage systems that deliver the immense power density required for mining trucks and large excavators, segments previously dominated exclusively by fossil fuels. This shift is not merely experimental but is generating substantial commercial volume as mining companies aggressively decarbonize their most fuel-hungry fleets. This demand is exemplified by recent procurement data; according to Sandvik, April 2025, in the 'Sandvik wins record order for battery-electric mining equipment' press release, the company secured its largest-ever order for battery-electric vehicles valued at approximately SEK 750 million to supply a fleet of heavy-duty underground trucks and loaders for a project in the United States.

Segmental Insights

The Battery Electric segment is positioned as the fastest-growing category within the Global Electric Construction and Agriculture Equipment Market. This rapid expansion is primarily driven by increasingly stringent emission standards enforced by regulatory entities such as the European Commission and the United States Environmental Protection Agency which mandate significant reductions in exhaust outputs. Furthermore, the market shift is accelerated by the operational advantages of battery-powered machinery including reduced noise levels and lower long-term maintenance costs. These factors render battery electric equipment highly suitable for strictly regulated urban construction zones and enclosed agricultural environments where compliance is essential.

Regional Insights

North America leads the Global Electric Construction and Agriculture Equipment Market due to stringent emission standards enforced by the Environmental Protection Agency regarding off-highway vehicles. The region prioritizes sustainable development through government initiatives that encourage the adoption of zero-emission machinery in the construction and farming sectors. Established infrastructure projects in the United States and Canada increasingly utilize electric equipment to reduce operational costs and meet environmental compliance requirements. This combination of regulatory pressure and strong industrial demand for clean energy solutions secures North America's status as the dominant regional market.

Recent Developments

• In October 2024, Yanmar America introduced a fully electric tractor concept at the Equip Exposition held in Louisville, Kentucky. The prototype was powered by advanced off-highway battery technology provided by its subsidiary, ELEO, featuring a high-density battery pack designed for long operational life and fast recharging capabilities. The electric tractor was developed to meet the specific power and durability requirements of rural landowners and the agricultural sector while ensuring zero emissions. This unveiling demonstrated the manufacturer's commitment to sustainable farming solutions and marked a significant step in its initiative to become a carbon-neutral organization.
• In May 2024, Volvo Construction Equipment presented a range of new battery-electric machines during its "Volvo Days" event in Sweden. The company introduced its first electric wheeled excavator, the EWR150 Electric, alongside the L90 Electric and L120 Electric wheel loaders. These mid-size machines were designed to support construction and waste management sectors with zero exhaust emissions and reduced noise levels. The manufacturer also unveiled the PU40 mobile energy storage unit to facilitate charging in remote locations. This launch expanded the company's portfolio of electric solutions, aiming to decarbonize operations for customers in the global electric construction equipment market.
• In April 2024, Komatsu Ltd. announced the launch of three new electric mini excavators, the PC20E, PC26E, and PC33E, at the Intermat exhibition in Paris. These models were equipped with lithium-ion batteries and were designed to operate with zero exhaust emissions, making them suitable for indoor and urban construction environments where noise and pollution restrictions apply. The machines featured significant noise reduction and low vibration levels to enhance operator comfort and safety. This product introduction was part of the company's strategy to expand its electrified construction equipment lineup and work toward achieving carbon neutrality by 2050 in the global market.
• In January 2024, Kubota North America Corporation unveiled a fully electric multi-purpose tractor prototype designated as the "New Agri Concept" at the Consumer Electronics Show. The vehicle featured six independent drive motors and a standard three-point hitch, designed to support various agricultural tasks such as mowing and tilling. The prototype utilized rapid charging technology capable of replenishing the battery from 10% to 80% in less than six minutes. This development highlighted the company's focus on integrating artificial intelligence, automation, and electrification to address labor challenges and improve efficiency for residential and small-acreage growers in the electric agriculture equipment market.

Key Market Players

• Komatsu Ltd.
• AB Volvo
• KUBOTA Corporation
• Caterpillar Inc
• Deere and Company
• Doosan Corporation
• Sandvik AB
• Epiroc AB
• Liebherr Group
• Hitachi Limited

By Battery Capacity	By Electric Fuel Type	By Region
75kW up to 100 kW 101 kW up to 125kW 126 kW to 150kW	Battery Electric Plug-in Hybrid Fuel Cell/Hydrogen	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Electric Construction And Agriculture Equipment Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Electric Construction And Agriculture Equipment Market, By Battery Capacity:

• 75kW up to 100 kW
• 101 kW up to 125kW
• 126 kW to 150kW

• Electric Construction And Agriculture Equipment Market, By Electric Fuel Type:

• Battery Electric
• Plug-in Hybrid
• Fuel Cell/Hydrogen

• Electric Construction And Agriculture Equipment Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE