Heavy-equipment dealers are seeking a balance between what they already know and the new market for electrification as manufacturers continue to launch new electric products.
The global electric construction equipment market is projected to grow 23.2% annually to $77.2 billion in 2032 from $12.2 billion in 2023, according to a report last month from research and consulting firm Global Market Insights.
Industry titans such as Caterpillar, Sany, Bobcat, Komatsu and John Deere have all added to their electric lineups this year.
The surge in electric machinery comes as manufacturers strive to meet sustainability goals. Volvo Construction Equipment, for one, aims to achieve net-zero carbon emissions by 2040, according to a company release. Caterpillar reduced its greenhouse gas emissions by 35% in 2023 from 2018, as part of its 2030 sustainability goals, according to its website.
Financial advantages, obstacles
Electric equipment carries a considerably higher upfront cost than diesel, Kris Realander, sales manager at Morrisville, N.C.-based Bobcat dealer Triangle Equipment Group, told Equipment Finance News.
The Bobcat Electric E10E mini excavator, for instance, costs about $57,000 new, according to Triangle Group’s website. Meanwhile, the Bobcat R-Series E-10 mini excavator, a diesel product with similar specifications, costs nearly $28,000 new.
Electric machinery saves users fuel and maintenance costs, and an increased lifespan would also offset the higher upfront cost, Realander said.
“The long-term goal for that electric piece of equipment is that it’s got to run for a long time because the dollar amount is a big spread,” he said. “I don’t think I’ve ever seen anybody run one over 10,000 hours yet. I’m sure there are warehouses out there where they’ve done it, but as far as any field research, I have not seen it.”
Meanwhile, hybrid models, such as the Caterpillar XE series, can also yield solid returns on investment, as they offer some of the same benefits as electric products while having the capabilities of traditional machinery, Rob Jackson, director of sales and rental at Raleigh, N.C.-based Caterpillar dealer Gregory Poole Equipment, told EFN.
The hybrid Cat D6 XE dozer can reduce fuel and maintenance expenses by 35% and 12%, respectively, compared to a traditional model, according to Caterpillar’s website.
Some financial incentives are in place for off-road electric machinery. Among them are California’s Clean Off-Road Equipment Voucher Incentive Project, which launched in August and offers funds of varying amounts depending on the equipment purchased or leased. Federal programs such as the Diesel Emissions Reduction Act also provide some grants for off-road electric equipment.
Where it’s practical, where it’s not
Electric machinery offers minimal benefits to general contractors due to inadequate charging stations and duration, although it can be useful for certain jobs, Jackson said.
Contractors “don’t have the ability to power on a job site when it’s mobile equipment,” he said.
Large construction and forestry projects put strain on equipment, raising the likelihood of an electric product losing power before completing a task.
“The harder you run that unit, the more uptime you’re going to lose,” Triangle Group’s Realander said.
Conversely, in the mining industry, the advantage of electric equipment is improved safety as less heat is generated than diesel products, according to Leadvent Group, a business events organizer focusing on renewable energy.
Electric equipment like mini excavators are also useful for indoor jobs, where they can navigate tight spaces without producing hazardous fumes, Jackson said. It can also be used in warehouses and airports as it does not cause much wear and tear in those environments, Realander said.
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