The uptake of electric powered machinery on construction sites around the world is set to take off as lower overall costs over machine life cycles are expected to more than offset current higher initial up-front costs, a new report has found.

In its latest report, industry research firm IDTechEx has analysed the outlook for uptake of electric machines such as excavators, loaders, mobile cranes and telehandlers across major world markets.

All up, it forecasts that over the next 20 years, the worldwide market electric construction machinery will surge from very low levels now to around $126 billion in 2044 (see chart).

The report comes as manufacturers of heavy construction machinery are increasingly offering electric powered machinery amid efforts to support decarbonisation of construction operations.

Unlike traditional construction machinery, which is powered by diesel engines, electric construction equipment is powered by lithium-ion battery packs and does not produce carbon emissions.

Such machines first became available in 2015 and are now offered by manufacturers such as Caterpillar, Komatsu, XCMG and Volvo.

In its report, IDTechEx acknowledges that there are several barriers to widespread adoption of electric machines.

First, there have concerns about the ability of battery powered electric vehicles to handle the rigorous demands of a construction site.

Beyond that, electric machines currently carry a significant upfront cost premium.

Primarily speaking, this is due to the cost of batteries and electric drivetrain components such as motor and power electronics.

This is particularly the case as the relatively early stage of industry development means that volumes remain modest and costs associated with each unit remain relatively high.

As a result, depending on the size and machine type, electric powered machines come at a premium which ranges from anywhere between 40 and 100 percent compared with the costs of typical diesel-powered machines.

Despite this, the report says that electric machines offer several advantages.

Most significantly, savings which are generated through operations are generally sufficient for electronic machines to deliver a lower overall cost on a ‘total cost of ownership’ (TCO) basis. This takes account of the entire cost of the equipment over its lifecycle in terms of purchase, transport, operation, maintenance and end-of-life.

Across Europe, for example, the purchase cost of a 20-tonne excavator is around 50 percent greater for electric powered machines.

After taking account of lower energy and maintenance costs, however, electric options save almost $US60,000 in overall cost over the machine’s life (see chart).

Primarily speaking, these cost savings arise out of reduced fuel expenditure and lower maintenance requirements.

On the former point, savings are realised on account of the use of electricity rather than diesel fuel to power machines. This becomes more significant as machines grow in size and uptime and their fuel bills increase likewise. Savings vary across geographical locations.

In terms of maintenance, electric machines see mechanical driveline components replaced with electric ones which have far fewer moving parts and require less general maintenance.

Electric machines also do away with oil and filter changes, which add cost and downtime to a machine’s schedule.

Potential savings are significant.

Taking the 20-tonne excavator in Europe example referred to above, IDTechEx calculates that this will consume roughly 13,000L of fuel per year – equating to around $US13,000 at global average diesel prices.

By contrast, charging the equivalent electric machine would cost just over half that amount at $US6,690 per year.

The savings of electric machines may be even greater in areas where emissions charges are levied – often in city centres.

In London’s Ultra Low Emissions Zone, for example, charges of £12.50 per day are levied on high-emitting vehicles.

As things stand, many of the emissions zones which are in place do not currently include construction machines in their restrictions.

However, IDTechEx says that this is starting to change and zones that include all emitting equipment are set to become more commonplace going forward.

In addition, electric machinery also comes with other advantages – albeit with the lower TCO being the most significant driver of take-up.

First, electric machines can operate with zero local emissions and can help to accelerate decarbonisation efforts.

Electric machines are also much quieter. This helps to reduces noise complaints and eases communication – both of which help to deliver safer work environments.

Higher Take-up as Upfront Costs Fall

Going forward, the report suggests that several factors could help to increase electric machinery uptake.

First, continued development of battery and drivetrain technology will help to alleviate concerns about performance capacity.

Already, virtually all mini excavators, for example, can achieve four hours of operation on a single charge. Many are now able to handle a full workday.

Moreover, the report found that electric machines generally match performance expectations of their diesel counterparts in terms of runtime, power delivery and digging force.

Furthermore, upfront costs are likely to fall as the industry benefits from economies of scale.

This will be helped along as focus of the industry shifts from expensive retrofitting of existing diesel machines – which accounts for a significant number of electric machines now – toward in-house production of newly built electric machines.

Over the long run, IDTechEx suggests that premiums of electric vehicles will fall to include only the cost of the batter pack.

Even this could drop from US$300/kWh now (down from as much as US$500/kWh a few years ago) to $US200/kWh moving forward.

Pranav Jaswani, Technology Analysts at IDTechEx, says that this will be a significant factor in increasing uptake.

“A drop in upfront cost like this creates even more favourable TCO and should convince more customers to make the switch to electric,” Jaswani says.

“Many of these potential customers are still more concerned about upfront costs than the overall TCO, so this change may be the one that has the greatest impact on the success of electric construction machines.”

Enjoying Sourceable articles? Subscribe for Free and receive daily updates of all articles which are published on our site

Want to grow your sales, reach more new clients and expand your client base across Australia’s design and construction sector?

Advertise on Sourceable and have your business seen by the thousands of architects, engineers, builders/construction contractors, subcontractors/trade contractors, property developers and building industry suppliers who read our stories across the civil, commercial and residential construction sector