As the forecast for Indias CE Market announces a growth, it is time to have a closer look at the development of electric and hybrid vehicles in this industry as sustainability and new ways of movement are one of the main topics in the world right now.
Asia Pacific Construction Equipment Market size was valued at over USD 55 billion in 2018 and will grow at a CAGR of 5% from 2019 to 2025 according togminsights.com. The Asia Pacific construction equipment market is growing rapidly owing to construction & infrastructure transformation activities in the developing countries, including China, India, and Indonesia.
The Asia Pacific construction equipment aftermarket is witnessing the growth and will grow at a CAGR of 8% from 2019 to 2025 due to the technical improvements by major manufactures. These include fuel-efficient and low carbon-emitting systems, that support environmental conservation initiatives and fulfil various regulations. In the construction industry, regional governments have set several standards for machinery utilization including pollution levels and operator safety.
Several trends are driving the construction equipment market, we will analyse the pivotal-two-automation/ Electric Construction Equipment.
Sustainability cannot be ignored anymore, in such a scenario, electric vehicles come as a possible solution. Instead, the conventional fleet of vehicles in India is growing rapidly: total vehicle sales (including motorcycles) increased stood at 262677.83 bn in 2018-19, according to SIAM data (Society of Indian Automobile Manufacturers). The total number of vehicles on the road is expected to grow significantly by the end of the next decade. As part of its overall mission to address the challenges related to urban mobility, the Union Budget 2019-20 emphasized the very need to promote the use of electric vehicles (EVs).
The new global 170 pages IDTechEx report, "Electric Vehicles in Construction, Agriculture and Mining 2019-2029" explains, how they all employ mobile robots, drones and other hybrid and pure electric vehicles. According to the report, the CAM vehicle business will grow more than six-fold in value by 2029 grabbing records for both the highest volume EVs of all types and the highest unit value.
Union Budget 2019-20 announcement incentivizes the use of EVs for Faster Adoption and Manufacture of (Hybrid and Electric Vehicles) Scheme.
The main objective of the Scheme is to encourage faster adoption of Electric vehicles by way of offering an upfront incentive on the purchase of electric vehicles and also by establishing the necessary charging infrastructure for electric vehicles.
Administrators at the centre, the states and the cities understand the pressing need to explore green fuel and zero-emission vehicles. This also means, in a decade, the government wants the cities to transition to options like electric vehicles.
Moreover, the government is proposing a scheme, in which those buying electric vehicles will get an additional income tax deduction of tl.5 lakh on the interest paid on loans taken to buy EVs. Along with the GST on vehicles being dropped a proposal to cut GST on chargers for e-vehicles to 12% from 18% has also been approached.
The companies, which have already taken a move, are: Volvo CE, JCB, Bobcat, Caterpillar, Wacker Neuson, Hyundai CE to name a few.
The advantage for the construction sector through Hybrid and Electric Vehicles HEVs typically consist of an electrical storage device, such as a battery, flywheel, or an ultra-capacitor. They also combine this energy storage source with a mechanical device, like an internal-combustion engine (ICE), gas turbine, or a fuel cell. This combination reduces both, fuel consumption and tailpipe emissions. In general, hybrids capture energy lost during braking and return it to the on-board battery. This process is termed regenerative braking.
The HEV engine shares the workload with the electric motor, so it can be constructed smaller. This reduction in size engenders weight reductions, leading to greater fuel economy. Also, HEV engines can be optimized to operate within a specific speed range characterized by better fuel economy and reduced emissions. This allows HEVs to eliminate the higher emissions and poor fuel economy associated with conventional ICE vehicles.
According to globenewswire.com, the Automotive HighPerformance Electric Vehicles Market is anticipated to grow at a CAGR of 41.67%, during the forecast period, 2019-2024.
Some of the major factors driving the growth of the market are growing environmental concerns, owing to rising exhaust emissions; enactment of stringent emissions and fuel economy norms; and increasing government initiatives in terms of subsidies and benefits for increasing the adoption rate of electric vehicles, are expected to propel the demand for and growth of high-performance electric vehicles.