Implications

Compared to passenger cars and even medium duty trucks, electrification of the non-road heavy equipment is in its early days. The barriers are perhaps obvious – the very highly demanding and transient  work / torque requirements, the broad range of applications for these equipment and the inherent challenge of charging at the remote and decentralized locations where they operate. 

Currently, there are no regulations anywhere in the world which require mandatory sales of electric equipment but the emissions from the off-road sector are getting attention. For “small off-road equipment or SORE, California requires 100% electrics by 2024, but those are smaller machinery, think lawn mowers and leaf blowers. California is also beginning to formulate a low NOx regulation for off-road diesels, perhaps requiring a 90% reduction in NOx similar to the on-road regulation.

 How quickly and will electric equipment take market share ? Not easy to predict at this point. Brings to mind a relevant study by Prof. Clayton Christensen in his book The Innovator’s Dilemma, where he discusses how hydraulic excavators initially offered very small bucket sizes but had some advantages in a niche segment and eventually became the dominant technology. Electric machinery has advantages no doubt and while they may be expensive and impractical today, perhaps could reinvent the industry.