For off-road vehicles, the share of battery packs tends to be lower than on-road because on-site charging requires less margin for error, low speeds of movement require less stored energy, and some off-highway vehicles are used intermittently rather than continuously.

However, motors and inverters often have a higher share of the cost in off-road appplications, because they require both traction and work functions, and so need at least two motors (often delivering high power), and in many cases two inverters.

“The off-highway market is some way behind on-highway when it comes to electrification,” says Jamie Fox, principal analyst at Interact Analytics. “Even in 2030, only 40 percent of off-highway equipment will be electrified, and for larger vehicles the percentage will be much lower.

“Forklifts and aerial work platforms currently dominate the market, but are not necessarily the most attractive target for component vendors, as they use more commoditized products with a low price and low profit margin, produced by a wider variety of suppliers,” explains Fox.

“Beyond 2030, larger off-highway vehicles will electrify as battery prices and vehicle prices drop, infrastructure develops further, customers become more used to electric vehicles, environmental legislation increases, and economies of scale improve,” predicts Fox. “Component revenue, therefore, looks set to continue growing strongly [until at least] 2040.

“Due to their low-intensity duty cycles and easy charging, it is no surprise that material handling [equipment] such as forklifts, boom lifts and scissor lifts are electrifying fast,” says Fox. “Mini excavators are also providing an opportunity for sales of electrified components, given the higher penetration forecast and a large number of models on the market.”