The pace of off-highway electrification is happening at varying speeds across different global markets and machine types. The Chinese wheel loader market is experiencing a particularly rapid shift toward electric powertrains, while the US construction equipment market is practically at a standstill. The one common thread is that Chinese OEMs are leading the global battery-electric machinery market, fueled by growing domestic demand for electrified machinery. This is taking place alongside a strategic increase in exports to Europe and other markets.

BEV market leadership varies by machine type

In excavators, Volvo stands out as the clear global leader in battery-electric models, particularly within Europe. However, this leadership exists within a small and relatively slow growth market. Electric excavator adoption remains largely confined to mini-excavators, and 2025 has seen flat to declining production across most OEMs (Volvo being a notable exception). Competing offerings are often retrofit solutions rather than purpose-built electric platforms, limiting performance and scalability.

The limited scale of excavators contrasts sharply with developments in wheel loaders. Here, the market has already moved beyond early adoption and into genuine competitive scale, led overwhelmingly by Chinese OEMs. Liugong and XCMG lead the global market – and together account for a significant share (approximately 50%) of domestic battery electric loader production – with a tight contest for first place between them. Unlike excavators, this is not a niche segment: multiple OEMs (including SDLG, Sany, and others) are actively competing, creating a dynamic and rapidly evolving landscape.

This makes wheel loaders the first segment where battery electric vehicle (BEV) competition is being defined by scale and execution, not early innovation. European OEMs are notably lagging behind. In our analysis, Volvo ranked sixth globally for battery electric wheel loader production in 2025, while other European players such as Wacker Neuson, Tobrocco Giant, and Avant remain concentrated in the compact segment with limited production volume.

Telehandlers, by comparison, remain at an early stage. Adoption is limited, geographically concentrated in Europe, and lacks clear leadership. Even established players such as JCB are not expected to dominate in 2025, reflecting a broader uncertainty around electrification pathways in this segment, and strategic focus elsewhere. Instead, Manitou, Merlo, and Wacker Neuson have emerged as the leading players by market share in electric telehandlers to date.

Why electrification is scaling faster in some segments than others

Electrification adoption varies widely by application, with wheel loaders leading penetration growth, mini excavators accelerating, and telehandlers still at an early stage

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Electrification accelerates first in machines where usage patterns, infrastructure, and regulatory drivers align. Wheel loaders are a prime example: In Europe, electrification has gained traction in compact equipment, particularly smaller wheel loaders used in urban or regulated environments. These machines benefit from predictable duty cycles and overnight charging, making them well-suited to early electrification.

In China, however, the transition has taken a different path. Larger wheel loaders – typically above 55kW – are leading adoption. This is supported by existing charging infrastructure developed for electrified mining equipment, as well as shared battery and powertrain platforms across machine types. The result is a more scalable and economically-viable electrification model, particularly for high-utilization applications.

There is also a fundamental difference in product strategy. Many European OEMs continue to rely on retrofitted electric machines; adapting diesel platforms by replacing engines with batteries and electric drivetrains. In contrast, Chinese OEMs are more likely to develop ground-up BEV architectures, delivering advantages in efficiency, reliability, and overall system integration.

Chinese OEMs shift from domestic scale to global expansion

Chinese OEMs are moving rapidly from domestic scale to global expansion, bringing fully integrated electric machines into Western markets. Their presence at international trade shows in 2025 highlighted not only the breadth of their electric portfolios, but also the maturity of their offerings.

Crucially, Chinese manufacturers are exporting this capability. Liugong has already delivered hundreds of electric machines into Europe, as well as to Australia, New Zealand, and South America. Meanwhile, XCMG has secured large-scale agreements in mining, including significant electric haul truck deployments with Fortescue.

This expansion is enabled by a clear gap, namely limited BEV offerings from Western OEMs in several high-power segments. In these cases, Chinese machines are not just cost-competitive, they are often the only viable electric option at scale.

The implication is, therefore, if Chinese OEMs replicate their success in wheel loaders, they will seek expansion into other machine segments. Excavators seem to be a logical next step for Liugong, while XCMG targets mining, and Sany road building.

To date, Chinese participation in electric excavators has been limited. But given their pace of development, manufacturing scale, and growing global footprint, this is unlikely to remain the case. Should they enter this segment with competitive, purpose-built machines, the current leadership position of Western OEMs, particularly in Europe, will come under significant pressure.

Final thoughts

Understanding electrification in off-highway is not all about adoption rates; it is about identifying which OEMs will win, where, and why. With leadership fragmented and Chinese manufacturers scaling rapidly beyond their domestic market, the key question is not where electrification will occur, but which OEMs are structurally positioned to capture it. Understanding these dynamics is critical for anticipating where market share will shift as BEV adoption accelerates.

Our off-highway vehicles portfolio provides a comprehensive and complete view of the market, from volumes, component trends, electrification rates, and competitive dynamics. To learn more about our research, reach out to chloe.mason@interactanalysis.com, or download a brochure below: