A Slow Electrified Off-Highway Powertrain Growth

According to market intelligence specialist Interact Analysis, Electrification market growth is lagging behind expectations. Its new Off-Highway Powertrain report reveals that current constraints include high system costs, insufficient fast-charging infrastructure, and restricted operating autonomy (hours per shift), particularly in heavy-duty and high-utilization applications. As a result, electric vehicle and component sales were flat to down in 2025 compared with the previous year. Fewer active projects and delayed customer decisions have led to slow levels of adoption, restricting near-term market growth. Despite this, the market is set to be worth over $17bn in 2030, an increase from $11.5bn in 2025.

A Report about Off-Highway Electrified Machinery. According to Interact Analysis

The report on component pricing and architecture for electrified equipment suggests that, although some suppliers reported stable or growing sales in 2025, others lost market share, resulting in a mixed picture overall. As the electrified components market remains fragmented, differentiation at the component level is limited. Consolidation is a necessary step to ensure suppliers remain competitive and relevant in increasingly commoditized areas such as motor and battery production.

Chinese manufacturers pursue growth in western markets

Chinese OEMs are expanding rapidly into Western markets and are increasingly offering high-quality, fully integrated electric machines rather than just components, influencing market structures. Aggressive pricing, broad electric portfolios, and a willingness to compete directly for European contracts are pushing up growth for Chinese competitors.

While electrified vehicle production grew by +11% globally between 2024 and 2025 (excluding forklifts), that figure drops to just +6% when you exclude China. Sales in Europe and North America were effectively flat during 2025 and meaningful regulation to drive adoption of BEV is unlikely in Europe before 2030. Diesel equipment will remain dominant in these regions over the near-term due to cost and operational advantages.

Forklifts to see component revenue share decline

Forklifts made up the highest share of all component revenue in 2025, but Interact Analysis experts predict a decline from 2025-2030 as component prices decline and the market for other vehicle types grows. The total electrified component market is predicted to grow from $11.5 billion to $17.8 billion over the forecast period, with segments such as tractors and excavators expected to grow at a faster rate than forklifts.

Chloe Mason, Interact Analysis Market Analyst, UK, says, “This decade remains critical, but the competitive gap is opening now. Chinese OEMs are already marketing aggressively in Europe with broader electric portfolios than many Western peers. Near-term growth is constrained, but design choices, supplier alignment, and system-level strategies made in 2025–27 will determine who captures share as adoption accelerates later in the decade.”