EAST WINDSOR, NJ / ACCESSWIRE / August 16, 2023 / Greenland Technologies Holding Corporation (NASDAQ:GTEC) has seen a growth opportunity by electrifying the heavy equipment sector, and it is hoping to get a first-mover advantage as it begins rolling out its line of all-electric heavy machinery.
Heavy-duty equipment, vehicles that weigh more than 10,000 lbs, produce 25% of global transportation emissions, even though they only make up 10% of all vehicles. In America, medium- and heavy-duty vehicles are estimated to be the largest mobile source of air pollutants. The government has begun introducing measures to reduce pollution from these vehicles, making this an opportune time for companies to introduce a green alternative in the heavy equipment sector.
Greenland Technologies' Position In The Market
Greenland Technologies is positioning itself at the intersection of two multi-billion dollar industries, the electrification industry and the construction equipment market. The global construction equipment market was worth $191 billion in 2022 and is predicted to have a compound annual growth rate (CAGR) of 8.4% from 2023 to 2030.
Meanwhile, the global electrification market, which advances the conversion of power grids and systems to electric power, was worth $74 billion in 2022. It is predicted to grow at a compound annual growth rate (CAGR) of 8.9% over the next decade, reaching $170 billion by 2032.
Electrifying heavy equipment has the potential to transform the sector. The largest driver of energy usage in the industrial sector is fuel consumption from machinery. It is estimated that about 50% of this fuel consumption could be replaced by electricity, a move that would reduce greenhouse gases and simultaneously decrease maintenance costs for the end user.
In response to this need, Greenland Technologies is rolling out its all-electric line of heavy equipment under the brand name HEVI. The first commercially available line of electric heavy machinery, HEVI's offerings include loaders, excavators and forklifts.
The company's extensive background in specialized transmission and drivetrain systems gives it a unique advantage in the industry, according to Greenland Technologies CEO Raymond Wang. "Electrification is taking hold right now in industries across the board and everyone's looking for new applications for it," he said in a recent interview with a research specialist at Water Tower Research. Other companies are taking the next step with smaller products like mini-excavators because these are easier to develop and manufacture.
Wang believes this makes Greenland Technologies different. "We have the manufacturing capability and supply side, we want to get ahead of the curve, completely leapfrog over that segment and focus on the 10,000 pound-plus. That's why I don't think that there's any player right now besides the market leaders that are able to electrify these products."
According to Wang, these market leaders, like John Deere and Caterpillar Inc., will be unwilling to make the move to electric as that will risk "cannibalizing their own businesses." This gives Greenland Technologies the opportunity to capture the U.S. market for EV heavy machinery. The company completed a 54,000-foot manufacturing facility in Maryland last year and will have finished products as early as Q2 of 2023.
SOURCE: Greenland Technologies