The global off-highway vehicles market size was valued at USD 544.07 billion in 2024 and is projected to reach USD 804.86 billion by 2030, growing at a compound annual growth rate (CAGR) of 6.9% from 2025 to 2030. The market’s growth trajectory is driven by a combination of factors, including increasing investments in infrastructure projects across the globe, the growing mechanization in the agriculture sector, and rising demand for advanced, efficient mining equipment to meet escalating resource requirements.

Technological advancements in electrification, autonomous operation, and environmentally friendly powertrains are further fueling market expansion. Electrified and hybrid drivetrains, autonomous construction equipment, and digital monitoring systems are transforming operational efficiency while complying with stricter sustainability goals. However, high initial investment costs and regulatory pressures around emissions standards continue to pose challenges for both manufacturers and end users, particularly in regions with stringent environmental mandates.

Large-scale global infrastructure initiatives are reinforcing the demand for off-highway vehicles. Notably, China's Belt and Road Initiative (BRI) has invested approximately USD 679 billion into transportation and energy-related infrastructure projects, significantly elevating the demand for heavy-duty construction and mining vehicles.

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Key Market Trends & Insights

1) In terms of application, the construction segment held the largest share of 41.1% in 2024. This dominance is attributed to the rapid pace of urbanization, growing investments in smart cities, commercial real estate development, and infrastructure upgrades worldwide. Government-funded initiatives targeting the expansion of highways, metro systems, public transport, and smart grid infrastructure continue to stimulate robust demand for heavy construction equipment such as excavators, loaders, and bulldozers.

2) The internal combustion engine (ICE) segment accounted for the largest revenue share in 2024. This is primarily due to the widespread use of diesel-powered vehicles in sectors like construction, agriculture, and mining. These engines offer superior fuel efficiency, operational range, and reliability, making them well-suited for demanding off-road applications. Nevertheless, rising fuel prices and regulatory pressure to curb emissions are catalyzing a gradual transition toward cleaner alternatives such as electric and hybrid engines.

3) North America held a substantial share of the global off-highway vehicles industry in 2024, bolstered by sizable infrastructure funding and widespread adoption of advanced construction technologies. The U.S. market is particularly strong, with the Infrastructure Investment and Jobs Act (IIJA) committing USD 1.2 trillion toward upgrading the nation’s transportation, energy, and water infrastructure. The push for automation, electrification, and enhanced efficiency in construction and farming machinery is a key driver of innovation and investment in this region.