Electrification in construction: cost savings, lower emissions, and a new operating model for jobsites
3 FEBRUARY 2026
Construction is entering a transition that looks a lot like what road transport experienced a decade ago - only with tougher duty cycles, harsher environments, and far more varied machines.
Battery-electric construction equipment is moving beyond pilot projects into real procurement decisions, driven by a mix of regulation, urban constraints, and (increasingly) total cost of ownership.
Global Market Insights projects the electric construction equipment market will grow from USD 16.3B in 2025 to USD 106.9B by 2034 (CAGR 23.3%). Different reports and analytics point to the same conclusion: electrification is becoming a mainstream strategic priority for OEMs, rental companies, and contractors.
Case study: electrifying Ljungby Maskin’s wheel loaders
A prime example of the industry’s electrification journey is the collaboration between Scania Industrial Batteries and Ljungby Maskin AB, a well-respected Swedish construction machinery manufacturer.
Ljungby Maskin presented its first electric wheel loader concept - an L11 Electric built with the ambition to match the diesel machine’s performance and feel. The concept also reflected a common architecture for off-road electrification: separate electric machines for propulsion and hydraulics, paired with a high-voltage battery system.
“Customer expectations are changing quickly. Electrification lets us deliver the same machine performance with a dramatically different environmental footprint. Electrification isn’t just swapping engines. It changes development, assembly, service, and how customers use the machine - so the evolution of the whole ecosystem” – said Håkan Larsson, CEO at Ljungby Maskin.
The L11 Electric is equipped with two Scania Core 800 batteries (200 kWh total at 750V). With a 22 kWh onboard charger and CCS2 fast-charging up to 250 kW, the loader meets the demanding needs of heavy-duty operations while offering significant environmental and operational benefits.
“We needed a proven, industrial-grade battery concept and a partner with deep technical competence - something we could integrate with confidence and scale across models“
Håkan Larsson, CEO at Ljungby Maskin
From right: Mattias Andersson, Håkan Larsson, Ida Johansson, Elin Åkerström, Anders Bergström, Peter Blomquist.
What’s Driving the Shift?
- Emissions policy is tightening - and cities are setting the pace. Regulation is pushing diesel further out of the acceptable operating envelope. In Europe, the “Fit for 55” package codifies the EU’s path toward cutting greenhouse gas emissions by at least 55% by 2030 (vs. 1990) and climate neutrality by 2050. In the U.S., the EPA’s nonroad engine standards have steadily tightened pollutant limits for off-road equipment.
- Cities are also turning climate goals into procurement requirements. The C40 Clean Construction Declaration calls for zero-emission construction machinery in municipal projects from 2025 and zero-emission construction sites city-wide by 2030 (where available) - a signal that public buyers can rapidly shift demand. Oslo has been a leading example, combining procurement requirements with a broader clean-construction program.
- The business case is increasingly about TCO, not just sustainability. Electric drivetrains typically reduce energy costs and maintenance complexity versus diesel: fewer moving parts, less fluid handling, and reduced wear in stop-start duty cycles. That translates into a TCO story that’s easier to defend—especially for fleets operating in noise-sensitive or emission-restricted zones (urban projects, tunnels, indoor demolition, night work).
- Technology is maturing - and the ecosystem is expanding. Better cells, safer pack architectures, and more robust power electronics are enabling higher uptime and predictable performance. At the same time, telematics, data analytics, and remote monitoring are becoming standard features of electrified fleets - helping operators manage charging, utilization, and preventive maintenance across multiple sites.
Which machines are electrifying first - and why?
Not all machines electrify at the same pace. The strongest early traction is in segments where duty cycles are predictable and where electric operation offers immediate site benefits: The construction machinery segments experiencing the most electrification include:
- Compact and mid-size excavators, loaders, and smaller cranes: frequent stop-start operation and idling are common - exactly where electric drivetrains shine.
- Urban and municipal equipment: lower noise and zero tailpipe emissions can unlock access to restricted areas and improve community acceptance.
- Rental fleets: electrification is increasingly bundled into service-based models (equipment-as-a-service), lowering the barrier for contractors who don’t want to carry technology risk.
Where Scania Industrial Batteries fits: de-risking electrification for OEMs
Electrifying an off-road machine is rarely a “clean-sheet” design exercise. Most OEMs want to electrify faster, with less development effort and lower integration risk, especially when the machine wasn’t originally designed for electrification.
Scania Industrial Batteries are designed to fit existing machine designs - even those not originally intended for electrification. We provide modular, scalable battery systems engineered which don’t require additional controllers, reducing integration complexity for OEMs.
The portfolio is designed around two product platforms, Core and Compact, spanning 21 to 624 kWh with system voltages up to 1000 V. Batteries are designed and manufactured in Europe, with an R&D hub in Stockholm, Sweden, and production in Gdansk, Poland.
Modular building blocks for real machines
Because many off-road applications require high power, strong thermal control, and rugged packaging, modular packs help OEMs scale energy without redesigning everything around a single custom battery.
The Road Ahead
The electrification of construction equipment is not just a response to regulations - it’s a strategic move toward greater efficiency, lower costs, and a more sustainable future. With continued investment in infrastructure, smart city projects, and advancing technology, the sector’s transition to electric is set to accelerate.
Scania Industrial Batteries’ strategy - modular products, in-house control and safety focus, and ready-to-integrate systems - maps directly to what the construction industry needs to scale electrification with lower risk and less complexity.
Discover how Scania Industrial Batteries can support your electrification journey at Scania Industrial Batteries.