Off-highway Electronics Market Set to Surge Beyond $7 Billion by 2030
The off-highway electronics sector is on a sharp upward trajectory, with global market revenue projected to climb from $5.3 billion in 2024 to over $7 billion by 2030.
This momentum is being fuelled by rapid advancements in control systems, a rising appetite for digitalisation, and the growing integration of high-performance electronics into traditionally mechanical and hydraulic machinery.
ECUs Take the Lead
Electronic Control Units (ECUs) are driving the bulk of market revenue. Valued at $1.7 billion in 2024, ECUs are expected to hit $2 billion by 2030. Their surge is being propelled by the increasing complexity of off-highway machinery, which demands more processing power to support advanced functionalities.
As control systems evolve, OEMs are integrating more electronics into equipment such as excavators, agricultural machinery, and mining vehicles. This not only raises demand for additional ECUs but also for more powerful models capable of managing multiple systems simultaneously. ECUs are no longer just the brains behind basic machine functions; they’re now at the heart of performance optimisation, safety integration, and automation.
Sensor Technology Accelerates Growth
Low-level sensors are the second largest market segment, representing $1.2 billion in 2024. These sensors underpin a broad spectrum of operational improvements, from precise positioning to real-time environmental monitoring. Their role is expanding rapidly as machines become more data-driven, enabling predictive maintenance and enhancing operator efficiency.
Displays and Human-Machine Interfaces (HMIs) are also gaining traction, closing in on $1 billion in market revenue for 2024. Cabin upgrades and the adoption of larger, high-resolution digital displays are creating a premium operator experience, making HMIs a must-have in modern machinery design.
Fragmentation in a Regionalised Market
Despite its global potential, the off-highway electronics market remains highly fragmented and regionalised. Many companies serve primarily domestic markets, with brand recognition and reputation acting as significant barriers to international expansion.
Numerous small to mid-sized players are competing against larger, more established firms. However, these smaller businesses often lack the breadth of product offerings needed to gain significant market share. This creates a dynamic where innovation is occurring in pockets, but large-scale consolidation has yet to take hold.
OEMs Pave the Way for Safety and Advanced Features
Currently, there are no regulatory mandates enforcing advanced safety features in off-highway machinery. This leaves original equipment manufacturers (OEMs) in the driving seat when it comes to adoption.
While the safety technology market in this sector is smaller than automotive – where regulatory pressures have forced innovation – the potential for long-term growth is significant. Should safety regulations emerge, adoption could spike, mirroring the transformation seen in passenger and commercial vehicles.
Chloe Mason, Market Analyst at Interact Analysis, notes: “This is the first report of its kind for off-highway electronics. It demonstrates the complexity of the market and its strong potential for revenue growth – forecast to climb from $5.3 billion in 2024 to over $7 billion by 2030.”
Lessons from the Automotive Sector
Over the past two decades, the automotive industry has shifted from minimal electronics integration to a point where electronics now represent the highest value component in most vehicles. Off-highway sectors are beginning to follow this trajectory, aided by electronics originally developed for the automotive market but adapted for harsher, more demanding environments.
Modern off-highway electronics deliver benefits such as:
- Enhanced precision control for more efficient operations.
- Real-time monitoring for performance optimisation.
- Predictive maintenance capabilities to reduce downtime.
- Safety enhancements that improve operator protection and compliance.
This transformation is not only reshaping machine performance but also redefining the total cost of ownership for operators and fleet managers.
Market Outlook and Strategic Opportunities
The Interact Analysis report is seen as a landmark in quantifying and forecasting the off-highway electronics space. It highlights the substantial opportunities for component manufacturers, OEMs, and technology innovators willing to adapt to the sector’s unique demands.
Investments in R&D, partnerships with OEMs, and a focus on ruggedised, high-reliability components will be key strategies for capturing market share. With machinery operating in agriculture, construction, mining, and forestry increasingly moving towards autonomous or semi-autonomous capabilities, the demand for sophisticated electronics will only accelerate.
Building Momentum for the Future
The shift towards electronics-driven machinery is more than just a passing trend; it’s a structural transformation in how off-highway industries operate. Companies that can deliver integrated, high-performance solutions stand to benefit from a market that’s not only growing in value but also in strategic importance across global supply chains.
As Mason points out, the sector is poised for significant expansion: “We’re seeing a convergence of technological capability and market readiness that will reshape the off-highway landscape over the next decade.”
This growth story is just getting started, and for those in the industry, the next few years will be pivotal.
