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The forklift trucks market size is forecast to increase by USD 23.26 billion at a CAGR of 7.2% between 2023 and 2028. The market's expansion hinges on various factors, notably the rapid evolution of the construction sector, the exponential rise of e-commerce retail, and the promising growth prospects in emerging markets. As construction activities surge, demand for related products and services follows suit, driving market growth. Concurrently, the flourishing e-commerce landscape fosters increased consumer spending, further propelling market expansion. Moreover, the untapped potential of emerging markets presents lucrative opportunities for market players to capitalize on. With these dynamic forces at play, the market is poised for substantial growth in the foreseeable future.
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The global market is a significant segment of the material handling equipment industry, catering to various sectors such as construction, mining, airports, and commercial warehousing, among others. The market is primarily divided into Class I, Class II, Class III, and Class IV based on the type of forklift trucks. Class I includes Internal Combustion Engine (ICE) forklifts, while Class II, III, and IV are electric-powered forklifts. Advanced technology is driving the growth of the lift truck market, with electric lift vehicles gaining popularity due to their environmental benefits and lower operating costs. The e-commerce industry and logistics sector are major consumers of forklift trucks, with the increasing demand for efficient and automated material handling solutions. Rechargeable batteries and grid electricity are the primary power sources for electric forklifts, while the logistics industries, industrial sector, and material handling industry are the major end-users. The market is expected to grow significantly due to the increasing demand for material handling equipment in various industries, including containers, crates, warehouses, dockyards, freight cars, and more. Our researchers studied the market research and growth data for years, with 2023 as the base year along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market has experienced significant growth due to the expansion of construction activity, particularly in developed regions like the US and Western Europe. Renovation of public buildings in Western Europe, driven by the Energy Efficiency Directive (EED), is a key factor, with the goal of achieving zero building emissions by 2020. Emerging economies in APAC, including India, China, and South-East Asian countries, have also seen rapid construction growth. In the logistics sector, e-commerce and warehousing industries require efficient and productive solutions, leading to increased demand for forklift trucks. Industrialization and infrastructure development in emerging economies also contribute to the market's growth. Workplace safety and productivity are crucial considerations, leading to the popularity of electric-powered forklift trucks and rapid technological advancements. Ergonomics, safety, visibility, runtime, and L2 dimension are essential factors for warehouse owners. Revenue share is split between electric material-handling vehicles and IC-engine forklift trucks.
However, corporations seek environmentally friendly alternatives, such as electric-powered forklifts, to reduce fuel storage and pollution emissions. Stand-up riders and narrow-aisle forklifts offer high operating precision, improved navigation, and increased popularity among various industries, including recycling centers, chemical producers, and technology companies. Battery technology plays a significant role in the electric-powered category's growth. The flexibility and operational speed offered by forklift trucks for applications in the construction sector, especially for repeated material handling tasks, will foster growth in the adoption of forklifts in the construction sector, thereby driving the growth of the market during the market growth analysis period.
In the logistics solutions sector, including e-commerce and warehousing, the market for forklift trucks is experiencing significant growth due to industrialization and infrastructure development in emerging economies. Rapid technological advancement has led to the introduction of fuel cell-powered forklifts as an environmentally friendly alternative to IC-engine forklift trucks. These electric material-handling vehicles offer increased productivity, workplace safety, and high operating precision, particularly in narrow-aisle applications. Fuel cell-powered forklifts have a longer runtime and require less frequent replacement, reducing operational expenses for warehouse owners. With a focus on ergonomics, safety, visibility, and improved navigation, these forklifts are increasingly popular among corporations. Recycling center operators and chemical producers are also adopting this technology to reduce pollution emissions.
Further, the electric-powered category is expected to gain a larger revenue share in the market as corporations seek to reduce their carbon footprint. Hydrogen fuel cells offer a significant advantage over battery technology, with a longer lifespan and less frequent replacement needs. However, fuel storage and safety concerns must be addressed. The L2 dimension and space savings of electric-powered forklifts make them ideal for various applications, including stand-up riders and high-precision narrow-aisle models. Owing to factors such as improved performance, less need for maintenance, and environmental benefits, fuel cell-powered forklift trucks are expected to find increased demand during the forecast period.
In the logistics solutions sector, including e-commerce and warehousing, the demand for skilled forklift operators is escalating due to industrialization and infrastructure development in emerging economies. Workplace safety and productivity are paramount, leading to the mandatory certification of forklift operators by OSHA in the US since November 2017. However, the shortage of skilled operators results in higher wages and overuse of existing certified personnel. The market encompasses various industries, including electric-powered and IC-engine models. Rapid technological advancements have led to the popularity of electric material-handling vehicles, offering ergonomic designs, improved safety, and visibility. Warehouse owners seek transparency in operational expenses, efficiency, and runtime, driving the demand for stand-up riders and narrow-aisle forklifts with high operating precision and improved navigation.
Moreover, emerging trends include the increased popularity of electric-powered forklift trucks as environmentally friendly alternatives to gasoline and diesel-powered models. Corporations invest in battery technology to address fuel storage and pollution emissions concerns. Revenue share in the electric-powered category is expected to grow significantly, offering corporations cost savings and space savings with L2 dimension and improved navigation features. Recycling center operators and chemical producers also benefit from these advancements. The shortage of skilled operators will continue to pose a challenge to the growth of the market during the forecast period.
The market share growth by the class III segment will be significant during the forecast period. The class III segment of the market comprises electric hand rider trucks and pallet jacks. These forklift trucks lift the material to only a few inches above the ground and are used for the quick unloading of deliveries from tractors and trailers. The class III type forklift trucks are hand controlled through a steering tiller and are available as either counterbalanced or straddle-type walk-behind stackers. The load capacity of these forklift trucks is about 5 tons.
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The Class III segment was valued at 18.72 billion in 2018. Ideally suited for short distances and small warehouses, the class III forklift trucks may be powered by lithium-ion batteries or fuel cell engines. These forklifts find increased application in warehouses and production plants that require intermediate logistics options between the unloading and storage operations. Their compatibility with other heavy material handling equipment, such as hoists and cranes, makes them a viable option for small-scale construction applications. As class III forklift trucks do not use non-renewable fuel sources, their adoption is expected to increase rapidly during the forecast period.
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APAC is estimated to contribute 51% to the growth during the forecast year. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. IC engine forklifts continue to dominate the material handling industry, with key players like Konecranes leading the market. Seaports and dockyards are significant consumers of these industrial trucks due to the heavy freight movement involving containers and crates.
However, tailpipe emissions from IC engines raise environmental concerns, leading to a shift towards electric lift vehicles in commercial warehousing and logistics sectors. E-commerce and distribution techniques require warehouse technologies that optimize warehouse space, inventory management, and material handling. Governmental and private sector investments in electric motors and emission standards are driving the adoption of electric forklifts. Multi-shift operations necessitate safety equipment, including battery chargers, safety equipment, and flooring considerations such as eyewash stations. The logistics sector's transition from fossil fuels to cleaner alternatives, like LPG gas, is another trend shaping the market. Counterbalanced forklift trucks ensure weight balance and long battery life, making them ideal for various industrial activities. Internal combustion engines' efficiency and power continue to make them a preferred choice for heavy-duty applications.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Cargotec Corp. - The company offers a wide range of forklift trucks such as light electric forklift trucks, medium electric forklift trucks, light forklift trucks, and others.
We also have detailed analyses of the market’s competitive landscape and offer information on key companies, including:
Anhui Heli Co. Ltd., BYD Co. Ltd., Cargotec Corp., Caterpillar Inc., CLARK Material Handling Co., Crown Equipment Corp., CVS FERRARI Spa, Dana Inc., EP Equipment Co. Ltd., Hoist Material Handling Inc., Hyster Yale Materials Handling Inc., Jungheinrich Group, KION GROUP AG, Komatsu Ltd., Konecranes, Manitou BF SA, Mitsubishi Heavy Industries Ltd., Royal Terberg Group BV, Sany Group, and Toyota Industries Corp.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
In the logistics and warehousing sectors, forklift trucks play a crucial role in optimizing productivity and efficiency. These industrial machines are essential for material handling and storage in various sectors such as manufacturing, retail, and construction. The forklift market is experiencing significant growth due to the increasing demand for automation and mechanization in supply chain management. Emerging economies like China and India are major contributors to the global forklift market, driven by their rapid industrialization and infrastructure development. The European market is also a significant player, with countries like Germany and France leading the way in forklift production and sales. Forklift trucks come in various types, including electric vehicle benefits, LPG, and diesel-powered forklifts models.
Further, each type has its advantages and disadvantages, and the choice depends on the specific application and operational environment. For instance, electric forklifts are ideal for indoor use due to their zero-emission feature, while LPG and diesel-powered models are preferred for outdoor applications due to their greater power and maneuverability. The forklift market is expected to continue its growth trajectory, driven by factors such as increasing urbanization, favorable government initiatives, e-commerce growth, and the need for automation in logistics and supply chain management. With advancements in technology, forklifts are becoming more intelligent and connected, enabling real-time monitoring and predictive maintenance, further enhancing their value proposition for businesses.
Industry Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.2% |
Market growth 2024-2028 |
USD 23.26 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.7 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 51% |
Key countries |
China, Japan, Germany, UK, and US |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anhui Heli Co. Ltd., BYD Co. Ltd., Cargotec Corp., Caterpillar Inc., CLARK Material Handling Co., Crown Equipment Corp., CVS FERRARI Spa, Dana Inc., EP Equipment Co. Ltd., Hoist Material Handling Inc., Hyster Yale Materials Handling Inc., Jungheinrich Group, KION GROUP AG, Komatsu Ltd., Konecranes, Manitou BF SA, Mitsubishi Heavy Industries Ltd., Royal Terberg Group BV, Sany Group, and Toyota Industries Corp. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Class Type
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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