FORKLIFT TRUCK MARKET ANALYSIS

The global forklift truck market size was valued at US$ 40.24 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 11.1% from 2023 to 2030.  

Global Forklift truck Market: Regional Insights

Among regions Asia Pacific is expected to gain major share in the global forklift truck market over the forecast period. This can be attributed to high demand for forklift trucks from emerging economies such as China, Japan, and India. The rise in industrialization is one of the major factor which is expected to drive the growth of global forklift trucks market. Increasing expansion of e-commerce sector across China, Japan, and India are likely to witness major demand for forklift trucks during the forecast period. 

Furthermore, Europe is also anticipated to exhibit major growth in the global forklift truck market over the forecast period. This is attributed to the increasing product launch in European market. For instance, in January 2022, VisionNav Robotics, a global supplier of autonomous industrial vehicles and intralogistics automation solutions, had launched fully automated, vision-guided forklift trucks and intelligent operating systems to the European market. Thus, Europe is likely to show strong growth in the market over the forecast future.

Figure 1: Global Forklift truck Market Share (%), By Region, 2022

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Global Forklift truck Market Drivers:

Growing E-commerce Industry

There is a continuous growth of e-commerce industry. The need for warehouse space has increased as a result of the rise in the demand for consumer goods, which are then shipped in bulk through pallet loads and cases to retail facilities. For instance, the percentage of retail sales in the worldwide e-commerce industry scaled from 16% in 2020 to 19% in 2021, according to UNCTAD, an expert from the United Nations Conference on Trade and Development. Similarly, the India Brand Equity Foundation (IBEF) organisation projects that by 2024, India's e-commerce would have grown by 27% from 2019 to 2024, reaching US$ 99 billion, with food and clothes anticipated to be prominent product categories. Consequently, the expansion is driven by advancements in the e-commerce sector for the global forklift truck market.

Increasing technological advancements to augment the market growth

Technological advancements can drive the demand for forklift trucks by offering improved capabilities, increased efficiency, enhanced safety features, and better overall performance. Forklift trucks are being equipped with automation and connectivity features, enabling functions such as automated guided vehicles (AGVs), robotics, and integration with warehouse management systems. This allow for improved productivity, optimized routing, real-time monitoring, and data driven insights for maintenance and operational efficiency.

Global Forklift truck Market Opportunities:

Development of hydrogen fuel cell powered forklifts

Forklift trucks are environment-friendly which are powered by hydrogen fuel cell and those trucks help the environment through reduction of noise pollution, air pollution, and decarbonization. Leading manufacturers of forklift trucks are introducing new range of forklifts powered by hydrogen fuel cell technology, which in turn, is expected to offer lucrative opportunities for the manufacturers operating in the global forklift truck market. For instance, in August 2021, Hyundai Construction Equipment Co., Ltd., a construction machinery manufacturing company, signed an agreement to work with S-Fuelcell Co., Ltd., a company specializing in fuel cells. This agreement was done to produce small-sized forklift trucks that are powered by hydrogen fuel cells.

Global Forklift truck Market Trends:

Rising investment in infrastructure development

Governments of various countries have taken initiatives related to infrastructure developments. Increased investments in the real estate sector boost the demand for forklift trucks. Furthermore, the rise in investments by governments and developing infrastructure all over the world are expected to drive the demand for forklift trucks during the forecast period. For instance, in August 2021, the Indian government did an initiative by investing US$ 1.35 trillion from 2021 to 2025 for developing the infrastructure all over the country for boosting the economy. Similarly, in June 2022, Beijing, China, had funded for infrastructure projects for approximately US$ 120 billion.

Growing adoption of strategic dealership is a recent trend

Growing adoption of strategic dealership in order to expand their presence is another trend in the global Forklift Truck market. For instance, in May 2022, Mitsubishi Logisnext Americas Inc., a manufacturing company, had expanded its dealership network across the United States. The company has appointed Wiese USA to represent its three brands, Cat lift trucks, Mitsubishi forklift trucks, and Jungheinrich warehouse products, across Alabama and Northwestern Florida.

Global Forklift truck Market Restraints:

Safety issues to limit the market growth

Forklift is one of the most dangerous vehicle, among all the vehicles that are frequently used in the workplace, as it is often used around pedestrians and it is more prone to become unstable, especially if it is not loaded properly and are not driven appropriately. For instance, in 2020, the Occupational Safety and Health Administration (OSHA), a government agency of United States, stated that there are approximately 34,900 serious injuries and 85 deaths that happened due to forklift accidents. Thus, it is projected that over the forecast period, growing safety concerns regarding forklift trucks would restrain the expansion of the worldwide forklift truck market.

Growing environmental concerns to hinder the market pace

Governments and regulatory bodies are imposing increasingly stringent emission standards to reduce air pollution and combat climate change. These regulations often require businesses to transition to low-emission or zero-emission equipment including forklift trucks. Compliance with these regulations can be costly, especially for businesses operating large fleets of forklifts, and may slow down the adoption of new equipment.

Figure 2: Global Forklift truck Market Share (%), By Segment, 2022

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Global Forklift truck Market Segmentation:

The global forklift truck market report is segmented into Product Type, Class, Fuel Type, Engine Type, Lifting Capacity, End-Use Industry.

Based on Product Type, the market is segmented into Warehouse and Counterbalance. Out of which, Counterbalance is expected to dominate the global market over the forecast period. This is attributed to various factors. For instance, counterbalance forklift trucks are highly versatile and can be used in a wide range of applications and industries. This segment is also benefited from ongoing technological advancements. Manufacturers continue to incorporate advanced features such as improved ergonomics, safety systems, telematics, and connectivity options into their counterbalance forklift trucks.

Warehouse Forklift truck segment is also expected to witness significant growth in the near future and this is owing to the rapid growth of e-commerce which has driven the demand for efficient warehouse operations. E-commerce business require effective material handling equipment, including forklift trucks, to manage inventory, handle incoming and outgoing shipments, and optimize storage space. Thus, the growing e-commerce sector has resulted in increased demand for warehouse forklift trucks.

Global Forklift truck Market: Key Developments

In September 2022, Toyota Industries Corporation introduced an autonomous lift truck that features the world-first AI-based technology that automatically recognizes the location and position of trucks and loads and generates automated travel routes to perform loading operations.

In May 2021, Jungheinrich unveiled its new electric pallet truck ERD 220i. The new ERD 220i has an L2 dimension of just 1,065 mm and is, therefore, the most compact truck in its class. Compared to its predecessor, the 220i is more than 300mm shorter thanks to its new lithium-ion battery concept, which results in a space reduction of approximately 25 percent.

In April 2021, Godrej Material Handling launched the new Uno Electric Forklift truck. With advanced ergonomics, augmented safety, improved visibility, and a longer runtime on every charge, the new Uno Electric Forklift is a workhorse in the 1.5 to 3-tonne forklift category.

Global Forklift truck Market: Key Companies Insights

The global forklift truck market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R&D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis.

Some of the key players in the global forklift truck market are Toyota Industries Corporation Group, Kion Group AG, Jungheinrich AG, Hyster-Yale Materials Handling, Inc., Crown Equipment Corporation, Mitsubishi Nichiyu Forklift Co., Ltd., UniCarriers Americas Corporation, Anhui Heli Company Limited, Komatsu Ltd., Clark Material Handling Company, Doosan Industrial Vehicle, Hangcha Group Co. Ltd., JBT Corporation, Combilift Ltd., Godrej & Boyce Mfg. Co. Ltd, Linde Material Handling.

*Definition: Forklift trucks are the trucks used for material handling, lifting & stacking of discrete loads throughout facilities such as retail warehouses. These vehicles can be used with a variety of attachments such as clamps, grippers, and platforms to move and handle different types of materials and loads. Expansion of the logistics industry and economic growth in emerging economies have led to increasing logistics volume, which, in turn is boosting growth of the forklift trucks market.