FORKLIFT TRUCK MARKET ANALYSIS

Market Challenges And Opportunities

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 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.