Market Overview/Outlook (2022 to 2030)
The global forklift truck market was valued at USD 44.53 Billion in 2022 and is projected to reach USD 79.83 Billion by 2030, registering a CAGR of 7.57% for the forecast period 2023-2030.
Market Definition
A motorized industrial truck called forklift also known as industrial truck, lift truck, fork truck or forklift truck. It is used to lift and transfer goods over short distance. Heavy items include crates, container products, and other component have been lifted and moved using forklift truck across short distance. For a variety of task this heavy-duty electric lift truck is perfect for dockyards, recycling operation and warehousing operation. Forklift truck use and development have significantly increased on global scale. Forklifts are now necessary piece of machinery for both manufacturing and warehousing. Forklifts are capable of carrying load up to a certain maximum weight and forward center of gravity.
Market Size:
- 2022: USD 44.53 Billion
- 2030: USD 79.83 Billion
- CAGR (2023-2030): 7.57%
Forklift Truck Market Dynamics:
Drivers: Growth in e-commerce industry
The e-commerce industry is expanding robustly. The need for warehouse space has increased as a result of the rise in the demand for consumer goods, which are then send in bulk via pallet load and cases to retail establishment. To transfer the goods to warehouses without any harm, numerous distribution tactics and warehouse technology are used. Forklift truck is used in warehouse to properly put and arrange items or goods in order to save time and space. This vehicle come in variety on variants, including counterbalanced sit-down riders, swing reach turrets and order pickers and they can be powered by electric, natural gas, diesel and gasoline.
According to the India Brand Equity Foundation organization India e-commerce market is expected to reach US$ 111 Billion by 2024 and US$ 200 Billion by 2026., also India has gained 125 million online shoppers in the past 3 years with another 80 million expected to join by 2025. This factor is expected to drive the forklift market growth in India.
Increase in adoption of electric forklift market
Truck powered by electricity or batteries have recently become the most popular material handling machinery. Electric forklift becoming more and more popular which can be attributed to the number factor including reduced running cost than diesels forklift, increasing oil prices, government subsidies for electric vehicles and the introduction of strict automotive emission standards. Due to its quiet operation electric forklift truck reduced noise level in busy manufacturing areas this improves worker health and safety, which raises productivity.
As a result, diesel vehicle is quickly being replaced by electric forklift trucks don’t emit any pollution into the atmosphere. In order to comply with strict emission standards particularly in Europe manufacturer are promoting electric truck and introducing new models in the market. In a march 2023, Ardagh glass packaging Europe replaces diesel forklift trucks with the electric models.
Recent Developments
In December 2021, The KION Group is responding to this dynamic market development with inauguration of a new forklift truck plant in Jinan, China. While also laying foundation for an additional plant for its supply chain solution segment. The new plant continues the growth of KION group growth trajectory in China and expand its product portfolio in both operating segment and dynamic material handling market.
In August 2022, Hyster company announces the launch of an integrated lithium-ion battery powered lift truck built to meet the demand of the fast-paced trucking industry. The J40XNL support workflow common in trucking terminal like loading and unloading trailer with strategic open space design to improve acceleration and reduce energy consumption.
Restraint
Over the past few years, the number of forklift truck accident has increased dramatically, more than half of the injured drivers got out of the automobile. The forklift is also one of the riskiest workplace vehicles because it is regularly is used to close to walkers and is more likely to become unstable, especially if it is not properly loaded or operated. Also, according to Amerisafe group approximately 96,785 workers are injured due to forklift accident. Forklift is top heavy, they have high risk of turning over if not used cautiously, the most common reason for forklift death is overturning, a load that is not properly secured may fall off the forklift causing injury.
Forklift manufacturers and operators and customers and policymakers celebrate the 9th national forklift safety day which is organized by industrial truck association to address forklift safety rules and regulations.
Challenges
Traditional diesel and LPG forklifts significantly increase users’ productivity. However, the need for an alternative mode on power is quickly growing as result of increasing emission regulations, loud engines and rising fuel prices. Electric forklift is now most practical alternative form of power. However, the high initial cost of electric forklift relative to traditional forklift limit the market expansion. Forklift powered by electricity cost around 20% more than IC forklift do. Even though ROI is higher, SMEs have trouble to acquire the electric forklifts, also the ROI on electric forklifts is increased if the productive work hours in SMEs are shorter. Forklift trucks are so expensive due to several factors such as complexity, premium material needed to make them, complex manufacturing process, built safety systems, also the prices increase due to the high demand of forklift trucks. According to Toyota forklift cost ranges from $20,000 to $45,000 and also the increase in prices for battery and charger.
Opportunities
The use of electric powered forklift has grown over the past year and manufacture are working extremely hard to surpass internal combustion engines in term of performance. The need for long term and sustainable renewable energy solution is increased by environment concern and the availability of natural resource like coal, oil and gas. Hydrogen fuel and incredible alternative to traditional method of powering machinery and equipment when it comes to material handling equipment, industries and cars. Environmentally friendly forklift truck that use hydrogen fuel cell benefits the environment by reducing air pollution, noise pollution, carbon emission. Due to the advantage that hydrogen fuel cell forklift provide, top forklift truck manufacturer is now offering a new line of forklift with fuel cell technology. Hyundai mobis has done partnership with Hyundai motor and Hyundai construction equipment to carrying out a pilot demonstration program hydrogen fuel cell system by 2023.
Snapshot:
| Attributes | Details |
| Market Size in 2022 | USD 4.36 Billion |
| Market Forecast in 2030 | USD 5.41 Billion |
| Compound Annual Growth Rate (CAGR) | 3.14 % |
| Unit | Revenue (USD Million) and Volume (Kilo Tons) |
| Segmentation | By Power-train, By Capacity, By Vehicle Class, By End-user Vertical, & By Region |
| By Power-train |
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| By Capacity |
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| By Vehicle Class |
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| By End-user Vertical |
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| By Region |
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| Base Year | 2022 |
| Historical Year | 2018 - 2022 |
| Forecast Year | 2023 - 2030 |
Segment Analysis of the Forklift Truck Market
The Forklift Truck market is segmented by Power-train, vehicle class, End-use vertical, and region.
By Power-train
The Electric segment of forklift truck held the largest market share in 2022:
Due to their expanding application and popularity, electric powered forklift trucks have lot of potential given the quick improvement in technology. Such electrically-powered forklift trucks can load and unload big items from the docs or the ground level, making them perfect for inside. The fact that there is no need to store fuel for electrically fueled forklift trucks of their location of a business is an important advantage. Companies are being driven to take on electrical material handling vehicle that are simple to operate and maintain within warehouse by forklift truck major pollutant emission. Electric forklift truck are anticipated to gain more market share along with highest CAGR over the forecast period because of their numerous additional benefits, including zero emission, low noise, better visibility, and the ability to practically perform every task than IC forklift can.
By Vehicle Class
Due to the need for electric trucks, class 3 is expected to keep 36.5% significant share of the market in 2022, the walk behind truck and walkie rider truck and walk behind stacker are all considered in class 3. These vehicles allow for the carrying of load with walk behind operator while simultaneously moving items up to height around 15 feet. Over the forecast period it is anticipated that class 3 will use robotic technology. Pallet of various length width can be readily and flexible managed by the class 3 vehicles equipped with walk forks.
The two major factors are influencing the growth of the electric motor hand truck market are the tendency to stock up on goods in large quantities to meet consumer demand and cost effectiveness. Additionally, an expansion in the number of warehouses across all industries is anticipated to present a variety chance of future growth.
By End-user Vertical
Manufacturing segment is expected to grow with a significant CAGR During the forecast period:
It is projected that the manufacturing segment will expand with significant market share. In the same year the manufacturing sector contributed more than the other sector, the main cause of the manufacturing sector dominance is rising demand for forklift trucks and expanding infrastructure construction. Growing use of electric and autonomic forklift trucks will contribute to the segment expansion. Also, the automotive industry require complete range of lifting trucks, trains and barge handling and electric lift truck are environment friendly, increases the demand for forklift trucks, due to this market share of manufacturing segment is growing.
Regional Analysis
Asia Pacific occupies the largest market share in 2022:
Over the projection period, Asia Pacific is anticipated to gain the 33.8% largest market share in forklift truck market. This is due to the substantial demand for forklift truck coming from developing nations like China, and India. One of the key factors anticipated to propel the growth of the global forklift truck market is increase in industrialization in this region. Forklift truck demand is anticipated to increase significantly throughout the projection period as the e commerce industries in China, Japan, India continues to grow.
Furthermore, over the period of forecast, Europe is also predicted to experience significant expansion in the global forklift truck market. This is caused by the rising number of new products entering the European market.
List of the prominent players in the Forklift Truck Market:
- Komatsu Ltd.
- Anhui Heli Co. Ltd.
- Clark Material Handling Company
- Comblift Limited
- Crown Equipment Corporation
- Doosan Industrial Vehicle America Corporation
- Godrej and Boyce Group
- Hangcha Group Co Ltd.
- Hubtex Maschinenbau GmbH & Co. KG
- Hyster Yele Material Handling Inc.
- Hyundai Heavy Industries Ltd.
- KION Group AG
- Konecranes
- Lonking Forklift Co.
- Manitou Group.
- Mitsubishi Forklift Corporation
- Toyota Industries Corporation
- Unicarriers Americas
- Nihon Plastic Company Co Ltd.
Segmentation Analysis of the Forklift Truck Market
By Power-train
- Internal Combustion Engine
- Electric
By Capacity
- 31 Tons to 45 Tons
- 46 Tons to 60 Tons
- 61 Tons to 90 Tons
- 91 Tons to 125 Tons
- Above 125 Tons
By Vehicle Class
- Class 1
- Class 2
- Class 3
- Class 4
- Class 5
By End-user Vertical
- Industrial
- Construction
- Manufacturing
Impact of the COVID-19 Pandemic on the Forklift Truck Market:
The COVID 19 pandemic unanticipated spread caused a lockdown on a number of operations, causing disruption in logistic and supply chain sectors. Since the virus has spread to the major industrial country including China, India, Germany effect of COVID on the manufacturing sector. Material handling and inventory management were no longer required because the industries and warehouse had closed. Due to the shutdown major corporation halted operation in several areas. This immediate effect on the need of material handling equipment.
The industry post pandemic prospect appears positive due to the anticipated rise in urbanization, increased international trade, and quick development of warehouse management solution.
