FORKLIFT MARKET OVERVIEW AND DEFINITION

Global Forklift market was valued at USD 85.23 Mn. in 2024, is expected to reach USD 143.51 Mn. by 2032, reflecting a CAGR of 6.73 % over the forecast period (2025-2032)

The forklift industry should be considered an integral part of today’s material handling systems in logistics and supply chains, as well as in construction, manufacturing, and warehousing. Forklifts are also known as lift trucks or industrial trucks, and are considered a powered industrial truck that can drive both vertically, and horizontally to carry out tasks and project loads like lifting, lowering, carrying, and pushing or carrying materials over short distances. The basic components of a typical forklift include a brake system, mast, forks, and hydraulic systems. Forklifts help ease the manual work of loading and unloading and ensure that is done safer and ergonomically. Furthermore, the global forklift market is benefit from the growth of international trade, increased spending on construction infrastructure, and a higher demand for automation in warehousing.

One of the leading drivers is the expansion of the e-commerce and third-party logistics (3PL) sectors and other industries with acute demands for faster inventory turnover and live distribution. Warehouses, for example, are deploying electric powered and narrow aisle vehicles to achieve higher operational agility, whilst accounting for a lower carbon footprint, and net-zero goals. In Europe, ice-lift usage is being transformed into electric usage due to regulations on emissions. Another emerging trend influencing the growth of the market is the growing adoption of fleets of autonomous forklifts and integration of telematics created for real-time fleet management, event-based predictive maintenance, and artificial intelligence path planning. Nevertheless, smart forklifts are no longer part of a futuristic landscape, but represent operational tools for next generation warehouses and smart factories.

MARKET DYNAMICS

Market Drivers

Surge in E-Commerce & Warehouse Expansion

The accelerating growth of global e-commerce continues to stimulate demand for productive warehousing and real-time material handling, thereby creating demand for forklifts. Global e-commerce sales surpassed USD 5.7 trillion in 2022 according to the World Trade Organization (WTO) and UN Conference on Trade & Development (UNCTAD), with expected sales pushing up to USD 7.4 trillion by 2026. The explosion in e-commerce sales has forced firms to bulk up on warehousing capacity and invest further in smart material handling equipment. The Warehouse Education and Research Council (WERC) previously reported that over 70% of distribution centres globally are modifying operation structure to accept the influx of online orders, while also purchasing more electric forklifts (and narrow aisle forklifts). Forklifts are a mainstay of omnichannel logistics; they pick orders quickly, replenish shelves swiftly, and provide vertical storage. In-shore when larger players in the marketplace such as Amazon and DHL, committed to expanding portfolio within fully automated and semi-automated-based fulfillment centres, are utilizing electric forklifts that use IoT systems with automating processes. Due to these factors combined, the use of forklifts in e-commerce logistics increased by 12% YOY based on 2022 statistics sourced from the Industrial Truck Association (ITA).

Transition Toward Electric and Sustainable Material Handling

The growing global trend toward sustainability and emission reduction is a key driver for the electric forklift sector. The transportation and logistics sector accounts for around 37% of global CO₂ emissions, according to the International Energy Agency (IEA), and there is more pressure on these industrial players to decarbonize their operations more than ever. As part of that decarbonization program, forklifts, as a part of intra-logistics, are being targeted for electrification. The push has been influenced by stringent emission standards across various regions, such as the EU Sustainability scheme which has established Stage V emission regulations, meaning the operational phase-out of internal combustion fork trucks will start happening soon. Lithium-ion battery technology is impacting the market as it offers: Rapid charging cycles; Longer lifespan; and Lower maintenance costs. OEM's such as Toyota Material Handling, Jungheinrich, and Hyster-Yale report that of their R&D budgets, over 60% for 2024 is related to electric and autonomous material handling systems.

Market Restraint

High Initial Cost and Infrastructure Challenges for Electric Forklifts

Although electric forklifts have operational as well as environmental benefits, the high capital costs for electric forklifts continue to be an obstacle for businesses, especially small and medium enterprises (SME). The National Forklift Safety and Standards Council (NFSSC) and ITA data indicate electric forklifts are usually about 20 - 35% higher than internal combustion (IC) produce. Additionally, converting fleets to electric requires installing charging infrastructure, maintaining battery management for battery replacement planning and retraining employees which also adds to capital costs. Emerging markets may face a more volatile supply horizon for battery manufacturing (i.e.: atoms and lithium-ion) and electrification of warehouses is still in its infancy. With limited access to fast charging and additional costs of repurchasing batteries (i.e.: lithium-ion replacing nickel-cadmium batteries) leads to lengthy ROI which is a reasonable detraction for many cost/ leased sensitive businesses such as textiles, agriculture and/or the Tier II warehouse regions.   

Market Opportunity

Autonomous Forklifts and Industry 4.0 Integration

The evolution of smart factories and connected warehouses with successful integration of autonomous forklifts is a game-changer. In a report from LogisticsIQ and MHI (Material Handling Institute), the autonomous forklift market is projected to exceed USD 9.1 billion globally by 2030 and will grow at more than 12.6% CAGR. As manufacturers strive to become Industry 4.0 compliant, the use of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) for pallet movement, picking, and repetitively handling loads is increasing, which reduces dependence on labour, increases safety, and yields real-time analytics. Manufacturers who are first movers with an autonomous fleet gain a competitive advantage through data-driven logistics, predictive maintenance, and reduced operational costs. OEMs are now bundling telematics, artificial intelligence (AI)-based vision systems, and cloud connectivity as standard to enable new value chains in software-as-a-service (SaaS) and forklift fleet orchestration platforms.

Market Trends

Lithium-Ion Battery Forklifts Gaining Traction

The rise of lithium-ion battery-powered forklifts is a clear trend across fast-moving logistics and manufacturing sectors. The FEM (the European Materials Handling Federation) reports that lithium-ion models make up over 40% of electric forklift sales in North America and Europe because they charge faster (1 to 2 hours), have a longer battery lifespan (3,000 plus cycles) and require no maintenance. Lithium-ion forklifts are also capable of opportunity charging, a key aspect of operating 24/7 in the warehouse. Sectors such as cold storage, food & beverage, and pharmaceuticals are now adopting these specific forklifts, owing to their zero-gas emissions and cold-weather capabilities. As lithium-ion battery prices continue to fall - projected at 15% cost reduction each year through 2027 - lithium-ion is expected to be the next new standard of forklift fleets everywhere.

SEGMENTATION ANALYSIS

By Application Analysis

Cold storage operations represent a specialized yet rapidly growing segment of the forklift market and both domestic and global utilities, such as growing demand for perishable goods, vaccines, frozen food, or temperature-sensitive pharmaceuticals, are contributing to the growth of this sector. Based on Cold Chain Federation and Global Cold Chain Alliance (GCCA) data, the world experienced a growth of over 16% in its cold storage capacities between 2021 and 2023. Cold storage operations create a need for material handling equipment, like forklifts, designed to work in sub-zero space. A cold storage forklift needs to tolerate low-absorption temperatures, use anti-corrosive materials, and have corrosion-resistant electrical systems and electric forks. Electric forklifts, especially lithium-ion powered, are utilized more often than internal combustion (IC) powered forklifts in cold storage applications due to zero emissions and performance superiority in enclosed environments. Both Crown Equipment and Jungheinrich have released freezer-rated forklifts include heated cabs and thermally stable batteries, and most of these products are rated compliant with a growing number of standards in food and pharmaceutical distribution work. Fleet utilization companies are investing in telematics and fleet analytics systems to minimize downtime in extreme conditions and extend the equipment's lifecycle by maximizing conditions. Global food security challenges, and scaling vaccine distribution supply chains, lead cold storage applications to a compound annual growth rate (CAGR) of greater than 8%, and this anticipates many high-spec forklift innovations to be developed in the cold storage vertical, make cold storage operations a strategic vertical.

By Distribution Channel Analysis

The distributor sales channel remains a dominant force in the forklift market. Distributors provide a critical link between OEMs and end-users to provide value-added services such as on-ground support, customized solutions, rental offers, and aftermarket service. It is a viable channel in emerging markets and Tier 2/3 cities of developing regions where end-users prefer local service networks and financing flexibility as opposed to dealing with direct OEM purchases. Forklift distributors frequently maintain a relationship with several distributors providing buyers the side-by-side comparable options related to pricing, capacity, and technology. The distributor sales channel also engages with the rental markets, have short-term project installations, and fleet buybacks (construction, manufacturing, and warehousing). In addition, the forces of the digital transformation are being integrated into the distributor sales channel. Top tools now include integrated CRM systems to deliver predictive service alerts and e-commerce extensions to drive customer engagement and visibility into inventory. As warehouse automation and material handling solutions evolve, distributors will continue to play an important role in delivering packaged solutions of equipment and parts with long-term service contracts that returns customers and provide aftermarket revenue.

REGIONAL INSIGHTS

North America continues to be a mature, innovation-focused market for forklifts. The U.S. accounts for over 80% of that demand in North American market. The trend is clearly shifting to electric forklifts for a few reasons, including EPA emissions regulations, warehouse electrification, and demand for more autonomous solutions and capabilities. According to the Industrial Truck Association (ITA), electric forklift sales in the U.S. reached over 63% of total units sold in 2023, while lithium-ion penetration skyrocketed in food, pharma, and e-commerce supply chains. Additionally, Amazon, Walmart and FedEx made significant investments in warehouse automation to improve efficiency, resulting in increased demand for Class 1 and Class 2 electric forklifts. There is also more adoption for fleet telematics and maintenance analytics in the U.S. than in any other world region.

The largest and rapidly-growing forklift market is Asia Pacific, primarily due to the increased pace of industrial development, urban logistics and e-commerce growth; particularly China, India, Japan and Southeast Asia. According to the China Industrial Truck Association (CITA), China alone contributed over 38% of global forklift production in 2023. Internal combustion forklifts made up the majority of the forklift market in rural and outdoor construction areas, while electric forklifts in urban warehouses and manufacturing areas are on the rise. India and ASEAN nations are experiencing rapid growth primarily from food processing, retail and automotive sectors. Support from governments for warehousing infrastructure through programs like Make in India and Digital ASEAN. The shift in perceptions is changing the market from manual-handling to semi-automated fleet models.

KEY INDUSTRY DEVELOPMENTS:

•  In February 2024, ArcBest announced its operational remote-controlled autonomous reach vehicles and forklifts. Vaux Smart Autonomy is an extension of the business's current freight management technology for warehouse and distribution purposes. 
• In November 2023, the leading innovator in material handling technology, Toyota Material Handling (TMH), is introducing a new line of electric pneumatic forklifts in 48V and 80V. This durable line is designed to withstand outside terrain and operate in various weather conditions, making it an ideal fit for retail applications with the potential for landscaping, home centers, lumberyards, and shop support applications.

FORKLIFT MARKET REPORT SCOPE & SEGMENTATION

FORKLIFT MARKET ACTIVE PLAYERS

• Anhui Heli Co., Ltd.
• Clark Material Handing Company, (Clark Equipment Company)
• Crown Equipment Corporation
• Doosan Corporation
• Hangcha
• Forklift Co., Ltd.
• Toyota Motor Corporation (Toyota Material Handling)
• Hyster-Yale Materials Handling, Inc. (Hyster-Yale Group, Inc.)
• Jungheinrich AG
• KION Group AG
• Komatsu Ltd.
• Mitsubishi Logisnex

*Disclaimer: The active players are listed in no specific order.