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The electric forklift market is growing significantly from decade owing to its applications in relevant industry, providing cost efficiency and improved productivity.
The electric forklifts are actively adopted across the globe resulting in the quantitative increase in demand which in turn pushed the year-on-year revenue growth. Stringent emission norms for diesel vehicles across the globe in order to regulate the CO2 emission have led the manufacturers to offer more environment friendly forklift truck models.
Moreover, manufacturers have adjusted the direction of their R&D activities, increasing the proportion of developers working on electric forklifts and warehouse forklifts, in order to expand the electric and warehouse product lines.
High adoption of electric forklifts owing to its advantage over IC powered forklifts and continuous expenditure over advancement of battery technology is anticipated to accelerate the growth of electric forklifts in coming years.
Based on product type, counter balanced forklift trucks accounted for the largest revenue share of 55% in global electric forklift market. On the other hand, warehouse forklifts are the fastest growing owing to rising ecommerce business across the globe.
Geographically, Asia Pacific region accounted for the largest market share with XX% revenue share in global electric forklift truck market. Asia Pacific region is closely followed by Europe and is likely to expand at a CAGR of XX%.
The major countries of Latin America such as Brazil and Mexico showcase huge opportunity for electric forklift truck industry as these countries are showcasing positive growth in manufacturing and automotive industry growth.
The China market is projected to exhibit the fastest growth over the forecast period due to various factors, such as favourable economic environment and a need for technological advancements in in-house logistics in the country.
Europe is projected to account for the second largest volume share of the global forklift truck market and expand at rate of 4.6%, due to the positive outlook of the economy in Western Europe and expected rise in trade of goods, in turn leading to a significant growth in demand for forklift trucks in the region in the near future.
The e-commerce market continues to grow at a healthy rate. Increase in demand for consumer products has led to increase in requirement of warehousing space, for storage of products, which are then distributed to retail stores in bulk, via pallet loads and cases.
Various distribution strategies and warehouse technologies are adopted to distribute the products to the location without any damage. To reduce time and space, forklift trucks are used in the warehouses to place and arrange materials or goods in a proper manner. Thus, the developments in the e-commerce industry drive the growth of the global forklift market.
Governments of various countries have taken initiatives related to infrastructure developments. Increased investments in the real estate sector boost the demand for telehandlers.
At the same time, improving economies in the developing countries, such as Australia, China, and Indonesia, have resulted in large-scale foreign investments, a factor that successively fuels the growth of the forklift trucks market in infrastructural projects among various sectors. For instance, in January 2019, China invested $163 billion in the infrastructure sector to repel economic slowdown.
Forklift trucks are used to transfer heavy or bulk materials, thus, enhancing efficiency and reducing the operation costs at the project sites. Thus, rise in investment in the infrastructure industry propels the growth of the global forklift truck market.
The rate of accidents related to the forklifts trucks has increased over the past few years, rising from around 1,000 per year to 1,300 per year. More than half of the injured people are drivers or pedestrians who stepped down from the vehicle.
In addition, of all the vehicles that are used in the workplace, forklift is one of the most dangerous and is often used around pedestrians. It is more likely to become unstable, specifically if it is not operated and loaded appropriately. Thus, increase in safety issues and accidents related to forklift trucks is anticipated to hinder the growth of the forklift truck market.
There is an increase in the adoption of electric powered forklifts over the past few years and manufacturers are making remarkable efforts to exceed the performance of internal combustion (IC) engine.
In addition, environment concerns and availability of natural resources such as natural gas, oil, coal, and others boost the need to find long term and sustainable renewable energy solutions. When it comes to material handling equipment, factories, and automobiles, hydrogen fuel is a remarkable replacement for conventional means of powering equipment and machinery.
Trucks with hydrogen fuel cell are more environmental-friendly and help the environment through reduction of air pollutants, noise emission, and decarbonization.
Owing to these benefits offered by the fuel cell forklifts, leading forklift truck manufacturers are introducing new range of forklifts with fuel cell technology, which in turn offers remarkable growth for the players operating in the forklift truck market.
For instance, at ProMat 2019, Toyota Material Handling, one of the leading forklift truck manufacturers who introduced new 3-wheeled fuel cell forklift, which offers various environmental and performance benefits. Thus, production of hydrogen fuel cell forklifts holds a lucrative growth opportunity for market expansion.
North America
The North American market, particularly the USA, will be one of the prime markets for Electric Lift Truck Market due to the nature of industrial automation in the region, high consumer spending compared to other regions, and the growth of various industries, mainly AI, along with constant technological advancements. The GDP of the USA is one of the largest in the world, and it is home to various industries such as Pharmaceuticals, Aerospace, and Technology. The average consumer spending in the region was $72K in 2023, and this is set to increase over the forecast period. Industries are focused on industrial automation and increasing efficiency in the region. This will be facilitated by the growth in IoT and AI across the board. Due to tensions in geopolitics, much manufacturing is set to shift towards the USA and Mexico, away from China. This shift will include industries such as semiconductors and automotive.
Europe
The European market, particularly Western Europe, is another prime market for Electric Lift Truck Market due to the strong economic conditions in the region, bolstered by robust systems that support sustained growth. This includes research and development of new technologies, constant innovation, and developments across various industries that promote regional growth. Investments are being made to develop and improve existing infrastructure, enabling various industries to thrive. In Western Europe, the margins for Electric Lift Truck Market are higher than in other parts of the world due to regional supply and demand dynamics. Average consumer spending in the region was lower than in the USA in 2023, but it is expected to increase over the forecast period.
Eastern Europe is anticipated to experience a higher growth rate compared to Western Europe, as significant shifts in manufacturing and development are taking place in countries like Poland and Hungary. However, the Russia-Ukraine war is currently disrupting growth in this region, with the lack of an immediate resolution negatively impacting growth and creating instability in neighboring areas. Despite these challenges, technological hubs are emerging in Eastern Europe, driven by lower labor costs and a strong supply of technological capabilities compared to Western Europe.
There is a significant boom in manufacturing within Europe, especially in the semiconductor industry, which is expected to influence other industries. Major improvements in the development of sectors such as renewable energy, industrial automation, automotive manufacturing, battery manufacturing and recycling, and AI are poised to promote the growth of Electric Lift Truck Market in the region.
Asia
Asia will continue to be the global manufacturing hub for Electric Lift Truck Market over the forecast period with China dominating the manufacturing. However, there will be a shift in manufacturing towards other Asian countries such as India and Vietnam. The technological developments will come from China, Japan, South Korea, and India for the region. There is a trend to improve the efficiency as well as the quality of goods and services to keep up with the standards that are present internationally as well as win the fight in terms of pricing in this region. The demand in this region will also be driven by infrastructural developments that will take place over the forecast period to improve the output for various industries in different countries.
There will be higher growth in the Middle East as investments fall into place to improve their standing in various industries away from petroleum. Plans such as Saudi Arabia Vision 2030, Qatar Vision 2030, and Abu Dhabi 2030 will cause developments across multiple industries in the region. There is a focus on improving the manufacturing sector as well as the knowledge-based services to cater to the needs of the region and the rest of the world. Due to the shifting nature of fossil fuels, the region will be ready with multiple other revenue sources by the time comes, though fossil fuels are not going away any time soon.
Africa
Africa is expected to see the largest growth in Electric Lift Truck Market over the forecast period, as the region prepares to advance across multiple fronts. This growth aligns with the surge of investments targeting key sectors such as agriculture, mining, financial services, manufacturing, logistics, automotive, and healthcare. These investments are poised to stimulate overall regional growth, creating ripple effects across other industries as consumer spending increases, access to products improves, and product offerings expand. This development is supported by both established companies and startups in the region, with assistance from various charitable organizations. Additionally, the presence of a young workforce will address various existing regional challenges. There has been an improvement in political stability, which has attracted and will continue to attract more foreign investments. Initiatives like the African Continental Free Trade Area (AfCFTA) are set to facilitate the easier movement of goods and services within the region, further enhancing the economic landscape.
RoW
Latin America and the Oceania region will showcase growth over the forecast period in Electric Lift Truck Market aIn Latin America, the focus in the forecast period will be to improve their manufacturing capabilities which is supported by foreign investments in the region. This will be across industries mainly automotive and medical devices. There will also be an increase in mining activities over the forecast period in this region. The area is ripe for industrial automation to enable improvements in manufacturing across different industries and efficiency improvements. This will lead to growth of other industries in the region.
USA – $210 billion is allocated to federal R&D with main focus on health research, clean energy, semiconductor manufacturing, sustainable textiles, clean energy, and advanced manufacturing. Investments by private players are mainly focused on technological development including 5G infrastructure and AI in the region.
Europe – EIC is investing €1 billion to innovative companies in sectors like AI, biotechnology, and semiconductors. There is also a focus on developing the ecosystem in the continent as well as improving the infrastructure for developing industries such as electric vehicles and sustainable materials. Private players are targeting data centers, AI, battery plants, and high end technological R&D investments.
Asia – There are investments to tackle a range of scientific and technological advancements in this region mainly coming in from China, India, South Korea, and Japan. This will include artificial intelligence, 5G, cloud computing, pharmaceutical, local manufacturing, and financial technologies. Many countries are aiming to be digital hubs including Saudi Arabia.
Africa – Investments in the region are focused on improving the technological capabilities in the region along with socio-economic development and growth. Private participants of investments in this region is venture capital dominated who are targeting the various growth elements of the region as social stability improves. The major industries are fintech, easier lending, and manufacturing.
Latin America – The focus in the region is for fintech, e-commerce, and mobility sectors. There are also investments in improving manufacturing in the region. Local investments is focused on improving the healthcare, and transportation infrastructure in the region. The region is attracting foreign investments to improve their ability to utilize the natural resources present in the region.
Rest of the World – The investments in this region are focused on clean energy, green metals, and sustainable materials. Funds in Australia are focused on solar energy and battery technologies, along with high end futuristic areas such as quantum computing. The main countries of private investment in ROW will be Australia, Canada, and New Zealand.
