Forklift Market

Global Forklift Market Size (2023 to 2028)

The global forklift market is expected to be valued at USD 65.15 % billion by 2023 and is anticipated to reach a valuation of USD 99.51 % billion by 2028, growing at a CAGR of 8.84 % during the forecast period from 2023 to 2028.

The boom of online shopping and rising demand for storage solutions are boosting the demand for forklifts in warehouse facilities and driving global market growth. Online retail is here to stay and the number of e-commerce sites is soaring continuously and is expected to grow further in the coming years. Global e-commerce sales reached USD 4.2 trillion in 2021 and are growing at a promising rate. The growth of e-commerce is the demand for efficient warehouse operations. The growth of online retail has also fuelled the need for efficient storage solutions where forklifts play a key role in the movement and organization of goods. The trend of e-commerce will accelerate further in the coming years and demands for advanced forklift equipment to manage the evolving needs of warehouses, which is one of the major factors driving the global market growth.

The growing need for supply chain optimization worldwide is contributing to the forklift market growth. Supply chain optimization has become a priority for many companies worldwide. It is a must for companies to have efficient material handling and logistic processes to smoothen the overall supply chain performance. Forklifts play a crucial role in organizing the goods in warehouses and contribute significantly to easing the supply chain optimization. Realizing the importance of forklifts in the warehouses, the manufacturers of forklifts have added technological advancements such as IoT sensors, telematics and others to forklifts, which are further enhancing the capabilities of forklifts and providing real-time insights for better decision-making.

Furthermore, factors such as the increasing number of infrastructure and construction projects worldwide, the expansion of manufacturing industries, rising international trade and port activities, and growing concern among companies for cost-effective material handling processes are supporting the forklift market growth.

High initial costs and maintenance expenses associated with forklifts are some of the major factors hampering the growth of the global market. The adoption of forklifts is still being limited among many small- and medium-level organizations because of the significant costs linked with the purchase and maintenance of forklifts. Nonetheless, a few of the manufacturers of forklifts have recognized the issue and are putting efforts into bringing cost-effective forklifts to the market. The shortage of skilled forklift operators in many countries, supply chain disruptions, regulatory complexities, and the growing number of safety standards for using forklifts are other significant restraints to the growth of the global market.

Impact of COVID-19 on the global forklift market:

The impact of the COVID-19 pandemic on the global forklift market was negative. The global supply chains were severely impacted by the COVID-19 pandemic, resulting in the reduced demand for forklifts. Several measures, such as factory closures, restrictions on transportation and delays in the delivery of the components, have been taken to limit the spread of coronavirus and these measures have limited the usage of forklifts. Thus, the sales and demand for forklifts have been hampered. The manufacturing activities in many companies have been stopped or happened at a limited capacity during the COVID-19 pandemic, which also has hampered the demand for forklifts. Due to the circumstances raised by the COVID-19 pandemic, many companies have postponed or canceled their plans to purchase additional material handling equipment, considering the economic uncertainty. The disruption in global trade also had an impact on the sales of forklifts and resulted negatively in the global market. Likewise, several factors have affected the forklift market during the COVID-19 pandemic.

However, now that the impact of the COVID-19 pandemic has significantly diluted, the market has started recovering and is anticipated to perform well during the forecast period.

REPORT COVERAGE:

This research report on the global forklift market has been segmented and sub-segmented into the following categories.

Global Forklift Market – By Class:

• Class 1
• Class 2
• Class 3
• Class 4
• Class 5

The class 3 segment was the leader among all and captured a share of 34.8% of the global market in 2022. The class 3 segment is also expected to grow at a healthy CAGR during the forecast period. The efficiency of class 3 forklifts in material handling and increasing adoption of class 3 are majorly driving the segmental growth. Class 3 forklifts have a wide of applications, which is another major factor propelling the growth of the class 3 segment. Lower maintenance costs and longer lifespan of class 3 forklift vehicles compared to all the other classes are fuelling the growth rate of the class 3 segment in the worldwide market.

The class 2 segment is another lucrative segment and will occupy a substantial share of the worldwide market in 2022. The class 2 segment is anticipated to showcase a notable CAGR in the coming years.

The class 1 segment had a considerable share of the global market in 2022 and is predicted to grow at a steady growth rate during the forecast period.

Global Forklift Market – By Engine Type:

• Internal Combustion Engine (ICE)
• Electric

The electric segment occupied a share of 61.8% of the worldwide market share in 2022. The electric segment is expected to showcase the highest CAGR in the global market during the forecast period. The growing focus on sustainability and eco-friendly practices is one of the key factors driving the electric segment in the global market. Emissions and noise reduction are important factors in warehouses and manufacturing facilities, and for these reasons, electric forklifts are being increasingly used. This trend is expected to continue in the coming years and contribute to the growth of the electric segment in the global market.

Global Forklift Market – By Product:

• Counterbalance
• Warehouse

The warehouse segment is estimated to witness the highest CAGR based on product in the global forklift market during the forecast period. The boom of e-commerce is driving the growth of the warehouse segment in the global market. Companies operating online are increasingly expanding their distribution centers to match the growing demands from online shoppers, which is resulting in the increasing number of warehouses and also driving the demand for forklifts to smoothen the organization of goods in warehouses. The rising need for space optimization in warehouses is another major factor driving the growth of the warehouse segment in the forklift market.

Global Forklift Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

The Asia-Pacific region was the regional market leader worldwide and captured 44.2% of the global market share in 2022. The APAC market is also expected to showcase a promising CAGR during the forecast period. Industrialization throughout the Asia-Pacific region is one of the major factors driving the APAC forklift market growth. The APAC region has experienced several developments in terms of industrialization in the last few years and the manufacturing activities in this region have taken a significant upward movement in the recent past and such type of actions have boosted the demand for forklift equipment in material handling and this trend will continue during the forecast period and propel the regional market growth. Economic growth of APAC countries such as China and India and increasing penetration of e-commerce in the APAC region are further fuelling the demand for forklifts and driving the APAC market. China held the largest share of the APAC market in 2022 and the same is expected to continue throughout the forecast period.

Europe occupied a substantial share of the global market in 2022 and is projected to grow at a prominent CAGR during the forecast period in the worldwide market. The focus on eco-friendly practices in Europe is on the rise and fuelling the demand for electric forklifts, which is a factor driving the European market growth. The focus of the European region on innovation in logistics and supply chain management is further supporting the European forklift market growth. Germany had the major share of the European market in 2022. The presence of robust logistics and manufacturing industries in Germany is majorly driving the German forklift market.

North America is another noteworthy regional market for forklifts globally. North America is a hub for technological advancements. In recent years, forklift vehicles have experienced several technological upgrades, including automation and telematics. The growing popularity of online retail and stringent safety regulations in North America are propelling the North American forklift market. The U.S. dominated the forklift market in North America in 2022 and the U.S. market is anticipated to grow at a promising rate during the forecast period due to the stricter emission regulations.

Latin America accounted for a considerable share of the worldwide market in 2022 and is projected to grow at a healthy CAGR during the forecast period. Brazil led the forklift market in Latin America in 2022.

MEA is anticipated to grow at a healthy CAGR in the global market during the forecast period.

KEY MARKET PLAYERS:

Toyota Industries Corporation, KION Group AG, Hyster-Yale Materials Handling, Inc., Crown Equipment Corporation, Mitsubishi Logisnext Co., Ltd., Jungheinrich AG, Anhui Heli Co., Ltd., Hangcha Group Co., Ltd., Clark Material Handling International, Inc., and Komatsu Ltd are some of the dominating companies in the global forklift market.

RECENT HAPPENINGS IN THE MARKET:

• In June 2023, FPT Industrial and Goodsense Forklift partnered together for the benefit of both companies. The collaboration majorly aims to get sustainable material handing solutions to European and American markets by bringing F28 engines.
• In November 2023, Forkliftcenter, a Netherlands-based company, received an order from Grimaldi Group for 59 different kinds of machinery, including forklifts.