The forklift truck market comprises motorized trucks that have a power-operated pronged platform for lifting and moving goods over short distances. Forklift trucks are commonly used in warehouses, distribution centers, manufacturing facilities, and other commercial buildings to transport, lift, insert, and remove loads from storage racks or pallets. They provide efficient material handling capabilities to various industries such as e-commerce, retail, agriculture, wholesale trade, and transportation. Forklift trucks offer advantages like enhanced productivity, reduced labor costs, better organization of inventory, and precise placement of items. The growing e-commerce and warehouse industries have increased the need for efficient material handling equipment like forklift trucks, driving the market growth. The Global forklift truck market is estimated to be valued at US$ 44.71 Bn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the forklift truck market are Toyota Industries Corporation Group, Kion Group AG, Jungheinrich AG, Hyster-Yale Materials Handling, Inc., Crown Equipment Corporation, Mitsubishi Nichiyu Forklift Co., Ltd., UniCarriers Americas Corporation, Anhui Heli Company Limited, Komatsu Ltd., Clark Material Handling Company, Doosan Industrial Vehicle, Hangcha Group Co. Ltd., JBT Corporation, Combilift Ltd., Godrej & Boyce Mfg. Co. Ltd, Linde Material Handling. Key players are focusing on developing autonomous and electric forklift trucks to gain a competitive edge.
The rapidly growing e-commerce industry has increased the need for warehouse automation. This presents lucrative opportunities for forklift truck manufacturers to collaborate with e-commerce companies on equipment leasing and fleet management solutions.
Global expansion of existing warehouses and distribution centers as well as establishment of new facilities by e-commerce giants like Amazon, Walmart, Alibaba will drive the demand for forklift trucks in various regions across the world over the forecast period.
Market Drivers
Increasing e-commerce activities and proliferation of warehouses for storing and distributing goods are the major factors fueling the growth of the forklift truck market. E-commerce companies require massive warehouses and rely on forklift trucks for material handling within warehouses. Moreover, their same-day and next-day delivery goals have increased the pressure to process orders efficiently, propelling the demand for forklift trucks. The growth of the construction industry worldwide has also augmented the need for forklift trucks in construction material yards.
PEST Analysis
Political: Stringent government safety regulations regarding the use of forklifts will influence the design and manufacturing standards adopted by manufacturers. Safety features are mandated to reduce the risk of accidents.
Economic: A stable economic environment leading to growth in industries like e-commerce, construction and manufacturing will boost demand. However, declining economic conditions can negatively impact sales.
Social: changing demographics and workforce preferences. Younger workforce prefers ergonomic designs for comfort. Remote-controlled forklifts reduce risk of injuries.
Technological: Automation and digitization are enhancing productivity. Electric and fuel cell trucks are gaining popularity due to environmental regulations. Connected devices enable fleet management and predictive maintenance.
In terms of value, North America dominates the forklift truck market share due to strong presence of major players and rising demand from e-commerce and construction sectors. Europe follows North America due to focus on worker safety and short-term rentals. Asia Pacific is witnessing fastest growth supported by increasing industrialization, infrastructure development and expansion of warehouses for e-commerce in China and India. Latin America and Middle East & Africa are growing steadily driven by construction, mining and manufacturing activities.
China accounts for the largest value share globally due to low-cost manufacturing prowess and growing domestic manufacturing and ports industry. Other rapidly expanding markets include India, Brazil, Indonesia and Vietnam where industrial and infrastructure investments are boosting demand across application sectors. The rate of urbanization and growth of SME sector provide opportunities for affordable electric and propane rental fleets.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
