Forklift trucks, also known as lift trucks, are industrial trucks used for transporting goods short distances within, in and around warehouses, manufacturing facilities and distribution centers. Forklift trucks have become essential for loading, unloading and stacking inventory and raw materials efficiently. Key features that make forklift trucks highly efficient include pneumatic tires, mast-mounted forks for lifting and lowering goods, operator cabs and power sources such as electric motors or internal combustion engines. The global forklift truck market is gaining traction owing to rapid growth of the e-commerce, construction, manufacturing and logistics industries which require efficient material handling equipment.
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. The growing demand from the logistics sector owing to rising e-commerce is expected to open new opportunities for market players. Advancements in battery technologies are enabling development of more energy efficient electric forklift trucks.
Technological advancement like automation is playing a key role in the forklift truck market. Manufacturers are developing autonomous forklifts equipped with advanced technologies like sensors, radars and cameras for navigation. This is expected to optimize warehouse operations, improve productivity and safety.
Market drivers
The main driver for the forklift truck market is rapid growth of the warehousing and logistics industries. Expanding operations of e-commerce companies and rising online shopping trends have increased demand for efficient material handling equipment across warehouses and distribution centers. Furthermore, growing construction activities around the world require reliable lifting and moving of heavy construction materials, propelling sales of diesel/LPG forklift trucks. Stringent regulations regarding carbon emissions from internal combustion equipment is further boosting adoption of electric forklifts.
Current challenges in the forklift truck market
The forklift truck market is facing challenges due to the ongoing global supply chain disruptions caused by the COVID-19 pandemic. Precautions to contain the spread of the virus such as lockdowns and travel restrictions have impacted production and transportation of forklift trucks and their components globally. This has led to longer lead times and delays in deliveries for customers. Rising raw material costs due to geopolitical issues are also putting pressure on product prices in the market. Furthermore, the shift towards automation and electric vehicles is requiring heavy investments in research and development of advanced technologies by manufacturers. Skill shortage of operators is another problem area that needs to be addressed through focused training programs.
SWOT Analysis
Strength: Well established brands with extensive distribution networks and aftersales service; wide product portfolio catering to diverse customer needs.
Weakness: High dependence on global supply chains makes operations vulnerable to disruptions; transition to electric vehicles requires significant capital expenditures.
Opportunity: Growing e-commerce and warehouse automation driving demand for specialized forklifts; government support for adoption of electric vehicles presents a major opportunity.
Threats: Intense competition from local and international players; shift towards renting/leasing over purchases could impact sales revenue long term.
Geographical concentration
The forklift truck market in North America currently accounts for the largest share of around 30% of the global market value. This is driven by strong demand from major economies like the US and Canada from industries such as manufacturing, construction, automotive etc.
Fastest growing region
Asia Pacific region is poised to witness the fastest growth during the forecast period led by China, India and Southeast Asian countries. Rapid industrialization and infrastructure development activities coupled with supportive government policies to boost electric vehicle adoption will fuel forklift truck demand from the region.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
