A forklift truck, also known as a lift truck, dock truck, fork truck, jitney, or fork hoist, is an industrial truck used to lift and move materials over short distances. Forklift trucks utilize hydraulic systems with tines to lift and secure pallets or shipping containers for transport throughout warehouses and manufacturing facilities. The increasing demand from the e-commerce and logistics industry has driven considerable growth in the global forklift truck market.
The global Forklift Truck Market is estimated to be valued at US$ 44.71 Bn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Opportunity:
With the rapid growth of online shopping and logistics networks, e-commerce companies require efficient material handling equipment to manage high order volumes within warehouse facilities. Forklift trucks are indispensible for handling and transporting shipping containers and pallets within these warehouses. Their maneuverability and versatility allows e-commerce operations to optimize product storage and fulfillment processes. Additionally, forklifts equipped with advanced technologies such as automated guidance and navigation features can improve efficiency multifold. The rising need for automation in e-commerce warehousing to cope with increasing sales is expected to drive robust demand for forklift trucks in the coming years.
Porter’s Analysis
Threat of new entrants: Low capital required favors new entrants in the industry. However, established brands have strong customer loyalty and economies of scale which make it difficult for new players.
Bargaining power of buyers: Buyers have moderate bargaining power given the availability of various branded and generic products. However, large organizations have higher negotiation power.
Bargaining power of suppliers: Major suppliers include manufacturers of core components like engines, hydraulics, and forklift attachments. Suppliers have moderate bargaining power given the availability of substitutes.
Threat of new substitutes: Advent of automation technologies poses a threat. However, forklifts offer advantages of flexibility and adaptability difficult to replicate.
Competitive rivalry: The forklift truck market is highly competitive with the presence of global and regional players. Intense competition exists based on product quality, pricing and innovation.
SWOT Analysis
Strengths: Robust demand from industries like logistics, warehousing and manufacturing. Rising investments in infrastructure and development of big retail chains.
Weaknesses: High operating and maintenance costs. Require skilled operators. Safety issues require strict regulatory compliance.
Opportunities: Scope for natural gas and electric variants. Growth in e-commerce is boosting demand from warehousing and logistics sectors.
Threats: Technological disruptions from integrated warehouse automation. Trade wars and economic slowdowns impact manufacturing output.
Key Takeaways
The Global Forklift Truck Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to reach US$ 44.71 Bn by 2024 growing at a CAGR of 10%.
Regional analysis indicates that Asia Pacific dominates the market with a share of over 45% in 2024 led by China, India and Japan. Increasing industrialization and manufacturing activity in developing nations is driving demand. Europe and North America are other major markets benefitting from strong focus on warehouse automation and technology adoption.
Key players operating in the forklift truck market are DuPont Teijin Films, PARC (Xerox Corporation), General Electric Company, Lockheed Martin Corporation, American Semiconductor Inc., Flex Ltd., Brewer Science Inc., Integrity Industrial Inkjet Integration, and SI2 Technologies Inc. Major players are focusing on new product development and investments in manufacturing facilities to capture higher shares.
Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it