Forklift Trucks Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023-2028)

The forklift trucks market was valued at USD 2,262.47 million in 2021, and it is expected to reach USD 2,889.4 million in the coming years, registering a CAGR of over 4.16% during the forecast period.

The COVID-19 pandemic negatively impacted the forklift truck market. With the industries and warehouses shutting down, the need for material handling and inventory management was removed entirely. Major companies suspended their operations in different locations due to the lockdown. This directly impacted the requirement for material handling equipment. However, the post-pandemic prospects look hopeful for the industry, owing to the projected increase in urbanization, global trade, and rapid development in warehouse management tools, which can ease material handling and warehouse management.

Over the medium term, the market is expected to witness growth during the forecast period, as forklift truck manufacturers are adopting automation to enhance their production capacity. Powered industrial trucks reduce manual work, as they help manufacturers transfer various parts and materials from warehouses to the production line with ease and speed.

The rapid expansion of e-commerce and logistics industries across the major countries, including Europe, the United States, and China, is pushing the demand for a more modern distribution network, which, in turn, is likely to increase the demand for forklift trucks across the globe.

The Asia-Pacific region will likely dominate the forklift truck market because of the massive need for forklift trucks from advancing nations. The increase in industrialization is one of the factors expected to aid the growth of the forklift trucks market. This growth is also a result of the rising demand in developing economies, such as China and India.

Forklift Trucks Market Trends

Electric-powered Forklift Trucks are Gaining Popularity in Developed Nations

With the rapid advancement in technology, there is a lot of potential for electric-powered forklift trucks due to their growing applications and popularity. Such electrically-powered forklift trucks are ideal for indoor spaces and can load and unload heavy goods from the ground level or the docks.

A significant advantage of using electrically powered forklift trucks is that there is no need to store the fuel for them at their place of operation. The critical pollutant emissions from these forklift trucks also drive the companies toward adopting electric material-handling vehicles that can be easily operated and maintained inside warehouses.

The use of electrically powered forklift trucks is gaining massive ground in the developed regions of North America, Europe, and Asia that boast an established e-commerce industry and strict emissions norms, and sustainability concerns. However, in emerging economies, there is still a preference for IC-engine forklift trucks. Many manufacturers are active in the field of electric forklifts and are continuously introducing new models to stay abreast of their competition. For instance,

• In June 2022, Mitsubishi Logisnext launched the MX2 and MXL Series 4-wheel electric pneumatic forklifts with 5,000-7,000 and 9,000-12,000 lb capacities.
• In 2021, Hangcha launched the XH series 2.0t-3.8t electric forklift truck with high voltage lithium-ion batteries and a travel speed of up to 21 kmph.

With several other advantages, like zero-emission, low noise, better visibility, and the knack of virtually performing every task that an IC forklift can do, electric forklift trucks are expected to gain higher market share, and it is expected to be the fastest growing forklift type over the forecast period.

North America to Account for a Significant Portion in the Forklift Truck Market

North America is expected to witness the highest growth in sales in the region during the forecast period. This anticipated growth is because of prominent players in the United States. These players are involved in making heavy investments in adopting advanced and modern forklift trucks instead of conventional fork trucks.

Forklift trucks powered by alternative energy sources, such as hydrogen, are also gaining traction in the global forklift trucks market. Governments across various regions support the growth of the forklift trucks market through various incentives and policies.

• The Chicago government regulations are pushing materials handling companies to innovate. Hyster Yale introduced two new products of its research and development initiatives, showcasing the company’s first counterbalanced electrical forklift truck with a factory-integrated lithium-ion battery pack.

As this aligns with the interests of the current US government to create jobs for US citizens, the sales of this equipment are expected to witness considerable growth in the region over the forecast period, making North America one of the fastest-growing regions for the forklift trucks market. For instance,

• In May 2022, Mitsubishi Logisnext expanded its dealership network across the United States. The company has appointed Wiese USA to represent its three brands, Cat lift trucks, Mitsubishi forklift trucks, and Jungheinrich warehouse products, across Alabama and Northwestern Florida.
• In February 2022, Manitou Group invested USD 80 Million for an expansion of manufacturing facilities across North America. The company expanded its manufacturing operation in Yankton and Madison, South Dakota.

Followed to North America, Asia Pacific also hold significant market share in terms of revenue during the forecast period. Rapid expansion of small and medium scale industries across the region is likely to increase the demand for forklift trucks. Rapid expansion of e-commerce industries across India, Japan, China are likely to witness major demand for forklift trucks during the forecast period.

Forklift Trucks Market Competitor Analysis

Some of the key players in the forklift trucks market are Komastu Ltd, Toyota Industries Corporation, KION Group AG, Hyster-Yale Material handling Inc., Jungheinrich Group, Mitsubishi Nichiyu Forklift Corporation, Crown Equipment Corporation, and many others. The market for forklifts witnessed various growth strategies, such as acquisitions, mergers, and collaborations, which market players have been adopting over the past few years. The market players are focusing on expanding their product portfolio to augment their revenue share.

• In March 2022, Kalmar, collaborated with Pfeifer Holding GmbH (Pfeifer) to supply three Kalmar medium electric forklift trucks to support the company’s sustainability strategy.
• In February 2022, the KION Group launched the European research project IMOCO. The project aims to enable intelligent trucks to navigate autonomously in a factory or warehouse.
• In January 2022, KION Group opened a new forklift truck plant in China and laid the foundation stone for further supply chain solutions plants. The total volume of around €140 million for future production of industrial trucks and supply chain solutions in Jinan. The plan is to create over 1,000 new jobs at the site.
• In July 2021, KION Group AG set up a new industrial truck plant in the Polish town of Kołbaskowo, near Szczecin. The site will produce counterbalance trucks for all brand companies within the KION Industrial Trucks & Services segment.

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