Forklift Market Overview, 2025-30

The global forklift market has witnessed remarkable growth and transformation over the past decade, largely driven by increasing demand in logistics, warehousing, manufacturing, and construction industries worldwide. As businesses expand their supply chain operations to keep pace with globalization and e-commerce booms, the need for efficient, reliable, and eco-friendly material handling solutions has intensified. This demand has led to significant innovation within the forklift industry, with manufacturers increasingly focusing on electrification, automation, and smart technologies.

The growing emphasis on sustainability and the rising environmental concerns have propelled the need for eco-friendly alternatives and triggered a paradigm shift from gas-fired or diesel-fired forklifts to electric forklifts. Governments across several countries are pursuing various initiatives to achieve a net-zero economy. For instance, in May 2023, the Federal Economic Development Agency for Southern Ontario announced an investment of USD 3.6 million in Stromcore Energy Inc., a forklift battery manufacturer, to add advanced manufacturing equipment and launch new products to promote a green economy. The demand for electric forklifts is increasing to reduce emissions and comply with the emission regulations for industrial vehicles.

Electric forklifts also reduce ownership costs and provide better ROI than ICE forklifts. Electric forklifts are expected to dominate the market with a share of ~72% in 2024. Currently, the market adoption rate of lithium-ion batteries is more than that of lead-acid batteries due to issues regarding disposal and health hazards created by lead-acid batteries. On the safety front, regulatory agencies have imposed rigorous standards for forklift operation, maintenance, and operator certification to reduce workplace hazards. These policies mandate regular safety audits, training programs, and compliance with international standards such as those from OSHA and ISO.

According to the research report, "Global Forklift Market Overview, 2025-30," the Global Forklift market was valued at more than USD 85.72 Billion in 2024, with the CAGR of 6.98% from 2025-2030. With the growth of online retail, companies are making significant investments in advanced material-handling equipment to enhance inventory management and boost operational efficiency.

For example, in 2024, CLARK Material Handling launched the SE25-35, a 5,000-7,000-pound indoor/outdoor forklift, powered by 48V lead-acid or 80V lithium-ion batteries, offering versatile, durable, and reliable performance in diverse environments. Efficient movement of goods and equipment is essential for developing and improving airports and seaports.

Forklifts ensure seamless loading and unloading of cargo onto planes and ships, facilitating timely delivery of supplies and equipment for ongoing infrastructure projects. For instance, in June 2023, in New South Wales, NSW ports introduced a forty-year master plan for sustainable growth. The plan anticipates that population growth may triple the existing container trade at Port Botany and increase the volume of motor vehicles as well as machinery via Port Kembla. Advanced manufacturing capabilities and a strong industrial base make the United States a significant contributor to the forklift trucks market. As an innovation hub, U.S.

manufacturers are producing technologically advanced forklift trucks featuring aspects such as automation, fuel efficiency, and enhanced safety systems. The robust demand from warehousing, construction, and retail sectors further fuels domestic production and imports. Besides this, the country's extensive supply chain infrastructure and focus on modernizing material handling processes position it as both a significant market and supplier. For instance, in December 2024, Hiab, part of Cargotec, entered a key dealer agreement with Ring Power Lift Trucks in Florida, strengthening its presence in the US market. The agreement covers MOFFETT truck-mounted forklifts, supported by Ring Power’s robust sales and service network. This dynamic helps the U.S. forklift trucks industry gain global competitiveness.

Market Drivers

• Expansion of Global E-commerce and Warehousing: The rapid growth of e-commerce worldwide is one of the most influential drivers for the global forklift market. Online retail giants, along with smaller e-commerce platforms, require vast warehousing and fulfillment networks to meet increasing consumer demand for fast and reliable delivery. This surge in warehousing activities directly escalates the need for efficient material handling equipment like forklifts to manage inventory, streamline order picking, and support supply chain logistics. As companies expand their logistics infrastructure globally, the demand for forklifts across various types of warehouses and distribution centers continues to rise.
• Technological Advancements and Automation Integration: Technological innovation is reshaping the forklift industry, driving growth globally. Developments such as electric forklifts, automated guided vehicles (AGVs), telematics, and IoT-based fleet management systems improve operational efficiency, safety, and cost-effectiveness. Autonomous and semi-autonomous forklifts are gaining traction in factories and warehouses looking to reduce labor costs and improve accuracy. These technological enhancements enable companies to optimize warehouse operations and meet the evolving needs of Industry 4.0, serving as a major market driver.

Market Challenges

• High Capital Investment and Maintenance Costs: Despite their benefits, forklifts - especially those equipped with advanced automation or electric powertrains - require significant upfront investment. The costs of purchasing, installing, and integrating new forklift technologies can be prohibitive for small and medium enterprises. Furthermore, maintenance, battery replacements, and skilled technician availability add to the total cost of ownership. These financial burdens can restrict the adoption of modern forklifts in emerging markets and cost-sensitive industries, limiting market penetration.
• Shortage of Skilled Operators and Safety Concerns: The global forklift industry faces a shortage of trained and certified operators, which can hamper safe and efficient forklift operations. Forklifts require skilled handling to avoid accidents, damage to goods, and workplace injuries. Many regions lack sufficient training programs and regulatory enforcement, which increases the risk of operational mishaps. This skills gap challenges businesses to maintain productivity and safety standards, especially as forklifts become more technologically complex.

Market Trends

• Shift Toward Sustainable and Electric Forklifts: Environmental sustainability is becoming a priority globally, driving the adoption of electric forklifts over traditional internal combustion engine (ICE) models. Governments worldwide are implementing stricter emission regulations and encouraging green technologies. Advances in battery technology, such as lithium-ion batteries, have improved the efficiency and runtime of electric forklifts, making them competitive with ICE models. This shift not only reduces greenhouse gas emissions but also lowers noise pollution and operating costs, making electric forklifts a dominant trend in global markets.
• Growth of Forklift Rental and Leasing Models: To address the high costs and provide operational flexibility, rental and leasing of forklifts have become increasingly popular worldwide. This trend allows businesses to scale their forklift fleet in response to fluctuating demand without heavy capital expenditures. Leasing also gives companies access to the latest models and maintenance services, reducing downtime and repair costs. Rental and leasing models are especially attractive to SMEs and industries with seasonal workloads, expanding forklift accessibility globally.

The rapid growth of the "Other" category, including alternative fuel forklifts like hydrogen fuel cell and hybrid models, is primarily driven by the global push for sustainability and stricter emission regulations across industries.

The accelerating adoption of alternative fuel forklifts, categorized under “Other” in the global forklift industry, is largely fueled by an urgent global shift toward sustainable operations and environmental compliance. Governments and regulatory bodies around the world are implementing increasingly stringent emissions standards and carbon neutrality goals, pushing companies to replace internal combustion engine (ICE) forklifts with cleaner alternatives. Hydrogen fuel cell and hybrid forklifts present a compelling solution by offering both the operational advantages of ICE models - such as rapid refueling and long operational cycles - and the environmental benefits of electric models, such as zero local emissions and reduced noise pollution.

This hybrid value proposition is especially attractive to industries that require high-performance equipment but are also under pressure to reduce their environmental footprint, such as manufacturing, logistics, automotive, and retail distribution centers. Moreover, many global corporations are aligning their supply chains with environmental, social, and governance (ESG) standards, making alternative fuel forklifts a critical part of achieving sustainability metrics and improving brand reputation.

Technological advancements and decreasing costs of fuel cell infrastructure are further supporting adoption, especially in regions like North America, Europe, and parts of Asia-Pacific where both environmental policies and government incentives are encouraging cleaner industrial practices. In high-throughput warehouses or multi-shift operations where downtime costs are high, hydrogen fuel cell forklifts outperform traditional electric forklifts by offering faster refueling (in minutes compared to hours of charging) and consistent power output throughout the shift, eliminating the productivity drop typically seen with battery-operated units.

Class II forklifts are the fastest-growing segment in the global forklift industry due to the rapid expansion of e-commerce and warehousing operations that demand compact, maneuverable equipment for narrow aisle applications.

The explosive growth of e-commerce and the evolution of modern warehousing have significantly accelerated the demand for Class II forklifts, making them the fastest-growing segment in the global forklift industry. Class II forklifts, which include electric narrow aisle trucks such as reach trucks and order pickers, are uniquely suited for high-density storage environments that are increasingly common in today’s logistics and fulfillment centers. As consumer expectations shift toward faster delivery times, companies are under pressure to optimize storage space and picking efficiency within existing facilities.

Class II forklifts are specifically designed to navigate tight spaces and narrow aisles, allowing warehouses to install more racking and store greater inventory without expanding the footprint of their buildings. This space efficiency is critical in high-rent urban or suburban areas where many last-mile fulfillment centers are located. Moreover, the electric nature of Class II equipment aligns well with broader environmental goals, as companies seek to reduce emissions and improve energy efficiency in their supply chains.

Unlike traditional internal combustion forklifts, Class II models produce no exhaust and operate quietly, making them ideal for indoor use and helping companies comply with workplace safety and environmental regulations. Their lower operating costs and maintenance requirements, compared to IC forklifts, also contribute to their growing popularity. Technological advancements in lithium-ion batteries and telematics have further enhanced the appeal of Class II forklifts by extending run times, reducing downtime, and enabling smarter fleet management.

The construction application segment is the fastest-growing in the global forklift industry due to booming infrastructure development and urbanization, particularly in emerging economies.

The construction sector’s rapid growth as the fastest-expanding application in the global forklift industry is largely driven by a surge in infrastructure development, urbanization, and industrial expansion across both developed and emerging markets. As governments and private investors channel massive resources into building transportation networks, commercial complexes, housing developments, and energy facilities, there is a soaring need for efficient material handling equipment that can operate in rugged outdoor environments.

Forklifts used in construction - particularly rough terrain and telehandler models - are essential for lifting and transporting heavy materials like steel beams, bricks, and concrete blocks across uneven job sites, where traditional forklifts would struggle to perform. These machines play a vital role in streamlining workflows, reducing manual labor, and improving safety, all of which are critical priorities in modern construction operations. The demand is especially pronounced in countries undergoing rapid industrialization and urban development, such as India, China, Indonesia, and several nations in Africa and Latin America.

These regions are investing heavily in smart cities, transportation corridors, and industrial parks - projects that require reliable and versatile forklifts capable of handling varied materials in dynamic conditions. Additionally, government stimulus packages and infrastructure renewal initiatives in North America and Europe are boosting the need for construction-grade forklifts in the wake of economic recovery and climate-resilient infrastructure planning. Forklifts designed for construction often feature enhanced load capacities, all-terrain mobility, and durable designs, making them indispensable for high-volume, high-risk job sites.

The Asia Pacific region is experiencing significant growth in the global forklift industry due to rapid industrialization and expansion of e-commerce-driven logistics and warehousing infrastructure.

The primary driver behind the Asia Pacific region's rapid growth in the global forklift industry is the ongoing industrialization combined with the exponential rise of e-commerce, which has spurred an unprecedented demand for advanced logistics and warehousing solutions. Countries like China, India, and Southeast Asian nations are witnessing a transformative shift in manufacturing capabilities, supported by government initiatives such as “Make in India” and China’s “Made in China 2025” plan. These initiatives are encouraging the development of large-scale industrial parks and special economic zones, which in turn require sophisticated material handling equipment, including forklifts, to operate efficiently.

Moreover, the explosion of e-commerce, particularly in urban and semi-urban areas, has necessitated the rapid buildout of warehouses, fulfillment centers, and cold storage chains, all of which are heavily reliant on forklifts for efficient inventory movement and space management. Major e-commerce players such as Alibaba, Amazon, JD.com, and Flipkart are investing heavily in automation and modern material handling systems, thus further fueling the forklift demand.

Additionally, the region's cost competitiveness, abundant labor, and strategic positioning in global trade routes have made it a manufacturing and distribution hub, pushing the need for mechanized material transport. There is also a growing shift toward electric forklifts driven by environmental concerns and stricter emissions regulations, particularly in China, which is not only the largest forklift market in the world but also a leading manufacturer.

• In January 2025, KION Group partnered with NVIDIA and Accenture to optimize supply chains using AI-powered robots and digital twin technology. The solution incorporates a digital twin powered by physical AI, simulating real-world principles to optimize intelligent warehouse performance. It integrates automated forklifts, smart cameras, and cutting-edge robotics to enhance operational efficiency and precision.
• In December 2024, Mitsubishi Heavy Industries and Mitsubishi Logisnext implemented an automated picking solution at Kirin Group's Ebina Logistics Center, the first of its kind in Japan. Using the advanced ΣSynX system, the solution integrates AGVs, AGFs, and palletizers for optimized logistics processes, addressing labor shortages, heavy workloads, and regulatory changes in 2024.
• In September 2024, Panattoni and Jungheinrich partnered to deliver turnkey logistics real estate solutions by integrating Panattoni's expertise in industrial property development with Jungheinrich's advanced intralogistics technologies. This collaboration focuses on creating customized, sustainable, and efficient logistics facilities tailored to client needs, improving operational workflows and adaptability.
• In August 2024, Crown Equipment Corporation opened a sales and service facility in New Albany, Ohio. This new facility is expected to offer material handling and warehouse solutions to customers in the area. The facility will also provide regional businesses with the necessary equipment and services to boost productivity and uptime, ensuring their material handling operations and supply chains remain efficient and effective.
• In July 2024, Toyota Material Handling Japan and Fujitsu introduced Japan's first AI-powered cloud service to evaluate forklift safety. The system uses AI to analyze operational data, identify potential safety risks, and provide actionable insights to improve workplace safety.
• In June 2024, Toyota Industries Corporation announced that it would launch its innovation center in Linköping, Sweden. The opening of this center is scheduled for the end of September 2024. This center will serve as an R&D center and a hub for workshops and pitch events.

Considered in this report

• Historic Year: 2019
• Base year: 2024
• Estimated year: 2025
• Forecast year: 2030

Aspects covered in this report

• Salt Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Type

• Electric Forklifts
• Internal Combustion Engine
• Other

By Class

• Class I
• Class II
• Class III
• Class IV/V

By Application

• Warehousing & Logistics
• Manufacturing
• Construction
• Others

The approach of the report:

This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases.

After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us we have started verifying the details obtained from secondary sources.

Intended audience

This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to this industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.