North America Forklift Market Outlook, 2030

The North American forklift market is quite broad and diverse, with many forklift kinds available, such as electric, gas, and diesel-powered, each tailored to specific demands. The surge in warehouse automation and the growing emphasis on workplace safety have accelerated the adoption of technologically advanced forklifts. One of the most notable innovations in recent years has been the widespread transition from internal combustion engine (ICE) forklifts to electric-powered alternatives, particularly lithium-ion and hydrogen fuel cell models. These electric forklifts offer zero-emission operations, quieter performance, and lower long-term operating costs.

Moreover, new forklifts are increasingly equipped with smart technologies such as telematics, GPS, IoT sensors, and AI-based systems for fleet management, predictive maintenance, and real-time tracking. This convergence of digital tools not only optimizes operations but also enhances safety through features like automated collision avoidance, load stability systems, and operator behavior monitoring. Earlier forklift models prioritized lifting capacity and mechanical strength, often at the expense of operator comfort and energy efficiency.

Automated and autonomous forklifts, capable of navigating warehouses without human input, are becoming more common, especially in large distribution centers aiming to reduce labor costs and increase efficiency. These machines rely on a combination of LiDAR, AI, and machine learning to perform tasks that traditionally required skilled operators. As these innovations take root, they are reshaping how companies approach material handling, turning forklifts from simple mechanical tools into integrated elements of smart warehouse systems.

Agencies such as the Occupational Safety and Health Administration (OSHA) and the Environmental Protection Agency (EPA) impose stringent safety and emissions standards that forklift manufacturers must meet. OSHA regulations focus on operator training, equipment maintenance, and workplace safety protocols, pushing manufacturers to develop machines with built-in safety features like speed limiters, automatic braking, and stability control.

According to the research report "North America Forklift Market Outlook, 2030," the North America Forklift market was valued at more than USD 15.55 Billion in 2024. A growing emphasis on environmental sustainability, increasing labor costs, and the need for improved operational efficiency have led businesses to replace older, internal combustion engine (ICE) models with electric alternatives. Mitsubishi Logisnext has consolidated its North American presence with rebranding and a focus on integrated material handling solutions, while KION Group has made strategic moves toward automation through partnerships and product innovations, including autonomous trailer loading solutions.

Electric forklifts, especially those powered by lithium-ion batteries and hydrogen fuel cells, are favored for their lower emissions, reduced noise levels, and lower total cost of ownership. These features are especially critical in warehouse environments where indoor air quality and operational safety are priorities. Additionally, the proliferation of smart warehouse technologies, such as Internet of Things (IoT) integration, telematics, and fleet management software, has turned forklifts into connected assets that provide real-time data on usage, maintenance needs, and operator behavior, leading to more streamlined operations.

In 2022, Toyota Industries Corporation will introduce a game-changing AI-based solution for self-driving lift trucks. This innovation automatically identifies truck and load positions, generating optimum travel paths for loading processes. In 2021, The small ERD 220i electric pallet truck made its debut with a minimal l2 dimension of only 1,065 mm. Its unique lithium-ion battery idea lowers space by over 25%, making it more than 300mm shorter than its predecessor.

The rising cost of warehouse space and labor shortages have also catalyzed the demand for automation. As a result, autonomous forklifts and automated guided vehicles (AGVs) are becoming increasingly common in large distribution centers and manufacturing plants. These machines can navigate predefined paths or use AI and LiDAR to perform tasks without human intervention, significantly reducing labor dependency while increasing throughput.

Market Drivers

• Growth in E-commerce and Warehousing Activities: The rapid expansion of the e-commerce industry across North America has significantly increased the demand for efficient warehousing and logistics operations. Companies like Amazon, Walmart, and other major retailers continue to invest heavily in fulfillment centers to meet next-day and same-day delivery expectations. This surge in warehouse construction directly fuels the demand for forklifts, particularly electric models, which are preferred for indoor environments. The need for high-speed material handling in logistics and supply chain processes makes forklifts an essential tool, thereby acting as a strong growth driver in the market.
• Automation and Technological Advancements: The integration of advanced technologies, such as telematics, IoT (Internet of Things), and autonomous driving systems, into forklift design is revolutionizing the industry. These innovations enhance safety, operational efficiency, and real-time fleet management, making forklifts more appealing to large-scale industrial users. Automated guided vehicles (AGVs) and autonomous forklifts are gaining traction, especially in sectors like manufacturing and logistics, where minimizing human error and maximizing uptime are priorities. The push towards Industry 4.0 across North America has encouraged investment in smart forklifts, further boosting market growth.

Market Challenges

• High Initial Investment and Maintenance Costs: One of the primary challenges in the forklift market is the significant upfront cost associated with purchasing and implementing advanced forklift systems, especially those with automation features. In addition, ongoing maintenance and repair costs can be high, particularly for older internal combustion engine (ICE) models or technologically sophisticated electric units. For small and medium-sized enterprises (SMEs), these costs may limit adoption, slowing overall market penetration despite the long-term operational benefits.
• Labor Shortages and Skilled Operator Availability: While automation helps to mitigate labor issues, the forklift industry still depends significantly on skilled human operators, particularly in operations where manual oversight remains critical. Across North America, there is a growing shortage of trained and certified forklift operators. This challenge is compounded by safety concerns and the need for continuous training to operate increasingly complex machinery.

Market Trends

• Shift Towards Electric and Sustainable Forklifts: Environmental concerns and stricter emission regulations in North America are accelerating the transition from diesel and gasoline-powered forklifts to electric alternatives. Electric forklifts are gaining popularity due to their lower emissions, reduced noise levels, and lower maintenance costs. The trend aligns with broader sustainability goals among industries aiming to reduce their carbon footprint. Advances in battery technology, such as lithium-ion batteries, are also improving the performance and runtime of electric forklifts, making them a more viable option for a wider range of applications.
• Rise of Rental and Leasing Models: To counterbalance the high cost of ownership and to maintain operational flexibility, many businesses are opting for forklift rental and leasing services. This trend allows companies to quickly scale their material handling capacity in response to seasonal demand or short-term projects without committing to large capital expenditures. Leasing also enables access to the latest forklift technologies and ensures regular maintenance, making it an attractive option, particularly for smaller firms and startups.

Electric forklifts dominate the North American forklift industry primarily due to their environmental benefits, operational cost savings, and compliance with increasingly stringent emission regulations.

Unlike traditional internal combustion engine (ICE) forklifts powered by diesel, gasoline, or propane, electric forklifts produce zero tailpipe emissions, which is critical in meeting the stricter air quality and workplace safety regulations enforced by agencies such as the Environmental Protection Agency (EPA) and the Occupational Safety and Health Administration (OSHA). This environmental advantage is particularly important in indoor applications, such as warehouses, manufacturing plants, and distribution centers, where clean air quality directly affects worker health and safety. Furthermore, electric forklifts offer significant cost benefits over their ICE counterparts.

They have fewer moving parts, which means reduced maintenance requirements and downtime, leading to lower long-term operational costs. Electricity is generally less expensive and more stable in price compared to fossil fuels, contributing to predictable and reduced energy expenses. Additionally, advances in battery technology, especially lithium-ion batteries, have enhanced the performance, charging speed, and lifespan of electric forklifts, making them more efficient and reliable. These improvements enable operators to use forklifts for longer shifts without the need for battery changes, boosting productivity.

The North American market also benefits from government incentives and corporate sustainability initiatives that encourage the adoption of cleaner technologies. Companies are motivated not only by regulatory compliance but also by corporate social responsibility goals and the desire to reduce their carbon footprint. Moreover, the growth of e-commerce and the consequent expansion of warehouse and distribution networks have increased demand for electric forklifts, which excel in indoor logistics and offer quieter, more maneuverable operation in confined spaces.

Class I forklifts are the largest segment in the North American forklift industry because they are electric-powered, ideal for indoor use, and perfectly suited for the extensive warehousing and distribution operations that dominate the region’s supply chain.

The North American economy heavily relies on large-scale distribution centers, e-commerce fulfillment hubs, and manufacturing facilities where indoor operations and product handling on smooth concrete floors are the norms. Class I forklifts are designed specifically for these environments, providing efficient, quiet, and zero-emission operation that is essential for maintaining clean air quality and worker safety inside enclosed spaces. Unlike internal combustion forklifts, Class I electric forklifts do not emit harmful fumes, which helps businesses comply with strict environmental and workplace health regulations enforced by agencies like OSHA and the EPA.

This compliance is particularly important given the dense workforce and high safety standards in North American warehouses. In addition to their environmental benefits, Class I forklifts offer lower operational costs through reduced fuel expenses and minimal maintenance needs, as electric motors have fewer moving parts compared to combustion engines. The advancements in battery technology, especially with lithium-ion batteries, have significantly improved the efficiency, runtime, and charging speed of these forklifts, further boosting their productivity and appeal.

Another critical factor driving the dominance of Class I forklifts is their versatility and maneuverability, which are essential in tight warehouse aisles and complex storage configurations typical of North American logistics facilities. These forklifts can handle a wide range of tasks, from pallet movement to load stacking, making them indispensable across industries like retail, food and beverage, automotive, and manufacturing. The trend toward automation and digital warehouse management systems also aligns well with Class I forklifts, which can be more easily integrated with advanced technologies such as telematics and automated guided vehicles (AGVs).

Manufacturing application forklifts are experiencing moderate growth in North America due to steady industrial production demands combined with gradual shifts toward automation and sustainability within the manufacturing sector.

Manufacturing facilities require forklifts to handle raw materials, move work-in-progress goods, and transport finished products efficiently across production lines and warehouses. While the demand for forklifts remains steady due to ongoing manufacturing activities, growth is moderated by several factors unique to this sector. Firstly, many North American manufacturers are increasingly adopting automation and robotic solutions that reduce manual material handling, which tempers the rapid growth of forklift usage. Automated guided vehicles (AGVs) and conveyor systems are supplementing traditional forklift operations, especially in large-scale, high-volume factories.

Secondly, there is a growing emphasis on sustainability and cleaner operations within manufacturing, pushing companies to transition from internal combustion forklifts to electric and hybrid models. This shift involves capital investment and longer replacement cycles, causing more gradual growth compared to sectors like warehousing that are rapidly electrifying.

Additionally, the manufacturing industry is highly influenced by broader economic conditions, including trade policies, supply chain disruptions, and global competition, all of which impact production levels and thus forklift demand. For instance, manufacturing growth may slow during economic downturns or geopolitical uncertainties, limiting forklift fleet expansions.

However, advancements in battery technology, improved forklift ergonomics, and safety features are encouraging manufacturers to modernize their fleets over time, contributing to steady growth. Moreover, the resurgence of nearshoring and reshoring trends in North America is supporting moderate expansion in manufacturing forklift use, as companies seek to localize production closer to end markets. This results in renewed investment in manufacturing infrastructure and associated material handling equipment.

The United States leads the North American forklift industry due to its highly developed manufacturing base and advanced logistics infrastructure that drives consistent demand for material handling equipment.

The United States dominates the North American forklift industry primarily because of its mature and diversified manufacturing sector combined with a highly advanced logistics and supply chain infrastructure that requires efficient material handling systems. The U.S. has long been a global manufacturing powerhouse, producing everything from automobiles and aerospace components to electronics and consumer goods. These industries demand precise, high-volume material movement across factories, warehouses, and distribution centers, making forklifts a critical part of daily operations. Moreover, the U.S.

is home to some of the world’s largest retail and e-commerce companies, including Walmart, Amazon, and Costco, whose vast and complex distribution networks rely heavily on forklifts for inventory management and order fulfillment. The surge in e-commerce, particularly after the COVID-19 pandemic, has intensified the need for efficient warehouse automation and rapid goods movement, further accelerating the adoption of electric and automated forklifts. The U.S. also has a well-established regulatory framework for workplace safety and emissions standards, which encourages businesses to upgrade their fleets with more efficient, low-emission, and technologically advanced forklifts.

In addition, the country boasts strong domestic forklift manufacturing capabilities, with leading global companies such as Hyster-Yale and Crown Equipment based in the U.S., giving the domestic market access to cutting-edge technology and innovation. These manufacturers continuously invest in R&D to develop smart forklifts equipped with IoT, telematics, and autonomous navigation systems that align with the increasing demand for intelligent warehouse operations. Furthermore, the availability of skilled labor, capital investment in warehouse automation, and government support for industrial innovation all contribute to sustaining high demand for forklifts.

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.