Europe Forklift Market Outlook, 2030

The European forklift market has seen significant transformation over the past decade, driven by changing industrial demands, rapid technological innovation, and increasingly stringent environmental and safety regulations. Electric forklifts now dominate the market, favored for their lower emissions, reduced noise, and lower operating costs. This transition is not just a result of market preference but also driven by EU policies such as the Green Deal and Fit for 55 package, which aim to drastically reduce carbon emissions across industries.

These policy shifts have compelled manufacturers to develop more sustainable forklift solutions, including lithium-ion powered models and, more recently, hydrogen fuel cell technologies, which offer extended operating times and quick refueling capabilities. Today, they have evolved into complex, tech-integrated systems. Smart forklifts now come equipped with IoT sensors, GPS tracking, telematics, and AI-driven diagnostics that enable predictive maintenance and real-time fleet management. Autonomous forklifts, guided by advanced vision systems and machine learning algorithms, are gaining traction in large facilities where labor shortages and operational efficiency are pressing issues.

These developments not only increase productivity but also enhance safety, as newer models often include features like collision avoidance systems, real-time operator feedback, and ergonomic design improvements to reduce operator fatigue and injury. Manufacturers like Linde, Jungheinrich, and Toyota Material Handling have been leading the charge in incorporating automation, digital connectivity, and sustainable power sources into their latest forklift lines. The FEM works in tandem with the European Commission to implement directives that govern equipment safety, exhaust emissions, and energy use, ensuring that forklifts meet high safety and environmental standards before entering the market.

According to the research report "Europe Forklift Market Outlook, 2030," the Europe Forklift market is expected to reach a market size of more than USD 35.47 Billion by 2030. Modern forklifts come equipped with smart technologies such as telematics, IoT connectivity, and autonomous navigation systems, enabling real-time monitoring, predictive maintenance, and even driverless operation in controlled environments. Safety remains a critical focus, with features like advanced collision avoidance systems, ergonomic operator cabins, and integrated sensors that help minimize workplace accidents and operator fatigue.

The growing emphasis on Industry 4.0 and automation is transforming forklifts from mere lifting equipment into intelligent assets within the broader digital supply chain ecosystem. The rapid growth of e-commerce and logistics has significantly increased the demand for efficient warehouse and material handling solutions. This surge compels companies to invest in technologically advanced forklifts that can operate longer hours with minimal downtime. Moreover, stringent environmental regulations from the European Union, including the Green Deal and the Fit for 55 packages, have incentivized the shift away from internal combustion engine (ICE) forklifts to zero-emission electric models.

Economic recovery post-pandemic and increasing industrial automation also act as major growth drivers. However, challenges such as the high upfront costs of electric and automated forklifts, supply chain disruptions, and skilled labor shortages continue to influence market dynamics. The adoption of electric forklifts has surged, accounting for more than half of the market share in many Western European countries, supported by government incentives and subsidies.

Autonomous forklift technology is gaining ground, especially in large-scale distribution centers and manufacturing hubs, where it improves operational efficiency and safety while addressing labor shortages. Furthermore, ongoing developments in battery technology, such as the integration of hydrogen fuel cells, promise to extend forklift operational ranges and reduce recharging times, making them more suitable for intensive, 24/7 operations.

Market Drivers

• Strong Manufacturing and Industrial Base: Europe has a well-established manufacturing sector, particularly in countries like Germany, Italy, and France, where automotive, machinery, and heavy equipment production is robust. These industries require efficient material handling solutions, driving strong demand for forklifts. European manufacturers are also highly automated and lean in their operations, requiring precise, high-performance logistics equipment. This sustained industrial activity ensures a consistent and growing need for forklifts across various production lines, warehouses, and logistics centers, making the manufacturing sector a major driver of forklift demand in Europe.
• Supportive Government Regulations for Green Equipment: The European Union has strict regulations concerning emissions, workplace safety, and energy efficiency. These regulations have encouraged the adoption of environmentally friendly and low-emission material handling equipment, including electric forklifts. In addition, several government initiatives promote cleaner technologies through subsidies, tax benefits, and incentives for electric or hybrid machinery. This regulatory environment is not only pushing companies to replace older internal combustion engine (ICE) forklifts with greener alternatives but also spurring innovation and growth in the electric forklift segment.

Market Challenges

• High Cost of Advanced Forklift Technologies: Although there is a clear shift toward automation and electric forklifts in Europe, the high acquisition and integration costs of these advanced technologies present a significant barrier. Features such as autonomous navigation, fleet management software, and lithium-ion battery systems add considerable expense, making it difficult for smaller businesses to invest in modern equipment. The total cost of ownership - including training, system upgrades, and maintenance - can be a limiting factor, especially in regions or industries with tighter budgets.
• Fragmented Market with Diverse Regulations: The European forklift market spans many countries, each with its own regulatory frameworks, labor laws, and industrial standards. This diversity creates complexities for forklift manufacturers and distributors in terms of compliance, customization, and logistics. For example, safety standards or environmental requirements can vary significantly between Western and Eastern European countries. This fragmentation makes it difficult to implement uniform strategies across the region and increases the cost and time of market entry or expansion for international companies.

Market Trends

• Adoption of Automation and Autonomous Forklifts: European industries are increasingly adopting automated and semi-autonomous forklifts to improve efficiency and reduce labor dependence. With growing investment in Industry 4.0 and smart factory initiatives, technologies such as AGVs (Automated Guided Vehicles), remote monitoring, and AI-based navigation systems are being integrated into forklift operations. This trend is particularly evident in sectors like automotive manufacturing and logistics, where precision and speed are critical. The automation trend also aligns with efforts to address labor shortages and improve workplace safety.
• Circular Economy and Refurbished Forklift Market Growth: In line with Europe’s strong focus on sustainability and resource efficiency, there is a growing trend toward the refurbishment and resale of used forklifts. Companies are investing in reconditioning programs to extend the life cycle of their equipment and reduce environmental impact. This approach not only supports circular economy principles but also provides a more affordable alternative for businesses that cannot invest in new forklifts. As sustainability becomes central to corporate strategies, the refurbished forklift market is expected to expand further, particularly in cost-sensitive segments.

Internal combustion engine (ICE) forklifts are moderately growing in the European market due to their superior power and versatility for heavy-duty outdoor applications, combined with ongoing improvements in emission standards and fuel efficiency.

The forklift industry is witnessing a moderate growth in internal combustion engine (ICE) forklifts, primarily driven by the sector’s need for robust, high-performance machines capable of handling demanding outdoor and heavy-duty operations. Despite the increasing push for electrification and stricter environmental regulations, ICE forklifts continue to hold a significant market share, especially in industries such as construction, logistics, and manufacturing where forklifts must perform reliably in rugged environments and over extended working hours.

The versatility of ICE forklifts, which typically run on diesel, LPG (liquefied petroleum gas), or CNG (compressed natural gas), offers operators flexibility in fuel choice depending on availability and cost-efficiency, making them attractive for businesses that require uninterrupted operations without the downtime associated with battery charging. Furthermore, technological advancements have played a crucial role in the sustained growth of ICE forklifts in Europe. Engine manufacturers have made significant strides in reducing emissions through the implementation of cleaner combustion technologies, turbocharging, and after-treatment systems like diesel particulate filters and catalytic converters.

These innovations help ICE forklifts meet the stringent European emission standards such as Stage V regulations, thereby making them more environmentally acceptable. Moreover, modern ICE forklifts are also becoming more fuel-efficient, reducing operating costs and environmental impact, which appeals to companies balancing productivity with sustainability goals. Additionally, the infrastructure for fuel supply is well-established across Europe, ensuring that ICE forklifts can be refueled quickly and conveniently, which supports continuous operation in sectors where time is critical.

Class II forklifts are the fastest growing segment in the European forklift industry because they offer exceptional maneuverability, compact design, and suitability for indoor and narrow-aisle applications, aligning perfectly with the evolving demands of modern warehouses and logistics centers.

Class II forklifts - also known as electric counterbalance forklifts - are experiencing the fastest growth in the forklift industry due to their unmatched adaptability to the increasingly complex and space-constrained environments of modern warehousing and logistics operations. These forklifts are specifically designed for indoor use and excel in applications that require precision handling, agility, and zero emissions, which aligns with Europe’s strong emphasis on sustainability and workplace safety. The compact design of Class II forklifts allows them to navigate narrow aisles and tight corners that are typical in European warehouses where space optimization is crucial.

As the European market shifts toward high-density storage solutions and just-in-time inventory management, these forklifts facilitate faster loading, unloading, and stock replenishment processes without compromising efficiency. Furthermore, their electric powertrain provides significant operational advantages, including quieter operation and zero local emissions, which are critical factors given the strict environmental regulations and indoor air quality standards across European countries. This makes Class II forklifts the preferred choice for industries such as retail, pharmaceuticals, food and beverage, and manufacturing, where clean and safe indoor environments are mandatory.

Additionally, advances in battery technology, such as lithium-ion systems, have enhanced the runtime and reduced the charging time of these forklifts, further boosting their operational productivity and reducing downtime. These improvements contribute significantly to the appeal of Class II forklifts as they offer cost-effective and sustainable solutions without sacrificing performance. The growing trend towards automation and digitalization in Europe’s logistics sector also favors Class II forklifts, which are often equipped with advanced features like integrated telematics, safety sensors, and ergonomic controls that enhance operator comfort and productivity.

Warehousing and logistics applications dominate the European forklift industry because the region’s rapidly expanding e-commerce sector and complex supply chains demand efficient, high-capacity material handling solutions to support fast, accurate order fulfillment and inventory management.

Warehousing and logistics have emerged as the largest application segment driving forklift demand, primarily fueled by the exponential growth of e-commerce, evolving consumer expectations, and increasingly sophisticated supply chain operations. The surge in online shopping has transformed the retail landscape, necessitating massive investments in distribution centers and warehouses designed to handle high volumes of diverse products with speed and precision. Forklifts are central to these operations, enabling efficient movement, stacking, and retrieval of goods to meet tight delivery schedules and maintain inventory accuracy.

Europe’s dense population centers, combined with the rise of omni-channel retailing, create logistical complexities that demand agile and versatile material handling equipment capable of operating in confined warehouse spaces while maximizing storage density. This makes forklifts essential for optimizing space utilization, reducing turnaround times, and ensuring seamless goods flow from receipt to dispatch. Additionally, stringent European regulations on workplace safety and emissions have accelerated the adoption of electric and environmentally friendly forklifts in warehousing, aligning with the continent’s broader sustainability goals.

Warehousing operations also benefit from technological advancements integrated into modern forklifts, such as telematics, automation compatibility, and ergonomic designs, which enhance operational efficiency, reduce labor costs, and improve operator safety. Moreover, as supply chains become more global and interconnected, European companies rely heavily on warehousing and logistics hubs to serve as critical nodes for cross-docking, inventory buffering, and last-mile delivery coordination. The rise of just-in-time and just-in-sequence inventory practices further amplifies the importance of forklifts that can handle fast, flexible material movements.

Spain is experiencing growth in the European forklift industry due to its expanding logistics sector driven by increasing e-commerce activity and strategic investments in modern warehousing and transportation infrastructure.

Spain's growing presence in the European forklift industry is largely fueled by the rapid expansion of its logistics and supply chain sector, spurred by the boom in e-commerce and supported by strategic infrastructure investments across the country. Over the past decade, Spain has evolved into a key logistics hub in Southern Europe, benefiting from its geographic position as a gateway between Europe, Africa, and Latin America. This strategic location has attracted significant foreign and domestic investment in state-of-the-art warehouses, industrial parks, and distribution centers, particularly around major cities like Madrid, Barcelona, and Valencia.

The rise in online retail, especially since the COVID-19 pandemic, has triggered a shift in consumer behavior, increasing the demand for faster delivery services and efficient last-mile logistics. To meet this demand, companies are modernizing their facilities with advanced material handling systems, including forklifts. As more businesses adopt just-in-time inventory practices and automated warehousing, the need for reliable, agile, and electric forklift solutions has grown substantially. Furthermore, Spain’s government and private sector are investing in sustainable logistics, encouraging the adoption of electric forklifts to reduce carbon emissions and comply with EU environmental regulations.

This aligns with broader EU sustainability goals and Spain’s national energy and climate plans. Another driver is the recovery and digital transformation of Spain’s industrial base, with sectors like automotive, food and beverage, and pharmaceuticals seeing strong growth - all of which require efficient internal logistics and material handling operations.

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.