The global forklift market size is projected to grow at a CAGR of 6.7% during the forecast period, from an estimated market size of USD 85.2billion in 2024 to USD 125.4 billion by 2030.
The growing demand for forklifts is driven by several factors, such as the growth in the e-commerce market, the rapid rise in automation in warehouses and manufacturing facilities, and the increase in the number of warehouses and distribution centers. Many companies invest in advanced forklift technologies and adopt advanced material handling equipment to improve warehouse operations. All such factors are driving the forklift market globally.
The growth in the e-commerce industry primarily impacted on the forklift market. For instance, as per the International Trade Administration, the global sales in e-commerce is forecasted to USD 5.5 trillion by 2027 at a steady 14.4% CAGR. As this industry proliferated, the need for distribution centers and warehouses to fulfill orders as fast as possible grew. Subsequently, it boosted the demand for forklifts, whereby the electric ones are meant to work from within these facilities. Moreover, the increase in infrastructural activities in developing countries has led to the demand for effective material handling solutions. Besides logistics, forklifts are essential in other heavy-duty industries, such as construction, which is increasing the market. For example, the rise in complexity in the world of global trade and logistics has pushed the multiple and diverse international supply chains closer and closer to efficiency in material handling, with forklifts being a significant player in the industry, thereby contributing to the growth of this market.
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The autonomous forklift market is gaining traction in material handling applications. Automation is increasingly being used in warehouses to improve efficiency and reduce human errors in warehouse operations. Such technologies as AI, AGVs, and collaborative robots make tasks easier by reducing the difficulty in pallet picking and shunting, thus increasing productivity and decreasing operational costs. Autonomous forklifts are gaining fast ground as a substitute for conventional forklifts, having in their basket a role that can reduce labor costs, damages, and accidents. Growing demand for advanced material handling solutions, driven by labor constraints and the need for safety, fuels the market’s growth. According to the NAIOP research organization, in 2025, over 4 million commercial robots will work in more than 4,000 warehouses; the demand for advanced material handling equipment, including autonomous forks, will outperform. Companies like Third Wave Automation work around the limitations of the existing models and downsize them into a more compact, flexible design that can work in a modern warehouse.
Electric forklifts are becoming more popular in warehouses and logistics due to their longer battery life, lower maintenance costs, and easy handling. However, establishing proper charging systems and high initial costs remain an issue; nevertheless, market growth continues to be driven by the demand for zero-emission environments coupled with advancing technology in batteries. This growth creates new revenue opportunities for batteries, motors, and electric system suppliers. Manufacturers such as Toyota, KION Group, Mitsubishi Logisnext, Jungheinrich, and Hyster-Yale are all developing electric forklifts to meet the rising demand. Innovations in fast-charging batteries are also helping to close the price gap between internal combustion and electric forklifts. Companies like FedEx, Apple, and Amazon are also putting electric forklifts in place to be carbon neutral. In November 2023, BRING CARGO switched from diesel to electric Doosan Forklifts, popular among Nordic logistic companies.
Asia Pacific is estimated to be the fastest-growing market. The factors for this growth in this region are growing industries such as e-commerce, automotive, food and beverage, third-party logistics, and healthcare. The rapidly growing demand for forklifts in China, South Korea, India, and Japan has forced prominent manufacturers to move the location of their manufacturing and distribution centers. For instance, KION Group AG, based in Germany, recently began constructing its Shandong manufacturing plant in China. The localization process has also reduced forklift manufacturing and transportation costs.
China is one of the major countries in terms of manufacturing and the largest e-commerce market. By 2030, Asia Pacific region will be the dominating market for electric forklifts. Below 5-ton forklifts are projected to occupy the largest share of the market by 2030 in Asia Pacific due to their advantages, which include less energy consumption, swift operations, easy maneuverability, and applicability in compact places, especially for indoor operations for handling goods. The emerging economies in the Asia Pacific region, primarily China and India, will likely show enormous demand for material handling systems in the next few years. Due to incrementally compact warehouse spaces, Intralogistics and warehousing systems will likely improve in South Korea and Japan.
Key Market Players
Key players in the market include Toyota Industries Corporations (Japan), KION Group AG (Germany), Jungheinrich AG (Germany), Mitsubishi Logisnext Co., Ltd. (Japan), and Crown Equipment Corporation (US). These companies have a worldwide presence and offer a range of products. They rely on their R&D capabilities and diversified product and service portfolios to increase their market share. These companies focus on product launches, collaborations, acquisitions, contracts, and partnerships to strengthen their footprint through product innovations and extend their business reach.
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