Forklift Battery Market: Current Analysis and Forecast (2022-2028)

Batteries that provide power supply to forklift trucks or are used in forklift trucks are known as forklift batteries. The emerging e-commerce sector in various countries across the globe is escalating the need for distribution centers, warehouses, and manufacturing facilities owing to the increasing capacity to store more materials and move these materials faster than ever before rising the demand for forklift fleets; which in turn propelling the forklift battery market.

In addition, factors such as the soaring disposable income of the consumer coupled with increasing high-speed internet penetration are accentuating the e-commerce sector growth which in turn has increased the global logistics industry as well. This has further elated the development of retail channels requiring efficient inventory management and warehouse solution to deliver products on time. Moreover, key players in the forklift fleets market are manufacturing new forklifts fleet by collaborating with technologically advanced players which are expected to accentuate the growth of the forklift battery market. For instance: In March 2022, Exide Industries Ltd. entered into a multi-year technical collaboration agreement with SVOLT Energy Technology Co. Ltd (SVOLT) for the technology and manufacture of lithium-ion cells in India.

Based on the type, the forklift battery market is segmented into lithium-ion batteries, lead-acid batteries, and nickel-cadmium batteries. The lithium-ion batteries acquired dominating share in the global forklift battery market. The long shelf life of lithium-ion batteries, high productivity, and low-cost battery maintenance coupled with high recharge efficiency of 98% saves energy as well as decreases the effects of heating batteries. Further, various key players are launching lithium-ion forklift batteries with technologically advanced features and are also scaling their market growth. For instance: Mitsubishi Caterpillar Forklift America Inc. (MCFA), a leading manufacturer of forklifts under the Jungheinrich® brand, launched its Jungheinrich Lithium-ion battery technology in January 2020.

Based on voltage, the forklift battery market is categorized into 24 Volts, 36 Volts, 48 Volts, and 72 Volts. The 36 volts forklift battery segment caters to a significant market share. The 36 volts forklift battery is designed to work in material handling applications. Stand-up counterbalanced forklift trucks with 36 volts batteries are ideal choices for energy-intensive applications. In addition, a large warehouse where there are narrow aisles 36 volts forklift battery is an ideal option that enhances operation's performance around the clock and increases productivity.

Based on application, the forklift battery market is classified into warehouses, wholesale stores, construction sites, and the manufacturing industry. The warehouse's segment acquired the highest share in the forklift battery market. During COVID-19 the warehousing and logistics sector emerged attractive and has been the largest beneficiary during the pandemic due to an increased shift to online shopping from discretionary to essentials. Nowadays, consumers need doorstep access to their required products, and they need them within a short period. As a result, the e-commerce sector has significantly boosted wherein the players are ramping up supply and expanding storage, thereby propelling the growth of new and modern warehousing spaces which in turn is accentuating the market size of the forklift battery.

For a better understanding of the market adoption of the forklift Battery market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, U.K., France, Spain, Italy, and Rest of Europe), Asia-Pacific (China, Japan, India, Rest of Asia-Pacific), Rest of World. Asia Pacific is anticipated to grow at a substantial CAGR during the forecast period. This is mainly attributed to the booming e-commerce and quick commerce market, the last-mile and just-in-time deliveries, omnichannel operations, and the need for strengthening the supply chains across industries have steered the preference for Grade A warehousing facilities which in turn is propelling the demand for forklift batteries in the region.

Additionally, Along with e-commerce, third-party logistics (3PL) has been another major accelerator of the sector's rise in favorable industrial developments, and supportive government announcements have attracted multinational corporations to set up or expand their manufacturing hubs in the countries like India, China, and others. For instance, In 2022, the Indian government announced National Logistics Policy that also seeks to complement the PM Gati Shakti National Master Plan and proposes a framework to set up MMLPs in key markets to ensure faster first and last-mile connectivity.

Some of the major players operating in the market include: OneCharge, Electrovaya, Flux Power Holdings Inc., Exide Industries Ltd., Amara Raja Batteries Ltd., ENERSYS, Narada Power Source Co. Ltd, Trojan Battery Company LLC, Iberdrola, andGS Yuasa International Ltd.