Global Forklift Market: Current Analysis and Forecast (2023-2030)

A forklift is an industrial vehicle equipped with a pronged device that may be lowered or raised to be inserted under a load and moved or lifted. It is utilized in industrial buildings, warehouses, distribution centers, and outdoor areas for hauling and hoisting big goods. Depending on whether the vehicle is light-duty or heavy-duty, several fuel types are used to power it.

The Global Forklift Market is expected to grow at a strong CAGR of 8% during the forecast period (2023-2030). The expanding construction industry globally will spur the demand for robust forklifts that can be employed in harsh outdoor environments. Several government organizations are focusing on boosting the existing infrastructure for overall economic development. For instance, in May 2023 the South African Government announced its plans to spend USD 56 billion (R900 billion) by 2027 on the country's transportation infrastructure. Such large-scale construction projects will propel the demand for forklifts that ensure the fast transfer of heavy materials.

Based on Class, the market is segmented into Class 1, Class 2, Class 3, and Class 4/5. The class 2 segment dominated the market with the largest market share in 2022. This growth is attributed to the increasing number of storage facilities & warehouses. Class 2 forklifts are electric, narrow aisle models. Moreover, the class 2 forklifts are designed with maneuverability that permits them to operate in tight spaces & narrow aisles. Further, by 2030, the class 3 segment will likely dominate the market due to the increasing demand from small and medium-sized warehouses for unloading and loading materials.

Based on load capacity, the market is segmented into below 5 tons, 5-10 tons, 11-36 tons, and above 36 tons. The 5-10 ton segment accounted for the largest market share in 2022. These forklifts are used for handling a wide range of materials, including steel, pallets, and bricks. The segment's growth is attributed to the development of industrial sectors, including warehousing & logistics, and manufacturing. These forklifts can be used indoors or outdoors and are fueled by natural gas, liquid propane, or gasoline.

Based on power source, the market is segmented into ICE and electric. Electric forklifts are predicted to grow at the highest CAGR during the forecasted period. Due to various benefits, including zero emissions, minimal noise, superior visibility, and the ability to execute practically every operation that an ICE forklift can do. Moreover, electricity is an eco-friendly alternative to gasoline and diesel-powered forklifts. Electric vehicles incur lower maintenance costs than those with international combustion engines. Hence, several countries globally, including the U.K., India, and France, are in the process of shutting down the sales of combustion engine vehicles. The benefits of electric vehicles and favorable government initiatives are anticipated to drive the demand further.

Based on application, the market is segmented into construction, industrial, logistics, and others. The logistics segment held the largest market share in 2022 owing to the demand for material handling equipment in transportation, which is expected to drive the forklift market growth. Furthermore, forklifts are used by the logistic sector to move merchandise efficiently, the increased stockpiling of commodities in warehouses, and its distribution to different destinations, which in turn drives the respective market growth.

For a better understanding of the market of forklift, the market is analyzed based on its worldwide adoption in countries such as North America (US, Canada, and the Rest of North America), Europe (Germany, United Kingdom, France, Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, Australia, Rest of Asia- Pacific), & Rest of World. Asia Pacific is expected to lead the forklift market during the forecasted period. Due to the increasing inclination of manufacturers toward plant automation. Moreover, the increasing R&D investment for developing new automotive types, the favorable economic environment, and the need for technological advancements in in-house logistics are also helping to boost the market growth in this region. Growth in the area is also driven by the demand for state-of-the-art material processing equipment in industries such as construction, mining, food, and beverages. In addition, the deployment of technology-savvy vehicles in the region has gained maximum traction and is complementing the growth of the truck industry. For instance, In June 2022, Mitsubishi Logisnext launched the MX2 and MXL Series 4-wheel electric pneumatic forklifts with 5,000-7,000 and 9,000-12,000 lb capacities.

Some of the major players operating in the market include: Komatsu; MITSUBISHI HEAVY INDUSTRIES, LTD.; Jungheinrich AG; Hyundai Heavy Industries; Toyota Material Handling; KION Group AG; Hyster-Yale Material Handling Inc.; Crown Equipment Corporation; Anhui Heli Co., Ltd.; CLARK. Several M&A's along with partnerships have been undertaken by these players to boost their presence in different regions.