Forklift Truck Market Poised to Grow at 11% CAGR by 2031 Amid Rising E-Commerce Demand

The forklift truck market is poised for steady growth driven by increasing demand from the ecommerce and warehousing industries. Forklift trucks, also known as lift trucks, are motorized vehicles used to lift and transport materials over short distances through the use of tines or forks. They provide efficient material handling capabilities and are well-suited for frequently lifting, stacking, and distributing goods in warehouses, manufacturing facilities, and other industrial operations. Forklift trucks minimize lifting fatigue and improve productivity by automating many material handling tasks.

The Global Forklift Truck Market is estimated to be valued at US$ 49.67 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period from 2024 to 2031.

Growing manufacturing activities along with rising e-commerce sales are major factors fueling market growth. The establishment of distribution centers and fulfillment facilities by e-commerce companies has augmented the demand for forklifts in the logistics and warehousing segments.

Key Takeaways

Key players operating in the Forklift Truck market are Toyota Industries Corporation, Kion Group AG, Jungheinrich AG, Hyster-Yale Materials Handling, Inc., and Mitsubishi Logisnext Co. Ltd.

Forklift Truck Market size has expanded significantly due to the thriving e-commerce industry, which has boosted warehousing and logistics activities globally. Material handling equipment such as forklifts has become essential for handling bulk inventories and carrying out distribution operations efficiently. Rapid growth of the e-commerce sector in developing countries is expected to open up new revenue streams for forklift manufacturers.

Forklift truck companies are also expanding globally to tap latent demand. Several market players are investing in production facilities, R&D centers, and office spaces across different regions. Expansion into developing markets allows companies to gain access to low-cost manufacturing destinations and also cater to the evolving material handling needs.

Market Key Trends

The growing popularity of electric forklifts is a key trend in the market. Stringent emission regulations targeting combustion engines have prompted manufacturers to develop electric forklift variants. Electric forklifts are more environment-friendly and suitable for indoor applications due to their zero-emission characteristic. Advancements in lithium-ion battery technologies have enhanced the performance and efficiency of electric forklifts. Their maintenance and energy costs are also considerably lower than internal combustion counterparts.

Porter’s Analysis

Threat of new entrants: Low amount of capital required to enter the market and high economies of scale can attract new players. However, established players enjoy significant brand loyalty and large distribution networks.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of a variety of products from different manufactures. However, long-term relationships and contracts with large fleet owners reduce the impact.

Bargaining power of suppliers: Suppliers of forklift components and raw materials have low to moderate bargaining power due to availability of substitute material sources.

Threat of new substitutes: There is potential threat from automated guided vehicles and robots used for material handling. However, the cost for replacing an entire fleet limits immediate switch to substitutes.

Competitive rivalry:

Forklift Truck Market Challenges and Opportunities are characterized by intense competition among industry giants to gain market share through new product development and expanding their dealer network globally.

Geographical Regions

North America dominates the global forklift market with over 35% value share owing to strong demand from warehousing and manufacturing industries. Growing e-commerce sector and emphasis on workplace safety further augment sales in the region.

Asia Pacific witnesses the fastest growth led by China, India and Southeast Asian countries. Infrastructure development, rising industrialization and expanding warehousing facilities drive the demand. Countries pushing ‘Make in India’ and ‘China Manufacturing 2025’ initiatives trigger forklift procurement.

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About Author:
Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)