Forklift Market Size, Share & Trends Analysis Report By Class (Class 1, Class 2, Class 3, Class 4/5), By Power Source (Internal Combustion Engine, Electric), By Region (North America, Europe, APAC, Latin America, MEA), And Segment Forecasts, 2020 - 2027

Report Overview

The global forklift market size was valued at USD 49.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 12.1% from 2020 to 2027. Forklifts, also known as lift trucks or powered industrial trucks, are compact machines used to lift and transport materials from one location to another. Developments in the e-commerce industry are fueling the demand for lift trucks over the forecast period. As online shopping increases, the demand for lift trucks among retailers has escalated. Lift trucks help retailers to store and distribute products in huge volumes, which help them to gain a competitive advantage in their respective sectors.

The outbreak of COVID-19 pandemic has led to several forklift manufacturers to either suspend or significantly reduce their production capacity to limit the spread of the virus. Companies such as Hyster-Yale Materials Handling, Inc. suspended their production in Europe, where governments of various countries imposed strict lockdown measures. Due to these factors, there has been a shortage of materials from suppliers in various countries. Furthermore, disruptions in the supply chain are expected due to border closures and traffic delays.         

Companies within the manufacturing sector are adopting automation for enhancing their production capacity. Powered industrial trucks reduce manual work as they help manufacturers transfer various parts and materials from warehouses to the production line. For example, the automotive industry is growing at a rapid pace in Latin America region. According to International Organization of Motor Vehicle Manufacturers (OICA), in 2019, around 2.9 million vehicles were manufactured in Brazil, an increase of 2.2% from 2018. This number is expected to rise over the coming years and thus, fueling the demand for lift trucks from 2020 to 2027.

Technological advancements such as Internet of Thing (IoT) and Artificial Intelligence (AI) are paving the way for the growth of the market for forklifts over the forecast period. Market players are focusing on developing strategic alliances and launching connected forklifts to cater to the end user requirements effectively. For instance, in April 2019, Toyota Industries Corporation and Microsoft announced to digitally transform Toyota’s logistics solutions, which include connected forklifts. These connected forklifts are enabled with machine learning and IoT technologies and are aimed to meet the rising demand in the e-commerce sector to transport goods efficiently.

Adoption of propane-powered lift trucks in the food and beverage sector is anticipated to boost market growth over the forecast period. The food and beverage industry is constantly evolving and companies within this sector need to ensure an uninterrupted transfer of materials within the manufacturing and warehouse facilities. Hence, material handling equipment in food processing operations needs to have minimum downtime. In this scenario, propane operated forklifts are more effective than electric forklifts as they provide 100.0% power throughout the operation. Moreover, propane-powered forklifts produce low emissions as compared to diesel-powered lift trucks owing to which their adoption in the food and beverage sector is comparatively high.

Rising investments in construction sector to develop infrastructure is fueling the market for forklifts. Lift trucks are used to carry heavy construction materials such as steel joists and pallets of bricks across rough terrains. The construction sector has witnessed a rapid increase in the Middle East region, especially in UAE. The country is focusing on investing in construction sector to promote tourism. Furthermore, in 2018, the construction sector in Dubai grew by 4.5% from 2017, leading to the demand for lift trucks for smooth operations.

Class Insights

The class 3 segment held the largest market share of 37.8% in 2019. This is due to their ability to quickly unload materials from delivery trucks and is highly preferred for small warehouses. Similarly, the class 4/5 segment is expected to witness significant growth over the forecast period. This is attributable to the usage of diesel operating lift trucks in China. Class 4/5 type of forklifts consists of internal combustion and is used in both applications, in large warehouses, and for loading materials on the docks. This gives them a greater advantage over other types of powered industrial trucks which are used for operating in narrow aisles and warehouses only. Other types included in the class segment are class 1, class 2, and class 3 type lift trucks.

The class 2 segment is projected to witness a CAGR exceeding 5.0% in terms of revenue in the forklift market over the forecast period. This surge is due to the rising demand for electric forklifts coupled with the stringent emission regulations for lift trucks. Class 2 lift trucks are used effectively in narrow aisles and tight spaces. As these forklifts are small and can maneuver in small spaces, they provide the user with an option to gain storage space within the existing warehouse.

Power Source Insights

In terms of revenue, the electric segment held the largest market share of 67.5% in 2019 with a CAGR exceeding 13.0% from 2020 to 2027. This is attributable to the increasing demand for electric lift trucks owing to the stringent emission regulations in Europe. In January 2019, the European Union set Euro-Stage V emission standards for diesel and LPG powered non road vehicles. The new standards limit the emissions of particulate matter and reduce them further by 40.0% as that of previous norms. Owing to the changes made in these standards, the demand for electric lift trucks is anticipated to rise over the forecast period.

The internal combustion engine segment is projected to witness a CAGR exceeding 7.0% in terms of revenue over the forecast period. This upsurge is due to the increasing demand for cost-effective lift trucks in Asia Pacific. The initial cost of electric forklifts for end users is higher than that of internal combustion engine forklifts. This has led to the rise in demand for internal combustion engine lift trucks in developing economies such as China and India.

Regional Insights

In terms of revenue, Asia Pacific dominated the market with a share of 38.9% in 2019. This is attributable to the rising demand in developing economies such as China and India. China is considered the manufacturing hub which resulted in huge demand for lift trucks. Furthermore, India launched the “Make in India” initiative in 2014 to encourage foreign direct investments in various industries, including manufacturing. With companies such as General Electric, Siemens, Boeing, and HTC focusing on establishing manufacturing facilities in India, the market for forklifts is expected to rise over the forecast period.

North America is expected to witness a considerable CAGR of over 6.0% from 2020 to 2027. This growth is attributed to the presence of prominent market players such as Crown Equipment Corporation; Hyster-Yale Materials Handling, Inc.; and CLARK. The market for forklifts in this region is driven by the rising demand in the U.S. retail sector. According to the U.S. Census Bureau, the U.S. e-commerce shipments in 2018 were valued at USD 4,010.6 Billion, an increase of 7.5% from 2017. Moreover, the presence of major retailers such as Kroger; Walmart; and Amazon.com, Inc. is anticipated to generate huge demand for lift trucks.

Key Companies & Market Share Insights

Market players are focusing on expanding their product portfolio to augment their revenue share. For instance, in February 2019, Doosan Corporation announced the launch of a wide range of robust electric counterbalance forklifts. The company aims to expand its electric lift truck offerings as it believes they will be an attractive replacement for internal combustion engine lift trucks.

Key players are also focusing on expanding their business geographically to gain a competitive advantage in the market for forklifts. For instance, in June 2019, Crown Equipment Corporation announced the opening of its new sales and service facility in Oklahoma, U.S. The new facility was launched to provide customers access to the latest material handling technology and meet the growing demand for equipment within the region. The market for forklifts has witnessed various inorganic growth strategies such as acquisitions, mergers, and collaboration being adopted by market players over the past few years. Some of the prominent players in the forklift market include:

• Anhui Forklift Truck Group Co., Ltd.

• CLARK

• Crown Equipment Corporation

• Doosan Corporation

• Hangcha

• Hyster-Yale Materials Handling, Inc.

• Jungheinrich AG

• KION Group AG

• Komatsu Ltd.

• Mitsubishi Logisnext Co., Ltd.

• Toyota Industries Corporation

Forklift Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. Grand View Research has segmented the global forklift market report based on class, power source, and region:

• Class Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • Class 1

  • Class 2

  • Class 3

  • Class 4/5

• Power Source Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • Internal Combustion Engine

  • Electric

• Regional Outlook (Volume, Units; Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

  • Europe

    • The U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa