Forklift Market Size, Share, Forecast, & Trends Analysis by Class (1, 2, 3, 4, 5, 6, 7), Tonnage (Light, Medium, Heavy), Propulsion Type (Diesel, Gasoline, Electric), Automation (Full, Semi), Sector (E-Commerce, Automotive, Industrial) — Global Forecast to 2031

Forklift Market Size & Forecast

The Forklift Market is expected to reach $111.1 billion by 2031, at a CAGR of 6.5% from 2024 to 2031. The growth of this market is driven by factors such as the expansion of the retail & e-commerce sector, the increasing automation in manufacturing and warehousing, and the growing focus on workplace safety and operational efficiency. However, the shortage of skilled operators may restrain market growth.

Furthermore, the increasing integration of IoT with forklifts, the growing demand for electric & hybrid forklifts as sustainable alternatives to traditional internal combustion engine forklifts, and the increasing demand for customizable forklifts are expected to create market growth opportunities. However, the high upfront and maintenance costs of forklifts pose a significant challenge to the market's growth.

Additionally, the growing demand for electric forklifts and the adoption of automated and robotic forklifts are prominent trends in the forklift market.

Forklift Market Growth Drivers

Expansion of the Retail & E-commerce Sector

E-commerce & online retail refer to the exchange of goods and services conducted over the Internet. Increasing consumer preference for online shopping has led to higher order volumes and the need for efficient warehouse operations. Forklifts play a crucial role in facilitating these operations by optimizing storage space, enhancing inventory management, and ensuring timely order processing and delivery. Forklifts facilitate various tasks such as loading and unloading shipments from delivery trucks, picking and packing orders for shipping, transferring pallets and containers to shipping areas for dispatch, and organizing and stacking inventory on shelves and racks.

According to the International Trade Administration, U.S. Department of Commerce, the global B2B e-commerce market is projected to reach USD 36 trillion by 2026. Similarly, global B2C e-commerce revenue is projected to reach USD 5.5 trillion by 2027 at a CAGR of 14.4%. Furthermore, India is expected to lead among 20 countries worldwide in retail e-commerce development between 2023 and 2027, with a CAGR of 14.1%. Meanwhile, Argentina and Brazil are expected to emerge as the fastest-growing e-commerce markets globally, with a CAGR of over 13.6%. Additionally, the global retail e-commerce CAGR was estimated at 11.16% during the same period.

The rapid growth of the retail & e-commerce sector in countries such as India, Argentina, and Brazil, coupled with the surge in online shopping globally, is expected to drive the demand for forklifts to facilitate efficient material handling and warehouse operations. These developments, combined with the rising need to manage growing inventory volumes and maintain efficient supply chain operations, are expected to support the growth of the forklift market during the forecast period.

Rising Automation in Manufacturing and Warehousing

Automation in manufacturing and warehousing involves leveraging advanced technologies to streamline and optimize operational processes. Forklifts serve as integral components of automated material handling systems (AMHS). Companies are increasingly deploying automated forklifts, also known as Automated Guided Vehicles (AGVs) or robotic forklifts, designed to operate autonomously within warehouse environments.

Automated forklifts offer efficient material handling and real-time inventory tracking, ensure safe and precise operation and management, and help maximize warehouse space utilization. Market players are prioritizing autonomous material handling technology to achieve higher throughput and operational efficiency in warehouses, distribution centers, and manufacturing facilities. For instance, in February 2024, ArcBest Corporation (U.S.) launched Vaux Smart Autonomy, featuring autonomous mobile robot (AMR) forklifts and reach trucks, intelligent software, and remote teleoperation capabilities to autonomously handle materials movement within warehouses, distribution centers, and manufacturing facilities. Such developments, coupled with the growing adoption of Industry 4.0 technologies and the increasing need to reduce manual labor, are expected to drive the market's growth during the forecast period.

Forklift Market Trends

Increasing Adoption of Automated and Robotic Forklifts

Advancements in robotics and the rising need for enhanced efficiency and safety in material handling operations are driving the adoption of automated and robotic forklifts. These forklifts are engineered to function autonomously or with minimal human intervention, leveraging sensors, cameras, and navigation systems. Automated forklifts reduce the need for manual labor, enhance productivity, ensure safe operation in dynamic environments, and deliver high precision, minimizing errors in picking, placing, and stacking operations.

Market participants are directing their efforts toward innovating in robotics and artificial intelligence to streamline operations, improve throughput, and enhance overall efficiency. For instance, in May 2024, KION North America (a subsidiary of KION GROUP AG) partnered with Fox Robotics (U.S.) to produce and assemble FoxBot autonomous trailer loader/unloaders (ATLs) at its facilities in Summerville, South Carolina.

Forklift Market Opportunity

Growing Demand for Electric & Hybrid Forklifts as Sustainable Alternatives to Traditional Internal Combustion Engine Forklifts

Electric forklifts operate on rechargeable batteries, whereas hybrid forklifts integrate electric power with a small combustion engine or fuel cell to extend range and enhance flexibility. Presently, businesses are opting for these forklift variants as sustainable alternatives to traditional internal combustion engine forklifts due to increasing environmental regulations and emissions standards, a growing need to reduce carbon footprint and air pollution in both indoor and outdoor environments, and the need to lower operating costs.

Electric and hybrid forklifts require less maintenance, resulting in longer lifespans and heightened reliability while also offering a safer work environment with reduced exhaust emissions and lower noise levels. Market players are concentrating on broadening their product portfolios by launching new electric and hybrid forklifts. For instance, in September 2023, Hangcha Group Co., LTD. (China) launched its high-voltage lithium battery-powered electric rough terrain forklifts ranging from 2.5 to 3.5 tons. These forklifts are designed to reduce noise levels, achieve zero-emission operation, and lower the total cost of ownership.

Such initiatives by market players, coupled with the increasing adoption of sustainable forklifts and the implementation of government subsidies and incentives for clean energy technologies, are expected to offer significant market growth opportunities.

Forklift Market Analysis: Key Findings

By Class: In 2024, the Class 3-Electric Motor Hand/Rider Trucks Segment to Dominate the Forklift Market

Based on class, the forklift market is broadly segmented into class 1-electric motor rider trucks, class 2-electric motor narrow aisle trucks, class 3-electric motor hand/rider trucks, class 4-ICE trucks with solid/cushion tires, class 5-ICE trucks with pneumatic tires, class 6-electric/IC engine tow tractors, and class 7-rough terrain forklifts. In 2024, the class 3-electric motor hand/rider trucks segment is expected to account for the largest share of over 40.0% of the forklift market. This segment's large market share can be attributed to the rising demand for efficient warehouse operations, encompassing tasks such as order picking, pallet handling, and goods transportation. Additionally, the rising emphasis on workplace safety and the growth in the e-commerce and logistics sectors contribute to the significant market share of this segment.

However, the class 1-electric motor rider trucks segment is projected to register the highest growth rate during the forecast period of 2024–2031. The growth of this segment can be attributed to the increasing preference for sustainable and eco-friendly forklifts, aiming at reducing emissions, providing quieter operation, and lowering maintenance costs. Furthermore, supportive government policies and incentives promoting electric vehicle adoption contribute to this segment's growth.

By Tonnage Capacity: In 2024, the Light-Duty Forklifts (Upto 10 Tons) Segment to Dominate the Forklift Market

Based on tonnage capacity, the forklift market is broadly segmented into light-duty forklifts (upto 10 tons), medium-duty forklifts (11–35 tons), and heavy-duty forklifts (above 35 tons). In 2024, the light-duty forklifts (upto 10 tons) segment is expected to account for the largest share of over 42.0% of the forklift market. This segment's large market share can be attributed to the rising demand for light-duty forklifts for warehouse and fulfillment center operations, facilitating efficient order picking and inventory management. Furthermore, their compact size makes them ideal for indoor applications, driving their adoption across small-scale manufacturing facilities and workshops.

However, the medium-duty forklifts (11–35 tons) segment is projected to register the highest growth rate during the forecast period of 2024–2031. The growth of this segment can be attributed to the growth of the industrial sector and the rising demand for medium-duty forklifts to streamline the movement of goods, equipment, and materials within manufacturing, warehousing, and distribution centers

By Propulsion Type: In 2024, the Diesel Forklifts Segment to Dominate the Forklift Market

Based on propulsion type, the forklift market is broadly segmented into diesel forklifts, gasoline forklifts, electric forklifts, and hybrid forklifts. In 2024, the diesel forklifts segment is expected to account for the largest share of the forklift market. This segment's large market share can be attributed to the increasing adoption of diesel forklifts for heavy-duty applications such as outdoor material handling, construction projects, and industrial operations. Diesel forklifts are favored for their lower upfront costs compared to electric forklifts, making them a convenient and accessible choice for businesses operating in remote or off-grid locations. Additionally, these forklifts can operate efficiently across diverse weather conditions and terrains, further contributing to their increased adoption.

However, the electric forklifts segment is projected to register the highest growth rate of over 9.5% during the forecast period of 2024–2031. The growth of this segment can be attributed to the rising adoption of sustainable and eco-friendly forklifts aimed at reducing carbon footprint, supportive government policies and incentives promoting electric vehicle adoption, advancements in battery technology, and the lower operating costs of electric forklifts compared to their diesel or gasoline-powered counterparts.

By Automation Type: In 2024, the Semi-automated Forklifts Segment to Dominate the Forklift Market

Based on automation type, the forklift market is broadly segmented into fully-automated forklifts, semi-automated forklifts, and manual forklifts. In 2024, the semi-automated segment is expected to account for the largest share of over 47.0% of the forklift market. This segment's large market share can be attributed to the increasing adoption of semi-automated forklifts. These forklifts facilitate seamless integration with advanced warehouse management systems (WMS) and enhance productivity, safety, accuracy, and operational efficiency in material handling tasks.

However, the fully-automated forklifts segment is projected to register the highest growth rate during the forecast period of 2024–2031. The growth of this segment can be attributed to the rise in warehouse automation and the increasing need to support the rapid fulfillment of online orders and improve supply chain efficiency through 24/7 productivity. Furthermore, the rising focus on smart manufacturing and Industry 4.0 initiatives and the need to reduce dependency on manual labor and mitigate labor-related risks contribute to the increased adoption of fully-automated forklifts.

By Sector: In 2024, the Industrial Manufacturing Segment to Dominate the Forklift Market

Based on sector, the forklift market is broadly segmented into food & beverage, automotive, paper & pulp, metals & heavy machinery, retail & e-commerce, aerospace & defense, mining, chemicals, pharmaceuticals & healthcare, industrial manufacturing, storage & warehousing, construction, and other sectors. In 2024, the industrial manufacturing segment is expected to account for the largest share of over 26.0% of the forklift market. This segment's large market share can be attributed to the increasing demand for efficient and flexible material handling solutions within the industrial sector and the growing demand for advanced forklifts to meet diverse manufacturing needs, improve productivity, and enhance supply chain responsiveness.

However, the retail & e-commerce segment is projected to register the highest growth rate during the forecast period of 2024–2031. The growth of this segment can be attributed to the rapid growth in the e-commerce & online retail sectors, resulting in the increased demand for advanced forklifts to enable efficient warehouse operations, inventory management, and order processing.

Geographical Analysis

In 2024, Asia-Pacific to Dominate the Forklift Market

Based on geography, the forklift market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of over 48.0% of the forklift market, followed by Europe, North America, Latin America, and the Middle East & Africa. Moreover, the market in Asia-Pacific is projected to register the highest growth of over 8.0% during the forecast period. Asia-Pacific's significant market share can be attributed to several key factors, including the increasing demand for efficient and reliable forklifts to support material handling and warehouse operations across various industries, the growing trend towards Industry 4.0 and smart manufacturing, the increasing adoption of advanced forklifts including automated guided vehicles (AGVs), robotic picking systems, and AI-powered forklifts to support growing e-commerce volumes.

Furthermore, the rising demand for heavy-duty forklifts to handle construction materials and equipment, coupled with an increasing focus on workplace safety and regulatory compliance, especially in countries like Japan, South Korea, and Australia, further contributes to the growth of this regional market.

Forklift Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios and geographic presence and the key growth strategies adopted by them over the past 3–4 years. Some of the key players operating in the forklift market are Toyota Industries Corporation (Japan), KION GROUP AG (Germany), Jungheinrich AG (Germany), Mitsubishi Logisnext Co., Ltd. (Japan), Crown Equipment Corporation (U.S.), Hyster-Yale Group, Inc. ( U.S.), Anhui Heli Co., Ltd. (China), Hangcha Group Co., LTD. (China), CLARK MATERIAL HANDLING (U.S.), Doosan Bobcat Inc. (South Korea), HD Hyundai Construction Equipment Co., Ltd. (South Korea), Combilift (Ireland), EP Equipment (China), VisionNav Robotics (U.S.), Action Construction Equipment Limited (India), and Godrej & Boyce Manufacturing Company Limited (India).

Forklift Industry Overview: Latest Developments from Key Industry Players

• In April 2023, Doosan Industrial Vehicle (a subsidiary of Doosan Bobcat Inc. (South Korea)) partnered with Kollmorgen Corporation (U.S.) to strengthen its position in the material handling industry. Through this partnership, both companies will focus on developing and building efficient, sustainable, and reliable custom-made automated guided vehicles (AGVs).
• In January 2023, Crown Equipment Corporation (U.S.) launched new IC and Electric Counterbalance Forklifts (C-B, C-D, and C-G Series) capable of carrying up to 5.5 tons for both indoor and outdoor applications.
• In May 2022, CLARK Material Handling (U.S.) launched a new S40-60 IC pneumatic forklift designed for high load capacities ranging from 4-6 tons (8,000 to 12,000 pounds)

Forklift Market Research Summary

Key questions answered in the forklift market report: