There is no shortage of reports summing up the global forklift market and while the figures vary – in some cases significantly – all of them point to sustained growth in the sector for at least the next eight years.
For example, according to global market intelligence specialist Interact Analysis, strong growth in shipments of 4-5% is forecast for the global forklift market out to 2032, with greater competition driven by emerging technologies and rising global demand for logistics.
According to Interact Analysis, this is expected to fuel further innovation and development opportunities for the industry over the coming years, as the market looks set to grow by 50%, from around two million units in 2022 to around three million units in 2032.
Poor demand in China led to a contraction of 12.4% in shipments during 2022, with the Americas and EMEA regions also witnessing a decline, leading Interact Analysis to reduce its forecast for 2023/24. Order volume is expected to fall by around 6% in 2023 to two million units, marking the first time since 2019 it has dipped below the shipment volume.
Covid-19 pandemic-related supply chain issues caused a significant difference between order and shipment volumes, leading to a historical peak of 370,000 units in 2021, as shipments lagged far behind orders. The sector has been catching up ever since, but with a sharp fall in order volumes, Interact Analysis predicts 2024 will be a low point for the market.
“Some external market factors, including ongoing geopolitical instability (as evidenced by recent tensions in the Red Sea), continue to bring significant uncertainty to the global economic outlook,” the analyst said.
“Due to this and unusually high growth from 2020-2022, global market activity declined in 2023, particularly in Europe, the Middle East and Africa. However, there was still a mild recovery in the fourth quarter of last year.”
In its latest report, The Global Forklift Market – 2023, Interact Analysis reveals new business revenue for major forklift companies grew by 21% year-on-year during the first three-quarters of 2023 to reach US$19.5bn, significantly higher than the 5.2% recorded for the same period of 2022.
In its most recent update, Interact Analysis notes that Q4 2023, order volumes in the North American market saw a significant increase, witnessing an “historical peak” in sales, particularly for counterbalance trucks, which saw sales surge by 52%.
Meanwhile, Grand View Research has a much punchier set of figures, putting the value of the global forklift market at US65.16bn in 2023 and projecting a compound annual growth rate (CAGR) of 13.5% from 2024 to 2030. The pace of the market growth is accelerating, says the report, and is characterised by a high degree of innovation, including the advent of autonomous vehicle technology in material handling, which is expected to open up new avenues for market growth.
Demand for electric forklifts has been surging in recent years and while Grand View Research says that the lead-acid segment held the largest revenue share of 66.7% in 2023, it adds that the lithium-ion (Li-ion) battery is expected to record the strongest growth up to 2030.
Interact Analysis predicts China and several countries in Europe will achieve a 50% electrification rate for forklifts as early as 2025. The global market share of Li-ion models is anticipated to surpass 50% in 2030, with Class 3.1 predicted to be the first category to achieve over 50% electrification.
Staying with electric forklifts but focusing on Europe, Spherical Insights puts the segment’s market value at US$15.28bn in 2022 and says it’s growing at a CAGR of 12.26% from 2022 to 2032.
Spherical Insights’ analysts say the electric forklift market in Europe is expected to grow the fastest during the forecast period and that market size is expected to reach US$48.9bn by 2032.
The report says the drivers of growth in the industry in Europe are “stringent pollution restrictions, the requirement for operating efficiency, and the growing emphasis on sustainability”.
It adds that a boost in building projects in the region – and growing demand for construction equipment in countries such as the UK, Germany and France – are fuelling the expansion of the electric forklift sector. And it adds that “compact pallet trucks with optimum mobility in warehouses is likely to drive the expansion”.
When it comes to battery type, Spherical Insights agrees with Grand View Research that Li-ion is witnessing higher growth over the forecast period than lead-acid, hydrogen fuel cell and others. And it says that rising R&D spending on materials and chemicals is a major driver for the rapid drop in Li-ion battery prices and that this is likely to benefit manufacturers in the launch of higher-efficiency and low-cost forklifts.
