Forklift Market – Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Power Source (IC Engine Powered, Electric Powered), By Class (Class 1, Class 2, Class 3, Class 4, Class 5, Class 6, Class 7), By End Use (Retail & Wholesale, Logistics, Automotive, Food Industry, Others), By Region & Competition, 2020-2030F

Market Overview

Global Forklift Market was valued at USD 66.16 billion in 2024 and is expected to reach USD 98.17 billion by 2030 with a CAGR of 6.80% during the forecast period.

Growing logistics infrastructure, rapid warehouse expansion, and evolving retail formats are accelerating the need for efficient lifting and material movement equipment. Forklifts have become a critical asset in various industrial operations, from port terminals to distribution centers.

According to United Nations Industrial Development Organization (UNIDO, 2024), Global manufacturing value added reached USD 16.1 trillion in 2023, up 3.6% YoY, indicating steady growth in forklift-reliant industries like automotive, food processing, and consumer goods.

The market is seeing significant evolution in design, capacity, and propulsion types, aligning with the broader trend of industrial automation. Growth is being reinforced by the integration of smart sensors and telematics in forklifts, which are improving safety, maintenance, and operational visibility. High-volume e-commerce, combined with increasing labor shortages in key economies, is pushing industries to seek equipment that ensures speed and reliability.

Automation is driving forklift demand in high-throughput environments. Technological convergence with AI, IoT, and cloud platforms is transforming forklifts from basic lifting machines to intelligent logistics systems. Emerging trends such as lithium-ion-powered forklifts and hydrogen fuel cell technologies are making inroads into traditional fleets. Industries are gradually shifting from fossil-fuel-powered forklifts to environmentally friendly alternatives. Compact and multi-directional forklifts are gaining prominence in industries with limited maneuvering space. However, market expansion is not without friction. High upfront capital cost and maintenance complexity often discourage small and medium enterprises from adoption. Dependency on a skilled workforce and safety risks involved in forklift operations remain critical challenges.

Limited standardization in regulatory frameworks for autonomous or semi-autonomous forklifts creates integration hurdles. The demand for high-performance batteries and charging infrastructure is rising, yet cost parity with diesel models is still a gap to bridge. Despite these constraints, the forklift market is well-positioned to benefit from long-term trends in automation, green mobility, and logistics modernization. Forklifts are no longer perceived as standalone equipment but part of larger industrial ecosystems. Innovation is steadily shaping the next generation of forklifts to be more energy-efficient, digitally integrated, and capable of operating in dynamic environments.

Market Drivers

Rising Warehouse and Logistics Expansion

The growth of e-commerce and omnichannel retailing is driving a significant expansion in warehouses and distribution centers globally. According to Armstrong & Associates (2024), The global third-party logistics (3PL) market was valued at USD 1.5 trillion in 2023, and is expected to grow at a CAGR of 5.5%.

Retailers and logistics companies are investing in high-capacity storage and quick order fulfillment infrastructure, which increases the need for efficient material handling equipment such as forklifts. As warehousing footprints expand, businesses require fleets of forklifts for picking, stacking, and transporting goods internally. This expansion is particularly evident in third-party logistics, cold chain logistics, and urban distribution hubs, where quick and precise material movement is essential. The demand for narrow aisle and reach forklifts has also grown in response to vertical storage strategies. Forklifts play an essential role in optimizing warehouse operations, reducing labor costs, and ensuring timely delivery, making them indispensable for modern supply chains. This trend is anticipated to persist as companies prioritize faster last-mile deliveries and improved operational efficiency in both domestic and international logistics networks.

Technological Advancements in Forklift Design

Advancements in forklift technology, including automation, telematics, and real-time fleet management, are transforming traditional material handling. Smart forklifts equipped with IoT sensors, AI algorithms, and remote diagnostics improve operational visibility and reduce downtime. Integration of these systems enables fleet managers to monitor usage patterns, maintenance schedules, and safety parameters remotely. Electric forklifts are also benefiting from improved lithium-ion battery technologies that offer faster charging, longer operation time, and reduced maintenance compared to conventional lead-acid batteries. Ergonomic designs and enhanced safety systems such as collision warning, automatic braking, and driver assistance are further contributing to their adoption. These innovations support productivity, sustainability, and worker safety, making forklift operations more cost-effective and efficient. The integration of automation into forklifts is also a stepping stone toward fully autonomous material handling solutions, which are being piloted in advanced logistics environments. The shift toward smart and connected equipment is a major growth driver across industrial applications.

Shift Toward Electric and Sustainable Equipment

Environmental regulations and corporate sustainability goals are encouraging industries to transition from internal combustion engine (ICE) forklifts to electric-powered alternatives. Electric forklifts produce zero on-site emissions, making them suitable for indoor operations such as warehouses, retail centers, and food and pharmaceutical facilities. Improvements in electric forklift performance, including higher load capacity, better battery life, and lower total cost of ownership, have boosted their acceptance across various sectors. They also operate with lower noise levels and require less maintenance due to fewer moving parts compared to ICE variants. As governments and industry stakeholders set stricter emission norms and offer incentives for green equipment, businesses are accelerating their electrification plans. The growing availability of lithium-ion batteries and charging infrastructure further supports the adoption of electric forklifts. This transition not only reduces the carbon footprint but also aligns with broader goals of energy efficiency and clean industrial practices.

Increasing Demand from Manufacturing Sector

The manufacturing sector continues to be a key consumer of forklifts due to its high dependence on material movement, inventory management, and inter-facility logistics. As production volumes rise across sectors such as automotive, food and beverage, electronics, and chemicals, the demand for reliable and high-capacity forklifts increases. Forklifts enable efficient handling of raw materials, semi-finished goods, and finished products within plants and warehouses. The need for precision, speed, and reduced human error has made forklifts essential in just-in-time and lean manufacturing setups. With the growing complexity of supply chains and demand for flexible manufacturing systems, forklifts are increasingly being integrated into automated material handling processes. Investments in plant modernization and smart manufacturing are further boosting the deployment of technologically advanced forklifts with features such as programmable lifting, integrated sensors, and energy-efficient systems. The manufacturing sector's focus on productivity and cost optimization directly influences forklift demand.

Growth of Cold Chain and Perishable Goods Handling

The expanding cold chain logistics sector is creating new demand for specialized forklifts capable of operating in refrigerated environments. Sectors such as food processing, pharmaceuticals, and dairy rely heavily on forklifts to move temperature-sensitive goods within cold storage facilities. These environments require equipment that can perform reliably at low temperatures without compromising performance or safety. Electric forklifts are preferred in these settings due to their low emissions and clean operation, which are crucial for maintaining hygiene and product integrity. Forklifts designed for cold storage often feature corrosion-resistant components, heated cabins, and special lubricants to withstand extreme conditions. As demand for frozen foods, biologics, and vaccines grows, businesses are expanding their cold storage capabilities, in turn fueling the demand for compatible forklifts. This driver is also tied to changing consumer preferences, increased global trade in perishables, and stringent quality control norms in the handling of temperature-sensitive products.

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Key Market Challenges

High Initial Investment and Maintenance Costs

Purchasing forklifts and maintaining a fleet involves significant upfront capital. Businesses must account for acquisition costs, battery systems, replacement parts, and service contracts. For small and mid-sized enterprises, the cost burden can delay adoption or limit modernization. Maintenance costs increase with the use of internal combustion forklifts due to fuel, fluid changes, and engine wear. Specialized forklifts for narrow aisles, cold storage, or heavy loads are even more expensive. Downtime during maintenance affects productivity, especially in high-throughput environments. While electric forklifts reduce some operating expenses, their initial costs and infrastructure needs remain barriers. The price sensitivity of end users in emerging economies further slows market penetration. Fleet management solutions and leasing models are emerging to ease cost burdens, but high total cost of ownership continues to restrict widespread forklift adoption across cost-sensitive industries.

Skilled Labor Shortage and Operator Training

The efficient and safe operation of forklifts depends on trained and certified personnel. A growing shortage of skilled operators poses challenges across industries, leading to reduced productivity and increased risk of accidents. Many warehouses and manufacturing units struggle to find qualified drivers who understand safety procedures and can adapt to increasingly sophisticated forklift technologies. Newer models with advanced telematics or electric drive systems require technical know-how that older operators may lack. Constant retraining becomes necessary as forklift features evolve, adding to operational expenses. In sectors experiencing high labor turnover, businesses often face recurring costs for hiring and training. The lack of standardized certification across geographies and sectors complicates the recruitment process. This challenge is particularly pronounced in fast-paced logistics centers and construction sites where safety, precision, and speed are non-negotiable.

Limited Infrastructure for Electric Forklifts

Despite the advantages of electric forklifts, the lack of charging infrastructure within industrial facilities acts as a constraint. Unlike traditional ICE forklifts that can refuel quickly, electric models require downtime for battery charging or swapping. In older facilities not originally designed for electric vehicle use, installing charging stations involves space, cost, and electrical load considerations. For large fleets, managing multiple charging cycles without interrupting operations becomes complex. Lithium-ion batteries, though faster to charge, come with higher costs and require careful thermal management. In multi-shift operations, any delay in recharging affects productivity, compelling some companies to retain or prefer ICE models. Without adequate charging support, the full potential of electric forklifts cannot be realized, especially in sectors demanding continuous, heavy-duty performance.

Key Market Trends

Integration of Telematics and IoT in Forklift Fleets

Telematics and Internet of Things (IoT) technologies are increasingly embedded in forklift systems to enhance visibility and control. Fleet managers now track vehicle location, usage patterns, battery health, and maintenance needs in real time. These insights enable preventive maintenance, reduce downtime, and optimize forklift deployment. Integration with warehouse management systems (WMS) ensures forklifts are used where needed most, improving productivity and reducing idle time. IoT-enabled forklifts can also alert operators to unsafe practices or performance anomalies. These smart systems are transforming forklift fleets into data-driven assets. Companies are leveraging this data for informed decision-making and continuous improvement in operations. The growing demand for efficiency and safety in industrial logistics is expected to keep IoT adoption on an upward trajectory.

Rise of Automation and Autonomous Forklifts

The shift toward warehouse automation has sparked interest in autonomous and semi-autonomous forklifts. These systems use sensors, cameras, and navigation algorithms to perform tasks with minimal human intervention. They are particularly useful in repetitive, high-volume environments such as e-commerce distribution centers or automotive assembly lines. Autonomous forklifts improve accuracy, reduce labor dependency, and enhance safety by minimizing human error. Their ability to operate 24/7 also aligns with the needs of high-throughput operations. Although adoption is in early stages due to high costs and integration challenges, pilot deployments are increasing across industries. Businesses aiming to future-proof operations and address labor shortages are exploring automation as a long-term strategy. The trend reflects the broader transition toward Industry 4.0 and smart warehousing solutions.

Growing Preference for Lithium-ion Battery Forklifts

Lithium-ion battery technology is gaining traction in the forklift industry due to its superior energy density, faster charging times, and longer life cycles. These batteries support opportunity charging, making them ideal for multi-shift operations without the need for frequent battery swaps. Unlike lead-acid batteries, lithium-ion variants require minimal maintenance and eliminate issues such as acid spills and corrosion. Their lightweight design also improves forklift efficiency and load capacity. The environmental benefits, including reduced emissions and energy efficiency, further support their growing popularity. As production scales up and battery prices decline, lithium-ion forklifts are becoming more accessible to a wider range of end users. Industries prioritizing sustainability and performance are driving this shift.

Adoption of Ergonomic and Operator-Friendly Designs

Forklift manufacturers are focusing on operator safety, comfort, and ease of use to reduce fatigue and improve productivity. Newer models feature improved cabin visibility, ergonomic seating, user-friendly controls, and advanced dashboards. These features help operators work more efficiently over longer shifts while minimizing the risk of musculoskeletal injuries. Forklifts with adjustable components, noise reduction, and smooth ride suspension are gaining preference, especially in indoor operations. Enhanced operator environments also reduce turnover rates and training times. The trend reflects the growing recognition of human factors in industrial efficiency and safety. As workplaces evolve to prioritize well-being, ergonomic forklift design is expected to remain a key focus.

Emergence of Rental and Leasing Models

To manage capital expenditures and maintain operational flexibility, many businesses are shifting toward rental or leasing forklift solutions. This trend is particularly strong in sectors with seasonal demand or short-term projects, such as construction, agriculture, and event logistics. Rental models allow users to access the latest technology without long-term investment or maintenance burdens. Leasing companies offer packages that include service, battery management, and replacement parts, reducing operational complexity for clients. This approach also enables faster adoption of newer, more efficient forklifts. As forklift usage becomes more dynamic and demand patterns fluctuate, rental models are expected to become a major growth segment in the forklift ecosystem.

Segmental Insights

Power Source Insights

The forklift market by power source is divided into internal combustion engine (IC) powered forklifts and electric powered forklifts. These segments cater to varying operational needs based on load requirements, usage frequency, infrastructure compatibility, and environmental considerations. IC engine powered forklifts, driven by diesel, gasoline, or LPG/CNG, have historically dominated applications requiring high power output and long operational hours, especially in outdoor environments or heavy-duty industrial sectors. Their capability to operate under demanding conditions with quick refueling makes them suitable for construction sites, ports, and metal industries where consistent high performance is required without extended downtime.

Electric forklifts also allow for better ergonomics and integration with digital tools like fleet management systems, which is increasingly valuable for high-tech, automated environments. Companies investing in smart warehouses are more inclined to adopt electric variants to align with energy efficiency protocols and meet evolving compliance requirements. While electric forklifts are often associated with lower operational costs in the long term, the initial investment and infrastructure for charging remain key considerations for buyers.

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Regional Insights

In 2024, the Asia-Pacific region held a leading position in the forklift market due to its large-scale industrial activity, expanding logistics hubs, and significant manufacturing output. Countries in this region have rapidly growing e-commerce sectors, leading to high demand for material handling equipment in fulfillment centers and warehousing facilities. For instance, according to Forklift Action, China’s total forklift sales reached 1.29 million units in 2024, a 9.52% YoY increase. Electric forklifts accounted for 73.61% of total sales, growing 18.79% YoY, reflecting a strong industry shift toward green and smart solutions.

Europe & CIS presents a contrasting but equally dynamic scenario. Stricter environmental regulations, high labor costs, and well-established logistics systems have pushed companies toward energy-efficient, electric-powered forklifts. Sustainability remains a core focus, with enterprises investing in modern, clean, and compact lifting solutions suited for indoor and urban logistics operations. The strong presence of automation in manufacturing and warehousing in countries across this region supports the adoption of technologically advanced forklift fleets. With widespread deployment of charging infrastructure and favorable policies for emission reduction, electric forklifts have made substantial inroads into sectors that traditionally relied on diesel-powered alternatives. Forklift operators in this region prioritize long-term operational efficiency and safety, making it a mature market for high-spec electric models.

Recent Developments

• In April 2025. Kalmar has expanded its global delivery capabilities by establishing a new state-of-the-art assembly facility in Stargard, Poland. The site will support the production of electric and eco-efficient material handling equipment, enhancing delivery speed and flexibility. This move aligns with Kalmar’s strategy to strengthen its global supply chain. The expansion supports growing demand for sustainable cargo and container handling solutions.
• At ProMat 2025, Bobcat unveiled its new line of forklifts, marking its entry into the material handling equipment segment. The showcased models feature advanced ergonomics, enhanced visibility, and smart controls aimed at improving operator efficiency and safety. Designed for various industrial applications, the forklifts align with Bobcat’s innovation-driven portfolio. The launch highlights the company’s expansion into the warehouse and logistics equipment market.
• In August 2024, Godrej & Boyce launched a new lithium-ion powered forklift truck designed for energy efficiency and low maintenance. The forklift supports fast charging, zero emissions, and enhanced safety features. It targets applications in warehousing, manufacturing, and logistics sectors. The product aligns with the company’s focus on sustainable and electric mobility solutions.
• In 2023, Toyota Material Handling introduced a new line of electric pneumatic forklifts built for both indoor and outdoor use. These models deliver the performance of internal combustion forklifts while offering zero emissions and lower operating costs. Equipped with advanced safety and ergonomic features, they support heavy-duty applications. The launch reflects Toyota’s commitment to sustainable material handling solutions.
• In 2023, HD Hyundai Construction Equipment India launched new excavators and forklifts tailored for the Indian market, emphasizing performance and fuel efficiency. The forklifts are designed for durability, operator comfort, and versatile industrial applications. These machines support various capacities and are suited for warehousing and logistics sectors. The launch reinforces Hyundai's focus on expanding its industrial equipment portfolio in India.

Key Market Players

• Crown Equipment Corporation
• EP Equipment
• Hangcha Group Co Ltd
• Hyster Yale Material Handling Inc
• Jungheinrich AG
• Kion Group AG
• Komatsu Ltd
• Lonking Holdings Limited
• Mitsubishi Logisnext Co Ltd
• Toyota Industries Corporation

Report Scope:

In this report, the Global Forklift Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Forklift Market, By Power Source:

• IC Engine Powered
• Electric Powered

• Forklift Market, By Class:

• Class 1
• Class 2
• Class 3
• Class 4
• Class 5
• Class 6
• Class 7

• Forklift Market, By End Use:

• Retail & Wholesale
• Logistics
• Automotive
• Food Industry
• Others

• Forklift Market, By Region:

• North America

• United States
• Canada
• Mexico

• Europe

• Germany
• France
• U.K.
• Spain
• Italy

• Asia-Pacific

• China
• Japan
• India
• South Korea

• Middle East & Africa

• South Africa
• Saudi Arabia
• UAE
• Turkey

• South America

• Brazil
• Argentina

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Forklift Market.

Available Customizations:

Global Forklift Market report with the given market data, TechSci Research offers customizations according to the company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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