Industrial Electric Vehicle Market Size & Share 2025 - 2034

Industrial Electric Vehicle Market Size

The global industrial electric vehicle market was valued at USD 26 billion in 2024 and is projected to grow at a CAGR of 12.7% between 2025 and 2034. The new focus on the environment alongside the expansion of industrial vehicle business service centers will most certainly lead to a remarkable growth in new markets. Industry growth will help vehicle servicing and equipping, and strong environmental concern will push electric vehicle adoption. The combination of these factors is expected to propel market growth due to supporting infrastructure and eco-friendly emerging services.

For example, Stellantis and CATL intend to form a joint venture worth €4.1 billion in December 2024 to construct a sizable lithium iron phosphate (LFP) battery plant. This plant will be located at an existing Stellantis production location in Zaragoza, Spain. The plant aims to achieve full carbon neutrality and is scheduled to begin production at the end of 2026, with an anticipated annual output of 50 GWh. These companies intend to further strengthen their position through newly created service and storage facilities.
 

Technological development of the electric industrial vehicle sector is booming with the release of new battery technologies as well as the reduction of costs. Electric vehicle operational and capital expenditures are changing due to innovations in battery technologies which enhance the efficiency, range, and operational speed of electric vehicles. Businesses are adopting electric vehicles as their cost and operational expenditure becomes more economically viable. This interplay of optimizing electric vehicle features, coupled with technological adaptability to market demands has become a focal factor in the augmentation of market growth.
 

Microvast Holdings made an important announcement in the upcoming 2025 showcase regarding a new breakthrough in its True All-Solid-State Battery (ASSB) technology, which marks the advancement of battery innovation. These advancements are expected to improve safety, energy density and operational efficiency. In contrast to standard lithium-ion batteries, Microvast’s ASSB is safer than current systems due to the use of solid electrolytes that do not leak or catch fire unlike liquid electrolytes.
 

Industrial Electric Vehicle Market Trends

• The development of charging and testing infrastructure continues to be the most important factor accelerating the progress of the electric industrial vehicle. The installation of additional charging opportunities reduces the consumers’ apprehension of operating electric vehicles and promotes universal acceptance of electric vehicles. In addition, the creation of purpose-built test facilities solves defined problems within a particular industry, including the proper integration and functioning of electric vehicles.
   
• As an example, in 2023, SANY launched operations with the SANY New Energy Engineering Vehicle Testing Center, the only engineering vehicle testing center in the world for charging engineering vehicles powered by state-of-the-art ergonomics and facilities, marked with a flagship investment of RMB 100 million. This constitutes the most advanced framework for the new energy heavy-duty vehicles in China and is a new milestone in the world of heavy-duty vehicles.
   
• Autonomous navigation and IoT are steadily being integrated in industrial electric vehicles. The wide use of Automated Guided Vehicles (AGVs) and autonomous forklifts increase efficiency and safety while lowering operational costs and employee hazard exposure in warehouses and manufacturing units. These smart vehicles employ an array of sensors, real-time datasets, and centralized fleet management to execute collision-free route optimization, performance monitoring, and communication interruption prevention.
   
• As an example, Sona Comstar collaborated with TiHAN-IIT Hyderabad for the advancement of autonomous and electric mobility technologies through an MoU signed at CES 2025 held in Las Vegas in January 2025. This partnership aims at creating new modalities for Autonomous Ground Vehicles (AGVs), drones, and electric vertical take-off and landing (eVTOL) aircraft.
   

Industrial Electric Vehicle Market Analysis

Based on vehicles, the industrial electric vehicle market is divided into tow tractors, forklifts, container handlers, aisle trucks, and others. In 2024, the forklifts segment dominated the market accounting for around 48% share and is expected to grow at a CAGR of over 13% during the forecast period.
 

• The increase in demand for industrial electric forklifts is noted with the concurrent reason of changing industry 4.0 manufacturing practices with logistics automation. This also incorporates the need to reduce carbon emissions and mitigate the carbon footprint, thereby emphasizing the green policies of electric forklifts.
   
• The need for quieter industrial operations that are emission free, and the highlighting focus on safety also adds to the need for electric forklifts in the industrial sector. All these factors portray the adoption of clean solutions and advanced technology for material handling.
   
• As an example, Hyster added the J230-400XD series electric forklifts, developed for heavy-duty tasks like lumber, metals, and port operations, to its catalog in March 2025, promoting cutters controlled with precision and accuracy. These new models also incorporate lithium-ion batteries that offer zero emissions unlike combustion engines, making them more environmentally friendly.
   

Learn more about the key segments shaping this market

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Based on applications, the industrial electric vehicle market is segmented into manufacturing, warehousing, freight & logistics, and others. In 2024, the manufacturing segment dominates the market with 37% of market share and the segment is expected to grow at a CAGR of over 13% from 2025 to 2034.
 

• Sustained effort to maintain practices alongside increased production drives the manufacturer segment. As to being more socially responsible and efficient, there is a lot more adoption of EVs in the sector because of the discharge of vehicles systems.
   
• The goal of lowering carbon emissions and operating expenses is a growing concern. The impact of the focus on these different elements at the same time manifests as cleaner, more advanced industrial transport for the mechanization, enabling transition to far greener approaches.
   
• For example, Vestas Manufacturing Spain SL recently in April 2025, signed contracts with Kalmar for electric powered reach stackers and forktrucks to aid in carbon neutrality at their blade factory in Daimiel, Spain. This agreement represents a segment of the broader decarbonization initiative that Vestas has planned for their manufacturing plants.
   

Based on propulsion, the industrial electric vehicle market is segmented into Battery Electric Vehicles (BEVs), Plug-in Hybrid Electric Vehicles (PHEV), and Hybrid Electric Vehicles (HEVs), with the Battery Electric Vehicles (BEVs) category expected to dominate due to their operational efficiency, low maintenance needs, and eco-friendliness.
 

• The Battery Electric Vehicles (BEVs) are powered by electric batteries, allowing them to operate independently of fossil fuels. This helps further reduce emission and noise—critical consideration in factory and warehouse settings. Unlike internal combustion or hybrid vehicles, BEVs incur lower operating costs adding value to many cost-sensitive industries.
   
• Furthermore, government incentives that encourage a shift to clean energy along with the increasing supply and demand for sustainable industrial work fueled capturing more of the market share. Their use is also preferred due to ease of automation and integration into digital systems like warehouses and logistics, making them suitable for modern industrial workflows.
   
• As an example, in March 2025 MacLean Engineering introduced the ML5 Multi Lift Battery Electric Vehicle (BEV) which provides a versatile and safe approach to electric vehicle (EV) use in underground mining operations. This innovative vehicle forms part of MacLean's EV Series intended to curb diesel emissions while boosting productivity in the mines and other regions around the world.
   

In 2024, the China region in Asia Pacific dominated the industrial electric vehicle market with around 38% market share in Asia Pacific and generated around USD 4.5 billion in revenue.
 

• China is prominent in the development of the industrial electric vehicles owing to it's high level of industrialization, it's policies of government support and carbon emission neutrality goals. Also, the country has fully equipped EV manufacturing facilities, cost-effective battery assembly, and higher levels of automation in warehouses and manufacturing facilities.
   
• China’s subsidiary companies in logistics and e-commerce are some of the early adopters of electric industrial vehicles for optimization of business processes. In addition, “Made in China 2025” is fostering the production of smart factories, which will also drive demand for electric industrial vehicles.
   
• In March of 2023 for instance, Hangcha released the XE Series of electric forklifts. The XE Series has models ranging from 1.5 to 3.8 tonnes with an 80V battery of 608 MAh. The incorporation of permanent magnet synchronous and lithium-battery technologies increases the efficiency and performance of the equipment. The forklifts have a maximum speed of 18 km/h and can operate on grades of 25%.
   

The industrial EV market in Germany is expected to experience significant and promising growth from 2025 to 2034.
 

• Germany’s dominant position in the market of industrial electric vehicles is attributed to the country’s heavy industry, developed logistics and transport networks, as well as sustainable industry initiatives. Germany’s electric industrial vehicle demand from factories and warehouses is supported further by rigid emission control policies, and electrification efforts such as the national hydrogen strategy and decarbonization policy.
   
• As part of these outlines, BMW announced on November 2024 that it would move the logistics fleet of the BMW Group Plant Regensburg from electric to hydrogen propulsion (hybrid model) between 2026 and 2030. This is also part of the iFACTORY framework which emphasizes sustainable digitization and green manufacturing.
   

The industrial electric vehicle market in the U.S. is expected to experience significant and promising growth from 2025 to 2034.
 

• The U.S. industrial electric vehicle market is experiencing an upsurge due to increased spending on automaton for industries, sustainability requirements, and breakthroughs in battery technology. Almost all industrial sectors such as manufacturing, logistics, and warehousing are now using electric forklifts, AGVs, and utility vehicles to improve productivity and achieve carbon goals.
   
• The growth in e-commerce, the wider adoption of high speed throughput warehousing has further fueled this trend. In addition, every state has some form of EV charging infrastructure which accelerates the electrification of industrial fleets, representing a major factor for market growth throughout the country.
   
• North America and China are developed nations within the European Union. EP has planned to replace internal combustion (IC) vehicles, starting with two newly introduced lithium-ion battery forklifts powered CPD45F8/50F8, EFLA251, which focus on eco-friendly material handling.
   

The industrial electric vehicle market in Saudi Arabia is expected to experience significant and promising growth from 2025 to 2034.
 

• The Saudi industrial sector has been steadily growing with regards to the electric vehicle industry due to the Vision 2030 objectives set in the country which centers on industrial modernization and sustainability. In particular, the development of logistics hubs, free zones, and warehousing infrastructure around Riyadh, Jeddah, and NEOM are boosting demand for electric forklifts, tow tractors, and AGVs.
   
• Investments in manufacturing and logistics, as well as government support targeting clean energy transitions, are other factors positively impacting market growth.
   
• For instance, Sany Group signed a historic supply contract with Saudi Global Ports (SGP) for the delivery of 80 electric terminal tractors to King Abdulaziz Port in Dammam, Saudi Arabia, slated for June 2024. This is the largest single contract for the manufacture and supply of electric trucks in the world. This contract will improve sustainability and operational efficiency at Saudi ports, which is in tandem with the Kingdom of Saudi Arabia's “Vision 2030” for Sustainable Development and the National Transport and Logistics Strategy.
   

Industrial Electric Vehicle Market Share

• Top 7 companies of the industrial electric vehicle industry are Toyota, Hyundai Construction Equipment, KION Group, Sany Electric, Komatsu, Jungheinrich AG, and Manitou holding around 46% of the market in 2024.
   
• At Toyota, the company’s electric material handling equipment is under development and operational efficiency is furthered with automation, fleet connectivity, and lithium ion batteries. The corporation also actively works towards emission-free forklifts as well as forming partnerships for eco-friendly vehicles to aid in the industrial carbon neutral goals, working towards sustainability with industrial forklifts.
   
• To accelerate the electric vehicle roadmap, Hyundai Construction Equipment is introducing electric forklifts as well as compact electric excavators for industrial use. The company supports R&D and emits partnering in battery technology to enhance efficiency. Also, the company is venturing into productivity and remote diagnostics through AI and telematics while supporting green construction and the sustainable industrial vehicle solution framework.
   
• The KION Group is advancing its industrial electric vehicle strategy with Linde and STILL brands by introducing energy-efficient electric forklifts and Automated Guided Vehicles (AGVs). Primary focus for the group is on lithium-ion and hydrogen fuel cells, digitalization, fleet management platforms, and solutions for monitoring and controlling multiple vehicle fleets. Innovations through R&D investments and Energy Solutions business intend to provide sufficiency-scalable electrified solutions for logistics and warehouse automation.
   

Industrial Electric Vehicle Market Companies

Major players operating in the industrial electric vehicle industry are:

• Hangcha Forklift 
• Hyster-Yale Materials Handling
• Hyundai Construction Equipment
• Jungheinrich AG
• KION Group
• Komatsu
• Manitou
• MITSUBISHI LOGISNEXT
• Sany Electric
• Toyota
   

The latest approach in the industrial electric vehicles market focuses on increasing product portfolios with new advancements in battery technology and energy efficiency, including the reduction of the total cost of ownership. Firms are increasingly allocating budget towards R&D for automation and smart connectivity while strategically contracting others to improve supply chain management. Besides, gaining a competitive advantage in the industrial green market is also targeted by meeting the sustainability goals and emission control requirements.
 

These businesses in the industrial market are now focusing on electric vehicles with modular designs to address the needs of various industries such as construction, mining, and warehousing. Significant attention is directed towards the implementation of IoT and telematics for real-time system performance evaluation and prognostics. For better customer support, ts, and enhanced market access in both developing and developed countries, firms are establishing local manufacturing and aftersales service facilities.
 

Industrial Electric Vehicle Industry News

• In March 2025, Toyota Material Handling Europe introduced the Traigo48 range of electric counterbalanced forklifts, designed for versatile applications such as loading, unloading, stacking, and horizontal transport. These forklifts are available in 3- and 4-wheel models with load capacities ranging from 1.5 to 2.0 tons, lift heights up to 7.5 meters, and a maximum speed of 20 km/h. Customers can select between lead-acid (LAB) and lithium-ion (LIB) batteries, catering to diverse operational needs. The Traigo48 range emphasizes cutting-edge design, energy efficiency, enhanced productivity, and operator comfort.
   
• In June 2024, Vedanta Aluminium, India’s largest aluminium producer, expanded its fleet of electric lithium-ion forklifts to 66 units, reinforcing its position as the largest deployer of such forklifts in the country. This expansion includes the addition of 22 forklifts at its smelter operations in Jharsuguda, Odisha. The initiative is part of Vedanta Aluminium’s broader commitment to sustainability and decarbonization, aiming to achieve Net Zero carbon emissions by 2050.
   
• In April 2025, Kalmar expanded its global delivery capability by starting production of electric empty container handlers and heavy forklift trucks at its Shanghai manufacturing facility. This development is part of Kalmar's strategy to enhance sustainability and efficiency in cargo handling operations. The Shanghai plant, celebrating its 20th anniversary, now produces a wide range of material handling equipment, including the newly added electric models, to serve customers across Asia-Pacific, South America, the Middle East, and Africa.
   
• In October 2024, Taylor Machine Works selected Proterra battery technology to power its electric port and industrial equipment, including the ZLC and ZEC series of electric container handlers, ZRS-series reach stackers, and ZH-series electric forklifts. This partnership aims to enhance sustainability and efficiency in heavy-duty material handling operations, particularly in port environments. Proterra will supply its advanced battery solutions to power Taylor's equipment. Proterra's batteries are known for their high energy density, performance, durability, and safety features, making them suitable for demanding industrial applications.
   

The industrial electric vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($ Mn/Bn) and shipments (Units) from 2021 to 2034, for the following segments:

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Market, By Vehicle

• Tow tractors
• Forklifts
• Container handlers
• Aisle trucks
• Others

Market, By Propulsion

• Battery Electric Vehicles (BEV)
• Plug-in Hybrid Electric Vehicles (PHEV)
• Hybrid Electric Vehicles (HEV)

Market, By Application

• Manufacturing
• Warehousing
• Freight & logistics
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa