Industrial Vehicle Market Size & Share 2024 to 2032
Market Size by Vehicle (Tow Tractors, Forklifts, Container Handlers, Aisle Trucks), by Propulsion (ICE, BEV, Hybrid EV), by Application (Manufacturing, Warehousing, Freight & Logistics) & Forecast.
Report ID: GMI5806
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Published Date: August 2024
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Report Format: PDF
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Authors:
Preeti Wadhwani, Aishvarya Ambekar
Industrial Vehicle Market Size
Industrial Vehicle Market was valued at USD 44.8 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032. The growing industries in developing nations are driving the demand for industrial vehicles.
Industrial Vehicle Market Key Takeaways
Market Size & Growth
Key Market Drivers
Challenges
The rapid pace of technological advancements and innovations in electric and hybrid power trains have led to more efficient and environmentally friendly vehicles. Additionally, advancements in battery technology, such as lithium-ion batteries, are enhancing the performance and range of electric industrial vehicles. The integration of telematics and IoT (Internet of Things) solutions allows for real-time monitoring, predictive maintenance, and improved fleet management, providing significant cost savings and operational efficiencies.
For instance, in January 2022, Toyota Material Handling launched a new range of counterbalance forklifts. Designed for both indoor and heavy-duty outdoor applications, the Traigo80 80-volt counterbalance range is offered with a choice of lithium-ion new Traigo80 equipped with a small lithium-ion battery that can work a full 8-hour shift. In addition, the Traigo80 is designed for the toughest environments and features high-level protected motors that deliver best-in-class performance and durability in all weather conditions.
Various measures are being implemented by governments globally to expedite the adoption of vehicles (EVs) and facilitate the shift towards more environmentally friendly transportation. Additionally, manufacturers are given grants and subsidies to reduce production costs and promote investment in EV technology. Governments may further fund the construction of charging infrastructure and offer financial incentives to fleet operators switching to vehicles. All these actions are intended to lower costs, increase accessibility, and enhance the appeal of EVs, thereby promoting their wider adoption and supporting environmental sustainability hence, propelling the market.
Industrial vehicles are still regarded as emerging technologies, and participants may find it difficult to expand the market due to high manufacturing costs. The high initial costs of industrial vehicles make it challenging for new competitors to enter the market, which restricts growth. Furthermore, the market for industrial vehicles is constrained by a scarcity of charging infrastructure. However, subsidies and tax breaks provided by various government agencies appear to be mitigating these constraints in the coming years. These financial supports help reduce the cost of vehicles and encourage the development of charging infrastructure, gradually overcoming market constraints and propelling growth in the industrial EV sector.
Industrial Vehicle Market Trends
Technological advances in batteries have made vehicles (EVs) much more viable for use in industrial settings. Increased battery energy density enables longer operating hours and a greater range, making vehicles more affordable and accessible for businesses due to their lower costs. Faster charging times also reduce downtime, allowing for more efficient use of the vehicles. The efficiency and performance of industrial vehicles are further improved by advancements in power electronics and motors, which provide higher torque, better control, and smoother operation. Together, these technological developments enable EVs to meet the rigorous demands of industrial environments, including frequent and heavy lifting.
For instance, in January 2023, BYD introduced its Blade Battery technology, which enhances safety and efficiency. These batteries are designed to have a longer lifespan and provide consistent power output, making them ideal for forklifts and other industrial vehicles. The company's buses and trucks, equipped with these batteries, are increasingly being used in industrial and urban settings.
Industrial Vehicle Market Analysis
Based on vehicle type, the market is divided into tow tractors, forklifts, container handlers, aisle trucks, and others. The forklift segment accounted for over 33% of the market share in 2023 and is anticipated to experience substantial growth over the forecast period. The increasing use of forklifts in the manufacturing and industrial sectors is a key factor contributing to the segment's growth. The demand for forklifts is driven by the need for environmentally friendly production vehicles and equipment in various industries.
Electric forklifts are designed to save energy and reduce maintenance costs. They further decrease the likelihood of industry downtime by reducing the need for servicing and replacements. Additionally, growing awareness about environmental pollution and its effects on human health is encouraging the industry to adopt forklifts. For instance, in 2022, Jungheinrich globally introduced two new series of durable forklift trucks. The newly launched EFG forklifts serve as cost-effective entry-level models designed for traditional transportation and stacking duties within the 1.6 to 3-tonne range.
Based on application, the market is categorized into manufacturing, warehousing, freight & logistics, and others. The manufacturing segment accounted for a market share of around 41% in 2023 and is poised for significant growth over the forecast period. The growing acceptance of vehicles in the industry is fueled by the need for increased production efficiency and the adoption of sustainability practices. The demand for industrial vehicles in production facilities is driven by increasing concerns about environmental responsibility and the working environment. These efforts aim to lower costs, increase accessibility, and enhance the appeal of vehicles, thereby promoting their wider adoption and supporting environmental sustainability.
Asia Pacific is experiencing growth in the industrial vehicle market. The region accounted for a market share of over 45% in 2023. The region's market is expanding due to the growing population and increased industrialization in developing nations. Many Asian countries have significant industrial bases and manufacturing sectors, necessitating the use of industry-specific vehicles to support market growth. The demand for heavy-duty trucks in industrial manufacturing facilities is driving this market expansion. In addition, the market has the potential to grow sustainably due to increasing awareness of environmental pollution and shifting consumer preferences towards vehicles, even for industrial applications. Encouraging government initiatives supporting the use of vehicles is also driving the regional market for industrial vehicles.
Moreover, the U.S. is anticipated to experience the fastest growth in the industrial vehicle market. This growth is driven by increasing consumer adoption of vehicles and the presence of major players in the automobile segment, which are boosting vehicle sales in the region. The expansion of the industrial vehicle industry in the area is also being fueled by rising investments in R&D for the development and introduction of new vehicles. For instance, in May 2024, Toyota Motor North America, Inc. (Toyota) and FuelCell Energy, Inc. launched the "Tri-gen" system at the Port of Long Beach, California. The latest launch Tri-gen uses biogas to renewable hydrogen, produce renewable electricity, and usable water, and is designed to support the vehicle distribution and processing center for Toyota Logistics Services (TLS) at Long Beach.
In Europe, the market for industrial vehicles is growing, due to increased adoption of eco-friendly production methods and growing demand for sustainability in manufacturing facilities. Further, the market provides development, distribution, and other services for a variety of vehicle types that are useful for industrial regions' manufacturing, storage, and lifting needs. The market for industrial cars is expanding, supported by growing consumer preferences for vehicles and increased involvement from key companies in the automotive industry in the development of these vehicles.
Industrial Vehicle Market Share
Toyota Material Handling and Jungheinrich AG hold a significant market share of 25% of the industrial vehicle industry in 2023. Major companies operating in the market are employing various strategies to stay competitive in the market. One key focus is technological innovation, with companies investing in research and development to enhance the performance, efficiency, and features of their vehicles. This includes advancements in battery technology, telematics, and automation to meet the evolving needs of industrial applications.
Moreover, strategic collaborations with energy companies and infrastructure providers are helping industrial vehicle manufacturers address charging infrastructure challenges. By participating in public-private partnerships and engaging with government initiatives, these companies aim to accelerate the development of a robust charging network.
Industrial Vehicle Market Companies
Major players operating in the industrial vehicle industry are:
Industrial Vehicle Industry News
The industrial vehicle market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) & shipment (in Units) from 2021 to 2032 for the following segments:
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Market, By Vehicle
Market, By Propulsion
Market, By Application
The above information is provided for the following regions and countries:
Research methodology, data sources & validation process
This report draws on a structured research process built around direct industry conversations, proprietary modelling, and rigorous cross-validation and not just desk research.
Our 6-step research process
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Primary research forms the backbone of our methodology, contributing nearly 80% to overall insights. It involves direct engagement with industry participants to ensure accuracy and depth in analysis. Our structured interview program covers regional and global markets, with inputs from C-suite executives, directors, and subject matter experts. These interactions provide strategic, operational, and technical perspectives, enabling well-rounded insights and reliable market forecasts.
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Data mining is a key part of our research process, contributing nearly 20% to the overall methodology. It involves analysing market structure, identifying industry trends, and assessing macroeconomic factors through revenue share analysis of major players. Relevant data is collected from both paid and unpaid sources to build a reliable database. This information is then integrated to support primary research and market sizing, with validation from key stakeholders such as distributors, manufacturers, and associations.
4. Market sizing
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