Global Forklift Market size to exceed $100 Bn by 2026
Published Date: February 4, 2020 Authors: Ankita Bhutani, Saloni Gankar
Forklift Market size is set to be around USD 100 billion by 2026; according to a new research report by Global Market Insights, Inc.
The rising market penetration of advanced technologies in logistics and e-commerce industries is driving the automated forklift market demand. Incorporation of new technologies, such as ERP systems, RFID, and Zone Control, is transforming the equipment into intelligent systems that can track the entire supply chain processes. Market players are actively investing in R&D and developing technologically advanced products to enhance operational efficiency and reduce logistics costs. The industry is witnessing an inclination toward the automated picking and palletizing equipment.
Warehouse forklifts are increasingly used in storage and distribution centers
Warehouse forklift market segment is expected to witness substantial growth over the forecast timeline. The equipment is widely used for loading/unloading pallets and balanced materials, as well as removing and moving goods from delivery vehicles. Several retailers are increasingly deploying these vehicles in warehouses and distribution centers to enhance work safety. The replacement of traditional physical labor by automated industrial trucks for performing warehousing operations saves time, labor resources, and provides increased performance. The other market segment by product type includes counterbalance.
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Rising urbanization and the ubiquitous e-commerce sector are driving the forklift market growth
Several retail companies are experiencing high pressure to meet the ever-increasing market demand of their customers and to operate efficiently. Companies are actively implementing several advanced solutions in their warehouses and distribution centers owing to the rapid changes in customer preferences. The implementation of the equipment in warehouse and storage facility helps companies in transporting heavy goods and supplying goods from one place to another with lesser efforts.
Growing need to reduce emissions from equipment powered with diesel engines
The class I forklift industry is driven by the increasing adoption in food & beverage, retail, and general merchandise industries for loading & unloading tractor-trailers and handling pallets. Several government administrations are adopting stringent standards to reduce emissions from non-road diesel engines, encouraging the adoption of electric vehicles among industries. The equipment is quieter and create no emissions, making them a popular choice for indoor applications. The other market segments by class includes class II, class III, class IV, class V, class VI and class VII.
Browse key industry insights spread across 300 pages with 508 market data tables and 26 figures & charts from the report, “Forklift Market Size By Product (Counterbalance, Warehouse), By Fuel Type (Diesel, Battery-Electric, Gasoline & LPG/CNG), By Class (Class I, Class II, Class III, Class IV, Class V), By End-Use (Chemical, Food & Beverage, Industrial, Logistics, Retail & E-Commerce), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
LPG-based forklifts market is witnessing high demand owing to rising environmental concerns
LPG-powered equipment is fast, strong, and long-running, and have low environmental impacts. The usage of LPG significantly reduces harmful emissions such as nitrogen, sulfur, CO2, and suspended particulate matters. Several logistics and manufacturing companies prefer LPG trucks owing to the benefits of lower upfront & maintenance costs, easy refueling, lesser emissions, and efficient power & flexibility in comparison with diesel lift trucks. Daily inspection and servicing of fluid levels in the equipment will lower the maintenance costs of LPG forklifts. The other market segments by fuel type includes electric and Internal Combustion Engine (ICE).
Online shopping trends are driving the demand automated forklifts in warehouses
Rise in online shopping among consumers is compelling retailers to provide fast, accurate, and efficient customer services for delivering products. Warehouse managers are increasingly automating their facilities to improve the accuracy and efficiency of tasks such as storage & retrieval, carton picking, palletizing and de/palletizing, and material transport. Online retailers are implementing automated forklifts in warehouse centers for transporting inventory and finished goods to different places. The other market segments by end-use type includes 3PL, durable manufacturing, e-commerce, food & beverage, general merchandise.
In April 2017, Plug Power, a hydrogen fuel cell company, announced its partnership with Amazon. With this partnership, Amazon plans to replace its battery-operated forklifts with the Plug Power’s fuel-cell lift truck. Amazon invested USD 70 million to purchase and deploy hydrogen fuel cell-powered equipment at its 11 fulfilment centers.
The growing demand for low-cost services is propelling the U.S. market demand
The U.S. forklift market will expand at 7% CAGR over the forecast timeline, with the ongoing expansion of the e-commerce sector. In 2018, Amazon Inc. generated over USD 235 billion via retail e-commerce sales in the U.S. High labor costs in the U.S. stress the need for high-performance material handling solutions to reduce time consumption and enhance productivity.
Increasing government investments for the overall economic development of the country have led to the market demand for technologically advanced solutions. As manufacturing and construction sectors continue to grow with the recovering U.S. economy, the market demand for a variety of materials handling equipment has risen. The equipment plays a vital role in transporting heavy materials throughout a work area.
Market leaders are partnering with dealers to retain/increase their industry foothold
The modernization of the forklift market has led to a spur in the manufacturing sector. The growing competition in the sector is forcing market players to focus on product development. Moreover, market players are expanding their dealer network through the expansion of customer services and product lines. To help dealers in building relationships with customers, focused customer satisfaction programs are introduced. As the rental business is gaining prominence, manufacturers are focusing on supporting their dealer network by enabling the sale of machinery to regional, local, and national rental companies through dealers.
Prominent leaders in the forklift market share include Anhui Heli Co., Ltd., Clark Material Handling, Combilift Ltd., Crown Equipment Corporation, Doosan Industrial Vehicle, Godrej & Boyce, Hangcha Group Co., Ltd., KION Group AG, Hyster-Yale Materials Handling, Inc., Hyundai Heavy Industries, Komatsu Ltd., Konecranes, Jungheinrich AG, Manitou Group, Mitsubishi Logisnext Co., Ltd., and Toyota Industries Corporation, among others.
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