Global Forklift Trucks Market - Segmented by Power Source (Internal Combustion Engine, and Electric Motor), Class (Class I, Class II, Class III, and Class IV), End-user (Transportation and Logistics, Retail Industry, General Manufacturing, Construction, and Food and Beverages Industry), and Region - Growth, Trends, and Forecast (2018 - 2023)
The forklift trucks market was is expected to register a CAGR of over 6% during the forecast period (2018 - 2023). Forklift Trucks are one of the most common material handling equipment in the market. Although there are a high number of automated solutions arriving in the market the demand for manual internal combustion (IC) and electric forklifts has not dwindled. In fact, the increasing demand from Europe and Asia Pacific region is expected to further raise the sales of these units over the forecast period.
While the tremendous demand from the retail industry, especially from the e-commerce sector, is driving the forklift trucks market headlong, lack of skilled labor and advent of automated guided vehicles (close substitutes to forklift trucks) pose a significant challenge to the market, hindering the growth.
However, in the current market scenario, the low-cost forklift trucks often outweigh the high-cost automated solutions. But the increasing adoption of Industry 4.0 policies, increasing costs of commercial warehouse spaces, demand for ultra-fast deliveries, and logistics operations and declining robotics costs will undoubtedly affect the forklift trucks market in the near future.
Electric Forklift Trucks to Hold the Largest Share
In the past the few years, electric/battery-powered forklifts have taken a stronghold in material handling environment. The limitations and drawbacks that once made electric forklifts inefficient and impractical have been put to rest by advancing technologies and proven performance. In early 1960’s more than 60% of the forklift trucks sold in the market were powered by IC engines, but in the current market scenario, this position was occupied by electric forklifts. Electric forklifts are also cheaper to operate and maintain when compared to IC forklifts.
According to a study conducted in Ohio by NMC Material handling, the cost to recharge an electric forklift can range from USD 1.50 to USD 4.50 per eight-hour shift while the cost of operating a liquid propane gas (LPG) lift runs between USD 18 to USD 25 per bottle fill. Although these rates depend upon location, it is clear that energy-consumption costs for an electric forklift are far less. With several other advantages, like zero emission, low noise, better visibility, and the knack to virtually perform every task that an IC forklift can do is increasingly consenting electric forklift trucks to gain more market share every and is expected to be the fastest growing forklift type over the forecast period.
Increasing Demand from North America
North America stands to be the third largest market for forklift trucks after Europe and Asia-Pacific regions. However, in 2017, the region has had an impressive sales profile dedicated to strongly enlivening economy in the United States and Canada. According to the Material Handling and Logistics Organization, more than a quarter million units of forklifts were sold in North America, in 2017. This marks an increase of 9.5% in the sales when compared to 2016 and an increase of 12.2% in sales when compared to 2015. The growth was uniform across all classes of forklift trucks when compared to 2016. Even the internal combustion class 5 trucks experienced an increase of 19% in 2017.
With stringent environmental regulations in the region, electrical products accounted for approximately 64% (+162,000 units) of the market in 2017. According to the estimates of Clark Material Handling Company, US, the industry contributed over 25 billion annually to US GDP supporting more than 200,000 US jobs annually. As this aligns with the interests of current US government, to create jobs for US citizens, the sales of these equipment are expected to witness considerable growth in the region over the forecast period making North America one of the fastest growing regions for forklift trucks market.
Key Developments in the Market
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