July 19, 2024

Forklift Truck Market: Growing Industrial Automation to Drive Market Growth

The global Forklift Truck Market is estimated to be valued at US$40.24 billion in 2023 and is expected to exhibit a CAGR of 11.1% over the forecast period from 2023 to 2030, according to a report published by Coherent Market Insights.

Market Overview:

Forklift trucks are widely used in warehouses, manufacturing plants, and construction sites for material handling and transportation purposes. These trucks offer several advantages such as enhanced operational efficiency, increased productivity, and reduced labor costs. The need for forklift trucks is associated with the growing industrial automation and the need for efficient and safe movement of heavy goods.

Market Key Trends:

One key trend observed in the forklift truck market is the increasing adoption of electric forklifts. Electric forklift trucks are gaining popularity due to their eco-friendly nature and lower operating costs compared to diesel or petrol-powered forklifts. Electric forklifts produce zero emissions and require less maintenance, leading to cost savings for businesses. Additionally, advancements in battery technology have improved the performance and reliability of electric forklifts, driving their demand in various industries.

Porter’s Analysis


Threat of new entrants:

The threat of new entrants in the forklift truck market is relatively low. The market is characterized by high initial investments, a high level of technical expertise, and significant barriers to entry such as strong brand loyalty and established distribution networks. Additionally, established players in the market benefit from economies of scale, making it difficult for new entrants to compete on pricing.

Bargaining power of buyers:
Buyers in the forklift truck market have a moderate level of bargaining power. The market is highly competitive, with several key players offering a wide range of products. Buyers have the option to choose from various suppliers and negotiate favorable deals. However, the high switching costs associated with changing suppliers may limit their bargaining power to some extent.

Bargaining power of suppliers:
Suppliers in the forklift truck market have a low bargaining power. The market is characterized by a large number of suppliers, including established manufacturers, and a wide range of raw materials and components. Competition among suppliers forces them to offer competitive prices and terms to manufacturers. Moreover, manufacturers have the option to switch suppliers if they are not satisfied with the quality or pricing.

Threat of new substitutes:
The threat of new substitutes in the forklift truck market is relatively low. Forklift trucks are essential equipment for material handling in various industries such as manufacturing, warehousing, and logistics. There are limited alternatives that can efficiently perform the tasks handled by forklift trucks, making it difficult for substitutes to gain significant market share.

Competitive rivalry:
The competitive rivalry in the forklift truck market is high. Key players in the market are continually investing in research and development activities to innovate their products and gain a competitive edge. The market is characterized by intense price competition, product differentiation, and aggressive marketing strategies. However, the market is consolidated, with a few major players dominating the market share.

Key Takeaways

The Global Forklift Truck Market Demand is expected to witness high growth, exhibiting a CAGR of 11.1% over the forecast period. This growth is primarily driven by the increasing demand for efficient material handling equipment in various industries, including manufacturing, warehousing, and logistics. The rising adoption of automation and the need for streamlined operations are further contributing to the market growth.

In terms of regional analysis, Asia Pacific is the fastest-growing and dominating region in the forklift truck market. The region is witnessing significant industrialization and rapid growth in the e-commerce sector, driving the demand for forklift trucks. Additionally, the presence of major manufacturing hubs and favorable government initiatives to boost the logistics and transportation infrastructure further propel market growth in this region.

Key players operating in the forklift truck market include Toyota Industries Corporation Group, Kion Group AG, Jungheinrich AG, Hyster-Yale Materials Handling, Inc., Crown Equipment Corporation, Mitsubishi Nichiyu Forklift Co., Ltd., UniCarriers Americas Corporation, Anhui Heli Company Limited, Komatsu Ltd., Clark Material Handling Company, Doosan Industrial Vehicle, Hangcha Group Co. Ltd., JBT Corporation, Combilift Ltd., Godrej & Boyce Mfg. Co. Ltd, and Linde Material Handling. These players are focusing on product innovations, acquisitions, partnerships, and expanding their distribution networks to gain a competitive advantage in the market.

 

*Note:
1.  Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it