Autonomous Forklift Market

[312 Pages Report] The autonomous forklift market is projected to reach USD 8.8 billion by 2028 from an estimated USD 4.6 billion in 2023, at a CAGR of 13.8% from 2023 to 2028. The growth of the autonomous forklift market is influenced by factors such as rising complexities in product handling, rising need for smart logistics, and growing consumerism through online platforms. Autonomous forklifts significantly enhance operational efficiency by working continuously without breaks, which increases productivity in warehouses and manufacturing facilities. They help reduce labor costs, address shortages, and improve safety by minimizing human error. Therefore, the autonomous forklift market is expected to grow significantly in the coming years.

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Market Dynamics

DRIVER: Growth in e-commerce, logistics, and warehousing sectors

The global e-commerce sector has experienced tremendous growth over the past years as many customers purchase online due to easy accessibility and convenience. The development of e-commerce is mainly due to increasing internet access, rising adoption of smartphones, and rising use of digital payment systems. Further, e-commerce provides consumers access to various products on a single platform, and consumers can choose competitive products through the e-commerce platform. According to the Coldwell Banker Richard Eills (CBRE), the share of the global e-commerce industry in total retail sales has grown from 20.7% in 2021 to 23.4% in 2023.

With the increase in the eCommerce industry, the number of eCommerce warehouses is increasing. eCommerce requires complex product handling with growing pick-ups and returns. Autonomous forklifts are the best solution for handling complex products and frequent pick-ups and returns, owing to the benefits such as higher throughput, reducing human errors, and saving time. Distribution centers operate on the operator-to-goods (OTG) principle, wherein the operator has to travel to get the product. An autonomous forklift can automatically bring the product to the operator. This will eliminate the operator's travel time. This saved time will help the operator to complete other tasks and fulfill customers' demands more efficiently.

Autonomous forklifts are used by third-party logistics, food & beverages, automotive, paper& pulp, metal & heavy industry, aviation, semiconductors & electronics, chemicals, healthcare, and other industries. Thus, the advantages of autonomous forklifts over conventional forklifts, such as reduced delivery & distribution time, fewer human errors, increased safety, high-volume production, and improved accuracy and repeatability, have spurred the adoption of autonomous forklifts in e-commerce and other logistics hubs.

RESTRAINT: High integration and switching costs limit the installation in Small & Medium Sized businesses.

An autonomous forklift provides benefits such as higher throughput, reduced human error, time-saving, and handling a wide range of products in less time. However, the installation cost of autonomous forklifts is higher than that of conventional forklifts. For instance, an automated forklift costs around USD 75,000-80,000 USD, whereas a manual forklift costs around USD 30,000-35,000. The ROI of automated forklifts is usually 4-5 years, and it is mainly installed in warehouses/businesses where a high volume of material handling is required, so small and medium-sized companies usually cannot install autonomous forklifts due to high initial investment and slower ROI.

Further, it is quite complex to integrate the advanced systems associated with autonomous forklifts with existing warehouse infrastructure. The changes need to be done in a warehouse to install autonomous forklifts in an existing warehouse, which requires additional costs. Autonomous Forklifts also require maintenance and recalibration whenever the warehouse layout changes. Hence, the installation of autonomous forklifts is limited to large businesses where a high volume of material handling is required daily.

OPPORTUNITY: Development of IoT-integrated autonomous forklifts

The Task of Material Handling has been enhanced with the introduction of Industrialization 4.0 and the adoption of Well-developed supply chain Techniques, such as the Internet of Things (IoT), big data, and cloud computing, which have diminished human activity on the supply chain and brought in more machinery. The IOT system integrates all technology and information technology with real physical work and equipment regarding the material handling process. For the autonomous forklift, precise data-driven optimization is essential. Various sensors and encoders must continuously monitor forklift health to reduce the risk of damage to the facility and equipment. Therefore, IOT creates such a subsystem so that the operator can also monitor the performance of the autonomous forklifts through a fleet management interface. Operational efficiency has improved with the introduction of this autonomous forklift system into the plant, as the physically strenuous repetitive labor workloads on employees have reduced operational fatigue. In addition, it is assumed that the use of IoT-based autonomous forklifts for supply chain activities will grow owing to other benefits such as precise mixed case picking, traveling and lifting speed management, and real-time location capability.

CHALLENGE: Technical challenges related to sensing elements

The key challenges autonomous forklifts face include multiple sensing elements, with the most imminent being the ability to detect objects and construct maps of the environment in busy and active warehouses. These problems are related to preventing sensor saturation, rejecting distracting crosstalk, and making the system work efficiently with limited sight – in dusty, gloomy, or shiny areas. The difficulty comes from merging various sensors such as LiDAR, camera, and ultrasonic for 3D view, which raises the problem of how fast and well the data are coordinated to avoid accidents and enable seamless movement through different locations. Also, these sensors, besides providing real-time presence abstractions, have to work effectively in a relatively challenging industrial environment. An entire operational process could be stopped by a technical problem with the sensing component of the system, adding time and money to the company's expenses. Thus, integrating different sensors and cameras with software and maintaining flawless operation efficiently is quite challenging.

Autonomous Forklift Market Ecosystem.

5- 10 tons Tonnage Capacity to register as the second fastest-growing segment in the market from 2023 to 2028.

Autonomous forklifts weighing 5 to 10 tons are commonly used in indoor and outdoor applications. The 5–10 tons capacity segment includes battery-operated and ICE forklifts. They are needed for heavy-duty material handling in manufacturing facilities, warehouses, shipping ports, and airports. These lifts are built to operate in small spaces and drive into shipping containers. They also have strong transmissions and reliable pneumatic braking, which offers improved load handling & stability and provides enhanced braking performance while handling heavy loads.

The growing electric infrastructure in Europe and North America will drive the demand for 5–10 tons of autonomous forklifts. An increase in heavy-duty operations at shipping ports in North America is projected to drive the market for the 5–10 tons segment. The 5-10 tonnage capacity autonomous forklift also finds application in paper & pulp, food & beverages, and chemicals where pallet size is more than 5 to 10 tons. The demand for 5–10-ton forklifts has increased due to their ability to handle significant loads and suitably navigate within warehouse environments efficiently. They are growing pallet sizes above 5 tons in food & beverages,  paper & pulp, and chemical industries, driving the adoption of 5–10-ton forklifts.

The Electric Propulsion segment is predicted to grow at the fastest CAGR during the forecast period.

The industrial automation sector's future lies in the electrification of the forklifts. Because of benefits like decreased emissions, lower operating costs, and ease of maneuverability, the tendency to adopt equipment with electric propulsion is quickly rising in all regions. One of the main factors influencing the growth of electric propulsion autonomous forklifts is an increased focus on operation efficiency, environmental regulations, advancement in battery technology, supportive government legislation, and simple integration with automotive software and hardware technologies. Further, many OEMs are focusing on the development of electric autonomous forklifts, which is helping to adopt electric autonomous forklifts in different industries. For instance, In February 2022, Cyngn (US) and Greenland Technologies Holding Corporation (US) announced the integration of autonomous vehicle technology into their lithium-powered autonomous electric forklift fleet. Therefore, with the growing focus on a zero-emission working environment and reduced operations costs, the demand for electric autonomous forklifts is predicted to rise during the forecast period.

The automated Pallet Jacks segment accounted for the largest market share during the forecast period.

Pallets of products and materials are moved around a warehouse or distribution center using automated pallet jacks. Unlike traditional pallet jacks, which require an operator to manually steer and control the movement of the equipment, it moves and navigates independently using sensors, cameras, and other technologies. They are typically battery-powered and can carry loads up to several tons. Autonomous pallet jacks are designed to improve the efficiency and safety of warehouse operations because they can operate continuously without pausing, maneuver through tight spaces, and avoid people and other objects. They are frequently integrated with warehouse management systems to enhance the movement of goods and minimize human error.

Automated pallet jacks hold the largest share as they are easy to deploy, don’t require any additional infrastructure modification, and can be included in the standard warehouse process without any change. These automated pallet jacks are mainly used for floor-to-floor applications. Further, these automated pallet jacks are suitable for sing-face pallets only due to their fork stabilizers.

Many companies focus on developing automated pallet jacks for warehouse and distribution operations. For instance, in 2021, Mobile Industrial Robotics and Logitrans A/S teamed up to create autonomous pallet jacks for warehouse applications. The Mobile Industrial Robotics will combine autonomous navigation and software capabilities with Logitrans A/S electric pallets. Thus, rising product development in pallet jacks and growing applications of pallet jacks within warehouses and distribution centers would drive the demand for automated pallet jacks in coming years.

Asia Pacific is projected to be the largest market by 2028.

By 2028, the autonomous forklift market is expected to be dominated by the Asia Pacific region due to growing adoption in China and India. While it is anticipated that other nations in the region, like Japan and South Korea, will increase their share by modernizing and modifying current automated material handling equipment. Additionally, international autonomous forklift OEMs are moving their operations to this region. The region is anticipated to increase its share during the forecast period because the technology transfer has increased the number of local players, which is expected to lower the cost of adopting autonomous forklifts in the region.

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Key Market Players & Startups

The autonomous forklift market is dominated by players such as Toyota Industries Corporation (Japan), Kion Group AG (Germany), Mitsubishi Logisnext Co Ltd (France), Jungheinrich AG (Germany), Hyster-Yale Materials Handling (US), Hangcha Group Co, Ltd (China), and Agilox Services GMBH (Austria). These companies offer autonomous forklift automation services and have strong distribution networks at the global level. These companies have adopted extensive expansion strategies; and undertaken collaborations, partnerships, and mergers & acquisitions to gain traction in the growing market for autonomous forklift market.

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Scope of the Report

The study categorizes the autonomous forklift market based on tonnage capacity, navigation technology, sales channel, application, forklift type, paper and pulp by tonnage capacity, end-use industry, type, and propulsion, at regional and global levels.

By Tonnage Capacity

• Below 5 tons
• 5-10 tons
• Above 10 tons

By Application

• Manufacturing
• Warehousing
• Material Handling
• Logistics and Freight
• Others

By Navigation Technology

• Laser Guidance
• Magnetic Guidance
• Vision Guidance
• Inductive Guidance
• Optical Tape Guidance
• SLAM
• Others

By Industry

• 3PL
• Food and Beverages
• Automotive
• Paper and Pulp
• Metals and Heavy Machinery
• E-commerce
• Aviation
• Semiconductors and Electronics
• Healthcare
• Others

Paper and Pulp By Tonnage Capacity

• Below 5 tons
• 5-10 tons
• Above 10 tons

By Forklift Type

• Pallet Jacks
• Pallet Stackers

By Propulsion

• Electric
• ICE
• Alternate Fuels

By Sales Channel

• In-House Purchase
• Leasing

By Type

• Indoor
• Outdoor

By Region

• Asia Pacific
• Europe
• North America
• Rest of the World

Recent Developments

• In July 2024, Toyota Industries Corporation announced an investment in Gideon for new vision-based automated vehicle solutions. Gideon develops and provides technologies for Autonomous Mobile Robotics (AMR), focusing on behavior and application stacks to automate specific processes in warehouse and manufacturing settings. Gideon's modern software architecture will help strengthen Toyota's capabilities in the automation of vehicles.
• In November 2022, Linde Material Handling Equipment launched the R-Matic autonomous reach truck. Reach trucks are developed as a hybrid solution, allowing the driver to take over at any time and shift the truck into manual mode. Automated industrial trucks travel independently to the charging station for recharging because they are outfitted with fast-charging batteries.
• In September 2022, Toyota Industries Corporation developed an autonomous lift truck with the world’s first AI-based feature. It automatically recognizes the position and location of trucks and loads and creates automated travel routes for loading operations. This allows for the automation of loading procedures in addition to the traditional fixed-position loading, even when the truck's halting location and load position is not fixed.
• In March 2022, Linde Material Handling Equipment, a subsidiary of KION Group AG, launched autonomous mobile robots called C-Matic. The company is expanding its product line-up in automated solutions with small, quick, and adaptable logistic helpers.
• In July 2021, Jungheinrich AG and TRUMPG announced they entered into an intralogistics partnership. AG announced it would provide TRUMPG with driverless vehicles to transport sheet metal parts between different machine tools and storage locations. In contrast, TRUMPF will offer its Fab production-control software, which will assist manufacturers in improving their logistics.
• In June 2021, AGILOX Services GmbH and Carlyle Group entered into an investment agreement. With this agreement the AGILOX Services GmbH can improve its geographic reacg and product development.
• In November 2020, Swisslog AG and e-commerce order fulfillment specialist further strengthened their leadership position in Australia by opening an automated Micro-Fulfillment Centre (MFC) in Sydney.
• In September 2020, Jungheinrich AG has acquired stakes in robotics startup Magazino and formed a strategic collaboration and intent to combine skill setrs to develop mobile automation.

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