Industrial Vehicles Market

[399 Pages Report] The global industrial vehicles market size is expected to grow from USD 43.1 Billion in 2024 to USD 56.7 Billion by 2030, at a CAGR of 4.6%. The growth of the global industrial vehicles market is fuelled by the expansion of the logistics & warehouse industries, owing to the growing eCommerce industry. This is driving the demand for efficient material handling solutions, including industrial vehicles such as forklifts and AGVs. The industrial vehicles offer convenience, enhanced productivity & efficiency, and decreased time. The demand for industrial vehicles is set to grow in the coming years to meet the growing demand from the eCommerce industry and increase global trade. Electrification, Gen AI, AR, and advanced sensors for automation are a few technological trends in industrial vehicles.  Moreover, there is an increasing focus on following safety regulations in the workplace and utilizing technologies such as intelligent braking systems and collaborative robots to encourage the use of industrial vehicles for improved safety and efficiency.

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Industrial Vehicles Market:

Driver: The Role of Advanced Technologies in Boosting Warehouse Efficiency and Industrial Vehicle Demand

Integrating sensors, AI, and connectivity in industrial vehicles transforms warehouse operations. These technologies help Automated Guided Vehicles (AGVs) and other specialized equipment move efficiently, increasing productivity, simplifying processes, and cutting costs. Rising labor costs drive the push for automation, the need to reduce human errors, and the goal of improving operational efficiency. This trend is creating a higher demand for advanced industrial vehicles.

Manufacturers respond by investing in new technologies and forming partnerships to stay competitive. For example, Dematic introduced freezer-rated AGVs in June 2023, and Rocrich AGV Solutions expanded into North America in September 2023. These AGVs are designed for demanding environments like cold storage and enhance warehouse efficiency. As businesses look to automate complex tasks and improve operations, adopting these advanced technologies is a major factor driving growth in the industrial vehicles market.

Restraint: Financial implications of automation in forklifts and AGVs

Automated industrial vehicles such as forklifts and aisle trucks are more expensive than the conventional ones in the market. Autonomous forklifts represent a price increase of 50% to 70% compared to conventional forklifts, while AGVs have a price premium of 100% to 150% over standard forklifts. Industrial vehicles are more productive in material handling tasks, although they are more expensive than manual lifts or pallet jacks. Automated forklifts incorporate technical cameras and software but have a higher cost and distinct sensors. The expenses go higher with automated guided vehicles, AGVs for that matter, since they entail higher costs for the navigation systems and facilities to support their operations. Although AGVs provide significant efficiency and safety advantages, their expensive upfront investment and lengthy payback period of 3 to 5 years hinder their widespread adoption.

Moreover, changes that may have to be made to a warehouse's layout to incorporate AGVs increase costs. These areas must ensure safety, space optimization, and timely and easy access to materials, which often translates to a significant investment in infrastructure. The major factors limiting the increased usage in the industrial vehicles market are the high fixed costs and the unpredictable nature of determining the required number of AGVs due to the fluctuating demands of material handling.

Opportunity: Rise of battery-powered industrial vehicles

The industrial vehicle sector has a significant opportunity due to the rise of battery-operated vehicles. Large corporations like Nissan and Toyota spearhead this movement using electric lift trucks. Nissan reduced CO2 emissions by 51%, while Toyota reduced energy use by 40%. Major industry players like KION Group, Jungheinrich AG, and Hyster-Yale Materials Handling are expanding their electric forklift lines, reflecting this shift.

Recent developments further highlight this growth. Linde Material Handling's X35X50 electric forklift series, released in April 2023, and EP Equipment's EFL series, unveiled in September 2023, showcasing advancements in electric technology. KION Group's Baoli brand also introduced the 48V battery-powered KBR 14-20 reach truck series in April 2024. As electric vehicles become more prevalent, their environmental benefits and operational efficiencies will likely drive increased market demand and growth.

Challenge: Workplace safety concerns and NRMM regulations

The industrial sector is encountering challenges due to the different emission regulations for Non-Road Mobile Machinery (NRMM) in various countries and varied workplace safety rules. The emission limits of the European Union's Stage V and the US EPA's Tier 4 standards are strict and not the same, with China's China IV and V standards adding to the complexity. This alteration requires manufacturers to develop multiple product versions for different markets, increasing costs and more intricate supply chains. For example, Toyota Material Handling must modify its forklifts to adhere to different regulations in Europe, the US, and China, which influences its manufacturing methods.

Complying with workplace safety laws has challenges as well. Strict safety regulations for industrial vehicles are enforced in the US by OSHA, which also conducts vehicle inspections and operator training. The EU Machinery Directive and the Australian WHS Act mandate safety standards for equipment and operations, such as regular maintenance and operator certification. Additionally, Australia has made essential decisions for forklifts to prioritize workplace safety. One instance of a modification is the restriction of specific forklifts' maximum speed to 5 km/h while they have raised masts. This regulation aims to decrease accidents and injuries caused by restricted visibility and compromised stability during those activities. OEMs and end users must maintain flexibility and adhere to distinct legislation to ensure safety and environmental requirements across a range of markets. When these difficulties are handled well, operations can run more smoothly and produce safer outcomes.

Industrial Vehicles Market: Ecosystem

The industrial vehicles market ecosystem comprises various participants, including manufacturers, dealers, distributors, and parts suppliers. Manufacturers create industrial vehicles, with dealers and distributors handling their distribution and maintenance, connecting them to end customers. Producers of parts and components provide essential parts like engines, transmissions, tires, and hydraulic systems for the proper functioning of vehicles. Collaborating, these parties encourage innovation and ensure the delivery of reliable and efficient solutions that enhance productivity and safety. Prominent participants in this industry include Toyota Industries Corporation from Japan, KION Group AG from Germany, and Mitsubishi Logisnext Co., Ltd. (Japan), Jungheinrich AG (Germany), and Crown Equipment Corporation (US) are all companies in the material handling equipment industry.

Battery-operated Aisle trucks are estimated to exhibit the highest growth over the study period.

The market for battery-powered aisle trucks is expected to rise fastest during the research period, mostly due to the growing use of electric industrial vehicles. Concerns about CO2 emissions and the benefits of lower operating and maintenance expenses drive this change. By 2024, aisle trucks are predicted to account for more than 80% of battery-powered vehicles, with a focus on industries like manufacturing, e-commerce, cold storage, retail, and logistics. Their adeptness in maneuvering narrow aisles enhances both goods handling and storage capacity.

The increasing demand for aisle trucks is emphasized by the growth of these industries, driven by the rising automation trends in present consumer markets. Companies like Amazon, Wal-Mart, FedEx, and Kroger utilize these vehicles to improve warehouse efficiency and maximize space. Following this, the debut of the TSP 1000/1500 line by Crown Equipment Corporation in July 2024 demonstrates the sector's dedication to improving electric aisle trucks through technological progress.

Furthermore, stringent emission regulations for Non-Road Mobile Machinery (NRMM) are speeding up the transition to electric options. Battery-powered aisle trucks are anticipated to drive market growth by meeting regulatory standards and operational needs as industries focus on maximizing space usage and increasing automation.

The warehousing segment will experience notable growth over the forecast period.

Forklifts and conveyors are essential in warehouses for material transport. The increased use of industrial vehicles such as forklifts, tow tractors, and aisle trucks enhances effectiveness, precision, and conservation of resources during tasks like loading, unloading, and transporting items. By reducing injuries from manual labor, these vehicles improve safety and productivity. The expansion of storage facilities is fueled by the rapid growth of online shopping and the demand for effective management of bulk orders. Amazon's expansion of its delivery infrastructure in 2024, with over 16 million square feet of new warehouse space leased, highlights significant growth in the warehouse sector. The company plans to regionalize its delivery network to at least 170 new distribution facilities in the US, including package delivery stations and fulfillment centers. This surge in warehouse development will drive demand for industrial vehicles as efficient material handling becomes crucial for faster deliveries. The increasing focus on product uniqueness and smaller pallet sizes also drives the demand for industrial vehicles. In November 2023, KION Group AG released 24-volt Fuel Cell Systems for warehouse trucks. The growing need for storage facilities is anticipated to increase the worldwide demand for industrial vehicles.

"US is expected to be the largest market in North America for industrial vehicles by 2030."

The US is expected to be the leading market for industrial vehicles in North America, fueled by the quick expansion of e-commerce and warehousing sectors. Due to the growing demand for effective transportation and storage options, industrial vehicle requirements are rising.  Major companies such as Mitsubishi Logisnext, Toyota Industries, Crown Equipment Corporation (US), and Hyster-Yale Materials Handling, Inc. (US) operate in the US, which helps drive market expansion. These companies are continuously launching new products to satisfy increasing demand. In February 2024, Yale Lift Truck Technologies (Hyster-Yale Materials Handling, Inc.) launched the three-wheeled ERP32-40UXTL and four-wheeled ERP30-70UXL lithium-ion forklifts for retail, home centers, and warehouses. In September 2023, Crown Equipment Corporation introduced the ESR 1200 series reach trucks with enhanced mast stability, while in June 2023, Mitsubishi Logisnext and Jungheinrich  Rocrich AGV Solutions (US), providing automated and warehouse solutions in the US market. With the advancement of technology and infrastructure and the growth of logistics and online shopping, the need for industrial vehicles remains high.

Key Market Players

The global industrial vehicles market is dominated by major players such as Toyota Industries Corporation (Japan), KION Group AG (Germany), Mitsubishi Logisnext Co., Ltd. (Japan), Jungheinrich AG (Germany), Crown Equipment Corporation (US), and Hyster-Yale Materials Handling, Inc. (US), among others.

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Scope of the Report

This research report categorizes the industrial vehicles market based on Vehicle type & capacity, Drive type, Application, Level of autonomy, Aerial work platforms market (by Type), and region

Industrial Vehicles Market, By Vehicle Type & Capacity:

• Forklifts
  • <5 ton
  • 5-10 ton
  • 11-36 ton
  • >36 ton
• Aisle Trucks
  • <1 ton
  • 1-2 ton
  • >2 ton
• Tow Tractors
  • <5 ton
  • 5-10 ton
  • 11-30 ton
  • >30 ton
• Container Handlers
  • <30 ton
  • 30-40 ton
  • >40 ton
• Automated Guided Vehicles
• Personnel Carriers

Industrial Vehicles Market, By Drive Type:

• Internal Combustion Engine Industrial Vehicles
• Battery-operated Industrial Vehicles
• Gas-powered Industrial Vehicles

Industrial Vehicles Market, By Application:

• Manufacturing
  • Chemical
  • Food & Beverages
  • Mining
  • Automotive
  • Metals & Heavy Machinery
  • Others
• Warehousing
• Freight & Logistics
• Others

Industrial Vehicles Market, By Level of Autonomy:

• Non/Semi-autonomous
• Autonomous

Aerial Work Platforms Market, By Type:

• Scissor Lifts
  • Scissor Lifts by Drive Type
• Boom Lifts
  • Articulating AWP
  • Telescopic AWP
  • Boom Lifts by Drive Type

Industrial Vehicles Market, By Region

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

Recent Developments

• In May 2024, Hangcha (China) announced the opening ceremony for its new factory in the Panlong High-tech Zone in China.
• In April 2024, the Baoli brand of KION Group AG (Germany) launched a new 48 V battery-powered reach truck series named Baoli KBR 14-20.
• In March 2024, EP Equipment (China) announced that Boendgen Baustoffe (Germany) purchased the EFL electric forklift series to upgrade its fleet.
• In February 2024, Yale Lift Truck Technologies of Hyster-Yale Materials Handling, Inc. (US) launched the three-wheeled ERP32-40UXTL and the four-wheeled ERP30-70UXL lithium ion forklifts for retail stores, home centers, and warehouses
• In January 2024, Hyster-Yale Materials Handling, Inc. (US) launched the J32-40UTTL Li-Ion forklift truck. The new electric truck has a load-carrying capacity of 1.4 to 1.8 tons.
• In December 2023, Konecranes (Finland) announced that it had supplied 7 Konecranes SMV 16-1200 C (16 ton) forklifts to Eldorado Brasil (Brazil) along with two gantry cranes in Q3 of 2023.
• In November 2023, KION Group AG announced the launch of 24-volt Fuel Cell Systems for its warehouse trucks. The company added that up to 5,000 fuel cell systems can be produced yearly at the Hamburg plant. The company has invested around USD 11.9 Million in this project.

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