Saudi Arabia Equity Management Software Market Assessment, By Deployment Type [On-Premises, Cloud], By Type [Basic, Standard, Senior], By Application [Startups, Listed Companies, Private Corporations, Others], By Enterprise Size [Large Enterprises, Small

Saudi Arabia Equity Management Software Market Assessment, By Deployment Type [On-Premises, Cloud], By Type [Basic, Standard, Senior], By Application [Startups, Listed Companies, Private Corporations, Others], By Enterprise Size [Large Enterprises, Small and Medium Enterprises], By Region, Opportunities and Forecast, 2017-2031F

Global forklift market is projected to witness a CAGR of 6.52% during the forecast period 2024-2031, growing from USD 85.95 billion in 2023 to USD 142.46 billion in 2031. The market is experiencing major trends in adopting the latest technologies. The increasing focus on cost-effectiveness and environmental sustainability is fueling the growth of electric forklifts. Due to advancements in battery technology such as lithium-ion, electric engines are gradually replacing traditional internal combustion engines, leading to the growth of electric forklifts. Furthermore, automation is projected to undoubtedly play a role in the future of forklifts. Autonomous forklifts with sophisticated control systems, cameras, and sensors are becoming a must in warehouses. The need for constant human interaction is decreased by machines' ability to pick up and drop off cargo, navigate aisles, and even communicate with other pieces of machinery.

Industries such as e-commerce, automotive, and food and beverages are benefitting from the integration of IoT and hence are enabling the real-time monitoring of machine performance. IoT systems provide invaluable data for preventive maintenance and optimizing fleet management. A higher focus on safety is a part of the forklift innovation. Companies adopt various measures to ensure cutting-edge safety, such as systems that prevent a collision, sensors that detect nearby objects, and cameras that allow visibility. These safety updates are expected to protect the drivers while securing the products being moved, saving human life and resources.

For instance, in September 2023, Toyota Material Handling Group (Toyota Industries Corporation) launched its new line of electric pneumatic forklifts with 48V and 80V models. These models come with Toyota’s Operator Presence Sensing System (OPSS) and the optional Seatbelt Interlock, which encourages operators to maintain a seated position with seatbelt buckled. This range is perfect for retail applications, including landscaping, home centers, lumberyards, and shop support applications, as it is made to resist outside terrain and operate in a variety of weather conditions.

Expanded Warehouses and Aviation Supply Chains are Expected to Propel Market Growth

In these exponentially exploding e-commerce purchasing trends, there has been a surge in the requirements for significant warehouse facilities. Companies such as Amazon and Alibaba invest in their fulfillment centers that require sophisticated material handling solutions, such as forklifts, to manage large volumes of inventory. Hence, companies are adopting new lines of forklifts to fasten operations.

For instance, in April 2024, Walmart Inc. collaborated with Fox Robotics technology and brought autonomous forklifts to 4 distribution centers. The technology is going to be deployed in Florida, Texas, New York, and Alabama after a 16-month pilot period. The FoxBot autonomous forklift uses AI-powered machine vision and plans to unload pallets from a truck.

In the aviation industry, huge logistics operations ensure effective and timely delivery of parts and products. Increased aviation logistics operations, cargo handling facilities, etc., entail a need for more forklifts to perform the operations effectively. Both industries are using just-in-time strategies to decrease inventory costs. For this purpose, the efficiency of forklifts should be improved to increase the handing over and moving speed of products in the warehouses. In most cross-docking operations, e-commerce and aviation sectors increase the speed of movement of commodities. Products get transferred between the incoming and outgoing transportation. For their smooth logistics operation and speedy working, logistics demand for efficient and speedy forklifts is rising, leading to market growth.

Automation and Integration of Robotics to Shape Market Dynamics

Automation has influenced major industries through autonomous functionalities and easy operations. The forklift market has evolved through the adoption of automated systems and sensory technology. Amalgamation has given birth to automated guided vehicles (AGVs), forklifts that work with navigation systems to carry goods without human intervention. It relies on lasers, sensors, and cameras, along with magnetic tape, to ensure smooth routing within the warehouse. Through AGVs, warehouse operations can be enhanced as frequent work, such as shifting materials from one place to another, is automated and reduces the time and labor in managing materials.

Advanced robotics is leading to the development of robotic forklifts that can autonomously perform complex tasks, including pallet loading and unloading. These robotic systems can work in diverse environments, adapting to different warehouse layouts and handling various types of goods, thus increasing productivity and minimizing errors. Companies are experimenting with robotic forklifts to enhance productivity without major human intervention.

For example, in August 2024, Hangzhou Hikrobot Co. Ltd. launched the latest forklift Mobile Robot, QF-1000. The forklift is capable of carrying pallet loads directly as it includes prongs in addition to a chassis. This robot is suitable for many types of carriers and can be employed in low-floor load-bearing scenarios as it weighs less than the typical forklifts.

Higher Efficiency and Climate Benefits Make Electric Propulsion the Fastest Growing Segment

Based on propulsion, the electric propulsion segment is the fastest growing in the global forklift market. Increased environmental concerns and sustainability, along with cost efficiency, are expected to fuel segmental growth during the forecast period. Stricter regulations on emissions have compelled companies to adopt electric forklifts that do not emit hazardous wastes during operation. Additionally, many businesses consider working with sustainability in their operational activities; thus, many invest more in equipment that is environmentally friendly to use, such as electric forklifts. The electric forklifts are transformed through the addition of lithium-ion battery usage. Companies develop their battery recycling line to further power their forklifts.

For instance, in September 2023, Kion Group partnered with Li-Cycle to recycle lithium lift truck batteries in Europe. The goal is for the Li-Cycle recycling facility in Magdeburg, Germany, to handle up to 5,000 tons of end-of-life battery material professionally and sustainably by 2030.

Running an electric forklift tends to cost less than that of a basic internal combustion engine. They are cheaper to run as they have fewer parts to replace, saving at the pump as electricity is less expensive compared to using gasoline or diesel. An electric forklift consumes less power, which means its utilization in the long term would increase its savings on consumption and use.

Asia-Pacific to Dominate Forklift Market Share

Based on region, Asia-Pacific leads the share of the global forklift market in terms of revenue. The rapidly growing e-commerce sector in the region, with the presence of Alibaba, Flipkart, and Amazon, is increasing the role of warehouse technologies. Hence, it reflects on the usage of forklifts and other logistic technologies. E-commerce giants, such as Alibaba and Amazon, have established more fulfillment centers to meet growing consumer demand, and the need for efficient material handling solutions, including forklifts, has surged. Advanced logistics systems often integrate automated forklifts and robotics, optimizing warehouse operations and further increasing demand for sophisticated material handling equipment. Forklift manufacturers are increasing their presence in emerging economies such as China and India.

For instance, in March 2023, Jungheinrich AG opened a new integrated facility in Bhiwandi, India. The building comprises workshops, warehouses, electric forklifts, and warehouse equipment training centers. The company hopes to address the growing demand in the Indian market for innovative logistics solutions with this expansion. Additionally, it intends to launch AGVS and other cutting-edge automation technologies in the Indian market.

Future Market Scenario (2024 – 2031F)

AGVs are expected to become more prevalent, enabling fully automated material handling processes in warehouses. These vehicles will enhance efficiency, reduce labor costs, and minimize human error.

Forklifts equipped with IoT sensors are anticipated to deliver real-time data on performance, usage, and maintenance needs. This connectivity is going to help with predictive maintenance, reducing downtime, and enhancing operational efficiency.

The adoption of lithium-ion batteries is expected to grow, offering longer operational times, faster charging, and reduced maintenance compared to traditional lead-acid batteries. This shift will make electric forklifts more viable for high-demand operations.

Key Players Landscape and Outlook

Key players in the global forklift market are employing a variety of strategic approaches to maintain competitiveness and drive growth. These strategies include investing heavily in research and development to innovate advanced technologies, such as electric and automated forklifts, which cater to the increasing demand for sustainable and efficient material handling solutions. Strategic partnerships and collaborations with e-commerce giants and logistics companies are pivotal, allowing manufacturers to better understand customer needs and enhance service offerings. Additionally, key players are expanding their geographical reach, particularly in high-growth regions such as Asia-Pacific, by establishing local production facilities and distribution networks. The electric and autonomous forklifts are going to be at the center stage of competitors’ focus.

For instance, in April 2023, the subsidiary of KION Group AG, Linde Material Handling, introduced a range of electric forklift trucks, ranging from X35 to X50, designed for forward-wheel operation. These vehicles have dual permanent magnet-assisted synchronous reluctance motors (SRM+). The load capacity for these electric forklift trucks spans from 3.5 to 5 tons.