Forklift market to be 50% bigger by 2032, Interact Analysis forecasts

Strong growth in shipments of 4-5% is forecast for the global forklift market out to 2032, according to Interact Analysis, with greater competition driven by emerging technologies and rising global demand for logistics. The global market intelligence specialist firm predicts that the lift truck market is set to grow by 50% in the coming years, from around 2 million units in 2022 to approximately 3 million units in 2032.

Poor demand in China led to a contraction of 12.4% in shipments during 2022, with the Americas and EMEA regions also witnessing a decline, leading Interact Analysis to reduce its forecast for 2023/24. The firm said order volume is expected to fall by around 6% in 2023 to 2 million units, marking the first time since 2019 it has dipped below the shipment volume,

Covid-19 pandemic-related supply chain issues caused a significant difference between order and shipment volumes, leading to a historical peak of 370,000 units in 2021, as shipments lagged far behind orders, Interact Analysis noted. The sector has been catching up ever since, but with a sharp fall in order volumes, Interact Analysis expects that 2024 will be a low point for the market.

However, Interact Analysis stressed that there are clear signs of a recovery. This is particularly evident in the performance of major forklift manufacturers, with an increase in growth momentum of new truck business among these companies in 2023, following relatively slow growth over the past two years.

In its latest report, The Global Forklift Market – 2023, Interact Analysis reveals new business revenue for major forklift companies grew by 21% year-on-year during the first three-quarters of 2023 to reach $19.5 billion, significantly higher than the 5.2% recorded for the same period of 2022.

Li-ion forklift penetration

Demand for electrified forklifts running on lithium (li-on) batteries has been surging in recent years, Interact Analysis also noted. As a result, Interact predicts China and several countries in Europe will surpass 50% of all electric trucks running on li-on power as early as 2025. The global market share of Li-ion powered electric trucks is anticipated to surpass 50% in 2030, with Class 3.1 predicted to be the first category to achieve over 50% Li-on electrification.

"Our study of electrification and autonomy trends in the forklift truck sector has revealed a challenging picture in the short-term," said Maya Xiao, Senior Research Analyst at Interact Analysis. "However, we are expecting the market to rally from 2025, headed by the major forklift manufacturers, and to see the growing trend for electrification accelerate as early adopters such as China and some of the European countries continue to lead the way.”

This is the fourth edition of the Interact Analysis market report on the global forklift industry. The report focuses on Class 1-5 forklifts mainly in manufacturing and logistics environments with electrification and autonomy trends.

Forklifts have seen new growth and demand in recent years driven by the rapid development of smart manufacturing and intelligent warehouses, Interact Analysis explained. The firm also noted that external factors such as the strict emission standards and rising labor costs are also fueling demand.