North America Forklift Truck Market Outlook to 2030

North America Forklift Truck Market Overview

• The North America forklift truck market reached an estimated value of USD 13.3 billion. This market's growth is primarily driven by increased warehousing demands, especially from the expanding e-commerce sector and the surge in automation in logistics operations. Additionally, growing investment in infrastructure development and the popularity of electric forklift trucks, which are known for their low emissions and operational efficiency, have further accelerated demand. This markets robust performance is sustained by technological advancements in battery solutions, enabling longer operational hours and reduced maintenance costs.
• The United States leads the North America forklift truck market, largely due to its extensive warehousing infrastructure, high industrial output, and strong adoption of advanced manufacturing and supply chain automation. Major logistics hubs such as California and Texas significantly contribute to the dominance of this region. Canada also exhibits considerable growth potential due to its thriving retail and logistics sectors. Together, these regions benefit from government support for sustainability practices, pushing for higher adoption of electric forklifts in compliance with strict emission standards.
• The U.S. government, through the EPA,tringent emissions regulations for forklifts, particularly diesel models, to minimize air pollution. These regulations compel manufacturers to innovate cleaner technologies, with a noticeable shift towards electric models in 2024. Companies that do not comply face penalties, urging a broader shift in the industry to align with these environmental standards.

North America Forklift Truck Market Segmentation

By Type: The market is segmented by type into electric forklift trucks, internal combustion (IC) engine forklifts, and fuel cell-powered forklifts. Recently, electric forklift trucks have dominated the market share in this segmentation. This is attributed to the shift toward sustainable solutions and the operational benefits that electric models provide, such as reduced noise levels, lower maintenance needs, and compliance with stringent emission regulations. Moreover, electric forklift trucks are increasingly favored in warehousing and indoor applications, where zero emissions are essential to meet indoor air quality standards.

By Capacity: The market is further segmented by capacity, with classifications of less than 2 tons, 25 tons, and above 5 tons. Forklifts with a capacity of 25 tons hold the dominant market share, primarily due to their versatility and suitability for various applications, from warehouse logistics to light industrial operations. Their capacity allows these forklifts to handle a broad range of materials, from packaged goods to medium-sized pallets, making them an ideal choice for the warehousing and distribution sectors.

North America Forklift Truck Market Competitive Landscape

The North America forklift truck market is dominated by a few major players, including globally recognized brands like Toyota Industries, KION Group, and Hyster-Yale Materials Handling. This market structure highlights the influence of these key companies due to their extensive product ranges, robust distribution networks, and established relationships with large-scale clients in the logistics and manufacturing sectors.

North America Forklift Truck Industry Analysis

Growth Drivers

• Expansion Of E-Commerce: The forklift truck market in North America has benefited from the rapid expansion of e-commerce, with the U.S. e-commerce sector alone reaching 1,100 million shipments daily in 2023, largely driving warehouse and logistics demands. The growth of e-commerce has fueled the need for efficient handling equipment, leading to an increased reliance on forklift trucks. This market has seen increased investment in logistics infrastructure, with warehouses adding up to 1,000,000 square meters monthly. Government-backed logistics expansion funding under initiatives like the U.S. Logistics Efficiency Act supports these advancements, contributing to forklift truck demand.
• Increasing Warehouse Automation: Warehouse automation in the North American market has accelerated forklift usage, particularly for automated and semi-automated trucks. As of 2024, 450,000 facilities were upgraded with automated material handling systems, with forklift trucks representing a critical component. This surge is in response to higher consumer demand, particularly in metropolitan hubs like Los Angeles, which saw logistics sector employment rise by 8,000 workers in 2023 to manage increased automation. This trend supports forklift utilization across diverse industries as automation progresses.
• Advancements in Battery Technology: The transition to lithium-ion battery-powered forklift trucks has proven pivotal for North Americas logistics and material handling sectors, particularly as battery capacity has increased by up to 45% in recent years. In 2023, approximately 60% of newly purchased forklifts in the region operated on lithium-ion batteries, with this shift driven by enhanced energy efficiency and lower operational costs. Such improvements have been linked to federal support, including grants under the U.S. Clean Energy Act, encouraging the adoption of sustainable and high-performing equipment.

Market Challenges

• High Capital Expenditure: Forklift trucks represent a high capital expenditure, which can be a barrier for small to medium enterprises. In 2024, the average acquisition cost of a new forklift truck in North America remains high due to inflation in manufacturing costs, driven by the rising prices of steel and other raw materials used in production. This cost factor impacts smaller businesses, which may opt for rentals or second-hand equipment instead. Consequently, high upfront costs challenge market growth, especially among cost-sensitive sectors.
• Shortage of Skilled Operation: A shortage of skilled labor capable of operating advanced forklifts continues to be a challenge in the North American market. In 2023, the U.S. reported a shortfall of over 500,000 skilled trade workers, according to the Bureau of Labor Statistics, impacting sectors such as warehousing and logistics. This labor gap is particularly notable in the operation of advanced forklifts with automation features, as employees often require specific training and certification. This shortage hinders operational efficiency in facilities relying heavily on material handling solutions.

North America Forklift Truck Market Future Outlook

The North America forklift truck market is anticipated to experience robust growth as industries increasingly adopt automated solutions for material handling. The demand is set to be further boosted by continuous technological advancements, especially in electric and autonomous forklift technologies. Growing regulatory support for eco-friendly practices will likely accelerate the shift toward electric forklift trucks, enhancing the market's expansion potential.

Future Market Opportunities

• Growth of Logistics: Cold chain logistics, essential for handling temperature-sensitive products, is expanding rapidly in North America. In 2024, U.S. cold storage capacity reached approximately 4 billion cubic feet, accommodating the growing demand from sectors like pharmaceuticals and food processing. This growth has created a robust demand for specialized forklifts capable of operating in sub-zero temperatures, driving the forklift truck market. With an increase in cold storage investments, the requirement for durable and efficient forklifts is growing.
• Emerging Markets for Forklift Rentals: Forklift e gaining popularity in North America as businesses seek cost-effective options for material handling. In 2024, the U.S. rental equipment industry recorded over USD 55 billion in revenues, with material handling equipment rentals constituting a notable share. This trend enables companies, especially smaller firms, to access advanced forklifts without incurring the full cost of ownership. Rental services are expanding, providing businesses with flexible solutions, particularly in peak demand seasons.