KSA Forklift Market Outlook to 2030

KSA Forklift Market Overview

• KSA Forklift Market was valued at USD 330 million. This market size is driven by a rising demand for material handling equipment across industries such as construction, logistics, and e-commerce. The ongoing infrastructural projects, including the Kingdoms Vision 2030 initiative, have significantly boosted demand.
• Prominent players in the KSA Forklift Market include Toyota Material Handling, Crown Equipment Corporation, Mitsubishi Logisnext, KION Group, and Jungheinrich. These companies dominate the market due to their vast product range, established sales and service networks, and commitment to innovation.
• In 2023, Al-Futtaim Toyota Material Handling has signed a long-term contract with DHL for the supply and maintenance of 32 electric forklifts. DHL has already received 26 of these units, with the remaining to be delivered by year-end. The forklifts, ranging from 2 to 3 tons, feature Toyota's System of Active Stability, enhancing safety and stability. This partnership supports the UAE's sustainability goals by reducing fuel consumption and carbon emissions.
• Cities like Riyadh, Jeddah, and Dammam dominate the KSA forklift market, primarily due to their strategic importance in logistics and trade. Riyadh is home to the largest industrial sector and warehouses, while Jeddah and Dammam are key ports that handle a significant portion of the Kingdom's imports and exports. The proximity of these cities to major industrial areas and their well-established logistics infrastructure has led to a concentrated demand for forklifts in these regions.

KSA Forklift Market Segmentation

By Power Type: KSA Forklift Market is segmented by power type into internal combustion (IC) engine forklifts, electric forklifts, and hybrid forklifts. In 2023, electric forklifts have gained a dominant market share due to the increasing focus on sustainability and government-backed initiatives to reduce carbon emissions. Electric forklifts offer low noise, zero emissions, and reduced operational costs, making them highly attractive for industries across the Kingdom.

By Application: KSA Forklift Market is segmented by application into construction, logistics, retail, manufacturing, and others. In 2023, the logistics sector held the largest market share due to the rising need for efficient material handling solutions in warehouses and distribution centers. The rapid growth of e-commerce platforms like Noon and Amazon KSA has led to the expansion of warehousing infrastructure, driving demand for forklifts in this sector.

By Region: KSA Forklift Market is segmented by region into Central, Eastern, Western, and Southern regions. In 2023, the Eastern region held the largest market share due to its proximity to oil and gas facilities, which require material handling equipment for logistics and transportation. The regions strong industrial base, coupled with the ongoing expansion of oil refineries and petrochemical plants, has driven the demand for forklifts. Additionally, its position as a key port and logistics hub has further contributed to its market dominance.

KSA Forklift Market Competitive Landscape

• Mitsubishi Logisnext: In 2024, Mitsubishi Logisnext Americas launched Logisnext Financial Services through a strategic partnership with DLL, a global asset finance company. This initiative aims to streamline the equipment purchasing and financing process for customers, providing a single point of contact for various material handling and warehouse products. results.
• Crown Equipment Corporation: In 2023, Crown introduced a new generation of very narrow aisle (VNA) trucks, the TSP Series. These trucks are designed for high performance, featuring improved ergonomics and enhanced order picking capabilities. The TSP Series incorporates Crown's Gena operating system, which provides a customizable and interactive operator experience through a 7-inch touchscreen.

KSA Forklift Industry Analysis

Growth Drivers:

• Booming Construction Sector: Saudi construction industry remains a major growth driver for the KSA forklift market. Saudi Arabia is undertaking over 6 giga projects worth approximately $7 trillion, which include NEOM and the Red Sea Project, aimed for completion by the end of 2030. The Saudi construction sector is expected to experience further growth, driven by ongoing investments in infrastructure, which will continue to fuel the need for forklifts across different construction phases.
• Expansion of the Logistics and Warehousing Sector: The logistics sector in Saudi Arabia has experienced a remarkable annual growth rate of 76% in the second quarter of 2023, making it a fundamental pillar for economic diversification and GDP strengthening. The forklift market benefits from the increasing establishment of new warehousing facilities in key regions like Riyadh, Jeddah, and Dammam, demonstrating the need for forklifts to handle the growing volume of goods.
• Rising E-Commerce Activity: In the period from December 2022 to November 2023, Saudi Arabia imported 21 shipments of forklift trucks, with a notable year-on-year growth of 100% in November 2023 compared to November 2022, despite a 57% decline in imports over the previous twelve months. Forklifts are critical for managing the increasing volume of goods in warehouses serving e-commerce companies like Noon and Amazon KSA.

KSA Forklift Market Challenges:

• High Initial Investment Costs Despite the benefits of forklifts in terms of efficiency, high initial capital investments present a challenge for small- to medium-sized enterprises (SMEs) in the KSA. The cost of purchasing forklifts, depending on the type and capacity, can be prohibitive for smaller companies, forcing them to rely on outdated equipment or consider leasing options, which often include high rental costs.
• Fluctuations in Oil Prices The volatility of oil prices directly affects industries such as manufacturing and logistics, which are key users of forklifts. Global oil prices fluctuated between $70 and $100 per barrel, impacting companies' capital expenditures on equipment like forklifts. When oil prices drop, companies tend to cut back on capital expenditures, reducing the demand for forklifts.

KSA Forklift Market Government Initiatives:

• Masters Logistics Center Plan: Announced in 2023, this plan involves the construction of approximately 40 new logistics centers covering over 100 million square meters. This initiative aims to boost local, regional, and international trade networks. The plan positions Saudi Arabia as a pivotal logistics hub connecting three major continents: Asia, Europe, and Africa, which are expected to drive further forklift demand.
• National Industrial Development and Logistics Program (NIDLP): Launched in 2019, NIDLP focuses on developing four key sectors: Industry, Mining, Energy, and Logistics. This initiative supports the forklift market by promoting the adoption of advanced material handling equipment in factories and logistics centers, further enhancing the demand for forklifts in the manufacturing and logistics sectors.

KSA Forklift Future Market Outlook

KSA Forklift Market is expected to grow significantly over the next five years, driven by continuous investments in infrastructure, logistics, and warehousing. With Saudi Arabias Vision 2030 targeting the development of the country into a logistics hub, the demand for forklifts will increase across various sectors, including construction, e-commerce, and manufacturing.

Future Trends

• Increased Adoption of Electric Forklifts As Saudi Arabia pushes towards sustainability and reducing carbon emissions, the forklift market will witness a growing shift from traditional internal combustion engine forklifts to electric models. Companies across logistics, warehousing, and retail sectors will increasingly invest in electric forklifts to align with government regulations and reduce operational costs associated with fuel consumption.
• Integration of Automation and Smart Technologies Over the next five years, the forklift market in Saudi Arabia will experience a surge in demand for automated and semi-automated forklifts. This trend will be driven by the need for increased efficiency in logistics and manufacturing, with smart forklifts offering features such as autonomous navigation, real-time data tracking, and remote operation capabilities, enhancing productivity in warehouses and industrial facilities.