The global industrial electric vehicle market size was valued at USD 23.25 billion in 2023 and is anticipated to reach around USD 72.28 billion by 2033, expanding at a CAGR of 12.01% from 2024 to 2033. The increasing awareness about the environment friendly fuel based automobile alternatives that are driving the growth of the market.
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The Asia Pacific industrial electric vehicle market size was estimated at USD 9.53 billion in 2023 and is predicted to be worth around USD 30 billion by 2033, at a CAGR of 12.15% from 2024 to 2033.
Asia Pacific led the industrial electric vehicle market with the largest market share in 2023. Thew region is observed to sustain the dominance throughout the forecast period. The growth of the market in the region is owing to the rising population and the higher demand for industrialization across the developing countries. Most of the Asian countries carry a strong foundation of industries and manufacturing units, these sectors require industry-oriented vehicles which promotes the market’s growth. Along with that, the demand for heavy-duty vehicles in the manufacturing units for industrial applications is driving the expansion of the market.
The increasing awareness regarding environmental pollution and shifting consumer preferences towards the adoption of electric vehicles even for industrial purposes creates a sustainable potential for the market to grow. The availability of favorable government policies for the adoption of electric vehicles are accelerating the growth of the industrial electric vehicle market in the region.
North America is expected to witness the fastest growth in the industrial electric vehicles market during the forecast period. The growth of the market in the region is increasing due to the rising adoption of electric vehicle by the consumer and the availability of the major market players in the electric automobile segment that are driving the sales growth of the electric vehicles in the region. The increasing investment on research and development activities in the development and launch of automobiles are driving the growth of the industrial electric vehicle market in the region.
The Europe industrial electric vehicle market size was calculated at USD 6.51 billion in 2023 and is projected to expand around USD 20.60 billion by 2033, poised to grow at a CAGR of 12.20% from 2024 to 2033.
| Year | Market Size (USD Billion) |
| 2023 | 6.51 |
| 2024 | 7.29 |
| 2025 | 8.17 |
| 2026 | 9.15 |
| 2027 | 10.25 |
| 2028 | 11.48 |
| 2029 | 12.86 |
| 2030 | 14.40 |
| 2031 | 16.13 |
| 2032 | 18.07 |
| 2033 | 20.60 |
Industrial electric vehicles are one of the essential parts in the industrial applications such as material handling and storage process, movement of material, and others. The rising demand for sustainability in the manufacturing units and the adoption of eco-friendly production units in the industries are driving the expansion of the industrial electric vehicle market. The market offers development and distribution along with other services for numerous vehicle types that can be utilized for manufacturing, warehousing and lifting purposes at industrial areas. The rising interventions of the major automobile market players in the development of electric vehicles and the shift in the consumer preferences over the electric vehicles are driving the growth of the industrial electric vehicle market.
| Report Coverage | Details |
| Growth Rate from 2024 to 2033 | CAGR of 12.01% |
| Industrial Electric Vehicle Market Size in 2023 | USD 23.25 Billion |
| Industrial Electric Vehicle Market Size in 2024 | USD 26.04 Billion |
| Industrial Electric Vehicle Market Size by 2033 | USD 72.28 Billion |
| Largest Market | Asia Pacific |
| Base Year | 2023 |
| Forecast Period | 2024 to 2033 |
| Segments Covered | By Vehicle, By Propulsion, and By Application |
| Regions Covered | North America, Europe, Asia-Pacific, Latin America, and Middle East & Africa |
Drivers: Rising industrialization
The increasing industrialization in the developing countries is driving the demand for the industrial electric vehicle. Electric vehicles are larger in size with lead acid to lithium-ion batteries with rapid charging time and better round-trip capabilities are driving the demand for the industrial electric vehicle. It is efficient in the material handling in the manufacturing plant or in warehouse for the product movement. Industrial vehicles are used in several industrial applications like stock movement, order preparation, and localization.
The increasing investment in industrial equipment such as automated storage systems, material handling equipment, and retrieval systems improves the production capacity and quality. The development of AI and automation in the industrial electric vehicles are further propelling the expansion of the industrial electric vehicle market.
Restraint: High cost of manufacturing
Industrial electric vehicles are still considered into the category of newer technologies, thereby the cost of manufacturing for industry players can hinder the market’s growth. Considering the high initial cost of the industrial electric vehicle is limiting the expansion of the market by hampering the entry of new market players. Additionally, the limited availability of charging stations for electric vehicles is restraining the growth of the industrial electric vehicles market. However, subsidies and tax reduction offered by multiple government bodies are observed to overcome the restraint in the upcoming years.
Opportunity: Advancements in the electric vehicle technology
The technological advancements in electric vehicle technology are significantly impacting the growth of the industrial electric vehicle market. The technological advancements and the changing industrial preference over the automobile or the industrial vehicles along with the adoption of electric or hybrid electric vehicle are driving the expansion of the market. Technological developments such as the implementation of longer life span of batteries, improvement in the lithium-ion batteries like increase in energy density, longer drives in the single charge, ability to pick up or move the extra weighted industrial materials. Additionally, the favorable government initiative in the sales of the industrial electric vehicle is one of the major influencing factors of the industrial electric vehicle market.
The forklift segment dominated the industrial electric vehicle market with the largest market share in 2023. The growth of the segment is attributed to the rising use of forklifts in the industrial and manufacturing sector. The increasing demand for sustainable manufacturing equipment and vehicles are driving the demand for electric forklifts in the industries. The electric forklifts aim to reduce the maintenance and energy custom, it minimizes the services and replacements that reduces the potential downtime of the industries.
Increasing awareness regarding environmental pollution and impacts of pollution on the human bodies is also observed to promote the adoption of electric forklifts for industry. The adoption of electric forklifts drives a healthier environment in the workplaces and creates a greener future for the environment. Electric forklift reduces carbon emission, increases the air quality and creates a clean and healthy environment in industrial areas.
The hybrid electric vehicle segment dominated the industrial electric vehicle market in 2023. The increasing adoption of hybrid electric vehicles due to its lower carbon emission and reduces consumption of fuel as compared to the other conventional counterparts. Hybrid electric vehicles are the type of vehicle that utilize both the propulsion systems, that is electric propulsion system, and internal combustion (IC) engine. Hybrid electric vehicle carries properties like fuel efficiency due to the electric powertrain, enhanced performance, or it can independently propel the vehicle on single electric powertrain. Internal combustion engine, electric motor, battery pack, generator, fuel tank, and transmission are some of the major components of hybrid electric vehicles. The demand for the hybrid electric vehicles in the economically developed countries are rising significantly and the increasing research on the technological advancements in the hybrid electric vehicles and electric vehicle segment in automobile industry is further propelling the growth of the market.
The manufacturing segment held the largest market share in 2023 of the industrial electric vehicle market. The increase in demand for efficiency in production process with the adoption of sustainability which drives the increasing acceptance of electric vehicles in the industries. The increasing concern about the workplace environment and environmental responsibilities are driving the demand for the industrial electrical vehicles in the manufacturing units.
The revolutionary shift towards sustainable and cleaner sources of industrial transportation results in the reduced carbon footprint and operational cost of manufacturing. The ongoing research on the innovation and launch of heavy-duty electric vehicles for manufacturing operations is driving the growth of the market.
Segments Covered in the Report
By Vehicle
By Propulsion
By Application
By Geography
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