Industrial Vehicle Market Size, Share, and Trends 2024 to 2033

Industrial Vehicle Market Size and Growth 2024 to 2033

The global industrial vehicle market size was valued at USD 41.72 billion in 2023 and is anticipated to reach around USD 65.60 billion by 2033, growing at a CAGR of 4.63% from 2024 to 2033.

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Industrial Vehicle Market Key Takeaways

• Asia Pacific led the market with the largest market share of 46% in 2023.
• North America is observed to expand at a rapid pace during the forecast period.
• By drive type, the ICE segment has held the major market share of 49% in 2023.
• By drive type, the battery-operated segment is expected to grow at a significant rate during the predicted timeframe.
• By the level of autonomy, the non/semi-autonomous segment held a significant share of the market in 2023.
• By the level of autonomy, the autonomous segment is observed to grow at a notable rate during the forecast period.
• By application, the manufacturing segment held the largest share of the market in 2023.
• By application, the warehousing segment is expected to grow fastest during the forecast period. 

Industrial Vehicle Market Size in the Asia Pacific 2024 to 2033

The Asia Pacific industrial vehicle market size was estimated at USD 19.19 billion in 2023 and is predicted to be worth around USD 30.50 billion by 2033 at a CAGR of 4.74% from 2024 to 2033.

Asia Pacific held the dominant share of the industrial vehicle market in 2023. The region is observed to sustain the position during the forecast period. The growth of the region is mainly attributed to rapid industrialization, advancement in technology, adoption of Industry 4.0, stringent emission regulations, and growing demand for battery-operated industrial vehicles. The fastest-developing economies in the region such as China, India, Japan, and South Korea are the major contributors to the market.

The demand in developing countries is anticipated to increase for industrial vehicles owing to the presence of major industrial vehicle manufacturers, rising adoption of Industry 4.0, and rising manufacturing activities. Such factors have led to an increase in industrial vehicle production volumes over the years, with Original Equipment Manufacturers (OEMs) catering to both domestic and overseas demand.

Additionally, key market players are making significant investments that focus on the development of new products and the expansion of distribution networks, which are projected to boost innovation and fuel the expansion of the market in the coming years. Furthermore, the ongoing rapid advancements in technology and materials used in the manufacturing process of Industrial Vehicles have spurred their demand in the global market.

• In September 2023, Hangcha unveiled the 3-Pivot XC Model. The 3-Pivot XC Model is about precision and flexibility. Its three-wheel design provides exceptional maneuverability, permitting users to maneuver around little spaces and tight curves easily. In the powerful universe of material handling, where efficiency reigns supreme, Introducing Lithium E-Trucks is nothing short of a breakthrough. The 3-Pivot XC Model stands apart among these wonders and promises to reshape the material handling sector's future.

North America is observed to expand at a rapid pace during the forecast period. The North American’s region growth is driven by the presence of sophisticated industrial infrastructure, rapid implementation of automation at large-scale industries, and increasing investment in the development of advanced technology. The rapid expansion of e-commerce businesses that require precise supply chain management equipment creates a supportive factor for the industrial vehicle market to grow in North America.

Industrial Vehicle Market Size in North America 2023 to 2033

The North America industrial vehicle market size was calculated at USD 10.43 billion in 2023 and is projected to expand around USD 16.73 billion by 2033, poised to grow at a CAGR of 4.83% from 2024 to 2033.

Industrial Vehicle Market Overview

Industrial vehicles are driver-controlled and self-propelled for transportation, load-carrying, and others. Industrial vehicles are widely mainly used to transport raw materials, finished goods, and production materials within the industrial area. Industrial vehicles usually come in different sizes for the movement of different types of materials and goods to the desired location. Industrial vehicles are designed to serve various industrial purposes including lifting, loading, and movement of loads. This vehicle assists in reducing the workload of manpower.

During transportation within short-distance, manual or semi-powered carts are extensively used, and they are only capable of moving one load at a time from one source to another. During transportation within medium-distance, powered vehicles are preferred such as lift trucks, where the load is batched in parts in either a pallet or a container. Multiple load transporters can move more than one load at a time, from one place to another.

Industrial Vehicle Market Growth Factors

• The increasing use of electric and battery-operated industrial vehicles that have better emission control is expected to boost the growth of the industrial vehicle market.
• The transition to Industry 4.0 is majorly boosting the market’s expansion during the forecast period.
• The rising penetration of the Internet of Things (IoT) and automation technologies across various industries is expected to boost the market’s growth.
• The rapid industrialization and increasing investment in the manufacturing of industrial vehicles are projected to propel the growth of the industrial vehicles market during the forecast period.
• The rising need for automatic transmission in vehicles coupled with the increasing use of autonomous vehicles is expected to represent as primary factors driving the market growth.

Industrial Vehicle Market Scope

Industrial Vehicle Market Dynamics

Driver: Rapid industrialization

The rapid industrialization is expected to accelerate the growth of the industrial vehicle market. Self-driving industrial vehicles are becoming popular due to the implementation of automation and the adoption of Industry 4.0 in manufacturing processes. Industrial vehicles including cranes, tractors, forklifts, delivery trucks, and other specialized industrial vehicles are widely used for the movement of goods to meet the requirements of a particular industry.

A variety of jobs is carried out by industrial vehicles within industrial environments such as manufacturing plants, warehouses, logistics facilities, and others. To improve warehouse operations and distribution networks increase the demand for industrial vehicles. Therefore, such automobiles boost productivity and reduce expenses associated with labor.

Restraint: High cost

The high cost associated with the maintenance of industrial vehicles is anticipated to projected to hamper the industrial vehicle market’s growth. The high maintenance cost of industrial vehicles often discourages organizations from purchasing due to budget constraints. In addition, several safety issues related to the use of industrial vehicles may limit the adoption and expansion of the global industrial vehicle market.

Opportunity: Increasing demand for electric and battery-operated industrial vehicles

The rising demand for electric and battery-operated industrial vehicles is expected to drive the growth of the global industrial vehicle market during the forecast period. The market has witnessed an increasing adoption of electric and battery-operated industrial vehicles across various sectors to improve productivity, operational efficiency, and reduced periods. The electric and battery-operated industrial vehicles come with improved performance to carry out various tasks within the industrial area. Additionally, the government's stringent emission regulations have led to an increasing use of electric and battery-operated industrial vehicles during the forecast period.

Drive Type Insights

The ICE segment held the largest share of the industrial vehicle market in 2023. ICE vehicles, particularly those with diesel engines, are known for their high torque output, which is essential for heavy-duty industrial applications such as construction, mining, and agriculture. They often offer superior power and performance compared to alternative technologies. ICE technology has been around for over a century and is well understood by manufacturers, operators, and maintenance personnel. This familiarity breeds trust and confidence in its reliability and performance.

The battery-operated segment is observed to witness a significant rate of growth in the industrial vehicle market during the forecast period. Battery-operated industrial vehicles are widely used across various industries. Battery-operated industrial vehicles are gaining momentum due to their eco-friendly nature and produce lower emissions, making them suitable for several industrial projects. Rechargeable batteries are used in battery-operated industrial vehicles to power respective vehicles. Battery-operated industrial vehicles have better emission control and are more affordable than ICE industrial vehicles. These vehicles meet Tier 4 emission requirements and produce no in-plant emissions. Several companies around the world are manufacturing eco-friendly industrial vehicles in response to emission and energy efficiency preferences.

The gas-powered segment is expected to witness a notable growth rate during the forecast period owing to the increasing use of gas forklift trucks for both outdoor and indoor work. LPG is a clean alternative for a powerful truck. LPG forklift trucks offer smooth running and are ideal for covering long distances. Such factors drive the segment’s growth.

Level of Autonomy Insights

The non/semi-autonomous segment held a significant share of the industrial vehicle market in 2023 owing to the increasing demand within manufacturing operations. The segment’s growth is driven by the increasing need for safer and more efficient movement of goods. Semi-autonomous industrial vehicles can perform specific tasks without human intervention including adaptive cruise control or lane-keeping assist. However, these vehicles still require some human input for overall better control and decision-making.

The autonomous segment is observed to grow at a notable rate in the industrial vehicle market during the forecast period of 2024-2033, the segment is expected to sustain the position throughout the forecast period. Automated Guided Vehicles (AGVs) are self-driving vehicles that are designed for the movement of goods. These vehicle uses a combination of sensors, cameras, and mapping software to navigate the warehouse and avoid obstacles. These vehicles are widely used to transport goods from one source to another, such as from the receiving dock to a storage area, or to pick orders and transport them to a packing station. Automated industrial vehicles can operate 24/7 without human intervention.

Application Insights

The manufacturing segment held the largest share of the industrial vehicle market in 2023. The market has witnessed the increasing adoption of industrial vehicles in the manufacturing processes to retrieve and store inventory for the production line in several industries such as automotive, chemical, food and beverages, pharmaceuticals, and others, which is projected to accelerate the growth of manufacturing segment during the forecast period. These vehicles assist in cost savings, reducing downtime, and improving the overall efficiency of the process.

The warehousing segment is expected to grow fastest during the forecast period. The use of industrial vehicles in warehouses helps to store and retrieve products rapidly and accurately, enabling the company to meet its high demand while reducing the work for manual labor. Industrial vehicles are widely adopted in warehouses with high-density storage systems. Industrial vehicles have reshaped the warehousing landscape, bringing high levels of efficiency and productivity to logistics operations. Warehouses are now capable of operating with high speed, reliability, and accuracy which results in significant cost savings and enhanced customer satisfaction.

• In March 2024, Kalmar, part of Cargotec, agreed to supply Australian operator Intermodal Terminal Company (ITC) with six Kalmar Electric Reachstackers and two Kalmar Electric Empty Container Handlers. The equipment will be deployed at ITC’s Somerton Intermodal Terminal, a multipurpose terminal currently being constructed in Melbourne, Victoria.

Industrial Vehicle Market Recent Developments

• In June 2023, Hangcha announced the launch of the XE series electric forklifts to the global market. This is an adaptable, durable, comfortable, and affordable material handling solution that can go anywhere and do anything. The XE series covers from 1.5-3.8t, with a battery capacity of up to 80V/608Ah.
• In May 2024, Volvo CE secured an order from the Swedish Defense Materiel Administration (FMV) for 81-wheel loaders. The order is the first procurement in a seven-year framework agreement signed earlier this year and valued at USD 110 million that will enhance collaboration and strengthen the security of supply, both in times of peace and crises, thereby safeguarding people, resources, and societies. Volvo CE will be supplying a variety of wheel loaders and attachments and the machines will be produced at its plants in Arvika, Sweden, and Konz in Germany which specialize in the production of wheel loaders.

Industrial Vehicle Market Companies

• Anhui Heli Co. Ltd
• Crown Equipment Corporation
• Hangcha Forklift
• Hyster-Yale Materials Handling
• Jungheinrich
• Konecranes
• Daifuku
• Ross Electric Vehicles
• SSI SCHAEFER
• Taylor-Dunn
• Hyster-Yale Group, Inc., 
• Jungheinrich AG
• Kion Group AG
• Mitsubishi Heavy Industries, Ltd.
• Toyota Industries Corporation
• Doosan Corporation
• Hyundai Construction Equipment
• Polaris Inc.

Segments Covered in the Report

By Drive Type

• ICE
• Battery-Operated
• Gas-Powered

By Level of Autonomy

• Non/Semi-Autonomous
• Autonomous

By Application

• Manufacturing
• Warehousing
• Freight and Logistics
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa