Automated Forklift Trucks Market Size, Share and Industry Analysis, By Type (Pallet Mover, Counterbalance, Outrigger, and Reach Truck), and Regional Forecast, 2019-2026

The global automated forklift trucks market size stood at USD 416.7 million in 2018 and is projected to reach USD 786.9 million by 2026, exhibiting a CAGR of 8.3% during the forecast period.

The installation of automated forklift trucks helps companies in reducing overall cost and increasing safety and productivity. It also helps in reducing the number of accidents occurring during forklift tripping over, instability while riding at a downslope with loads and while carrying unevenly balanced loads. As a result, this market  growth is increasing rapidly across the globe. Moreover, key players are adopting robust business strategies, such as selling such trucks at lower prices, which uses laser technology for navigation and by providing machines with marginally less storage capacity. It is also propelling the automated forklift trucks market growth.

MARKET TRENDS

Integration of IoT and Internet of Systems is Expected to Augment the Market Growth

Industry 4.0 includes integration of the internet of things, internet of systems & cyber and physical systems, among others. It is revolutionizing the complete production process which is further enabling a continuous manufacturing process and increasing productivity, as well as lowering waste generation because of connected data and flow of information.

With the revolution of industrial automation and growing concept of Industry 4.0, the adoption of automated guided vehicles, related intelligent software, and comprehensive networking has increased. These allow industries to gain several advantages including optimized supply chain & logistics, robots, additive manufacturing (3D printing), and cloud & internet of things.

Additionally, the manufacturing industries are shifting from traditional shipping methods to automated transport processes owing to the growing trend of industrial automation. The inclination of these industries towards digitizing and automating the manufacturing process is leading to high automated forklift trucks market demand to make the shipping and delivery process more comfortable and efficient.

MARKET DRIVERS

Enhancements in Material Handling Process to Augment Growth

Material handling process plays a pivotal role in the smooth functioning of the industries. It aids in the movement of products & material from one point to another, thus making it the most crucial aspect of concern for the end-users. Enhancements of this process via the adoption of automation and digitalization are vital to meet the demand. The adoption of digitalization and automation has brought an evolution in the industry, making the material handling process smoother and autonomous. This is leading to the automated forklift market growth for effectively managing shipping and loads delivery processes with enhanced safety and productivity.

Furthermore, the transformation in the material handling process has resulted in efficient and smooth flow of materials. This has enabled many industries to adopt just in time (JIT) manufacturing processes with a fully or semi-automatic manufacturing process. For instance, while manufacturing a product, there is a specific quantity requirement of raw material at particular time intervals. With the help of automation and digital data transfer, there is a continuous movement of materials, thus not stopping the manufacturing process. Hence, the increasing demand for digitization and automation in the material handling process is fueling the growth of this market.

Increasing E-commerce Industry & its Impact on SME’s to Drive Growth

The growth of the e-commerce industry has increased with the rising penetration of the internet and smartphones. This growth is placing unmatched demands of products resulting in improved performance of the distribution and fulfillment operations. Besides, the rising needs of the consumers have directly impacted on the Micro, Small & Medium Enterprises (MSME) as they are now required to push their production cycle with increasing manufacturing capacity. This has resulted in the increased flow of material in the overall manufacturing process, thus accelerating market growth.

Moreover, the growth of the e-commerce industry has also increased the material handling process at warehouses and distribution centers. This has led to the continuous flow of material from the manufacturing units to the distribution centers and warehouses. For instance, in August 2019, Amazon.com, Inc., an e-commerce giant, inaugurated its first fulfilment center at Oklahoma City. This will result in the increased material handling process, i.e., the flow of products from industries to the new fulfilment center; hence, increasing the market growth.

MARKET RESTRAINT

High Installation Cost and Low Flexibility to Limit Growth

The high initial cost associated with the product is still persistent for many organizations. These arise due to numerous aspects including lack of funds, less floor space, reliability, and infrastructure build for manual process. Furthermore, these trucks are operated at systematic spaces using a predefined route and movement of products. This results in lesser flexibility for industries that require forklift trucks for multiple purposes.

Moreover, there are industries where both the types of forklifts, i.e., automated and with operators, are present. In these types of industries, the operators will require specialized training on how to work in the same ecosystem with automated forklifts. All these factors limit the usage of automated forklifts and hence, would restrict the growth.

SEGMENTATION

By Type Analysis

Counterbalance Segment Accounts for the Maximum Share

The report covers pallet mover, counterbalance, outrigger, and reach truck type of automated forklift. Our research suggests that the counterbalance segment is estimated to occupy a significant automated forklift trucks market share, owing to the unique design and application of these forklift trucks that provide better stability, control, and storage capacity. Moreover, automated counterbalance forklift trucks are standard offerings by the majority of key players.

The automated pallet mover segment is set to grow exponentially during the forecast period. The adoption of these trucks is increasing in multiple applications in various industries such as automotive, food & beverage, consumer goods, e-commerce, supply chain & logistics, manufacturing and warehouse, and distribution, etc. They are used for multiple purposes in these industries such as loading & unloading, shipping, storage, etc. Furthermore, pallet movers are relatively cheaper than the counterbalance, which make them more advantageous for SMEs.

Additionally, outrigger and reach truck segments are expected to exhibit a moderate growth rate during the forecast period owing to their specific usage in the industries. Moreover, these trucks are comparatively bigger in size which requires extra space while movement, hence limiting their applications.

REGIONAL ANALYSIS

Our research covers key geographical regions, namely, North America, Europe, Asia Pacific, the Middle East and Africa, and Latin America. Wherein Asia Pacific automated forklift trucks market held the largest share in 2018 and is expected to be a prominent contributor to the growth. Additionally, the region is expected to have a significant impact on growth, as there is a high concentration of manufacturing industries. Furthermore, automated forklift trucks are expected to have consistent growth even in the developed countries with an increase in the implementation of automation and industry 4.0. Also, the rising demand for products from the consumers has turned out to be a pressing concern for the manufacturer.

Major players operating in North America automated forklift trucks market are focusing on developing and installing advanced technologies to design products that provide flexible and risk-free operations. For instance, in May 2019, Raymond introduced Seegrid’s vision-guided technology which creates photographic images in its 3030 automated forklifts to reduce breakdown time. The automated forklift market is growing moderately in the Middle East owing to the fact that labor cost is still low in this region.

Europe is the second leading region for this market, owing to the rising initiatives of key players to enhance their promotional strategies by increasing their participation in seminars and exhibitions. For instance, in December 2019, E&K AUTOMATION announced that it would be participating in LogiMAT, which will be conducted in March 2020.  At LogiMAT, E&K is expected to showcase it’s new in-house developed automated industrial series VARIO MOVE. The exhibition will further host numerous automated guided vehicles from various manufacturers. The automated forklift trucks market is growing slightly in Latin America, owing to the key players’ initiatives to introduce smart series of these trucks, especially in this region. For instance, in January 2017, UniCarriers Americas Corporation (UCA) introduced TCM/unicarriers, a smart machine series forklifts with an internal combustion-powered engine, designed for numerous applications including manufacturing, recycling, warehousing, trucking, and beverage/bottling for industries in Latin America.

KEY INDUSTRY PLAYERS

Toyota Industries Corporation Focuses on Strategic Merger and Acquisition to Strengthen its Position

It has been observed that Toyota Industries Corporation is majorly indulging in acquiring companies in order to expand its business portfolio. In January 2020, it completed the integration of its two business units, namely, Toyota Industrial Equipment Manufacturing (TIEM) and Toyota Material Handling USA (TMHU) as a single unit. The new unit named Toyota Material Handling, Inc. (TMH) is headquartered in Columbus, Indiana, and will merge the company’s forklift manufacturing operations to its promotional, sales, & distribution functions

In February 2019, the company acquired Hoist Liftruck Mfg., LLC. The acquisition is aimed at expanding Toyota’s heavy-duty line at Indiana state. Hoist Liftruck specializes in the manufacturing of heavy-duty equipment along with various other equipment such as reach stackers, pneumatic forklifts, and container handlers.

Prominent players are involved in creating strategic partnerships and signing acquisition agreements to expand their geographical presence. These agreements would also help them in strengthening their product portfolio by increasing automation in their existing solutions. Increasing investments in the research and development sector to introduce advanced and cost-effective automated forklift trucks would also help key players in strengthening their market position. Some of the companies are investing in new startups to enhance their customer base and adopt advanced automation techniques. Furthermore, the well-settled players are acquiring small startups to strengthen their hold in the market.

List of Key Companies Profiled:

• TOYOTA INDUSTRIES CORPORATION


• JBT


• Mitsubishi Caterpillar Forklift America Inc.


• Crown Equipment Corporation


• Seegrid Corporation


• Kollmorgen


• KION GROUP AG


• Hyster-Yale Materials Handling, Inc.


• E&K Automation GmbH


• Dematic

KEY INDUSTRY DEVELOPMENTS:

• August 2019 - Linde Material Handling EMEA, came into agreement with Panattoni Europe to build its new forklift manufacturing facility at Szczecin, Poland. The group is responsible for the entire process i.e. from securing land to developing the factory. This project is expected to be complete by 2021. It will also handle the complete manufacturing process of forklift trucks including it’s testing.


• June 2019 - Hyster-Yale Materials Handling, Inc., completed its acquisition of Zhejiang Maximal Forklift Co., Ltd. This strategic action aims to increase the company’s global manufacturing capacities along with strengthening its presence in China. Zhejiang Maximal is an OEM of material handling equipment, lift trucks, & utilities for Chinese as well as the global market.

REPORT COVERAGE

The report offers qualitative and quantitative insights on automated forklift trucks and detailed analysis of the market size & growth rate for all possible segments.

Along with this, the automated forklift trucks market report provides an elaborative analysis of market dynamics, emerging trends, and competitive landscape. Key insights offered in the report are the adoption of automated forklift trucks by individual segments, recent industry developments such as partnerships, mergers & acquisitions, consolidated SWOT analysis of key players, Porter’s five forces analysis, business strategies of leading market players, macro and micro-economic indicators, and key industry trends.

REPORT SCOPE AND SEGMENTATION