Industrial Vehicle Market

Market Definition

An industrial vehicle is a motorized or non-motorized vehicle designed for material handling, transportation, or specialized operations within industrial, construction, or warehouse settings. These vehicles encompass a wide range of equipment used for lifting, towing, and transporting heavy loads in manufacturing, logistics, construction, and mining operations.

Industrial Vehicle Market Overview

The global industrial vehicle market size was valued at USD 42.89 billion in 2023 and is projected to grow from USD 45.02 billion in 2024 to USD 69.78 billion by 2031, exhibiting a CAGR of 6.46% during the forecast period.

This market is witnessing steady growth, driven by increasing demand for automation, material handling efficiency, and advancements in electric and autonomous vehicle technologies. The rise of e-commerce and global trade has significantly boosted the need for efficient warehouse and supply chain management, propelling the adoption of industrial vehicles.

Additionally, stringent workplace safety regulations and the push for sustainable solutions are accelerating the shift toward electric and hydrogen-powered industrial vehicles.

Major companies operating in the global industrial vehicle industry are Toyota Motor Corporation, Caterpillar, Komatsu, XCMG Group, John Deere, SANY HEAVY INDUSTRY CO., Ltd., Volvo Group, Liebherr Group, Hitachi, Ltd., J C Bamford Excavators Ltd., Oshkosh Corporation, HINDUJA GROUP, Scania CV AB, Kalmar Corporation, and Action Construction Equipment Ltd.

Additionally, advancements in battery technology and IoT-enabled fleet management systems are enhancing operational efficiency and safety, making industrial vehicles more adaptable to various industries, including manufacturing, warehousing, and construction.

Supportive policies and incentives for adopting energy-efficient and automated solutions are further accelerating market expansion. With industries increasingly focusing on streamlining operations and reducing downtime, the demand for next-generation industrial vehicles is expected to grow consistently over the forecast period.

• In February 2025, Volvo Construction Equipment launched the New Generation EC210 Excavator in Thailand with its new dealer, CHAIRATCHAKARN Co., Ltd. The EC210 offers enhanced efficiency, durability, and fuel savings, reinforcing Volvo CE’s commitment to innovation and growth in the region.

Key Highlights:

1. The global industrial vehicle market size was valued at USD 42.89 billion in 2023.
2. The market is projected to grow at a CAGR of 6.46% from 2024 to 2031.
3. North America held a market share of 35.86% in 2023, with a valuation of USD 15.38 billion.
4. The forklifts segment garnered USD 14.92 billion in revenue in 2023.
5. The ICE segment is expected to reach USD 25.78 billion by 2031.
6. The warehousing segment is expected to reach USD 22.67 billion by 2031.
7. The market in Asia Pacific is anticipated to grow at a CAGR of 7.43% during the forecast period.

Market Driver

"Adoption of Automation and E-Commerce Growth"

The industrial vehicle market is experiencing significant growth driven by the expansion of e-commerce and logistics, along with the rising adoption of automation in key industrial operations.

The surge in online shopping has intensified the need for efficient warehousing, distribution, and material handling solutions, leading to a higher demand for industrial vehicles such as forklifts, pallet jacks, and automated guided vehicles.

Companies are aiming to optimize supply chain efficiency, which is increasing the reliance on industrial vehicles for fast and accurate order fulfillment. Additionally, industries are increasingly integrating automation to reduce labor costs and improve operational efficiency.

Advanced industrial vehicles equipped with autonomous navigation and AI-driven decision-making capabilities are enhancing productivity while minimizing errors. This shift toward automation is reshaping manufacturing, warehousing, and logistics operations, further driving demand for state-of-the-art industrial vehicles.

• In October 2024, HEVI Corp. announced its transition to a more aggressive dealer model to meet the rising demand for its electric industrial equipment. This strategic shift builds on its Authorized Service Provider program and recent product launches. The new model improves service quality, and strengthens HEVI’s market position in the growing electric industrial vehicle sector.

Market Challenge

"High Costs and Regulatory Challenges in the Industrial Vehicle Market"

The market faces several challenges, such as high initial investment costs and stringent regulatory compliance. The integration of advanced industrial vehicles, such as electric forklifts and automated guided vehicles demands substantial capital expenditure not only for purchasing the equipment but also for upgrading infrastructure, such as charging stations and warehouse automation systems.

This can be a major hurdle, especially for small and medium-sized enterprises with limited budgets. The high costs often delay technology adoption, reducing operational efficiency and competitiveness.

To address this, financial incentives such as leasing options, flexible financing models, and government subsidies can help businesses transition to modern industrial vehicles without an overwhelming upfront cost.

Another critical challenge is the increasing complexity of regulatory and safety compliance. Industrial vehicles must adhere to stringent emission norms, workplace safety regulations, and operational guidelines that vary across regions.

Compliance with evolving environmental laws targeting carbon emissions and fuel efficiency, requires continuous product innovation and modifications, increasing manufacturing costs.

Additionally, safety regulations demand the integration of advanced features like collision avoidance systems, ergonomic designs, and emergency braking mechanisms, adding further complexity to vehicle manufacturing.

To overcome these challenges, manufacturers are investing in research and development to produce energy-efficient and emission-compliant vehicles while also leveraging digital compliance tracking systems to ensure adherence to regional safety and environmental laws.

Market Trend

"Technological Advancements and Sustainability Trends"

The industrial vehicle market is evolving with key trends such as the integration of electric and hybrid vehicles and the advancement of connected and smart technologies.

With growing emphasis on sustainability and emission reduction, many industries are transitioning from traditional fuel-powered industrial vehicles to electric and hybrid alternatives. These vehicles lower operational costs, reduce carbon emissions, and are compliant with stringent environmental regulations, making them a preferred choice for warehouses, manufacturing plants, and logistics centers.

Additionally, the incorporation of connected and smart technologies is revolutionizing the market by enhancing vehicle efficiency, safety, and fleet management. Advanced telematics systems, IoT-enabled tracking, and AI-driven analytics provide real-time insights into vehicle performance, fuel consumption, and maintenance needs.

These technologies allow businesses to optimize fleet operations, reduce downtime, and improve cost-effectiveness by predicting issues before they become major failures.

Moreover, the integration of automation and autonomous navigation is improving productivity in warehouses and distribution centers and reducing the reliance on manual labor. As companies continue to prioritize efficiency and sustainability, these trends are expected to shape the future of the market.

• In June 2024, ZF launched ZF Annotate, a cloud-based AI service for Advanced Driver Assistance Systems (ADAS) and Autonomous Driving (AD). Using 2D and 3D tracking algorithms, it accelerates sensor testing, processing data 10 times faster at 80% lower cost, strengthening ZF’s AI-driven vehicle innovation.

Industrial Vehicle Market Report Snapshot

Segmentation	Details
By Vehicle	Tow Tractors, Forklifts, Container Handlers, Aisle Trucks, Others
By Driver Type	ICE, Battery Electric Vehicle, Hybrid Electric Vehicle
By Application	Manufacturing, Warehousing, Freight and Logistics
By Region	North America: U.S., Canada, Mexico
	Europe: France, U.K., Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, UAE, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation:

• By Vehicle (Tow Tractors, Forklifts, Container Handlers, Aisle Trucks, and Others): The forklifts segment earned USD 14.92 billion in 2023 due to increasing demand for material handling equipment across industries.
• By Driver Type (ICE, Battery Electric Vehicle, Hybrid Electric Vehicle): The ICE segment held 37.01% of the market in 2023, due to its widespread use in heavy-duty applications requiring higher power and longer operating hours.
• By Application (Manufacturing, Warehousing, Freight and Logistics, Others): The warehousing segment is projected to reach USD 22.67 billion by 2031, owing to the rapid expansion of e-commerce and the need for efficient inventory management solutions.

Industrial vehicle Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and Latin America.

North America accounted for a substantial industrial vehicle market share of 35.86% in 2023 in the global market, with a valuation of USD 15.38 billion. The region's dominance can be attributed to the strong presence of key market players, advanced infrastructure, and the widespread adoption of industrial vehicles across industries such as manufacturing, logistics, and warehousing.

Additionally, the rising demand for automation in material handling and increasing investments in smart warehouses have further fueled the growth of industrial vehicles in North America. The adoption of electric and autonomous industrial vehicles is also gaining traction, driven by stringent emission regulations and sustainability initiatives.

Additionally, technological advancements, including the integration of IoT and AI-driven fleet management systems, are enhancing operational efficiency and safety in industrial vehicle applications.

• In January 2025, Toyota Material Handling and the Raymond Corporation merged to form Toyota Material Handling North America. This development aims to enhance innovation, efficiency, and customer service in the material handling industry while maintaining both brands' unique identities.

The industrial vehicle industry in Asia Pacific is expected to register the fastest growth, with a projected CAGR of 7.43% over the forecast period. This growth is primarily driven by rapid industrialization, urbanization, and the expansion of e-commerce and logistics industries in countries such as China, India, and Japan.

The increasing shift toward automation in warehouses and manufacturing facilities, coupled with government initiatives promoting industrial development, is contributing to the rising demand for industrial vehicles in the region.

Additionally, the growing adoption of battery-electric industrial vehicles, driven by environmental concerns and supportive policies, is further propelling the market expansion in Asia Pacific.

Furthermore, the rising investments in infrastructure development and smart logistics hubs are creating a favorable environment for the adoption of advanced industrial vehicles. The expansion of manufacturing sectors, particularly in automotive, electronics, and consumer goods, is fueling the demand for efficient material handling solutions.

Regulatory Frameworks

• In the U.S., the National Highway Traffic Safety Administration (NHTSA) oversees safety regulations for industrial vehicles, ensuring compliance with federal motor vehicle safety standards (FMVSS). The Environmental Protection Agency (EPA) regulates emissions from industrial vehicles, enforcing limits on pollutants under the Clean Air Act.
• In Europe, the European Automobile Manufacturers Association (ACEA) sets safety and technical standards for industrial vehicles. The European Environment Agency (EEA) monitors emissions and sustainability regulations, ensuring compliance with the EU’s climate and environmental goals. Additionally, the European Committee for Standardization (CEN) develops industry-wide standards for the safety, performance, and environmental impact of industrial vehicles.
• In China, the Ministry of Industry and Information Technology (MIIT) regulates the production and safety standards of industrial vehicles, ensuring they meet national requirements. The State Administration for Market Regulation (SAMR) oversees certification and quality control processes.
• In Japan, the Ministry of Land, Infrastructure, Transport, and Tourism (MLIT) is responsible for setting safety and operational standards for industrial vehicles. The Japan Automobile Standards Internationalization Center (JASIC) works on aligning Japan’s industrial vehicle regulations with global standards.
• In India, the Automotive Research Association of India (ARAI) sets safety and emission standards for industrial vehicles, working under the Ministry of Road Transport and Highways (MoRTH).

Competitive Landscape:

The global industrial vehicle market is characterized by a large number of participants, including both established corporations and rising organizations. Market players compete based on factors such as technological advancements, product innovation, pricing strategies, and customer service.

Companies are continuously investing in research and development to introduce electric and autonomous industrial vehicles, improving efficiency and reducing operational costs for end-users. Strategic partnerships, mergers, and acquisitions are common in the industry as companies seek to expand their market presence and enhance their product portfolios.

Additionally, the growing emphasis on sustainability has led manufacturers to focus on eco-friendly solutions, such as electric-powered industrial vehicles and smart fleet management systems. Additionally, strict regulatory requirements and industry safety standards play a vital role in shaping competition as businesses focus on dependable and long-lasting vehicle solutions.

• In September 2024, Van Hool expanded its product portfolio following its strategic merger with GRW Europe, enhancing its range of road tankers, tank containers, and specialized transportation solutions to offer a comprehensive lineup under the Van Hool brand.

List of Key Companies in Industrial Vehicle Market:

• Toyota Motor Corporation
• Caterpillar
• Komatsu
• XCMG Group
• John Deere
• SANY HEAVY INDUSTRY CO., Ltd.
• Volvo Group
• Liebherr Group
• Hitachi, Ltd.
• J C Bamford Excavators Ltd.
• Oshkosh Corporation
• HINDUJA GROUP
• Scania CV AB
• Kalmar Corporation
• Action Construction Equipment Ltd.

Recent Developments (Acquisition /New Product Launch)

• In January 2025, Cyngn Inc. secured USD 33 million in funding to scale autonomous industrial vehicle deployments and accelerate DriveMod Forklift commercialization. Cyngn aims to expand customer deployments, strengthen industry partnerships, and drive innovation in industrial automation, addressing labor shortages and enhancing operational efficiency with AI-powered autonomous solutions.
• In January 2025, Yanmar Holdings Co., Ltd. completed the acquisition of CLAAS India Private Limited. The acquisition will expand Yanmar’s product lineup to include wheeled combine harvesters, leveraging its technological expertise to manufacture agricultural machinery for both the Indian and global markets.
• In September 2024, Durakool launched the DG82M Micro-ISO automotive relay for industrial vehicles transitioning to electric power. Featuring magnetic arc blowout technology, it enables reliable high-voltage DC switching while maintaining compatibility with standard Micro-ISO sockets. This innovation supports the growing electrification of industrial vehicles and high-power applications.
• In March 2024, Morgan Truck Body acquired Transit Truck Bodies, expanding its presence in North America. The acquisition enhances production capabilities and expands service coverage in North America, benefiting industries that rely on medium- and heavy-duty trucks.