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Forklift Battery Market

Forklift Battery Market Size, Share & Trends Analysis Report By Type (Lithium-Ion Battery, Lead-Acid Battery, Others), By Applications (Warehouses, Manufacturing, Construction, Retail and Wholesale Stores, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SREP55381DR
Study Period 2019-2031 CAGR 6.56%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 5.56 Billion
Forecast Year 2031 Forecast Year Market Size USD 9.86 Billion
Largest Market North America Fastest Growing Market Asia Pacific
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Market Overview

The global forklift battery market size was valued at USD 5.56 billion in 2022. It is estimated to reach USD 9.86 billion by 2031, growing at a CAGR of 6.56% during the forecast period (2023–2031). The emergence of fuel cell forklifts as an alternative to the electric forklift and expanding warehouse spaces and the manufacturing industry promote market growth.

A type of rechargeable battery known as a forklift battery is made specifically to power electric forklifts and other material-handling machinery. Forklifts are frequently employed in industrial environments such as warehouses and distribution centers to lift and move heavy goods. Electric forklifts run on battery power rather than an internal combustion engine. Large, powerful lead-acid batteries are frequently used in forklifts. However, newer options like lithium-ion batteries are now available. Lead-acid batteries are frequently utilized because of their dependability, affordability, and capacity for high-power output. Each cell in them has lead plates submerged in an electrolyte solution, often a solution of water and sulfuric acid. They are made up of several cells.

The battery is mounted inside the car and attached to the electric motor to power the forklift. The forklift's wheels or hydraulic system are powered by the motor, which receives its power from the battery. The forklift's performance and operating time depend on the battery's voltage and capacity. Regular charging is necessary to keep forklift batteries at full working capability. They are normally recharged using a specialist forklift battery charging apparatus. According to the battery size and charge rate, charging times might vary from a few hours to several hours. Proper upkeep and regular hydration are necessary for the battery to last a long time and operate at its best. In general, forklift batteries are essential to operating electric forklifts, allowing for efficient and sustainable material handling operations across various industries.

Market Dynamics

Global Forklift Battery Market Drivers

Emergence of Fuel Cell Forklifts as an Alternative to the Electric Forklift

A fuel cell forklift is an industrial truck used to lift and transport cargo that is powered by fuel cells. Although internal combustion engine-powered electric forklifts are becoming more and more commonplace worldwide, industrial manufacturers are making great attempts to discover greener alternatives. Manufacturers are being pushed to choose long-term renewable and sustainable energy solutions by considerations like environmental concerns and an abundance of natural resources. In this situation, a hydrogen-based fuel cell provides an effective alternative energy source for powering industrial machinery.

A common hydrogen fuel cell used nowadays in batteries to power forklifts and other industrial equipment is the proton exchange membrane fuel cell. Fuel cell forklifts are increasingly taking the role of electric forklifts as environmental concerns and efforts to create a sustainable ecosystem rise. As a result, forklift batteries powered by hydrogen-based fuel cells are in high demand right now. In addition, because they provide a counterbalance and improve load-bearing capability, forklifts powered by hydrogen fuel cell batteries operate better than electric forklifts. This powers the fuel cell forklifts, boosting the global demand for batteries.

Expanding Warehouse Spaces and the Manufacturing Industry

Typically, warehouse space stores various materials, including raw materials, packing Supplies, and semi-finished and finished goods. Due to the increase in population, there is a sharp increase in product demand across several businesses, particularly in the consumer goods sector. Consequently, there is a global need for more warehouse space. Forklift trucks are widely used in warehouse environments to carry items and place large pallets into pallet racks. Additionally, these lift trucks come in various variants, including counterbalance trucks, warehousing forklift trucks, and others. Thus, it is anticipated that increasing warehouse space will encourage the use of forklift trucks, which will increase the need for forklift batteries.

The growth of the manufacturing sector is what drives the forklift battery market. To move bulky or heavy products, forklift trucks are utilized. This increases productivity and lowers operational expenses. Forklift trucks are heavily used in the manufacturing sector to carry materials. These trucks are categorized based on their forward centers of gravity and load capacity. Additionally, these trucks are 670 inches tall and have a load capacity of up to 48 tons. Given how quickly the manufacturing sector is growing, forklift trucks with higher load-bearing capacity are in high demand. As a result, the need for forklift trucks in the manufacturing sector remains constant, ultimately raising the price of the batteries used in forklift trucks. 

Global Forklift Battery Market Restraint

High Cost Associated with a Lithium-Ion Battery

Lead-acid batteries have long been utilized in forklift trucks because they increase load-bearing capacity and provide a counterbalance. However, compared to other batteries, recently introduced lithium batteries offer higher benefits. These batteries cost more than twice as much as traditional lead-acid batteries, even if they have superior advantages. As a result, manufacturers seek strategies to lower costs while making a profit. Lithium-ion battery usage is thus constrained by their high cost, which restrains market expansion.

Global Forklift Battery Market Opportunities

Growth in Penetration of Green Logistics

A definition of green logistics is "efforts to measure and minimize the environmental impact of logistics activities." "Green logistics" is a choice made by logistics organizations to lower pollution levels, clear traffic congestion, foster social peace, and cut transportation costs. Given that customers are seeking logistics services that are more environmentally friendly, this gives businesses a competitive advantage over rivals. One of the biggest stores, "Walmart," debuted a sustainability index and a full fleet of environmentally friendly logistics. DHL and Kuehne+Nagel adopted the idea of green logistics. This is an additional channel for connecting with clients and other business units.

Consequently, green logistics offer numerous chances for a new degree of sustainability, positively affecting the environment and society. The need for modern forklift trucks that use cleaner energy sources is anticipated to increase due to the influence of green logistics, creating profitable growth prospects for the industry.

Regional Analysis

Based on region, the global forklift battery market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America Dominates the Global Market

North America is the most significant Global Forklift Battery Market shareholder and is estimated to exhibit a CAGR of 6.2% over the forecast period. The material handling business implements new smart logistics techniques in North America, a technologically advanced market. Ideas like autonomous forklift trucks are widely used in the United States, significantly contributing to market growth. Walmart, Amazon.com, Inc., Costco Wholesale Corporation, Walgreens Boots Alliance, Inc., Kroger Company, and other global retail behemoths are all present in the United States. New products are being manufactured and released in the market due to shifting consumer wants and purchasing patterns, affecting the retail industry. As a result, there is an increase in demand for forklift batteries as material handling requirements change. The North American economy is also growing due to the construction industry's significant battery demand. Although the building industry is well-established in North America, construction repair operations drive the demand for forklift batteries in material movement applications.

Asia-Pacific is anticipated to exhibit a CAGR of 5.6% over the forecast period. The dramatic increase in population, fast urbanization, and the expansion of key industries, including construction, food processing, electronics, furniture, and consumer products, indirectly impact the growth of forklift batteries in the Asia-Pacific region. The need for construction projects, food, consumer goods, furniture, and other goods that rely on material-moving forklifts and trucks for transportation is increasing due to population growth. As a result, this area has considerable demand for the batteries used in forklifts. Concerning economic development, Asia-Pacific is still underdeveloped and has a high price sensitivity. As a result, expensive batteries like lithium-ion are only being somewhat adopted in this region, and the lead-acid battery market generates most of the region's revenue.

Europe has emerged as one of the fastest-growing regions in the global market. In Europe, fuel-cell forklifts are predominantly replacing electric forklifts. This is because some authorities and regulatory agencies work to achieve sustainable goals and promote cleaner energy sources in the material handling sector. The widespread use of forklift batteries in Europe is mostly due to this driving force. Germany, the UK, Italy, and France are among the top 10 largest European nations in industrial manufacturing and reported record-breaking industrial manufacturing in 2018. The Europe region would require more warehouse space during the projection period due to industrial manufacturing's steady growth. Therefore, during the projected period, the expansion of warehouse spaces is anticipated to present attractive growth possibilities for the market.

LAMEA has tremendous growth potential. Increased chemical production, significant investment in oil and gas projects, political alliances between nations, and increased fleet trade across South America are some elements anticipated to create new growth prospects in this region. On the other hand, factors like the region's weak economic performance, price-conscious consumers, and established practices in the material handling sector restrained the market's overall expansion.

Report Scope

Report Metric Details
By Type
  1. Lithium-Ion Battery
  2. Lead-Acid Battery
  3. Others
By Applications
  1. Warehouses
  2. Manufacturing
  3. Construction
  4. Retail and Wholesale Stores
  5. Others
Company Profiles EXIDE INDUSTRIES LTD. EnerSys East Penn Manufacturing Company Hoppecke Crown Equipment Corporation SBS Storage Battery Systems LLC Navitas Systems Saft, Microtex Energy Private Limited Southwest Battery Company
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global forklift battery market is bifurcated into type and application

Based on the type, the global forklift battery market is bifurcated into lead–acid batteries, lithium-ion, and others. 

The lead-acid battery segment dominates the global market and is projected to exhibit a CAGR of 6.5% over the forecast period. Due to their high cost-effectiveness and well-known brand name, lead-acid batteries are frequently called "old school batteries" in material handling applications. These batteries can last a very long time if properly cared for. Manufacturers have, therefore, created forklifts that work with lead-acid batteries. Lead-acid batteries offer weight and a high discharge rate for the forklift and are its primary power source. So, lead-acid batteries predominate over lithium-ion and other batteries in material handling applications. Due to its longevity and convenience, lead-acid batteries held a market share of more than 75% in 2018. Despite the rising popularity of lithium-ion technology, lead-acid batteries are the market leader because they offer a reliable balance of power and a necessary counterweight. Earlier designs for forklift trucks relied on the weight of the conventional battery to provide a counterbalance to the load, which helps to increase load-bearing capability. The best option in this situation is a lead-acid battery. They can cost up to four or five times more than lead-acid batteries when compared to lithium-ion batteries. This has increased lead-acid battery brand loyalty, which has boosted their acceptance around the world.

Based on application, the global forklift battery market is bifurcated into warehouses, manufacturing, construction, retail and wholesale stores, and others. 

The manufacturing segment owns the highest market share and is predicted to exhibit a CAGR of 6.3% over the forecast period. The needs for material handling, loading, and unloading are varied throughout the industrial industry. The manufacturing industry has thus become the primary end customer of forklift batteries. At roughly 30% of the global market in 2018, the sector is expected to be still the largest after the forecast period. Forklift trucks are frequently used to load and unload materials in manufacturing since the manufactured goods must be transferred to warehouses or other storage locations. As a result, increased industrial output is the main driver of increased forklift battery demand worldwide.

The food industry, metal and mining, furniture, consumer goods, and general industrial manufacturing are some sectors that favor forklift batteries. The largest industrial manufacturing economies that showed significant revenue increases from industrial manufacturing in 2017 were China, the United States, Germany, and Japan. The overall production level is increasing dramatically due to the increasing use of technology in industrial manufacturing, which increases the demand for forklift batteries.

Market Size By Type

Recent Developments

  • April 2023- Generac Industrial Power introduced the SBE Series Battery Energy Storage System for Commercial and Industrial Applications: It is a brand-new zero-emissions SBE series of stationary battery energy storage systems (BESS). The SBE series works in tandem with Generac's line of gas and diesel generators to provide full-facility resilience during long-duration blackouts, and it also works in tandem with on-site solar to assist in reducing both carbon footprint and energy expenditures.
  • January 2023- Vedanta Aluminium Business, the largest aluminum producer in India, struck a contract with GEAR (Gemini Equipment and Rentals Private Limited) India to introduce a fleet of electric forklifts running on lithium-ion batteries.

Top Key Players

Forklift Battery Market Share of Key Players

EXIDE INDUSTRIES LTD. EnerSys East Penn Manufacturing Company Hoppecke Crown Equipment Corporation SBS Storage Battery Systems LLC Navitas Systems Saft, Microtex Energy Private Limited Southwest Battery Company

Frequently Asked Questions (FAQs)

How big is the forklift battery market?
The global forklift battery market size was valued at USD 5.56 billion in 2022. It is estimated to reach USD 9.86 billion by 2031, growing at a CAGR of 6.56% during the forecast period (2023–2031). The emergence of fuel cell forklifts as an alternative to the electric forklift and expanding warehouse spaces and the manufacturing industry promote market growth.
North America region has the largest market share in the forklift battery market.
The key players in the global forklift battery market include EXIDE INDUSTRIES LTD., EnerSys, East Penn Manufacturing Company, Hoppecke, Crown Equipment Corporation
The global forklift battery market is bifurcated into type and application
Growth in penetration of green logistics is opportunity in market.

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