Reach Trucks Market

Market Overview

The global reach trucks market size was valued at USD 3,152.61 million in 2022. It is estimated to reach USD 4,932.81 million by 2031, growing at a CAGR of 5.1% during the forecast period (2023–2031). The rise in stronger and smaller material handling equipment and versatile benefits associated with reach trucks promote market growth.

Forklifts, called reach trucks, are used in confined locations like warehouses. They have a single set of wheels at the back and two external legs that help distribute the load. As the wheels are underneath the operator, the turn radius is smaller. This enables operators to access higher racks while navigating tighter spaces. Since it is smaller, a reach truck can move more readily than a forklift. Thanks to its thinner chassis and capacity to hold goods closer to its wheelbase, it can operate efficiently in warehouses with narrow aisles and cramped spaces. Instead of a counterweight, a reach truck has two stabilizing outer legs that distribute the weight of the load. While some variants allow the operator to sit in a front position, the operator often sits sideways for the best comfort and agility. Several features on reach trucks enhance operator visibility. The cab may tilt or feature an open overhead guard for the driver's benefit. Trucks are frequently equipped with cameras, allowing the driver to see what is happening above their heads on a video screen.

Reach trucks often have a lower lifting capacity than a traditional counterbalance forklift. A reach truck's maximum height is an additional benefit besides its capacity to work in small spaces. Reach trucks allow your business to expand its vertical storage because some models have a maximum lift height of over 40 feet. Additionally, every lift truck has a 36-volt electric battery, which makes them emission-free, quieter, and better suited to indoor work environments.

Market Dynamics

Global Reach Trucks Market Drivers

Rise in Stronger and Smaller Material Handling Equipment

Compact material handling equipment adoption has recently increased due to their simpler maintenance requirements, portability, and performance comparable to large machinery. Reach trucks are an example of compact material handling equipment that is substantially simpler to operate and does not require certified personnel, unlike large machinery. Reach trucks are also more affordable than traditional material handling equipment, increasing their appeal to end-use industries.

Versatile Benefits Associated with Reach Trucks

Due to their small size and enhanced mobility, reach trucks are useful for many jobs in manufacturing facilities, shop floors, transportation hubs, warehouses, and factories. For instance, this equipment has cheaper expenses, is simple to maintain, and provides better accessibility in small, enclosed spaces. It can also be moved simply from one place to another. Additionally, there has been a surge in the usage of this equipment in recent years due to the demand for safe and effective material handling equipment across numerous industrial verticals.

Global Reach Trucks Market Restraint

Increase in the Trend of Adoption of Forklifts

Heavy items, including fully laden pallets, are moved and lifted using forklifts, reach trucks, and reach trucks. Like reach trucks, forklifts can be customized with several add-ons, such as hooks, work platforms, and grabbers. Forklifts are typically preferred for docks and warehouses because of their compactness, speed, and adaptability. Furthermore, forklifts are ideal for loading and unloading goods from vehicles, rail carriages, and storage facilities. However, reach trucks are typically more effective for lifting items and cargo outdoors to heights higher than a typical forklift can manage. Additionally, as the manufacturing sector develops, the market for forklift trucks is expanding globally, which could restrain the market's expansion for reach trucks.

Global Reach Trucks Market Opportunities

Technical Innovations

Due to their capacity for handling both double pallet and horizontal transport, battery-operated reach trucks are becoming increasingly popular among end-use industries. Additionally, they are appropriate for light-duty and long-distance material handling applications due to the lithium-ion battery option's greater versatility and energy efficiency. The development of reach trucks with attributes including sturdy construction, seamless operation, and increased longevity is a major emphasis for many businesses. For instance, the China-based Hangcha introduced its A series mini range pallet reach trucks in May 2019. Reach trucks have a 1.0/1.2-ton maximum load capacity, a height range of 2.0 to 3.6 meters, and an initial lift of 120 mm.

Additionally, it includes a double deck, allowing for the simultaneous loading of two pallets. Similarly, KION's Linde Material Handling GmbH introduced a new driver assistance system for pallet reach truck equipment in July 2017. This driver-aid system provides operators with crucial information on a screen and corrective action in the event of operational mistakes.

Regional Analysis

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

North America Dominates the Global Market

North America is the most significant Global Reach Trucks Market shareholder and is estimated to exhibit a CAGR of 6.2% over the forecast period. Due to the numerous ongoing infrastructure and development projects in China and India, the Asia-Pacific market for reach trucks has grown recently. Moreover, rapidly expanding economies have spurred infrastructure, transportation, and airport development projects, particularly in East Asian nations. As a result, Asia has seen an increase in the market for small, sturdy reach trucks. Reach trucks are in greater demand due to the rapid economic development of developing nations, including China, India, Japan, Malaysia, and Australia. These nations are anticipated to expand the market due to increased demand for residential construction.

Additionally, due to the large number of active infrastructure development projects, the construction business in China, India, and other Southeast Asian nations is expanding quickly. The expansion of several reach truck manufacturers boosts the market growth for electric reach trucks. This is further driven by an increase in the global demand for commodities and an increase in disposable income. Moreover, the market expansion is anticipated to give several chances with the growth of emerging markets like India and Indonesia.

Europe is anticipated to exhibit a CAGR of 4.9% over the forecast period. The market for reach trucks is primarily driven by the growth of e-commerce in Europe. Due to increased industrialization and urbanization, e-commerce continuously expands in industrialized nations like the U.K. and Germany. Reach trucks are becoming more popular due to increased attention being paid to lowering carbon footprints and an increase in the use of energy-efficient material handling equipment. The expansion of the food and beverage industry is what propels market expansion in Europe. People are spending more on food and beverages due to continuous urbanization, which drives growth in the food business. Food and beverage is one of the U.K.'s fastest-growing export industries. Until 2022, this export growth is predicted to be 4.5% annually. Therefore, the increase in food and drink would open up chances for the market for reach trucks in Europe.

North America emerged as one of the fastest-growing regions in the global market. The need for durable, effective, and portable machinery that is simple to use and move from one place to another has increased in North America. During the projected period, demand for reach trucks is anticipated to be driven by the high labor cost and an increase in the desire for durable, compact machinery to replace large machinery. Reach trucks are in high demand in factories, warehouses, stations, ports, airports, distribution centers, and other locations throughout Canada and the United States. Additionally, rising investments in storage and logistics facilities fuel industry expansion. The trend of enterprises storing up inventory in large quantities to meet client demand is another important reason fueling the expansion of the reach truck industry. The expansion of warehouses across industries in the U.S. and Canada is also anticipated to open up a lot of new prospects for market expansion in the coming years.

In LAMEA, Future market expansion is anticipated to have a wide range of prospects due to the expansion of warehouses and manufacturing facilities. Advantages like minimizing the likelihood of product/equipment damage, effective productivity, decreasing workplace accidents, and traffic control in warehouses are driving this market's growth. The demand for reach trucks is fueled by growth in the LAMEA industry, mining sectors, and investments in Gulf country infrastructure development. The mining and infrastructure sectors in LAMEA use reach trucks to boost production and profitability. The main driver of the market expansion for reach trucks in LAMEA is the expansion of mining activities.

Segmental Analysis

The global reach trucks market is bifurcated into type and end-user.

Based on the type, the global reach trucks market is bifurcated into less than or equal to 2000 kg and more than 2000 kg.

The less than or equal to 2000 segment dominates the global market and is projected to exhibit a CAGR of 4.9% over the forecast period. Heavyweight products can be loaded or unloaded from the side or the back of a reach truck with a load capacity of less than or equal to 2000 kg. Reach trucks with a load capacity of less than or equal to 2000 kg are appropriate for moving garbage or byproducts away from a production line and delivering materials or components to it. Since they run on batteries and emit no exhaust emissions, electric reach trucks with load capacities of less than or equal to 2000 kg are becoming more and more popular due to their environmentally friendly attributes. This means there will be no engine exhaust-related damage to the finished product.

For the past ten years, reach trucks have sold more than internal combustion engine trucks in Europe and Asia-Pacific. Additionally, because diesel is a finite resource, its cost is predicted to rise with time. Furthermore, electric-powered reach trucks do not need particulate filters fitted to comply with the strict European Exhaust Emission Standards, unlike internal combustion vehicles. Collectively, these elements help the market expand.

Based on end-users, the global reach trucks market is divided into retail and wholesale, logistics, automobile, food and beverage, and others.

The retail and wholesale segment is the most significant contributor to the market and is estimated to exhibit a CAGR of 4.4% over the forecast period. Reach trucks are excellent material handling tools for the quickly changing wholesale and retail industries because they are very productive and efficient. To satisfy the expanding demands of shops, they are tailored and furnished with various alternatives. They aid in producing integrated systems that include A.C. motors, controllers, and accompanying software. Reach trucks' high design efficiency makes them perfect for moving more goods per hour with a single battery charge wholesale. Reach trucks are increasingly being used in the retail and wholesale sectors of the economy because of the benefits of electric stacker sales. The increasing warehousing of commodities in warehouses, distributed through wholesalers and distributors, results from improved transportation networks across various nations and continents such elements fuel market expansion. Reach trucks are currently in more demand due to increased labor costs and productivity in the retail and wholesale sectors. Additionally, during the projection period, it is projected that these trucks' high load-bearing capability and higher efficacy will foster the segment's expansion.

Recent Developments

• December 2022- Hubtex introduced a NexX multidirectional reach vehicle for tight storage rooms and small hallways. The NexX reach truck is ideal for builders' merchants, steel and wood traders, door and window manufacturers, and mechanical engineering firms.
• August 2022- Toyota Material Handling Europe has introduced the first three vehicles in its new B.T. Reflex reach truck range. The latest models, including the high-performance R-series, the E-series with Toyota's unique tilting cab, and the versatile O-series for indoor and outdoor use, establish high standards in terms of safety, efficiency, and ergonomics.