The forklift battery market is anticipated to record a CAGR of around 7% over the forecast period i.e. 2020-2028. High demand for forklifts by large number of industries increases the requirement for battery to run the forklift. Key market players are also introducing innovation in batteries.
These batteries have high storage density and long battery life, which increases the demand for forklift batteries among the end user. Over the forecasted period, the global forklift battery market is expected to expand steadily on account of the growth of warehouses and the rising demand for forklifts in retail stores and delivery hubs.
Research Nester published a report titled “Forklift Battery Market– Global Demand Analysis and Opportunity Outlook 2028” which delivers detailed overview of the forklift battery market in terms of market segmentation by type, by application and by region.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model.
The market is segmented by type into lead acid, lithium ion (Li-ion) and others, out of which the lead acid segment is expected to drive the upcoming market for forklift batteries on account of its large use in most end-use industries. An important and highly preferred combination of power and critical counterbalance is given by the lead-acid battery.
Geographically, the forklift battery market is segmented into five major regions, including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market of Europe is expected to rise by a considerable CAGR by 2028. This is largely attributed to the growing number of construction projects in the region.
Furthermore, owing to the availability of highly built manufacturing and inventory storage facilities, the forklift battery market in Europe is anticipated to witness a significant growth. The Asia-Pacific market will also expand significantly during the forecast period.
In countries such as China, Japan and India, among others, massive growth in renewable energy generation capacity, falling battery prices and tremendous growth in logistics operations are projected to significantly fuel the growth of forklift battery market. The market for forklifts is also rising in Asia owing to the rapid growth in urbanization and fast, efficient logistics operations.
The export volume of forklift trucks has doubled over the last decade, according to figures given by the International Trade Centre (ITC), from $10,365,169 thousand in 2010 to $20,341,315 thousand in 2019. Since the use of smartphones has been growing over the past decade, online shopping has played an important role in the e-commerce industry. A large number of warehouses is being established on account of the worldwide growth of e-commerce and retail industry, thereby needing forklifts to arrange their goods. Forklift battery market is anticipated to be boosted by the increasing demand for forklifts in the end user industry.
However, fluctuating price of raw materials required in the manufacturing of forklift batteries hampers the profitability of the manufacturers operating in the global forklift battery market. Moreover, excessive price of lithium batteries and the risk of alternatives such as gasoline and propane are expected to operate as key restraint to the growth of forklift battery market over the forecast period.