Industrial Vehicle Market Size

Industrial Vehicle Market Size

Industrial Vehicle Market was valued at USD 44.8 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032. The growing industries in developing nations are driving the demand for industrial vehicles.

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The rapid pace of technological advancements and innovations in electric and hybrid power trains have led to more efficient and environmentally friendly vehicles. Additionally, advancements in battery technology, such as lithium-ion batteries, are enhancing the performance and range of electric industrial vehicles. The integration of telematics and IoT (Internet of Things) solutions allows for real-time monitoring, predictive maintenance, and improved fleet management, providing significant cost savings and operational efficiencies.

For instance, in January 2022, Toyota Material Handling launched a new range of counterbalance forklifts. Designed for both indoor and heavy-duty outdoor applications, the Traigo80 80-volt counterbalance range is offered with a choice of lithium-ion new Traigo80 equipped with a small lithium-ion battery that can work a full 8-hour shift. In addition, the Traigo80 is designed for the toughest environments and features high-level protected motors that deliver best-in-class performance and durability in all weather conditions.
 

Various measures are being implemented by governments globally to expedite the adoption of vehicles (EVs) and facilitate the shift towards more environmentally friendly transportation. Additionally, manufacturers are given grants and subsidies to reduce production costs and promote investment in EV technology. Governments may further fund the construction of charging infrastructure and offer financial incentives to fleet operators switching to vehicles. All these actions are intended to lower costs, increase accessibility, and enhance the appeal of EVs, thereby promoting their wider adoption and supporting environmental sustainability hence, propelling the market.
 

Industrial vehicles are still regarded as emerging technologies, and participants may find it difficult to expand the market due to high manufacturing costs. The high initial costs of industrial vehicles make it challenging for new competitors to enter the market, which restricts growth. Furthermore, the market for industrial vehicles is constrained by a scarcity of charging infrastructure. However, subsidies and tax breaks provided by various government agencies appear to be mitigating these constraints in the coming years. These financial supports help reduce the cost of vehicles and encourage the development of charging infrastructure, gradually overcoming market constraints and propelling growth in the industrial EV sector.