Autonomous Forklift Market

According to Stratistics MRC, the Global Autonomous Forklift Market is accounted for $3.98 billion in 2022 and is expected to reach $8.70 billion by 2028 growing at a CAGR of 13.9% during the forecast period. Self-propelled forklifts, commonly referred to as autonomous forklifts, are used to lift objects without human assistant. Human labour is no longer required for warehouse operations as a result. With the introduction of autonomous forklifts, defects brought about by human interaction in warehouse operations can be readily managed. The demand for autonomous forklifts is being driven by the requirement to manage big loads in supply chains and material handling. As a result, the proper component is always in the appropriate location at the appropriate time.

According to a survey by Inbound Logistics, labor costs account for about 65% of the warehouse’s overall budget, along with employee attrition and low labor productivity. In addition, the warehouse automation market grew from USD 9.95 billion in 2016 to USD 15.59 billion in 2021 due to rising rents and supply chain disruptions.



Market Dynamics:

Driver:

Enhancements in material handling process

The efficient operation of the industries depends critically on the material handling process. It facilitates the transfer of goods and materials from one location to another, making it the most important issue for end users. To fulfil demand, this process must be improved through the use of automation and digitization. The sector has evolved as a result of the adoption of digitalization and automation, making the material handling process more efficient and autonomous. A streamlined and effective flow of materials has also been produced through the transformation in the material handling process. This has made it possible for many industries to implement fully or partially automated just in time (JIT) manufacturing processes. Therefore, the expansion of this market is being driven by the rising demand for automation and digitization in the material handling process.

Restraint:

High integration and switching costs due to AI and WMS

A autonomous forklift requires a large initial investment. To operate this machinery, skilled labour is required. For businesses, the continuing costs of maintaining and updating numerous subsystems are typically very high. Making such substantial investments is difficult for small and medium-sized organisations. The initial investment for automated material handling equipment, such as self-driving forklifts, is extremely substantial. The one-stop solution cuts down on the time and materials needed to analyse various components. Because there is no need to assess the system's compatibility, the cost of implementation is somewhat reduced. However, just a few autonomous forklifts are presently deployed in a variety of industries due to their poor cost-benefit ratio.

Opportunity:

Development of IoT-integrated autonomous forklifts

The emergence of Industrialization 4.0, the Internet of Things (IOT), big data analytics, and cloud computing, which have boosted automation and decreased human interaction in the supply chain, have all been beneficial to material handling operations. The Internet of Things (IoT) is a closed-loop system that blends technology with real-world physical operations and machinery for material handling. To lessen the chance of equipment and facility damage, the health of forklifts must be continuously checked by a variety of sensors and encoders. Using a fleet management interface, an operator may check on the functioning of autonomous forklifts. Due to additional advantages including precise mixed case selecting, trip and lift speed optimisation, and real-time position determination, the adoption of IoT-driven autonomous forklifts is projected to increase in supply chain applications.

Threat:

Technical challenges related to sensing elements

Any automated material handling system is a sophisticated system with many sensors, motors, and pieces of software that control how the machinery is programmed. An issue with the system's sensing component might technically interrupt a whole operational process, increasing the company's costs in terms of time and money. Any programming error in the software might potentially cause the automated system to malfunction, which would cause downtime to increase from a few minutes to several days and disrupt the entire production process. System errors consequently have an adverse effect on the process and reduce earnings.

Covid-19 Impact

The COVID-19 pandemic had a negative impact on the growth of the autonomous forklift market because of the implementation of global lockdowns that led to the temporary closure of production facilities. Many manufacturers tried to automate material handling tasks because doing so reduced the potential of COVID-19 exposure. Due to COVID-19, autonomous forklifts become a viable solution for manufacturing enterprises with compact footprints. But compared to 2019, e-commerce order volumes dramatically increased. Forklifts that are autonomous are now more in demand.

The below 5 tons segment is expected to be the largest during the forecast period

The below 5 tons segment is estimated to have a lucrative growth, due to its restricted lifting capability. Manufacturing, warehousing, material handling, logistics, and freight all use autonomous forklifts. Within confined warehouse floor spaces, these little elevators speed up safe and straightforward product moving. These autonomous forklifts enable human resource safety by transporting hazardous materials in constrained warehouse areas.

The electric segment is expected to have the highest CAGR during the forecast period

The electric segment is anticipated to witness the highest CAGR growth during the forecast period. The adoption of machinery with electric propulsion is quickly increasing across all geographies due to features including reduced emissions, lower operating costs, and ease of manoeuvrability. Growing electric infrastructure, particularly in Asia Pacific, Europe, and North American countries, supportive government regulations, and straightforward integration with automotive software and hardware technologies are some of the key factors influencing the growth of electric propulsion autonomous forklifts during the projected period.

Region with largest share:

Asia Pacific is projected to hold the largest market share during the forecast period owing to rising adoption in China and India. While it is projected that other countries in the region, such as Japan and South Korea, would raise their share by modernising and changing the current automated material handling machinery. International manufacturers of autonomous forklifts are also relocating their businesses here. The technology transfer has increased the number of local players, which is likely to minimise the cost of adopting autonomous forklifts in the region, therefore it is anticipated that the region will grow its share throughout the forecast period.

Region with highest CAGR:

Europe is projected to have the highest CAGR over the forecast period, owing to significant players' growing efforts to improve their promotional methods through increased involvement in seminars and exhibitions. For instance, E&K AUTOMATION declared in December 2019 that it would take part at LogiMAT, which will take place in March 2020. E&K anticipates showcasing its brand-new, internally developed automated industrial series VARIO MOVE at LogiMAT. Numerous automated guided vehicles from various manufacturers will also be present at the event.



Key players in the market

Some of the key players profiled in the Autonomous Forklift Market include AGILOX Services GmbH, Agve AB, Anhui Heli Co., Ltd, BALYO, Crown Equipment Corporation, Hyster-Yale Materials Handling, Inc, Hyundai Construction Equipment Co., Ltd., Jungheinrich AG , KION GROUP AG, Mitsubishi Logisnext Co., Ltd, Oceaneering International, Inc., Scott Automation, Seegrid Corporation, Swisslog Holding AG and Toyota Industries Corporation.

Key Developments:

In November 2022, Linde Material Handling Equipment launched the R-Matic autonomous reach truck. Reach trucks are developed as a hybrid solution, allowing the driver to take over at any time and shift the truck into manual mode. Automated industrial trucks travel independently to the charging station for recharging because they are outfitted with fast-charging batteries.

In September 2022, Toyota Industries Corporation developed an autonomous lift truck with the world’s first AI-based feature. It automatically recognizes the position and location of trucks and loads and creates automated travel routes for loading operations. This allows for the automation of loading procedures in addition to the traditional fixed-position loading, even when the truck's halting location and load position is not fixed.

In March 2022, Linde Material Handling Equipment, a subsidiary of KION Group AG, launched autonomous mobile robots called C-Matic. The company is expanding its product line-up in automated solutions with small, quick, and adaptable logistic helpers.

In July 2021, Jungheinrich AG and TRUMPG announced they entered into an intralogistics partnership. AG announced it would provide TRUMPG with driverless vehicles to transport sheet metal parts between different machine tools and storage locations. In contrast, TRUMPF will offer its Fab production-control software, which will assist manufacturers in improving their logistics.

In June 2021, AGILOX Services GmbH and Carlyle Group entered into an investment agreement. With this agreement the AGILOX Services GmbH can improve its geographic reacg and product development.

Navigation Technologies Covered:
• Magnetic Guidance
• Laser Guidance
• Optical Tape Guidance
• Inductive Guidance
• Vision Guidance
• Simultaneous Localization and Mapping (SLAM)
• Other Navigation Technologies

Tonnage Capacities Covered:
• 5-10 Tons
• Below 5 Tons
• Above 10 Tons

Fuel Sources Covered:
• Internal Combustion Engine (ICE)
• Electric
• Alternate Fuels
• Other Fuel Sources

Types Covered:
• Outdoor
• Indoor

Forklift Types Covered:
• Pallet Stackers
• Pallet Jacks

Sales Channels Covered:
• Leasing
• In House Purchase

Components Covered:
• Software
• Service
• Hardware

Applications Covered:
• Warehousing
• Manufacturing
• Material Handling
• Logistics and Freight
• Other Applications

End Users Covered:
• Food and Beverages
• Third Party Logistics (3PL)
• Paper and Pulp
• Automotive
• E Commerce
• Metals and Heavy Machinery
• Aviation
• Chemicals
• Semiconductors and Electronics
• Healthcare
• Construction
• Transportation
• Retail
• Wood Industry
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan
o China
o India
o Australia
o New Zealand
o South Korea
o Rest of Asia Pacific
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings:
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
o Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances