Preliminary research of Fairfield Market Research indicates a promising growth outlook for global forklift battery market during the course of next few years.
Electrification of Forklifts to Influence Growth of the Forklift Battery Market
Since past several years, an increasing preference towards adoption of sustainable energy sources has been witnessed. This is mainly due to ongoing environmental issues on the back of carbon emissions and GHG (Green House Gas) emissions that cause pollution. That said, with an aim to achieve a net zero carbon emissions in the coming years, several companies are opting for electrification of their machines to reduce emissions. This factor has resulted in an increase in the electrification of forklifts that are widely used across industries such as warehousing, manufacturing, food and beverage, retail and e-commerce among others. This shift from diesel powered forklifts to electric or battery operated forklifts continues to remain instrumental in driving the growth of the forklift battery market.
In addition, advances in the battery technology provide longer runtimes, fast charging capabilities and hassle free maintenance. This has further triggered in the use of battery powered forklifts that come with benefits such as reduced fuel costs, zero emissions and smooth functioning. Albeit fossil fuels were the staples for forklifts, their electric counterparts are gaining high traction for outdoor and indoor material handling. This factor is expected to add fuel to the demand for advanced batteries, consequently aiding the growth of forklift battery market on the global front.
Warehousing and Manufacturing Sectors to Remain Key Growth Contributors for Forklift Battery Market
The increasing preference for electric forklifts in manufacturing and warehousing has given an impetus to the sales of forklift batteries. In warehousing and manufacturing sectors, these forklifts have gained high traction owing to their perceived benefits such as less noise, reduced heat dissipation, less overall costing and pollution free working. In addition, they have few moving parts and require fewer replacements of fluids such as coolants and engine oil. Moreover, the plastic components present in used forklift battery can be reused to manufacture new battery cases. This can further reduce the dumping of plastics in the environment, thus contributing towards environment health. In this background, the increasing demand for electric forklifts in warehousing and manufacturing is expected to largely complement the value growth of the forklift battery market.
Furthermore, with advancements in forklift technology, the development of autonomous forklifts is in the offing. These autonomous forklifts are integrated with different systems such as AI-integrated telematics, cameras, sensors, and radars. Sensors in these machines identify, define and record the movement of the forklift by spotting the position of stationery objects and human beings, thus avoiding accidents. Thus, adoption of artificial intelligence in the forklift space is likely to further enhance their use across industrial applications, as a result creating potential avenues for the forklift battery market.
Lead Acid Battery to Reign Supreme in Global Forklift Battery Market
Among several batteries available for the functioning of electric forklifts, lead acid batteries have gained immense popularity owing to their benefits. Lead acid battery is highly reliable and offers superior backup. In addition, these batteries provide a higher power to weight ratio for different types of forklifts, are rechargeable and cost effective. Also, lead acid batteries higher energy densities with low discharge rates owing to the unique combination of graphite and lithium infused in them. These batteries offer high power output as compared to other forklift batteries owing to low net weight of the entire battery module and require less maintenance making them an apt choice for customers facing battery maintenance. This aspect has given an impetus to the sales of lead acid batteries in forklift technology, thus significantly contributing towards revenue growth of the forklift battery market. On the other hand, the demand for lithium-ion batteries is also expected to increase as they are being technologically developed to offer long service life, high output and productivity, fast charging ability, high cost and energy savings and low maintenance. This is poised to present potential opportunities for lithium-ion batteries in the forthcoming years.
Forklift Battery Market in Asia Pacific to Witness an Upswing in the Coming Years
Emerging economies in Asia Pacific are likely to offer new growth opportunities for forklift battery market. This region can be considered as the base of battery production owing to widely spread downstream industries such as electronics, semiconductors, and chemicals. In addition, increasing demand for renewable power generation and decreasing price of batteries coupled with rising adoption of battery operated forklifts in industrial applications has created a favourable scenario in Asia Pacific. Other factors such as rising manufacturing industry, warehousing, food and beverage sector and construction industry have fuelled the adoption of electric forklifts consequently complementing growth of the market in the region.
Forklift Battery Market: Competitive Landscape
Major players in the forklift battery market are focusing on new product launches, capacity expansions and collaborations to strengthen their position in the market. For instance, in July 2021, new XH series electric forklift trucks integrated with high power lithium ion batteries was introduced by HANGCHA. In March 2022, vista based lithium ion battery was launched by Flux Power for electric forklift segment which can power 3-wheel electric forklifts. Same year in June, Vedanta Aluminium commissioned a large fleet of 27 electric forklifts that are powered using lithium ion batteries. In March 2022, a multiyear agreement was signed between Exide Industries Ltd. and SVOLT Energy Technology Co. Ltd. to develop and manufacture lithium ion cells in India.
A few of the major players in the forklift battery market include Exide Industries Ltd., Amara Raja Batteries Ltd., East Penn Manufacturing Industry Company, ENERSYS, Crown Equipment Corporation, Trojan Battery Company, and Narada Power Source Co. Ltd.
Regional Classification of the Global Forklift Battery Market is Described Below:
Middle East and Africa
*Regions and countries are subject to change based on data availability.
Key Elements Included In The Study: Global Forklift Battery Market
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