Industrial Electric Vehicle Market Size, Share, and Trends 2024 to 2033

Industrial Electric Vehicle Market Size and Growth 2024 to 2033

The global industrial electric vehicle market size was valued at USD 23.25 billion in 2023 and is anticipated to reach around USD 72.28 billion by 2033, expanding at a CAGR of 12.01% from 2024 to 2033. The increasing awareness about the environment friendly fuel based automobile alternatives that are driving the growth of the market.

Industrial Electric Vehicle Market Key Takeaways

• Asia Pacific led the market with the largest market share of 41% in 2023.
• North America is expected to witness the fastest growth rate during the forecast period.
• By vehicle, the forklift segment has contributed the major market share of 36% in 2023.
• By propulsion type, the hybrid electric vehicle segment dominated the market in 2023.
• By application, the manufacturing segment has held the largest market share of 41% in 2023.

Industrial Electric Vehicle Market Size in the Asia Pacific 2024 to 2033

The Asia Pacific industrial electric vehicle market size was estimated at USD 9.53 billion in 2023 and is predicted to be worth around USD 30 billion by 2033, at a CAGR of 12.15% from 2024 to 2033.

Asia Pacific led the industrial electric vehicle market with the largest market share in 2023. Thew region is observed to sustain the dominance throughout the forecast period. The growth of the market in the region is owing to the rising population and the higher demand for industrialization across the developing countries. Most of the Asian countries carry a strong foundation of industries and manufacturing units, these sectors require industry-oriented vehicles which promotes the market’s growth. Along with that, the demand for heavy-duty vehicles in the manufacturing units for industrial applications is driving the expansion of the market.

The increasing awareness regarding environmental pollution and shifting consumer preferences towards the adoption of electric vehicles even for industrial purposes creates a sustainable potential for the market to grow. The availability of favorable government policies for the adoption of electric vehicles are accelerating the growth of the industrial electric vehicle market in the region.

• The people of Republic of China (hereafter China), India, and the Association of Southeast Asian Nations (ASEAN) countries are observed to continue as the biggest consumers of the two and three-wheeler market in the upcoming years.
• The Chinese government spent $173 billion in subsidies to support the electric vehicle industry between 2016-2022.

North America is expected to witness the fastest growth in the industrial electric vehicles market during the forecast period. The growth of the market in the region is increasing due to the rising adoption of electric vehicle by the consumer and the availability of the major market players in the electric automobile segment that are driving the sales growth of the electric vehicles in the region. The increasing investment on research and development activities in the development and launch of automobiles are driving the growth of the industrial electric vehicle market in the region.

Industrial Electric Vehicle Market Size in Europe 2023 to 2033

The Europe industrial electric vehicle market size was calculated at USD 6.51 billion in 2023 and is projected to expand around USD 20.60 billion by 2033, poised to grow at a CAGR of 12.20% from 2024 to 2033.

Industrial Electric Vehicle Market Overview

Industrial electric vehicles are one of the essential parts in the industrial applications such as material handling and storage process, movement of material, and others. The rising demand for sustainability in the manufacturing units and the adoption of eco-friendly production units in the industries are driving the expansion of the industrial electric vehicle market. The market offers development and distribution along with other services for numerous vehicle types that can be utilized for manufacturing, warehousing and lifting purposes at industrial areas. The rising interventions of the major automobile market players in the development of electric vehicles and the shift in the consumer preferences over the electric vehicles are driving the growth of the industrial electric vehicle market.

Industrial Electric Vehicle Market Growth Factors

• The increasing investments in the development of industrialization in the economically developing countries are driving the expansion of the market.
• The increasing adoption of electric vehicles globally due to the rising awareness regarding rising environmental pollution and global warming are also boosting the growth of the market.
• The increasing demand for sustainability in infrastructure and the increasing technological advancements in electric vehicles are boosting the growth of the industrial electric vehicle market.
• The advancements in electric battery technology and the increasing cost affordability in electric vehicles due to the various government’s favorable policies for the expansion of electric vehicles.
• Many regional governments are providing several favorable policies for the adoption of electric vehicles aiming to reduce environmental pollution and eco-friendly alternative in the automobile that are driving the growth of the market.
• The increasing investment in research and development activities in the innovations and development in the automobile industries are accelerating the growth of the industrial electric vehicle market.

Industrial Electric Vehicle Market Scope

Industrial Electric Vehicle Market Dynamics

Drivers: Rising industrialization

The increasing industrialization in the developing countries is driving the demand for the industrial electric vehicle. Electric vehicles are larger in size with lead acid to lithium-ion batteries with rapid charging time and better round-trip capabilities are driving the demand for the industrial electric vehicle. It is efficient in the material handling in the manufacturing plant or in warehouse for the product movement. Industrial vehicles are used in several industrial applications like stock movement, order preparation, and localization.

The increasing investment in industrial equipment such as automated storage systems, material handling equipment, and retrieval systems improves the production capacity and quality. The development of AI and automation in the industrial electric vehicles are further propelling the expansion of the industrial electric vehicle market.

Restraint: High cost of manufacturing

Industrial electric vehicles are still considered into the category of newer technologies, thereby the cost of manufacturing for industry players can hinder the market’s growth. Considering the high initial cost of the industrial electric vehicle is limiting the expansion of the market by hampering the entry of new market players. Additionally, the limited availability of charging stations for electric vehicles is restraining the growth of the industrial electric vehicles market. However, subsidies and tax reduction offered by multiple government bodies are observed to overcome the restraint in the upcoming years.

Opportunity: Advancements in the electric vehicle technology

The technological advancements in electric vehicle technology are significantly impacting the growth of the industrial electric vehicle market. The technological advancements and the changing industrial preference over the automobile or the industrial vehicles along with the adoption of electric or hybrid electric vehicle are driving the expansion of the market. Technological developments such as the implementation of longer life span of batteries, improvement in the lithium-ion batteries like increase in energy density, longer drives in the single charge, ability to pick up or move the extra weighted industrial materials. Additionally, the favorable government initiative in the sales of the industrial electric vehicle is one of the major influencing factors of the industrial electric vehicle market.

Vehicle Insights

The forklift segment dominated the industrial electric vehicle market with the largest market share in 2023. The growth of the segment is attributed to the rising use of forklifts in the industrial and manufacturing sector. The increasing demand for sustainable manufacturing equipment and vehicles are driving the demand for electric forklifts in the industries. The electric forklifts aim to reduce the maintenance and energy custom, it minimizes the services and replacements that reduces the potential downtime of the industries.

Increasing awareness regarding environmental pollution and impacts of pollution on the human bodies is also observed to promote the adoption of electric forklifts for industry. The adoption of electric forklifts drives a healthier environment in the workplaces and creates a greener future for the environment. Electric forklift reduces carbon emission, increases the air quality and creates a clean and healthy environment in industrial areas.

Propulsion Insights

The hybrid electric vehicle segment dominated the industrial electric vehicle market in 2023. The increasing adoption of hybrid electric vehicles due to its lower carbon emission and reduces consumption of fuel as compared to the other conventional counterparts. Hybrid electric vehicles are the type of vehicle that utilize both the propulsion systems, that is electric propulsion system, and internal combustion (IC) engine. Hybrid electric vehicle carries properties like fuel efficiency due to the electric powertrain, enhanced performance, or it can independently propel the vehicle on single electric powertrain. Internal combustion engine, electric motor, battery pack, generator, fuel tank, and transmission are some of the major components of hybrid electric vehicles. The demand for the hybrid electric vehicles in the economically developed countries are rising significantly and the increasing research on the technological advancements in the hybrid electric vehicles and electric vehicle segment in automobile industry is further propelling the growth of the market.

Application Insights

The manufacturing segment held the largest market share in 2023 of the industrial electric vehicle market. The increase in demand for efficiency in production process with the adoption of sustainability which drives the increasing acceptance of electric vehicles in the industries. The increasing concern about the workplace environment and environmental responsibilities are driving the demand for the industrial electrical vehicles in the manufacturing units.

The revolutionary shift towards sustainable and cleaner sources of industrial transportation results in the reduced carbon footprint and operational cost of manufacturing. The ongoing research on the innovation and launch of heavy-duty electric vehicles for manufacturing operations is driving the growth of the market.

Industrial Electric Vehicle Market Recent Developments

• In March 2024, Hyundai Motor India Limited (HMIL) announced that it is planning to launch solution into the Indian electric vehicle market with the development of five latest manufacturing units across the India by 2030.
• In April 2024, the founder of Tesla, Elon Musk stated that he is planning to launch a range of affordable electric vehicle models by the year 2025. Production will start by the second half of 2025.
• In April 2024, Hyundai Motor Group is announcing the launch of the first hybrid cars in India by 2026. As per the reports, the company is currently assessing the hybrid sport-utility vehicle (SUV) similar in size to the bestselling mid-sized Creta SUV.
• In April 2024, Daimler Truck’s, Rizon, a latest brand is proudly announcing the launch of its battery-electric Class 4-5 trucks in Canada. The brand will showcase in Canada for the first time in Truck World in Toronto from April 18th to 20th and will be in the Canadian market with the preorders starts from June 2024.
• In May 2024, Toyota Motor North America, Inc. (Toyota) and FuelCell Energy, Inc. are celebrating the launch of first-of-its-kind "Tri-gen" system at the Port of Long Beach, California. The latest launch Tri-gen uses biogas to renewable hydrogen, produce renewable electricity, and usable water, and designed to support the vehicle distribution and processing center for Toyota Logistics Services (TLS) at Long Beach.
• In May 2024, BorgWarner, the first to the market for the electric torque Vectoring and Disconnect (eTVD) system for battery electric vehicles (BEVs) introduces the Polestar and an additional major European OEM.
• In April 2024, Daimler India Commercial Vehicles (DICV), the branch of the Daimler Truck AG launched the light duty redesigned eCanter all electric in India. It will used as the light duty commercial truck segment.
• In April 2024, Al Masaood Commercial Vehicles & Equipment (CV&E), the part of the well-known business conglomerate Al Masaood Group, announced that they secure the distributorship rights for Dongfeng Commercial Vehicles with the one of China’s premier automotive manufacturers- Dongfeng Automobile Corporation.

Industrial Electric Vehicle Market Companies

• Toyota Industries Corporation
• Hyster-Yale Materials Handling, Inc.
• Balyo
• John Bean Technologies Corporation (JBT)
• Seegrid Corporation
• Kuka AG
• Jungheinrich AG
• Swisslog Holding AG
• Dematic
• Daifuku Co., Ltd.
• Bastian Solutions, Inc.
• Schaefer Holding International GmbH

Segments Covered in the Report

By Vehicle

• Tow Tractors
• Forklifts
• Container Handlers
• Aisle Trucks
• Others

By Propulsion

• Hybrid Electric Vehicles (HEVs)
• Battery Electric Vehicle (BEVs)

By Application

• Manufacturing
• Warehouses
• Freight and Logistics
• Others

By Geography

• North America
• Asia Pacific
• Europe
• Latin America
• Middle East & Africa