SMM: international market research institute Technavio recently released a report that the global forklift battery market is expected to grow by 1.8 billion US dollars between 2020 and 2024, with a compound annual growth rate of about 7 per cent.
Europe is the world's largest regional market for forklift batteries in 2019. It is expected that during the forecast period, 35% of the market growth will come from the European region, of which Germany and France will be the main markets in the region. The growing demand for forklifts in the automotive industry and warehouses will greatly boost the growth of the forklift battery market in the region during the forecast period. However, in terms of market growth, the European region will grow more slowly than the Asia-Pacific and North American markets.
Overall, the increase in the number of warehouses promotes the increase of forklift sales, thus stimulating the moderate growth of forklift battery demand. Nevertheless, replacing electric forklifts with fuel cell forklifts will challenge the growth of market participants. In order to take full advantage of these opportunities, market suppliers should pay more attention to growth prospects in fast-growing areas while maintaining their position in slow-growing areas.
Industries such as paper printing, automotive, food and beverage and logistics have increased the use of electric or battery-powered forklifts because of their low greenhouse gas emissions and low noise. In addition, the cost of promoting an electric forklift is 50% lower than that of an internal combustion engine, helping end users significantly reduce their logistics costs. Moreover, longer service life, high flexibility and low maintenance costs are other major factors driving the further popularity of electric forklift trucks, ultimately driving the demand for industrial forklift batteries.
On the other hand, more and more environmental problems have led some forklift battery manufacturers to focus on adopting battery recycling programs. The European Union has imposed strict restrictions on battery recycling. A growing number of initiatives to prevent battery recycling from lead and soil pollution will promote the growth of green or environmentally friendly battery recycling technologies. The increasing legislative support for battery recycling will be one of the important trends of the battery market in the forecast period.
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