The industrial vehicles market, in terms of value, is projected to grow at a CAGR of 1.86% from 2016 to 2021. The market is estimated to be USD 13.45 Billion in 2016, and is projected to reach 14.75 Billion by 2021. The increased industrialization and setting up of warehouses to support hub and spoke model for various sectors are expected to drive the industrial vehicles market.
The Asia-Pacific region is estimated to dominate the industrial vehicles market, in terms of value, in 2016, as it comprises some of the fastest developing economies in the world, including China, India, and South Korea. This has led to an increase in industrial vehicle production volumes over the years, with OEMs catering not only to the domestic demand but to overseas demand as well.
There is a lack of innovation and R&D for industrial vehicles. OEMs need to invest heavily in R&D to enhance the ability of industrial vehicles to lift heavy loads and to improve efficiency in order to reduce turnaround time. Automated industrial vehicles and customized industrial vehicles have a higher installation cost than other industrial vehicles. These vehicles have not yet penetrated emerging markets, which constitute a major share of the global industrial vehicles market. The high installation cost is one of the major factors preventing manufacturers from entering the Asia-Pacific market, particularly in countries such as India and China.