Market Overview

The forklift market in Canada is a highly competitive industry that has seen steady growth in recent years. The growth in the Canadian forklift market is driven by the expansion of the manufacturing sector, which is the primary user of forklifts in the country. The forklift market in Canada is expected to grow at a CAGR of 4.2% during the forecast period from 2021 to 2026. The Canadian forklift market was valued at USD 1.15 billion in 2020 and is expected to reach USD 1.44 billion by 2026.

Meaning

Forklifts are material handling equipment that are used to move heavy goods and materials in warehouses, manufacturing facilities, and other industrial settings. Forklifts are essential to the smooth functioning of these industries, as they allow for the safe and efficient movement of materials.

Executive Summary

The forklift market in Canada is expected to see steady growth in the coming years, driven by the expansion of the manufacturing sector. The market is expected to grow at a CAGR of 4.2% during the forecast period from 2021 to 2026. The Canadian forklift market was valued at USD 1.15 billion in 2020 and is expected to reach USD 1.44 billion by 2026. The market is highly competitive, with a few major players dominating the industry.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The Canadian forklift market is expected to see steady growth during the forecast period, driven by the expansion of the manufacturing sector.
• The electric forklift segment is expected to see the highest growth during the forecast period, driven by the increasing demand for eco-friendly material handling equipment.
• The warehousing and distribution segment is the largest end-user of forklifts in Canada, accounting for more than half of the market share.
• The market is highly competitive, with a few major players dominating the industry.

Market Drivers

1. Expansion of the Manufacturing Sector

The growth of the manufacturing sector in Canada is one of the primary drivers of the forklift market. As manufacturing companies expand their operations and increase their production capacity, the demand for material handling equipment such as forklifts also increases.

2. Increasing Demand for Eco-Friendly Material Handling Equipment

The increasing focus on environmental sustainability has led to a growing demand for eco-friendly material handling equipment. The electric forklift segment is expected to see the highest growth during the forecast period, driven by the increasing demand for eco-friendly equipment.

3. Growing Adoption of Automation in Material Handling

The growing adoption of automation in material handling has also driven the growth of the forklift market. Automated guided vehicles (AGVs) and other forms of automation are increasingly being used in warehouses and manufacturing facilities, which has increased the demand for forklifts that can be integrated with these systems.

Market Restraints

1. High Initial Investment

The high initial investment required for forklifts is one of the primary restraints to market growth. Forklifts can be expensive, especially for small and medium-sized businesses, which may limit their adoption.

2. Maintenance and Repair Costs

Forklifts require regular maintenance and repairs, which can be costly. These costs can be a deterrent for some businesses, especially those with limited budgets.

3. Safety Concerns

Forklifts can be dangerous if not used properly. Safety concerns, such as the risk of accidents and injuries, can be a barrier to adoption for some businesses.

Market Opportunities

1. Increasing Adoption of Electric Forklifts

The increasing demand for eco-friendly material handling equipment presents a significant opportunity for the electric forklift segment. Electric forklifts are more energy-efficient and emit less pollution than their internal combustion engine (ICE) counterparts, making them an attractive option for businesses looking to reduce their environmental impact.

2. Growth of E-commerce

The growth of e-commerce has led to an increase in the demand for warehousing and distribution facilities. This presents an opportunity for the forklift market, as these facilities require a large number of forklifts to handle the movement of goods.

3. Adoption of Advanced Technologies

The adoption of advanced technologies such as automation, artificial intelligence (AI), and the Internet of Things (IoT) in material handling presents an opportunity for the forklift market. Forklifts that can be integrated with these technologies are likely to see increased demand in the coming years.

Market Dynamics

The forklift market in Canada is highly competitive, with a few major players dominating the industry. Toyota, Crown Equipment Corporation, and Raymond are some of the major players in the Canadian forklift market.

The market is characterized by the presence of both global and local players. Global players dominate the market, but local players also have a significant presence, particularly in the rental segment.

The market is expected to see steady growth in the coming years, driven by the expansion of the manufacturing sector and the increasing demand for eco-friendly material handling equipment.

Regional Analysis

The Canadian forklift market is divided into five regions: Ontario, Quebec, Western Canada, Atlantic Canada, and Northern Canada. Ontario is the largest market for forklifts in Canada, accounting for more than a third of the market share. Quebec is the second-largest market, followed by Western Canada.

Competitive Landscape

Leading Companies in the Canada Forklift Market

1. Toyota Material Handling
2. Crown Equipment Corporation
3. Hyster-Yale Group, Inc.
4. Komatsu Ltd.
5. Mitsubishi Logisnext Co., Ltd.
6. Clark Material Handling Company
7. UniCarriers Corporation
8. Hangcha Group Co., Ltd.
9. EP Equipment Co., Ltd.
10. Jungheinrich AG

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The forklift market in Canada can be segmented based on type, end-user, and fuel type.

By Type:

• Counterbalance forklifts
• Reach forklifts
• Order pickers
• Pallet jacks
• Others

By End-User:

• Warehousing and distribution
• Manufacturing
• Construction
• Others

By Fuel Type:

• Electric
• Internal combustion engine (ICE)
• Others

Category-wise Insights

Electric forklifts are expected to see the highest growth during the forecast period, driven by the increasing demand for eco-friendly material handling equipment. The warehousing and distribution segment is the largest end-user of forklifts in Canada, accounting for more than half of the market share.

Key Benefits for Industry Participants and Stakeholders

• The forklift market in Canada presents significant growth opportunities for industry participants and stakeholders.
• The expansion of the manufacturing sector and the increasing demand for eco-friendly material handling equipment are the primary drivers of market growth.
• Businesses that invest in forklifts can benefit from increased productivity, improved efficiency, and enhanced safety.

SWOT Analysis

Strengths:

• Strong demand from the manufacturing and warehousing sectors.
• Growing focus on environmental sustainability, which is driving the adoption of eco-friendly material handling equipment.
• Increasing adoption of automation in material handling.

Weaknesses:

• High initial investment required for forklifts.
• Maintenance and repair costs can be significant.
• Safety concerns, which can be a barrier to adoption for some businesses.

Opportunities:

• Increasing adoption of electric forklifts.
• Growth of e-commerce, which is driving demand for warehousing and distribution facilities.
• Adoption of advanced technologies such as automation, AI, and IoT in material handling.

Threats:

• Economic downturns, which can lead to a decrease in demand for forklifts.
• Intense competition from global and local players in the market.
• Increasing regulations and standards related to environmental sustainability, which may increase the cost of production and reduce profitability.

Market Key Trends

1. Increasing Adoption of Electric Forklifts

The electric forklift segment is expected to see the highest growth during the forecast period, driven by the increasing demand for eco-friendly material handling equipment. Electric forklifts are more energy-efficient and emit less pollution than their ICE counterparts, making them an attractive option for businesses looking to reduce their environmental impact.

2. Integration with Advanced Technologies

Forklifts that can be integrated with advanced technologies such as automation, AI, and IoT are likely to see increased demand in the coming years. These technologies can improve the efficiency and productivity of material handling operations, making them an attractive option for businesses.

3. Increased Focus on Safety

The forklift industry is placing an increased focus on safety, with the development of new technologies and standards aimed at reducing the risk of accidents and injuries. Businesses that prioritize safety in their material handling operations are likely to see increased demand for their services.

Covid-19 Impact

The Covid-19 pandemic had a significant impact on the forklift market in Canada, as it did on many industries around the world. The pandemic led to a slowdown in economic activity, which affected the demand for forklifts in the country.

However, the impact of the pandemic on the forklift market was relatively mild, as the essential nature of the industry meant that it was less affected than other sectors. The increasing adoption of e-commerce also helped to mitigate the impact of the pandemic on the forklift market, as it drove demand for warehousing and distribution facilities.

Key Industry Developments

1. Development of Eco-Friendly Forklifts

Many forklift manufacturers are developing eco-friendly forklifts in response to the growing demand for sustainable material handling equipment. These forklifts use alternative fuels or electric power to reduce their environmental impact.

2. Integration with Advanced Technologies

Forklifts are increasingly being integrated with advanced technologies such as automation, AI, and IoT to improve their efficiency and productivity. This trend is likely to continue in the coming years as businesses seek to improve their material handling operations.

Analyst Suggestions

1. Businesses should prioritize safety in their material handling operations to reduce the risk of accidents and injuries.
2. Businesses should consider investing in eco-friendly forklifts to reduce their environmental impact and improve their sustainability.
3. Businesses should keep up-to-date with the latest trends and technologies in the forklift industry to remain competitive.

Future Outlook

The forklift market in Canada is expected to see steady growth in the coming years, driven by the expansion of the manufacturing sector and the increasing demand for eco-friendly material handling equipment. The electric forklift segment is expected to see the highest growth, driven by the growing focus on environmental sustainability.

Conclusion

The forklift market in Canada is a highly competitive industry that is expected to see steady growth in the coming years. The expansion of the manufacturing sector and the increasing demand for eco-friendly material handling equipment are the primary drivers of market growth. Businesses that prioritize safety and sustainability in their material handling operations are likely to see increased demand for their services.