The global forklift battery market registered a revenue of nearly $4,231.0 million in 2018 and is anticipated to grow at a 6.2% CAGR, surpassing $6,831.2 million by 2026. The market has witnessed a significant growth previously, but due to the unexpected COVID-19 outbreak, the market will witness a decrease in the market growth in 2020.
Besides, the market might witness a drift in product availability, as the manufacturers in China have completely shut down their operations. The battery market has dominated the economy since its introduction and will continue the growth with same pace post the COVID-19 pandemic settles. As, per ETAuto.com, battery plays an essential role because it is used in various applications, without which a country cannot run electronics, cars, smartphones, residential products and commercial products. EV industry remains positive despite COVID-19 disruption with an anticipation of 30-35% of sales by 2025. Our analysts have estimated the condition of forklift battery market during the COVID-19 outbreak and have come to the following conclusions.
|Recovery By||Realtime BPS||*Estimated market Size, 2020, |
|**Real Time market Size, 2020, |
|6.6%||6.2%||Q3/Q4 2022||49||USD 4,784.7 Million||USD 2,870.8 Million|
* The numbers are estimated prior to the COVID-19 Pandemic in 2020
** The data will vary depending on upcoming developments announced by the operating players
KEY ASPECTS OF THE INDUSTRY
BOOMERS AND DECLINERS
A forklift battery basically provides power to lift electric vehicles. Renewable energy is generation of energy through natural resources. Biomass, geothermal power, hydroelectricity, solar energy, and wind power are some of the forms of renewable energy. The growing market for commercialization of renewable energy has increased people’s interest in the forklift battery market. Even though the cost of investment is high, the need for healthy environment and reduction of dependency on conventional resources has made 144 countries to be committed towards renewable energy. The overall scenario facilitates the growth for the forklift battery market. In addition, rising adoption of electric vehicles in India is expected to result in high growth in the forklift batter market in the forecast period.
Large number of players operating in the forklift battery market are spread across various regions over the world, from local vendors to world class leaders. The market is highly fragmented, as large number of players are present in the regional as well as local markets, due to which the standardization of products is hard to define. This is the major constraint in the forklift battery market and has affected the performance of companies. The situation is changing with increasing partnerships between regional players and market leaders. Price instability in lead and threat of substitutes such as gasoline and propane are predicted to impact the global forklift battery market.
The COVID-19 pandemic has not much impacted the forklift battery market. As per EV market forecast, e-rickshaws, e-autos and e-two wheelers are the most promising and growing segments for electrification in India in the near future and are expected to gain high market share for more than four-million units by 2025 reported by economic times auto.com. In a broad market like India, where more than 90% of people belong to middle class prefer to commute via two-wheelers, three-wheelers and buses that run on battery. This makes the scenario for all commercial vehicles very strong and accelerates the need for forklift batteries in the market.
All above mentioned factors are significantly driving the adoption of forklift batteries and will impel the market growth during the COVID-19 outbreak. Earlier, in India electric cars did not achieve much success due to high cost of acquisition. The Indian government has made policy named Niti Aayog to achieve sustainable development, prior to COVID 19, in order to encourage EV imports with tax benefits that accelerated the “Make In India” movement. Increasing initiatives by the government for the adoption of electric buses and promising to come up with 15-20 thousand new buses in the next years influences forklift battery market to grow at high pace.
MANAGING SUCCESS AMIDST
THE PANDEMIC STRESS
The global forklift battery market is declining in 2020 and expected to witness growth in the quarter 3/4, 2022, which is anticipated to follow the trend until the end of the forecast period. The rapid growth is majorly attributed to the increasing penetration of population, surge in need for renewable energy sources and rising initiatives by government for the adoption of electric vehicles across the globe during this pandemic. This market is expected to regain its growth after the control of the pandemic situation. Moreover, scientists are significantly making continuous improvements in battery industry to develop enhanced security systems and control pollution. Therefore, growing number of technologies in battery will produce lucrative opportunities in market.
Indian prime minister, Narendra Modi, announced a movement called ‘vocal for local’ on 13th of April 2020 promoting and urging the citizens to use local products. This might hamper the import of electric vehicles in India. In terms of region, countries in Asia Pacific such as India, China, and Japan are investing significantly in development of forklift batteries because they are environmentally friendly and employ halogen-free insulation. Several end user industries have started deploying forklift batteries to revamp their existing transmission networks. This has also helped in driving the growth of the forklift battery market in recent years.
How can we help you?
Our group of skilled analysts provide a solution to help the companies to survive and sustain in this global pandemic. We support companies to make informed decisions based on our findings resulting from the comprehensive study by our qualified team of experts. Our study helps to acquire the following:
- Long-term and Short-term impact of Covid-19 on the market
- Cascading impact of Covid-19 on the Forklift Battery Market , due to the impact on its extended ecosystem
- Understanding the market behaviour pre- and post-Covid-19 pandemic
- Strategic suggestions to overcome the negative impact on your business or turn the positive impact into an opportunity