Plant Equipment

Global Market Outlook on Plant Equipment

• The global plant equipment market is estimated to be valued at $25.6 billion in 2022, and it is expected to grow at a CAGR of 5.7-6.1 percent between 2019 and 2024, driven by globalization and expected infrastructural growth in key developing countries

• Global plant equipment demand is expected to be driven by emerging countries (that accounts for 40 percent of the global order), such as China, Japan, and India, due to ongoing industrialization and increasing global trade activity in these markets

• Growth in mature markets, such as Europe and North America, is expected to increase, but at a slower rate of 4 percent, whereas APAC is expected to grow at a CAGR of 6-8 percent until 2024

Market Overview : Plant Equipment

• APAC is the major market for plant equipment, followed by Europe, the Middle East and Africa, and the Americas

• Europe and America were the early adopters of plant equipment for different industries and the trend caught up across different countries, leading to the region’s dominance in the global plant material handling market

• The plant equipment market is estimated to be valued at approx. $25.6 billion in 2022, and it is expected to grow at a CAGR of 6 percent during the next 3 years.

• The market for fork-lifts contributes to nearly 75 percent of the plant equipment market and is expected to grow at 6 percent and 7 percent, respectively

• The major end-user industry for plant equipment is retail and whole sale (including food distribution), logistics, mechanical industries, holding 70 percent of the market

Market Overview :Supply Landscape (Forklift)

• The most dominant market for forklifts constitutes APAC, followed by Europe, North America, the Middle East, and Africa.

• The class 4/5 is the largest segment in the forklift market with a market share of over 35% as of 2022.

• The major end-use industry of forklifts involves automotive logistics, warehousing, and manufacturing.

• The forklift market is valued at approx. $19.84 billion in 2022, and it is expected to grow at a CAGR of 6.43 percent during the next 2 years until 2024.

• Forklift remains the largest market for plant equipment, due to the presence of emerging economies, predominantly in China, and Japan.

• This segment's growth is being driven by benefits such as minimized product/equipment damage, increased productivity, fewer workplace accidents, and better traffic management in warehouses. The expansion of warehouses and industrial production facilities is projected to provide several chances for market expansion in the future.

Cost Drivers : Plant Equipment

• Raw material constitutes 60–70 percent of the cost structure of the plant equipment categories, namely forklifts, cranes, and small loaders

• The prices of HRC steel and aluminum are expected to increase during Q1 2023, owing to surge in raw material prices and increase in feedstock activities

• Energy prices are expected to increase 4–6 percent, owing to the increase in industrial power demand in the US and the EU, whereas in China, energy prices are expected to relax, due to reduced consumption by the mills as a result of lockdown activities

• Industry players are expecting an increase in sales of forklifts during 2023 from the logistics and warehousing industry, owing to an increase in demand for online shopping. Sales for electric forklifts and use forklifts are expected to increase, due to cost savings initiatives taken by the companies