Forklift market in flux as tariffs, electrification and regional shifts reshape global landscape: report

The global forklift market is undergoing significant changes in 2025, shaped by diverging regional growth patterns, shifting electrification trends and the impact of new U.S. tariffs, according to a June forecast update from Interact Analysis.

“The 2025 forklift market is characterized by significant strategic adjustments,” the report states. “In the short term, manufacturers are focused on managing the final stages of the inventory cycle and maintaining current profitability levels.”

Market forecasts show a slowdown in North America and South Korea due to persistent economic challenges and policy uncertainty, while growth has been revised upward in Europe, Japan and Southeast Asia. China’s massive domestic market has plateaued, entering a replacement-driven phase.

In North America, high interest rates and tariffs—up to 25 per cent on some Chinese forklift models—have dampened demand, while utilization rates have dropped and electrification adoption has slowed, particularly in the Class 3 market.

Despite short-term challenges, the report identifies long-term growth drivers including increased lithium-ion penetration, growth in aftermarket services and ongoing strategic shifts by manufacturers, especially Chinese firms. “Beyond 2025, tariffs are fundamentally reshaping the global investment strategies of Chinese manufacturers,” it notes.

Chinese players such as HELI and Hangcha are now focusing expansion efforts on Southeast Asia and Europe, while pausing capital investment in the U.S. due to high tariffs and geopolitical tensions. Meanwhile, inventory levels appear to be stabilizing globally, with a nine per cent increase in order backlogs reported by Toyota and KION in early 2025.

The report suggests the global industry will continue to evolve, as companies adjust to policy shifts and seek growth through regional diversification and technology-driven strategies.