The South & Central America industrial vehicles market was valued at US$ 2.89 billion in 2022 and is expected to reach US$ 3.57 billion by 2030; it is estimated to register at a CAGR of 2.7% from 2022 to 2030.
This shift toward electrification is driven by the imperative to meet the emission targets set by these stringent standards. Electric and hybrid alternatives are increasingly preferred where various site vehicles are used in the construction industry, including excavators, mobile cranes, diggers, and bulldozers, as well as agricultural vehicles such as tractors and combine harvesters.
Electric and hybrid industrial vehicles help manufacturers and operators comply with stringent emission standards. These vehicles produce significantly lower levels of NOx and particulate pollutants, aligning with the regulations set by Stage V in Europe and Tier 4 Final in North America. The reduction of harmful emissions from industrial vehicles contributes to the improvement of air quality, positively impacting public health. As urbanization continues to grow, the deployment of cleaner and more sustainable industrial vehicles becomes crucial for mitigating the impact of vehicle emissions on densely populated areas.
Also, the rising awareness of environmental issues and the increasing emphasis on sustainability drive the demand for cleaner and more efficient industrial vehicles. Companies that prioritize environmentally friendly practices and comply with emission standards are likely to attract a broader customer base and secure long-term market viability. The transition to electric and hybrid alternatives not only ensures compliance with regulations but also aligns with the broader goals of improving air quality, addressing climate change, and meeting consumer preferences for sustainable practices. Thus, the implementation of stringent anti-pollution standards associated with industrial vehicles drives the market.
Among the 2.34 million material handling units, around 68.8%, that is 1.61 million units, were recorded as electric-powered forklifts. Electric forklift demand is increasing at a rapid pace with a surge in consumer popularity. With a surge in the number of orders, the demand for industrial vehicles such as forklifts, aisle trucks, and pallet trucks has increased.
Implementation of Stringent Anti-pollution Standards Fuels South & Central America Industrial Vehicles Market
Stringent anti-pollution standards, such as European (Stage V) and North American (Tier 4 Final), are being implemented for industrial purpose across the globe. These standards, introduced on January 1, 2019, place additional restrictions on nitrogen oxide (NOx) and particulate pollutant emissions from non-road vehicles - including those used in agriculture, construction sites, and industrial settings. The driving force behind these regulations is the urgent need to address public health concerns, improve air quality, and mitigate the impact of vehicle emissions on climate change. One of the notable responses to these environmental challenges is the accelerated electrification of industrial vehicles.This shift toward electrification is driven by the imperative to meet the emission targets set by these stringent standards. Electric and hybrid alternatives are increasingly preferred where various site vehicles are used in the construction industry, including excavators, mobile cranes, diggers, and bulldozers, as well as agricultural vehicles such as tractors and combine harvesters.
Electric and hybrid industrial vehicles help manufacturers and operators comply with stringent emission standards. These vehicles produce significantly lower levels of NOx and particulate pollutants, aligning with the regulations set by Stage V in Europe and Tier 4 Final in North America. The reduction of harmful emissions from industrial vehicles contributes to the improvement of air quality, positively impacting public health. As urbanization continues to grow, the deployment of cleaner and more sustainable industrial vehicles becomes crucial for mitigating the impact of vehicle emissions on densely populated areas.
Also, the rising awareness of environmental issues and the increasing emphasis on sustainability drive the demand for cleaner and more efficient industrial vehicles. Companies that prioritize environmentally friendly practices and comply with emission standards are likely to attract a broader customer base and secure long-term market viability. The transition to electric and hybrid alternatives not only ensures compliance with regulations but also aligns with the broader goals of improving air quality, addressing climate change, and meeting consumer preferences for sustainable practices. Thus, the implementation of stringent anti-pollution standards associated with industrial vehicles drives the market.
South & Central America Industrial Vehicles Market Overview
The rising demand for the material handling equipment and vehicles around the globe across the manufacturing sector drives the South & Central America industrial vehicles market growth. According to the World Industrial Vehicle Statistics Association (WITS), more than 2.34 million material-handling vehicles and equipment sales were recorded during 2021. The material handling industry saw a 43.0% increase in orders in 2021 compared to the previous year, 2020.Among the 2.34 million material handling units, around 68.8%, that is 1.61 million units, were recorded as electric-powered forklifts. Electric forklift demand is increasing at a rapid pace with a surge in consumer popularity. With a surge in the number of orders, the demand for industrial vehicles such as forklifts, aisle trucks, and pallet trucks has increased.
South & Central America Industrial Vehicles Market Segmentation
The South & Central America industrial vehicles market is segmented based on type, drive type, level of autonomy, application, and country.- Based on type, the South & Central America industrial vehicles market is segmented into forklifts, aisle trucks, tow tractors, container handlers, and others. The forklifts segment held the largest share in 2022.
- In terms of drive type, the South & Central America industrial vehicles market is segmented into internal combustion engine, battery-operated, and gas-powered. The battery-operated segment held the largest share in 2022.
- By level of autonomy, the South & Central America industrial vehicles market is bifurcated into non/semi-autonomous and autonomous. The non/semi-autonomous segment held a larger share in 2022.
- Based on application, the South & Central America industrial vehicles market is segmented into manufacturing, warehousing, and others. The manufacturing segment held the largest share in 2022.
- Based on country, the South & Central America industrial vehicles market is categorized into Brazil, Argentina, and the Rest of South & Central America. Brazil dominated the South & Central America industrial vehicles market in 2022.
Table of Contents
1. Introduction
2. Executive Summary
3. Research Methodology
4. South & Central America Industrial Vehicles Market Landscape
5. South & Central America Industrial Vehicles Market - Key Market Dynamics
6. Industrial Vehicles Market - South & Central America Market Analysis
7. South & Central America Industrial Vehicles Market Analysis - by Vehicle Type
8. South & Central America Industrial Vehicles Market Analysis - by Drive Type
9. South & Central America Industrial Vehicles Market Analysis - by Level of Autonomy
10. South & Central America Industrial Vehicles Market Analysis - by Application
11. South & Central America Industrial Vehicles Market - Country Analysis
12. Industry Landscape
13. Company Profiles
14. Appendix
Companies Mentioned
- Kion Group AG
- Toyota Industries Corp
- Mitsubishi Heavy Industries Ltd
- Komatsu Ltd
- Hyster-Yale Materials Handling Inc
- Jungheinrich AG
- Crown Equipment Corp
- Konecranes Plc
- Anhui Heli Co Ltd
