Electric Pallet Jack And Stacker Market - Global Outlook & Forecast 2023-2028

The global electric pallet jack and stacker market was valued at USD 4.38 billion in 2022 and is expected to reach USD 6.28 billion by 2028, growing at a CAGR of 6.20%. An electric pallet jack also called an electric pallet truck, is material handling equipment used to move pallets within warehouses, distribution centers, logistics & other storage facilities. One of the key drivers of the industry is the increasing adoption of automation and mechanization in the material handling industry, which has led to a growing demand for electric pallet jacks and stackers. Additionally, the need for efficient and safe material handling practices in logistics, warehousing, and manufacturing is also driving the growth of the electric pallet jack and stacker market.

The growth of the manufacturing industry is also contributing to the expansion of the material-handling equipment market. Facilities owners concentrate on producing and delivering products to their clients at a faster, cheaper, and higher quality rate and for efficient production cycles, which minimizes operational costs and waste. Hence, such increased adoption of automated technologies among the end-users is expected to drive the market demand for electric pallet jacks and stackers during the forecast period. North America is a significant revenue generator in the global electric pallet jack and stacker market, with the U.S. & Canada being the major revenue-generating countries. Expansion of warehouses & logistics facilities, increasing automation, and rising expenditure in IoT are expected to drive the need for electric pallet jacks and stackers in the region.

MARKET TRENDS & OPPORTUNITIES

Increase In Automation & IoT Expenditure
Automation and IoT simplify daily routine tasks, save time, reduce labor costs, and improve productivity. An automated pallet jack and stacker is an upgrade in warehouses & logistics to increase safety & enhance productivity. Over the years passed, automation and IoT have led to advancements and improvements. Industries used conventional ways of loading and unloading material in warehouses, but these days, industries are moving towards automation. Conventional warehouses & factories are going under transformation, and automation & IoT are creating smart factories & warehouses by optimizing production. IoT and automation are smoothening the order processing from stocks in warehouses to improve the experiences of customers. Warehouse, logistics, retail, and manufacturing industries are moving towards automated equipment instead of manual equipment. Such factors will contribute to the electric pallet jack and stacker market growth during the forecast period.

Increase In Warehouses & Logistics
In recent times, warehousing and logistics facilities have increased due to a boost in e-commerce platforms. The requirement for warehouses is increasing rapidly due to the rise in demand for the online delivery of goods. Demand for one-day delivery led to significant demand for warehouses, contributing to the electric pallet jack and stacker market. Warehousing and pallets go hand in hand; they are directly proportional. Owing to the boost in demand for online delivery, forklifts in warehouses are busy many times. Since pallet stackers and pallet jacks are considered a perfect alternative option for forklifts, end-users are expected to invest in electric pallet jacks and stackers to meet the delivery requirements and cater to the fast delivery demand of consumers.

INDUSTRY RESTRAINTS

Low Labor Costs In Developing Countries
Labor cost has always been a key component that dictates the operational cost of manufacturing a product. Developing countries are a good source of cheap labor, and the low labor cost in developing countries is a major threat to the electric pallet jack and stacker market. For instance, India, a developing country, has low labor costs. Capital costs are comparatively higher than labor costs in such countries. In developing countries, wages for unskilled and semi-skilled workers are generally lower than in developed countries. Hence, demand is expected to be affected by such countries for electric pallet jacks and stackers. In addition to low labor costs, developing countries have weak labor protections, which can further lower the labor cost for industries including warehouses & logistics. However, governments in such countries are introducing stringent labor laws and regulations, which will lower the impact of this challenge.

SEGMENTATION INSIGHTS

INSIGHTS BY PRODUCTS
Electric pallet jacks and electric pallet stackers are material handling equipment used for transporting and stacking pallets in warehouses, distribution centers, and manufacturing facilities. The electric pallet jack segment dominated the global electric pallet jack and stacker market with around 69% market share in 2022. Electric pallet jacks are vital in operating the daily routine task of handling materials, thus reducing manual labor work. They are valuable equipment as they increase production flow and reduce human error. Electric pallet jacks are useful in various industries, including warehouses & logistics, supermarkets/retail, food & beverages, and many others.

Further, Electric Pallet Stacker segment is classified into two types, i.e., electric straddle pallet stacker & electric counterbalanced pallet stacker. Electric pallet stackers generally use a hydraulic lift to raise and lower the forks used to move pallets across the factories. Technological advancements and the rising need for automated equipment are expected to drive the electric pallet stacker market.

INSIGHTS BY TYPE
The global electric pallet jack and stacker market by type is segmented into operator-driven and self-driven; in 2022, the operator-driven segment dominated the industry. An operator-driven electric pallet jack and stacker are material handling equipment used to move and stack pallets in a warehouse or manufacturing facility. Moreover, the demand for operator-driven electric pallet jacks and stackers has been increasing in recent years, driven by several factors, including the desire to improve efficiency and productivity in warehouses and manufacturing facilities. Electric units are generally faster and more agile than traditional internal combustion engine units, which can help to speed up operations and reduce downtime. Additionally, the electric power source allows for smoother and quieter operation, which can be beneficial in environments where noise levels need to be kept low.

INSIGHTS BY BATTERY
The lead-acid battery segment held the largest global electric pallet jack and stacker market share in 2022. These are commonly used in electric pallet jacks and stackers due to their durability, reliability, and cost-effectiveness. Moreover, they are also relatively easy to maintain and have a long service life. Demand for lead-acid batteries is expected to decline as lithium-ion batteries are preferable due to their several benefits. Due to this, the global lithium-ion-based electric pallet jack and stacker market is projected to grow at a faster CAGR of over 8% during the forecasted period. Manufacturers are now focusing on developing lithium-ion technology due to end-user preferences.

INSIGHTS BY LOAD CAPACITY
The load capacity of electric pallet jacks or stackers can vary depending on the specific model and manufacturer. The above 2000 KG load capacity segment is expected to grow at the highest CAGR in the global electric pallet jack and stacker market. These pallet jacks are typically used in industrial and heavy manufacturing environments and are designed to move and easily lift extremely heavy loads. They are powered by electric motors and typically have a lifting capacity of over 2000 kg. These heavy-duty electric pallet jacks offer the same benefits as smaller ones, such as increased speed, power, and efficiency and reduced physical effort for the operator. However, their larger size and increased load capacity provide additional features, such as a wider base for stability and a more robust build to handle heavy loads.

INSIGHTS BY END-USERS
With a wide variety of specifications and models, including ranges of load capacity, electric pallet jacks & stackers are used in almost every industry. Some major industries where electric pallet jacks and stackers are commonly used are warehouses & logistics, healthcare, f&b, others including construction, automotive, and many more. The warehouses & logistics segment accounted for the highest revenue of over USD 1.8 billion in the global electric pallet jack and stacker market in 2022. These are the best and most essential equipment to use in warehouses, and for heavy loads, mid & long distances, warehouses & logistics require electric pallet jacks and stackers. Electric pallet jacks & stackers provide flexibility and enhance productivity and are a good option for small spaces and small factories where forklifts are not required. Warehouses require high lifting capacity & power, which is perfect for daily tasks. These are the versatile tools used in warehouses and logistics.

GEOGRAPHICAL ANALYSIS

APAC accounted for the largest share of the global electric pallet jack and stacker market in 2022, accounting for over 41% share. With the continuous adoption of industrial automation in the region, manufacturing, construction, power generation, and warehousing activities are driving the regional market. Urbanization and industrialization in emerging countries such as India are raising the demand for energy-efficient equipment, thereby boosting the demand for electric pallet jacks and stackers from the warehousing industry. Moreover, vendors' investments and expansions in APAC's emerging countries are key strategies.

The electric pallet jack and stacker market is expected to grow at a stable rate in Europe due to favorable government initiatives in the manufacturing sector and the expansion of major industries in the region. Europe ranks second in the global electric pallet jack and stacker market due to the presence of leading manufacturing companies and significant development in nations such as Germany and France. The growing demand for electric pallet jacks and stackers in the region is ascribed to the increased e-commerce business in the country. The region is home to diverse markets and particularly intricate digital markets. Moreover, the share of the population gets into the internet, and shopping online is continuously growing.

COMPETITIVE LANDSCAPE

Diversified international and regional suppliers characterize the global electric pallet jack and stacker market. With international players growing their market footprint, it is becoming increasingly difficult for regional suppliers to compete with them, particularly regarding quality, technology, and price. Large companies are all set to explore the worldwide market, such as TOYOTA MATERIAL HANDLING GROUP, Jungheinrich, Hyster–Yale Materials Handling, EP Equipment, Hangcha Forklift, and others. The electric pallet jack and stacker market is usually price driven and has strong competition. Some manufacturers have a cost advantage, particularly because of the currency situation and usually because of low labor costs.

Recent Developments in the Global Electric Pallet Jack and Stacker Market:

• CLARK: CLARK, a material handling company, launched an electric pallet jack. The jack is built and designed to transport up to 4,000 pounds. The product includes a lithium-ion battery, an ergonomic handle (access to all controls without using a hand), and a neutral braking system.
• Toyota Material Handling: In 2022, the company floated two AC electric walkie-pallet jacks under Tora Max. These pallet jacks are best for warehousing, manufacturing, retail, beverage, and distribution industries. These jacks have ergonomic handles, an LCD display showing battery usage, and fingertip controls.
• Hangcha Forklift: In 2021, the company launched a new product line of lithium-ion-powered material handling equipment. This product line includes an electric light-duty walkie pallet jack, electric end control rider pallet jack, industrial walkie reach stacker, straddle stacker, counterbalanced stacker, and many more.