Forklift Rental Market Size & Share Analysis - Growth Trends and Forecast (2026 - 2031)

Global Forklift Rental Market Trends and Insights

E-Commerce Fulfillment Boom

Amazon's extensive global fulfillment network and DHL's significant investment in automation are driving rental fleets to expand during peak periods, making variable-cost agreements more favorable compared to ownership ^{[1]“Global Operations Footprint,”, Amazon, aboutamazon.com}. The Asia-Pacific region is expected to witness substantial growth in warehouse space, with notable contributions from emerging markets. Fluctuations in parcel volumes at last-mile hubs are increasing the demand for flexible capacity solutions. Rental operators are addressing this by offering compact electric models that can operate efficiently in narrow aisles while maintaining high lifting capabilities. The rapid growth of e-commerce continues to shape the development of the forklift rental market over the planning horizon.

Shift from Capex to Opex in Material-Handling Budgets

The Equipment Leasing and Finance Association noted a notable rise in the financing and leasing of material-handling equipment in the United States, reflecting a shift from traditional patterns^{[2]“2024 Survey of Equipment Finance Activity,”, Equipment Leasing and Finance Association, elfaonline.org}. Finance leaders are increasingly turning to rentals to mitigate risks associated with depreciation and residual value. This strategy ensures access to the latest technology as advancements like electric and hydrogen drives replace older diesel models. In industries such as automotive and consumer electronics, where order cycles are unpredictable and production schedules frequently change, ownership is often not a cost-effective solution. Moreover, rental agreements transfer maintenance responsibilities to lessors, aligning with regulatory recertification requirements and helping operators reduce expenses. The forklift rental market is further bolstered by multi-site 3PLs adopting master agreements that ensure consistent rates and service quality.

Emission Regulations Phasing-Out Class IV/V ICE Trucks

California plans to ban the sale of new Class IV and V internal-combustion forklifts and gradually phase them out in large warehouses ^{[3]“Zero-Emission Forklift Regulation,”, California Air Resources Board, ww2.arb.ca.gov}. In the European Union, stricter standards are increasing compliance costs for diesel models. Lithium-ion batteries are becoming the dominant power source for new electric forklifts in North America and Europe. Rental companies are accelerating the replacement of their internal-combustion engine fleets to align with upcoming regulations and mitigate financial risks. The combination of decreasing battery costs and regulatory clarity is driving the growing preference for electric forklifts in the rental market.

AI-driven Fleet-Optimization Software Adoption

Rental firms now utilize real-time data from cloud dashboards to monitor utilization, battery health, and collision alerts. This capability enables them to quickly re-route idle units, leading to significant reductions in logistics costs. The deployment of telematics solutions has enhanced asset productivity across rental fleets. Additionally, analytics support a pay-per-use billing model, appealing to customers who prefer flexible pricing during periods of lower demand. Early adopters in industries such as grocery distribution and automotive manufacturing have reported significant cost savings, which has encouraged broader adoption. AI integration further strengthens the forklift rental market's position as a flexible and insight-driven resource.

Cyclical Construction Spending

Fluctuations in the construction industry directly influence the demand for forklift rentals, leading to unpredictable revenue streams for rental companies. Recently, the construction equipment market experienced mixed results, with a major player reporting a decline in revenue due to reduced sales volumes and a drop in equipment sales to end users. However, the outlook for the near future indicates a potential rebound in construction equipment sales, supported by improving economic conditions and easing interest rates. Additionally, significant federal investments in infrastructure projects are expected to provide stability, with a notable portion of contractors already engaged in these initiatives. Despite this support, rental companies continue to face challenges such as project delays and rising material costs, which remain a significant concern for many firms. The cyclical nature of construction spending often results in periods of surplus rental inventory, as reflected in the recent slowdown in rental revenue growth, marking one of the weakest performances in recent times.

OEM Direct-Leasing Cannibalizing Independent Rental Fleets

As manufacturers implement captive programs, independent dealers lose access to new equipment at factory pricing and must purchase at higher costs, reducing their profit margins. Larger independents secure favorable agreements through higher purchase volumes, but smaller regional players face challenges such as potential market exit or consolidation. While this approach increases rental adoption among end-users, it also shifts revenue distribution, adding strategic challenges within the forklift rental market.

Segment Analysis

By Load Capacity: Compact Units Gain in Dense Urban Warehouses

The 3.6 to 10 ton bracket captured 45.37% of 2025 revenue, affirming its versatility across production, logistics, and construction operations. In contrast, sub-3.5-ton forklifts are on track for a 10.67% CAGR to 2031, supported by land-scarce cities where narrow aisles and high racks dominate facility design. In major urban centers, as vertical storage increases, warehouses are increasingly adopting compact electric forklifts. These forklifts are designed to achieve significant lift heights while efficiently navigating through narrow corridors. Additionally, advanced battery technologies enhance the economic viability for rental fleets, leading to lower overall lifecycle costs.

As urban areas become increasingly densely populated, the demand for compact forklift rentals is expected to grow at a faster pace compared to other categories. Telematics technology enables lessors to optimize forklift rotation, ensuring efficient servicing of quieter locations while maintaining readiness in high-demand areas. Secondary markets, including industrial facilities, still show a preference for larger machines, with rental adoption remaining limited due to the need for specialized equipment ownership. This trend highlights the forklift rental market's shift towards more agile and environmentally friendly assets, with compact electric models driving this transformation.

Note: Segment shares of all individual segments available upon report purchase

By Rental Duration: Short-Term Flexibility Drives Current Demand

Short-term rentals with durations of less than 12 months accounted for 64.73% of revenue in 2025, primarily driven by construction and seasonal logistics. However, deals longer than 12 months now post an 8.50% CAGR as large 3PLs execute multi-site agreements that standardize fleet specs and service levels. A significant portion of material-handling leases now spans longer durations. Extended tenures enable lessors to amortize acquisition costs over a longer period, thereby reducing monthly rates without compromising returns.

Flexible rental options enable customers to exit with short notice after the initial period, striking a balance between predictability and agility. Contractors likewise stretch average rental periods as bundled deals simplify billing and unlock volume discounts. As a result, the forklift rental market size attributable to long-term contracts continues to expand, though short-term demand remains vital for project-specific peaks.

By Power Source: Electric Dominance Accelerates Under Emission Mandates

Electric forklifts secured 54.39% forklift rental market share in 2025 and exhibit an 11.89% CAGR through 2031, bolstered by battery costs falling below USD 150/kWh and zero-emission rules in California and the EU. Major players in the forklift rental market are focusing on increasing the penetration of electric fleets, reflecting a significant shift in the dynamics of their fleets. Meanwhile, traditional power units are experiencing a steady decline in their residual values.

Although hybrid and hydrogen forklifts currently contribute minimally to revenue, pilot projects in industrial applications demonstrate their potential, particularly in operations requiring continuous uptime and rapid refueling. High infrastructure costs remain a challenge, but collaborations with industrial gas suppliers for localized hydrogen production could help address adoption barriers. Consequently, electric technology continues to dominate the forklift rental market outlook, while alternative powertrains gradually gain traction.

By Truck Class: Narrow-Aisle Units Surge as Warehouses Maximize Density

In 2025, Class III electric hand trucks and pallet jacks accounted for 32.56% of the rental revenue, catering to light loads and meeting the ever-present demands of retail. With urban warehouse rents on the rise, operators are shifting from wide-aisle setups to very-narrow configurations. This transition, boasting a CAGR of 9.10%, has spurred significant growth in Class II narrow-aisle models and markedly enhanced storage capacity. A prominent manufacturer introduced telematics-enabled Class II units, resulting in reduced downtime and extended lifespan.

Class I electric forklifts maintain their position in mid-range applications, while Class IV and V internal-combustion trucks face stagnation due to emission regulations. With tightening regulations, the forklift rental market for narrow-aisle electric forklifts is expected to surpass all other classes in the future.

Note: Segment shares of all individual segments available upon report purchase

By End-Use Industry: E-Commerce Warehousing Outpaces Broader Logistics

Warehousing and logistics generated 38.67% of 2025 demand, with the e-commerce subset climbing at 11.70% CAGR on the back of Amazon’s 750,000-robot network and DHL’s automation push. While construction remains a significant contributor to revenue, its growth has slowed due to a decline in project flows. Meanwhile, the automotive, food, and aerospace sectors collectively drive demand, with electric vehicle plants notably increasing the need for specialty forklifts designed for battery production lines.

Retail chains expand their forklift fleets during peak months, only to scale back significantly afterward. This trend underscores the growing preference for rentals over outright ownership. Additionally, while the pharmaceutical industry's cold-chain requirements are niche, they are experiencing notable growth. In summary, the forklift rental industry is closely tied to sectors that experience demand fluctuations or have stringent uptime requirements, underscoring the diverse range of end-use applications within the market.

Geography Analysis

The Asia-Pacific region commanded 37.65% of global revenue in 2025 and is expected to post a 10.28% CAGR through 2031. China's extensive warehouse pipeline and India's logistics completions are driving this surge. With high e-commerce penetration in China, rental fleets experience significant growth during major shopping events. Japan's introduction of new automated space highlights the integration of narrow-aisle electrics and telematics, addressing labor shortages and rising wages.

North America, led by the United States, contributes significantly to the revenue. The region's push for zero-emission deadlines is accelerating the shift to electric, supporting the growth of the forklift rental market. Meanwhile, Canada maintains a steady demand, particularly along key corridors.

Europe accounts for a substantial portion of the revenue, with leading countries driving the market. Regulatory changes are encouraging rental fleets to adopt electric options, despite the higher costs associated with them compared to traditional units. Dominant players in the region leverage extensive branch networks to serve pan-regional customers. South America and the combined areas of the Middle East and Africa, while contributing a smaller share, are experiencing notable growth. This is driven by expanding port logistics and ambitious infrastructure projects, which are boosting demand for specialty rentals.