South Korea Forklift Rental Market Size & Share Analysis - Growth Trends And Forecast (2025 - 2030)

South Korea Forklift Rental Market Trends and Insights

E-commerce Warehousing Expansion Boosts Peak-Period Rental Deman

South Korea’s e-commerce fulfilment facilities increasingly adopt automated storage systems that require nimble forklifts capable of handling narrow aisles and rapid order cycles. Up to 95% of existing warehouse stock still needs modernisation, and leading logistics firms are raising capital to fund smart logistics upgrades^{[2]Invest Korea, "Evolution of Korea's Logistics Industry: Rapid Advance into Smart Logistics.", investkorea.org}. Third-party providers dominate peak-season capacity, favouring short-term rentals that avoid idle assets during off-peak months. AI-based demand-forecasting tools optimise pallet flows, sharpening the value proposition of flexible rental fleets. Cold-chain growth for fresh groceries calls for temperature-controlled forklifts, allowing rental operators to charge premium rates for specialised units. Overall, the warehousing upgrade positions rental companies as strategic partners rather than equipment suppliers.

Government Incentives for Zero-Emission Logistics Equipment

The Hydrogen Green Mobility Regulatory Free Zone in Ulsan waives refuelling restrictions, accelerating trials of fuel-cell forklifts. Doosan Bobcat commercialised a 3-ton hydrogen model equipped with a 20 kW cell stack in early 2024. Smart Logistics Center Certification rewards facilities that deploy clean-energy machines, indirectly subsidising rental operators that stock electric and hydrogen fleets. Although high electricity prices tighten operating margins, subsidies and ESG mandates preserve the shift toward low-emission solutions. Rental agreements mitigate technology risk for users while ensuring access to the newest drive systems.

Rising Construction of Smart Logistics Centres Under the Korean New Deal

The Korean New Deal earmarks KRW 4.0 trillion to build 15 smart industrial complexes by 2025, generating concentrated demand for advanced material-handling fleets^{[3]International Energy Agency, "Korean New Deal 10 key projects – Smart and green industrial complexes – Policies." iea.org}. Early projects such as the Banwol-Sihwa complex integrate 5G-guided vehicles, setting performance benchmarks replicated nationwide. Provincial budgets, including a KRW 60.9 billion renovation in Gwangyang Bay, fuel regional order pipelines. Project-based construction schedules favour short-term rentals, while the tech-heavy operational phase favours long-term leases for automated forklifts. Rental firms that bundle telematics and analytics capture premium margins.

OEM-Backed Long-Term Leasing Programs Improve Fleet Utilisation

Manufacturers deepen vertical integration, lowering component costs and offering favourable lease terms with built-in service contracts. Mergers between robotics and machinery units enable bundled automation features that raise utilisation hours and lower downtime. Cross-selling agreements expand national coverage, giving OEM aligned rental divisions price flexibility that independent firms struggle to match. Customers value predictable budgeting, fueling the 6.82% CAGR in long-term leases

Supply-Chain Shortages Limit New Forklift Availability for Rental Fleets

Global component bottlenecks restrict battery cells, semiconductors, and hydraulic parts, delaying OEM deliveries and capping fleet expansion. Domestic raw-material inflation pushes up acquisition costs, compressing rental margins. Operators hedge by multibrand sourcing and redeploying idle assets yet still risk stockouts for popular electric or hydrogen models. Short-term substitution with diesel or LPG units meets urgent demand but complicates sustainability targets. Operators with robust supplier networks and refurbishment capabilities offset part of the shortfall but growth remains constrained until 2026.

High Electricity Prices Narrow TCO Gap vs IC Engine Rentals

Industrial power tariffs rose significantly from 2022 to 2024, eroding the running-cost advantage of electric forklifts. Energy-intensive facilities recalibrate lease budgets, occasionally reverting to LPG or diesel options for heavy-duty shifts. Pricing volatility complicates multi-year agreements, prompting rental firms to incorporate cost-pass-through clauses tied to electricity indices. Despite the squeeze, emission regulations and factory ESG targets continue to favour electrification, so operators balance tariff exposure with subsidy opportunities.

Segment Analysis

By Load Capacity: Compact Equipment Drives Adoption

Units under 3.5 T held 44.77% of the South Korean forklift rental market share in 2024 and expanded at a 6.39% CAGR. Their small turning radius and lightweight design align with automated storage systems common in e-commerce hubs. Mid-range 3.6-10 T models serve general manufacturing, while capacities above 10 T cater to steel and shipbuilding clusters in the Gyeongsang Region. Compact fleets benefit from rapid product cycles, making rental the preferred access mode for operators seeking the latest safety sensors and lithium-ion packs.

Second-generation narrow-aisle forklifts integrate 5G connectivity for real-time traffic control, further boosting rental appeal. Contracts typically bundle training and maintenance to ensure safe use in high-density rack environments. Larger industrial users rent compact units as secondary fleets for intra-plant movements, compensating for labour shortages on conventional routes.

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

By Rental Duration: Balancing Flexibility and Predictability

Short-term contracts kept a 50.61% share in 2024 by serving project peaks and seasonal retail surges. The South Korea forklift rental market size for long-term leases rises fastest at a 6.82% CAGR as smart-factory operators value uptime guarantees and technology upgrades. Mid-term deals bridge testing phases for hydrogen or lithium-ion prototypes before large-scale rollout.

Long-term packages increasingly embed performance-based KPIs, with penalties for downtime exceeding agreed thresholds. Operators benefit from steady cash flows and can finance higher-cost electric or fuel-cell units. Short-term rentals remain essential in construction sites and event setups, but their growth rate lags longer-tenure categories.

By Power Source: Electrification Outpaces Combustion

Electric models delivered 56.44% of 2024 revenue and posted a robust 9.46% CAGR, driven by subsidy programs and clean-air regulations. Diesel and LPG remain critical outdoors, yet face scrutiny within enclosed warehouses. Hydrogen fuel-cell pilots show promise for multi-shift operations with minimal refuel downtime, though infrastructure limits adoption for now.

Battery leasing arrangements minimise upfront costs and guarantee end-of-life recycling, a key value driver for sustainability-minded firms. The South Korea forklift rental market size for electric fleets receives additional lift from analytics platforms that optimise charge scheduling, offsetting high electricity tariffs during peak grid hours.

By Class: Automation Pushes Class I Leadership

Class I electric rider trucks gain momentum with a 7.33% CAGR through 2030 as warehouses automate pallet flow and pick-to-light systems. Class III pallet trucks still capture the largest share at 33.09% thanks to retail distribution ubiquity. Class II narrow-aisle trucks fill high-density storage, while Class IV and V combustion units sustain outdoor logistics and construction supply chains.

Integration between Class I forklifts and warehouse-management software triggers demand for rental packages, including telematics dashboards and operator-assist modules. The Gyeonggi Banwol-Sihwa Smart Green Industrial Complex's deployment of 5G-based automated guided vehicles demonstrates the integration between Class I forklifts and broader automation ecosystems. Advanced driver-assistance systems reduce collision risks, a major concern in high-throughput e-commerce hubs.

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

By End-Use Industry: Warehousing Commands Spend

Warehousing and logistics represented 38.93% of the 2024 value and exhibit a 9.05% CAGR as fulfilment centres proliferate. Construction follows, benefiting from the Korea New Deal infrastructure projects requiring project-based rentals. Automotive factories in Ulsan and Hwaseong expand electric-vehicle capacity, spurring specialised lift requirements for battery packs.

Cold-chain growth pushes the South Korea forklift rental market towards refrigerated-spec units with stainless-steel components. CJ Logistics' development of integrated robotic systems and cold chain solutions demonstrates how logistics providers drive specialized equipment demand. Aerospace and defence sectors rent precision-handling equipment for high-value components, utilising flexible contracts aligned with batch production schedules.

Geography Analysis

The Seoul Capital Area contributed 59.36% of 2024 revenue, leveraging dense industrial parks and world-class transport links. Gyeongsang Region records a 6.04% CAGR, anchored by hydrogen pilot zones and shipbuilding megasites. The Banwol-Sihwa Smart Green Industrial Complex exemplifies advanced 5G-enabled logistics platforms that demand connected electric forklifts. Elevated power tariffs squeeze warehouse margins, but capital-region operators offset costs through high utilisation and premium service tiers.

Gyeongsang Region achieves the fastest 6.04% CAGR, underpinned by heavy industries and the Ulsan Hydrogen Free Zone that accelerates fuel-cell equipment trials. Busan’s seaport automation projects and Daegu’s automotive supply chain further lift regional rentals. Fragmented dealer coverage outside metro areas grants national firms an edge if they invest in local service depots.

Chungcheong, Jeolla, and Gangwon-Jeju collectively present emerging growth pockets. Government-backed industrial sites near Chuncheon and the KRW 60.9 billion Gwangyang Bay renewal programme require specialised forklifts for steel and chemical logistics. Jeju’s renewable-energy installations create demand for maintenance lifts and rough-terrain models. Rental companies that tailor packages to provincial requirements stand to capture underserved segments.