No, not all forklifts are electric. The industry offers two main power sources: electric (battery-powered) and internal combustion (IC) (diesel, LPG, gasoline, or CNG). However, electric forklifts are rapidly becoming the dominant choice, now accounting for over 70% of new truck sales in Europe and similar growth across North America and Asia-Pacific.
Power Source Options
Electric forklifts are battery-powered, producing zero emissions and operating quietly, making them ideal for indoor warehouses and cold storage. They use lead-acid, lithium-ion, or hydrogen fuel cells.
Internal combustion forklifts run on diesel, propane, gasoline, or CNG. They offer higher power for outdoor and heavy-duty tasks but produce exhaust emissions that limit indoor use.
Electric Dominance Is Growing
The shift to electric is accelerating rapidly:
Electric units captured 60.55% of the US forklift market in 2025 and are projected to grow at a 10.98% CAGR through 2031.
Lithium-ion batteries held 54.62% of revenue share in 2025 and are forecast to grow at 13.85% CAGR.
By 2034, an estimated 83% of all new electric forklifts shipped globally will be powered by lithium-ion batteries.
Class 2 trucks (electric narrow aisle) led the US market with 32.45% share in 2025.
Electric vs. IC: The Bottom Line
Electric forklifts offer lower operating costs (50-75% less than diesel), zero emissions, quieter operation, and smoother acceleration. Internal combustion forklifts still dominate outdoor heavy lifting, rugged terrain, and applications requiring continuous operation without charging downtime.
The industry's future is electric—but not every forklift is electric today. The right choice depends on your environment, workload, and infrastructure.