By Tom Stakleff, CEO/Founder, Nevada Industrial Trucks
The numbers are no longer close. Electric trucks accounted for roughly 72 percent of the 231,397 industrial trucks shipped in the United States in 2025, according to the Industrial Truck Association (ITA), while internal combustion shipments fell to 63,855 units, down from 113,592 just two years earlier.
For warehouse operators still running propane cushion trucks indoors, the question has shifted from whether to electrify to how to sequence the transition without disrupting throughput. This guide looks at the data behind the shift, total cost of ownership, charging infrastructure and the compliance considerations that can separate a smooth conversion from an expensive one.
The Numbers Behind the Shift
Electrification in the forklift world is no longer an emerging trend. ITA factory shipment data shows electric trucks across all classes, including electric riders, warehouse trucks and motorized hand trucks, have claimed a growing share of U.S. shipments since 2000, when they represented about 55 percent of units. Internal combustion shipments have fallen roughly 26 percent since then, while electric rider shipments alone have grown nearly 58 percent.
The global picture points in the same direction. The World Industrial Truck Statistics (WITS) program, which aggregates reporting from seven national and regional associations, recorded about 2.21 million industrial truck shipments worldwide in 2024, with electric classes representing roughly 76 percent of the total. In the Americas, electric classes accounted for about 71 percent of 2024 orders.
Investment is following the shift. Grand View Research values the global electric forklift market at USD 56.89 billion in 2025 and projects growth to USD 158.81 billion by 2033, a 13.7 percent compound annual growth rate. Analysts at Interact Analysis forecast that lithium-ion will power about 83 percent of new electric forklifts shipped globally by 2034.
Warehouse managers planning fleet purchases over the next three to five replacement cycles are therefore making decisions in a market increasingly oriented toward electric equipment.
Why the Economics Favor Electricity
The case for electric trucks has traditionally started with fuel costs, but the stronger argument is often total cost of ownership (TCO). An internal combustion truck carries an engine, fuel system, exhaust and transmission service requirements throughout its operating life. An electric truck eliminates oil changes, filter service, exhaust repairs and many torque-converter maintenance items. Regenerative braking on many electric models can also extend brake life.
Energy costs tell a similar story. Propane trucks consume tanks by the shift, with fuel costs tied to petroleum markets. An electric truck’s charging cost is measured in kilowatt-hours. As a simple illustration, recharging a 40 kWh battery pack at USD 0.12 per kWh costs less than USD 5 at the meter, before considering demand charges or time-of-use rates.
Every fleet should run its own calculation using local utility and fuel rates, operating hours and application requirements. Purchase price alone does not tell the full story.
The battery is a major variable in the TCO equation. Lead-acid packs generally carry a lower purchase price but require watering, equalizing charges and, in demanding multi-shift operations, battery changing equipment and dedicated space. Lithium-ion packs cost more initially but eliminate watering and battery equalization while making opportunity charging much easier to incorporate.
For buyers comparing technologies, cost per operating hour over the expected life of the asset is often a more useful measure than acquisition price alone.
Lithium-Ion Changes the Shift Schedule
Lead-acid batteries can create a significant scheduling constraint in multi-shift operations. A full charge followed by a cooling period may require either spare batteries or a battery-change schedule that competes with production. That requirement also consumes warehouse space for battery bays, changer aisles and charging stations.
Lithium-ion changes that equation. Opportunity charging during breaks and shift changes can allow trucks to continue operating on a single battery pack, depending on the application and duty cycle. Many operations can reduce or eliminate battery-changing equipment as they transition away from lead-acid.
Lithium-ion batteries also tolerate partial charging well, maintain voltage effectively under load and can offer advantages in cold-storage applications where battery performance is especially important. Interact Analysis forecasts lithium-ion reaching about 83 percent of new electric forklift shipments globally by 2034, reflecting its increasing adoption in warehouse applications where duty cycles are intensive and space is valuable.
There can also be a facility benefit. Converting a former battery room back into storage, staging or other productive space can add another element to the project’s return on investment.
Charging Infrastructure Is the Real Project
One of the easiest parts of an electric forklift conversion to underestimate is the electrical work. The transition should begin with a duty-cycle audit that determines how many kilowatt-hours each truck consumes per day, when that energy is needed and where trucks are parked between assignments.
That information feeds into the facility load calculation. It helps determine whether existing electrical service can accommodate the charging plan or whether higher-capacity charging will require new three-phase service, additional panels or a utility-coordinated service upgrade.
Transformers, switchgear and conduit can have significant procurement lead times, while utilities operate on their own schedules. Electrical service questions therefore belong near the beginning of the project rather than after the trucks have been ordered.
Charger placement matters as well. Locations near natural parking points, while remaining clear of primary traffic lanes and work areas, can shorten cable runs and make opportunity charging easier for operators to incorporate into the workday.
Incentive dollars may also be available for the infrastructure side of a project. The ENEROC database, covered by Forklift Revolution in July 2026, tracks 82 federal, state and utility electrification programs across 32 U.S. jurisdictions. Utilities administer roughly half of those programs, with forklifts and charging infrastructure appearing in many of them.
Incentives Have Shifted to States and Utilities
The incentive landscape has changed substantially. The federal Qualified Commercial Clean Vehicle Credit under Section 45W is not available for vehicles acquired after September 30, 2025. The Alternative Fuel Vehicle Refueling Property Credit under Section 30C is not available for qualifying property placed in service after June 30, 2026, according to the Internal Revenue Service.
That puts greater emphasis on state and utility programs. The Tennessee Valley Authority’s EnergyRight program, for example, provides incentives for qualifying internal-combustion-to-electric forklift conversions. Utilities including Duke Energy, Entergy and Xcel Energy have also offered electrification or charging-infrastructure programs, while states including California, New York and New Jersey have used voucher and incentive programs to support zero-emission equipment.
For fleet managers, the practical lesson is straightforward: investigate incentive eligibility before signing a purchase order. Programs vary by jurisdiction, funding levels and application windows, and an experienced dealer or program administrator may be able to help identify requirements before equipment is ordered.
Compliance Fundamentals Under 1910.178
Electrification changes the hazard profile, but it does not eliminate it. The Occupational Safety and Health Administration standard for powered industrial trucks, 29 CFR 1910.178, addresses battery charging and changing. For conventional lead-acid operations, requirements include appropriate charging areas, precautions related to electrolyte, protection from ignition sources and safe battery-handling practices.
Lithium-ion operations bring a different set of considerations, including thermal runaway and battery-fire behavior. OSHA published a Lithium-ion Battery Safety fact sheet in 2025 covering hazards and controls for facilities that manufacture, use and recycle lithium-ion batteries. Manufacturers’ instructions should also be followed for charger compatibility, storage conditions and the handling of damaged batteries.
Compliance also carries a financial dimension. Federal OSHA maximum penalties in 2026 are USD 16,550 per serious violation and USD 165,514 per willful or repeated violation. A charging area designed around a lead-acid fleet should therefore be reassessed when a facility adopts a different battery technology rather than assumed to be suitable without review.
A Transition Roadmap That Works
Fleets planning a conversion can reduce risk by treating electrification as a staged operational project rather than simply a truck replacement program.
- Audit duty cycles. Capture operating hours, shifts, energy requirements and load profiles for each truck. The audit helps identify the trucks that are strongest candidates for conversion.
- Engage an electrician and the utility early. Review the electrical panel, confirm available capacity and price any required service upgrades before placing the truck order.
- Pilot with two or three trucks. Start in one department with measurable baselines for energy cost, downtime, productivity and operator feedback compared with the equipment being replaced.
- Phase the conversion by class and natural replacement cycle. Indoor cushion-tire internal combustion units may offer an obvious starting point, while outdoor pneumatic and rough-terrain units can follow where duty cycles and economics support the change.
- Train for the new charging discipline. Opportunity charging depends on operator habits. Battery management systems track state of charge automatically, but charging routines still need to be clearly established.
- Keep internal combustion units where they continue to make operational sense. Yard work and extreme-duty outdoor applications may favor internal combustion longer than indoor warehouse applications. Converting those units before the economics support it can undermine the value of the overall transition.
Where Internal Combustion Still Belongs
Balance matters during a fleet transition. Internal combustion trucks continue to offer advantages in some heavy outdoor applications, uneven terrain and operating environments where rapid refueling and extended runtime outweigh the benefits of electric charging.
At the same time, warehouse operators should account for the cost of maintaining a mixed fleet. Multiple power systems can mean additional maintenance requirements, fueling infrastructure and, where lead-acid batteries remain in service, battery-room ventilation and handling requirements.
The most effective transition is not necessarily the fastest one. Fleets that match equipment technology to the application, plan charging infrastructure in advance and coordinate replacements with normal fleet cycles can move toward electrification without sacrificing uptime or forcing conversions that do not yet make operational sense.
About the Author
Tom Stakleff is CEO and founder of Nevada Industrial Trucks, a Las Vegas forklift dealer serving warehouse and distribution fleets across Southern Nevada.
