Jungheinrich Lithium-Ion Forklift Transformation: From Selling Equipment to Pay-Per-Use

📌 Background

German forklift giant Jungheinrich is a global intralogistics equipment leader, producing 100% electric forklifts with over 1 million battery-driven forklifts deployed, making it an early pioneer in lithium-ion forklifts. With 2025 revenue of approximately EUR 5.5 billion, the company set a 2030+ strategic target of EUR 10 billion in revenue. The characteristics of lithium-ion opportunity charging, zero maintenance, and about 20% lower energy consumption, combined with the digitalization of fleet management, have shifted its business model from one-time equipment sales to service-driven revenue, establishing it as a representative case of servitization in industrial equipment in 2026.

👤 Target Customers

Enterprise customers with large-scale warehousing and logistics needs, including manufacturing plants, port yards, distribution centers, and auto parts suppliers, especially fleet operators who prefer not to incur upfront capital expenditures and face high demand fluctuations.

💰 Revenue Streams

1) One-time revenue from sales of new vehicles and automation systems; 2) Recurring revenue including long-term leasing, Full Flex Rental forklift subscriptions, Power Buy the Hour model (fixed low monthly fee plus billing based on actual operating hours), maintenance and spare parts services, and financial services, with aftermarket and leasing together accounting for about 40% of total revenue; 3) Comprehensive fleet maintenance: bundled forklift maintenance, repair, and spare parts supply billed under annual service contracts.

🧮 Cost Structure

Main costs include vehicle and lithium-ion battery manufacturing costs, personnel for the global direct sales and service network, R&D for fleet management software and cloud platforms, as well as capital and depreciation costs for fleet assets held for leasing operations.

🛡️ Moat

Over 70 years of brand heritage and a global direct sales and service network, proprietary in-house R&D integrating batteries, chargers, and vehicles, pay-per-use billing capabilities built on accumulated cloud fleet management data, and locked-in service and lease renewal revenue driven by a massive existing fleet.

🔑 Keys to Success

• Supporting pay-per-use billing with digitalized fleet management data, linking equipment costs directly to customer material handling volume
• Filling gaps in mid-range and emerging market product lines through strategic partnerships
• Securing long-term customer relationships through full lifecycle services

⚠️ Risks

• Uncertainty in lease recovery when pay-per-use demand fluctuates
• Price competition from Chinese brands compressing mid-range market share
• Depreciation of existing lithium-ion assets due to technology route transitions

🏢 Cases

• Power Buy the Hour pay-per-use leasing contracts
• Full Flex Rental flexible fleet subscription service
• Co-developing the AntOn by Jungheinrich brand with EP Equipment to expand global lithium-ion warehouse forklifts

📊 SWOT Analysis