Europe Automated Guided Vehicle (AGV) Market - Segmented by End User (Automotive, Food & Beverage, Retail, and General Manufacturing) and Countries - Growth, Trends, and Forecasts (2018 - 2023)
The Europe automated guided vehicle (AGV) market was valued at USD 660.92 million in 2017, and is expected to reach a value of USD 1683.51 million by 2023, at a CAGR of 15.83% over the forecast period (2018 - 2023).
Europe is the largest producer and exporter of AGV in the world. Most of the key producers of automated material handling equipment are based in Europe. As the technology requires special manufacturing expertise, all the end users are preferring to import a completely built unit. The region’s high industrial activity, especially in the automotive sector, which is a key source of demand for AGV, makes Europe a prime region for AGV market.
Retail Sector to Spearhead the Demand for AGVs in the Region
The retail sector, especially e-commerce, recorded a huge growth compared to other sectors in almost every European country. It is one of the largest e-commerce economies in the world. The top three countries that saw a high rate of growth in e-commerce turnover include Germany (39%), Turkey (34.9%), and the Netherlands (20%). But, the top-grossing markets include:
The United Kingdom- With 43.4 million online shoppers in the country, it saw a growth of 11% in e-commerce turnover, fetching EUR 157.1 billion revenue in 2016.
France- Although France is ranked second, the revenue generated by this sector is relatively less compared to the United Kingdom. The country was estimated to generate EUR 80 billion with an 11% growth in its e-commerce turnover in 2016.
Germany- Germany is the second largest economy in Europe. The country houses almost 51.6 million e-shoppers, generating EUR 73 billion, with almost 16.67% growth in its e-commerce turnover.
High levels of internet penetration and easily available automation solutions (most of the AGV producers are housed in Europe) are expected to rise the demand for AGVs in the e-commerce sector compared to other sectors in Europe. The automotive industry also has a great demand for AGVs, but the e-commerce sector is expected to witness the fastest growth rate (In terms of demand for AGVs) during the forecast period.
Germany to Stay as the Largest Market for AGVs over the Next Four Years
Germany is Europe’s largest and strongest economy. On the global scale, it ranks as the fourth largest economy in terms of nominal GDP. With Britain exiting (Brexit Situation) from Europe, Germany has become politically and economically superior in the European Union. The falling rate of unemployment, higher government spending, increasing private consumption, and low-interest rates in the country are expected to continue influencing the market for the next four years. As of 2016, electronics, automobile, and general manufacturing sectors were the largest users of automated guided vehicles in the country. According to OICA, in 2016, a total of 6,062,562 vehicles were produced in the country (0.5% more than 2015). It is estimated that the country’s investment into this sector (almost EUR 39 billion in R&D) is likely to increase the rate of automation in automotive production establishments all over Germany.
Juncker Plans to Strengthen Investments in Europe
Since the global economic and financial crisis, Europe has been suffering from low levels of investment. To boost investments in the region, the Juncker Plan was laid out. The plan majorly aims at overcoming obstacles to investment, providing visibility and technical assistance to investment projects and making smarter use of financial resources.
Over the period, many industrial sectors of Europe have benefited from this plan. Countries, like Spain, Italy, Poland, France, Sweden, the Netherlands, and Germany, found many investments in various sectors, amounting to EUR 29,643 million.
Key Developments in the market
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