Global Automated Guided Vehicle (AGV) Market

MARKET SCOPE:

The global Automated Guided Vehicle (AGV) market is projected to grow significantly, registering a CAGR of 20.3% during the forecast period (2024 – 2032).

Automated guided vehicle (AGV) systems play a crucial role in the movement and transportation of items within manufacturing facilities, warehouses, and distribution centers, eliminating the need for permanent conveying systems or manual intervention. They traverse configurable guide paths to optimize storage, picking, and transport functions within space-constrained environments. AGVs are increasingly favored due to numerous benefits, including decreased labor costs, minimized product damage, enhanced productivity, and scalability to support automation processes. These significant advantages motivate transportation and logistics companies to implement AGVs, thereby enhancing the efficiency of their operations.

MARKET OVERVIEW:

Driver: The rapid expansion of e-commerce necessitates greater efficiency is driving the market growth.

Despite the manufacturing industry's growth, substantial demand from the warehousing and logistics sector is driven by e-commerce activities. Additionally, the majority of the Canadian warehouse portfolio is dedicated to e-commerce, accounting for more than 50% of the warehouse business in the country.

The utilization of Automated Guided Vehicles (AGVs) presents an opportunity for various aspects of e-commerce operations. Particularly, AGVs are well-suited for fulfillment tasks involving high volumes of small orders across extensive warehouse spaces. Implementing autonomous robots for horizontal movement can enhance order fulfillment efficiency.

With the emergence of always-on e-commerce, the need for rapid responses and effective management of a larger number of stock-keeping units with reduced errors, warehouses must adapt to meet the standards of intelligent, efficient, and automated operations. This trend, coupled with increasing globalization and the surge in online and bulk retail, has spurred demand for AGVs in the retail sector.

The growing demand for e-commerce firms to fulfill single-day delivery orders, both in developed and emerging economies, has led to significant efficiency improvements due to the commercial viability of such initiatives. E-commerce warehouses employ AGVs to facilitate single-day delivery processes. According to the Indian Brand Equity Foundation (IBEF), India's e-commerce industry holds substantial potential.

Opportunities: The rise in focus on industrial automation by SMEs is expected to pave the way for market growth in the upcoming years.

The upfront expense associated with AGV solutions tends to be considerable, varying based on factors such as the type of integrated battery and navigation technology utilized. Small and medium-sized enterprises (SMEs) encounter challenges in adopting material handling automation due to the high initial costs, which are typically more affordable for larger-scale industries. Factors like escalating labor expenses, particularly in developed economies like the US, concerns regarding quality, and a limited pool of skilled workers, pose obstacles to the growth and profitability of SMEs. Nevertheless, despite the substantial initial capital outlay, SMEs are increasingly embracing automated warehouse operations as a means to compete globally with larger market players. AGVs offer SMEs the opportunity to enhance their competitiveness and achieve notable improvements in productivity, efficiency, and profitability. Many SMEs have commenced investments in AGVs to bolster their global competitiveness. Likewise, SMEs across various sectors including e-commerce, automotive, food & beverages, pharmaceuticals, and chemicals are anticipated to deploy AGVs in the forthcoming years.

COVID IMPACT:

The global economic upheaval caused by the COVID-19 outbreak has impacted nearly every industry, leading to significant losses in productivity as governments worldwide imposed nationwide lockdowns to contain the spread of the epidemic. The manufacturing sector, in particular, has faced substantial declines in profits and revenue, with many organizations experiencing workforce reductions that have adversely affected manufacturing activities. Small and Medium Enterprises (SMEs) have been particularly hard hit, grappling with significant layoffs, financial crises, and attrition.

Amidst this challenging landscape, industrial automation and the deployment of Automated Guided Vehicles (AGVs) play a pivotal role in ensuring that businesses maintain essential production levels. The AGV industry has seen a surge in demand worldwide as it enables industries to sustain their production operations. For example, in February 2022, AEROTECH US introduced the AGV-XPO galvo scanner, a laser scan head designed to facilitate the high-precision production of complex components in medical technology. This technology minimizes errors and enables faster execution of intricate tasks. Additionally, companies like WEWO and Techmotion offer AGVs tailored for healthcare and pharmaceutical industries, facilitating the transportation of medicines, food, medical equipment, laundry, and sterile goods. These AGVs are also utilized for tasks such as room cleaning, controlled material validation, and managing material flows.

SEGMENTATION ANALYSIS:

The Tow vehicle segment is anticipated to grow significantly during the forecast period.

Tow vehicles represent a specialized category of AGVs engineered to tow or pull material handling carts, trailers, or other payloads within a facility. Equipped with a towing mechanism such as a tow bar or hitch, these AGVs establish a connection to the load they are tasked with transporting. Offering adaptability, tow vehicles provide flexibility in handling diverse materials, products, or goods. Their versatility allows for customization to suit various industries and applications, spanning manufacturing, warehousing, and distribution.

The Laser guidance segment is anticipated to grow significantly during the forecast period.

During the forecast period, laser guidance navigation technology is expected to dominate the market. Laser guidance is a favored navigation method utilized in AGVs within industrial settings. It facilitates precise path tracking, obstacle avoidance, and navigation through changing environments. AGVs employing laser guidance technology are outfitted with laser scanners or sensors that emit laser beams, detecting reflections from surfaces or targets in their surroundings. Widely adopted across manufacturing, logistics, and distribution sectors for material handling and transportation purposes, laser guidance technology provides a dependable and effective solution for maneuvering AGVs in intricate and dynamic environments.

REGIONAL ANALYSIS:

The Asia Pacific region is set to witness significant growth during the forecast period.

The Asia-Pacific region stands as the largest consumer of Automated Guided Vehicles (AGVs) globally. The market's fragmentation makes it easy to access affordable automation services. Additionally, the burgeoning production in the automobile sector is fueling the demand for AGVs in this region.

In China, the market is predominantly steered by the country's expansive manufacturing industry. China boasts the world's largest manufacturing sector, playing a pivotal role in the nation's economic expansion. According to the State Council Information Office of China, the country's share of global manufacturing output surged to 27.7% in 2022 from 22.5% in 2012, underscoring the industry's substantial growth in recent years.

Furthermore, China is a leading proponent of Industry 4.0, housing some of the most advanced manufacturing facilities globally, surpassing regions like the European Union, the United States, and Japan. For instance, the World Economic Forum reports that out of the 69 factories worldwide considered leaders in Industry 4.0 technologies, China hosts 20, followed by 19 in the European Union, 7 in the United States, and 5 in Japan. Automated storage and retrieval systems not only form the cornerstone of plant-wide automation but also serve as the bedrock for Industry 4.0 advancements.

COMPETITIVE ANALYSIS

The global Automated Guided Vehicle (AGV) market is reasonably competitive with mergers, acquisitions, and product launches. See some of the major key players in the market.

Mitsubishi

In June 2023, Mitsubishi Logisnext Americas and Jungheinrich had unveiled plans to expand their collaboration for mobile automation solutions in North America through the establishment of a new company named Rocrich AGV Solutions. Leveraging the combined product and service offerings of Jungheinrich and Rocla, Rocrich is positioned to address a wide spectrum of customer needs, encompassing standard to specialized AGVs and automated forklifts.

BALYO

Daifuku Co., Ltd.

E&K Automation GmbH

inVia Robotics, Inc.

JBT

KUKA AG

Oceaneering International, Inc.

Seegrid Corporation

SSI Schaefer

Toyota Material Handling

SCOPE OF THE REPORT

By Type

Tow Vehicles

Unit Load Carriers

Pallet Trucks

Assembly Line Vehicles

Forklift Trucks

By Navigation Technology

Laser Guidance

Magnetic Guidance

Inductive Guidance

Optical Tape Guidance

Vision Guidance

Others

By Application

Transportation

Distribution

Storage

Assembly

Packaging

Waste Handling

By Industry

Automotive

Manufacturing

Food & Beverages

Aerospace

Healthcare

Logistics

Retail

Others

By Region

North America (the United States & Canada)

Europe (Germany, UK, France, Spain, Italy, and the Rest of Europe)

Asia Pacific (China, Japan, India, and Rest of Asia Pacific)

Rest of the World (the Middle East & Africa, and Latin America)

KEY REASONS TO PURCHASE THIS REPORT

It provides a technological development map over time to understand the industry’s growth rate and indicates how the Automated Guided Vehicle (AGV) market is evolving.

The report offers a dynamic method to various factors that drive or restrain the growth of the market and specifies which Automated Guided Vehicle (AGV) submarket will be the main driver of the overall market from 2024 to 2032.

It renders a definite analysis of changing competitive dynamics and stipulates the leading players and what are their prospects over the forecast period.

It builds a nine-year estimate based on how the market is predicted to grow and shows what will market shares of the global region change by 2032 and which country will lead the market in 2032. Show more