Automated Guided Vehicle Market

Automated Guided Vehicle (AGV) Market Size (2023 to 2028)

The global automated guided vehicle market size is estimated to grow at a CAGR of 7.9% during the forecast period and the global market size is projected to reach USD 3.47 billion by 2028 from USD 2.37 billion in 2023.

An automated guided vehicle (AGV) is also known as an automated portable robot. The portable robot follows the marked lines or wires on the floor accordingly. It further utilizes radio waves, vision cameras, or lasers for navigation. These Automated Guided vehicles are self-guided vehicles used for material handling or loading carriers that travel autonomously throughout a warehouse, distribution center, or manufacturing facility without an onboard operator or driver. Automated guided vehicles are available in different forms with different navigating systems. The tow vehicle type of AGV and laser-guided navigating system are dominant segments in the market growth of the Automated Guided Vehicle Market. These AVGs are highly used in logistics & warehouses for Transportation, distribution, cold storage, wholesale and distribution, and cross-docking.

Automated Guided Vehicle (AGV) Market Drivers:

The growth of the AGV market is majorly driven by the increasing demand for automated guided vehicles in the automotive, e-commerce, food & beverages, and healthcare sectors. The Asia-Pacific region is predicted to occupy the largest market for automated guided vehicles. The growing focus on industrial automation for increasing productivity, quality improvement, labor, and time management fuels the development of the automated guided vehicles market in the forecasted period. Because of the overall need for high efficiency, automation is becoming more popular in the automotive, healthcare, e-commerce, and food and beverage industries. AGV-enabled automation of industrial facilities can help satisfy material handling capacity requirements while also lowering production time, minimizing the risk of human error, improving safety, maintaining quality, high production volumes, and increasing accuracy and repeatability.

AGVs provide for just-in-time (JIT) raw material delivery, computerized management of received completed parts, and tracking of dispatched items. Without the need for human involvement, AGVs aid in the storage, distribution, and transportation of items, minimizing the danger of worker injury and product damage while also boosting accuracy. Further, AGVs reduce labor costs in warehouses in many ways from a long-term perspective. For example, by replacing a human worker with an AGV, a corporation incurs only a one-time cost for the equipment (the original investment), as opposed to different recurring labor costs. Furthermore, the use of AGV allows businesses in a variety of industries to use innovative technologies that provide both immediate and long-term benefits. This trend is fuelling demand for data-driven technologies such as AGVs, which may help businesses better manage plant assets and make better operational decisions.

Automated Guided Vehicle Market Restraints:

Installing and setting up an autonomous guided vehicle will cost a lot of money. Manufacturers may be hesitant to use high-end AGVs due to their high cost; because small businesses cannot afford automated systems, they must rely on traditional/manual forklift trucks. Another hindrance to the market's growth is the expense of maintaining AGVs, which varies depending on the age, kind, location, number of shifts per day, and condition of the equipment. Maintenance costs are considerable for AGVs used in the manufacturing, chemical, and construction industries, for example. Furthermore, due to high capital costs and a long return period, organizations find it difficult to invest in automation solutions.

Furthermore, in order to accommodate AGV systems, warehouse operators must adapt their warehouse design. Companies must consider critical factors such as worker safety, space utilization, and item accessibility while creating new layouts. Companies spend a considerable amount on infrastructure development. As a result, the high setup cost is likely to have a significant impact on the AGV market's growth. Another key aspect of deploying AGVs across an industrial plant is determining the exact number of AGVs required. Companies cannot accurately forecast the number of AGVs required in their facilities since material handling requirements in some industries fluctuate depending on market demand or their production cycle. As a result, significant capital expenditure is a major stumbling block to the AGV market's expansion.

Automated Guided Vehicle Market Opportunities:

By implementing Industry 4.0 concepts, traditional industrial facilities are gradually developing into smart, networked, and highly efficient automated facilities. Industry 4.0 has the potential to turn a manufacturing plant into a self-contained unit. It is a single automated unit that incorporates computers, industrial automation solutions, and robotics. A smart architecture capable of making decentralized decisions is created by a network of linked devices. The rise of Industry 4.0 is revolutionizing warehouse operations. Industry 4.0 also intends to establish a productive working environment in which humans and robots can collaborate well.

Furthermore, combining Industry 4.0 and robotics would turn processes into an industrial space with greater automation system coordination. In the extremely demanding and constantly expanding supply chain ecosystem, this integration will enable time-critical, high-velocity operations at lower costs. In warehousing, the deployment of Industry 4.0 technology has enabled effective communication between warehouse activities. In the extremely demanding and constantly evolving supply chain environment, it improves warehouse system coordination and assists warehouse operators in performing time-critical and high-velocity operations at a lower cost. As a result, AGVs are projected to see a boost in growth.

Automated Guided Vehicle Market Challenges:

Low labor wage rates in emerging economies such as India, Bangladesh, and Tanzania restrict the adoption of automated technologies across industries in these countries. The automation of industrial facilities makes little or no economic sense in these countries where cheap labor is available in abundance. In these emerging economies, automation in manufacturing facilities is less prevalent than in other developed countries since the cost advantage in labor trade-off with robots is less due to the availability of cheap labor. Bangladesh, Cuba, and Tanzania, for example, have very low average daily incomes. As a result, emerging-market enterprises are hesitant to invest in automated equipment like AGVs. Human labor is used in a variety of processes in the manufacturing sector of emerging nations because the combination of manual labor and accurate and semiautomatic equipment proved to be effective.

Impact of COVID-19 on Global Automated Guided Vehicle (AVG) Market:

The covid-19 outbreak has halted worldwide industrial activities, due to which the economy was at a great loss. Lockdown and unavailability of workforces disturbed the production and supply chains significantly affected the market of Automated Guided Vehicles. In addition, the fear of the deadly virus and the social distancing restrictions flourishes in e-commerce, food and beverages, and the healthcare sector, which increases the demand for automated guided vehicles in the market.

REPORT COVERAGE:

This research report on the global automated guided vehicle market has been segmented and sub-segmented into the following categories.

Automated Guided Vehicle Market - By Type:

• Tow Vehicles
• Unit Load Carriers
• Forklift Trucks
• Assembly Line Vehicles
• Pallet Trucks

Based on type, the tow vehicle is the dominant segment in the global automated guided vehicle market and accounted for a revenue share of 40% in 2021. Tow Automated Guided Vehicles can provide flexible solutions for logistics and manufacturing flow because it can transport several trolleys simultaneously, reducing the number of transportation needed and helping increase productivity. In addition, towing vehicles can carry out autonomous, safe, and reliable loads in collaboration with operators. Owing to these factors, the Tow vehicles will sustain their market dominance with a CAGR of 15.4% in the global Automated Guided Vehicle Market during the forecast period.

Automated Guided Vehicle Market - By Navigation:

• Laser-guided
• Magnetic Guided
• Vision Guided 
• Others (Wire guided etc.)

Based on Navigation, the global Automated Guided Vehicle Market is segmented into Laser guided, Magnetic Guided, Vision Guided, and others. The laser-guided AGVs dominate the market due to their flexibility and accurate laser guidance technology. Moreover, the demand for laser-guided vehicles for material handling in the industry is growing because lasers act as electronic eyes to skip obstacles on the path. It also facilitates safety improvement, increases material throughput, and minimizes downtime.

Therefore, due to these factors, the laser-guided Automated Vehicle is expected to increase the sales and revenue of the global Automated Guided Vehicle Market in the forecast period.

Automated Guided Vehicle Market - By Application:

• Logistics & Warehouses
• Transportation 
• Wholesale & Distribution
• Storage 
• Cross-Docking
• Assembling
• Packing
• Trailer Loading and Unloading
• Raw Material Handling
• Others 

Based on Application, the global Automated Guided Vehicle Market is segmented into Logistics and warehouse, Assembling, Packing, Trailer Loading and Unloading, Raw Material Handling, and Others. The logistics and warehousing segment is dominating the Automated Guided Vehicle Market. The demand for Automated Guided vehicles is growing in logistics & warehousing for Transportation, wholesale distribution, cold storage and distribution, and cross-docking. Additionally, The AGVs can work accurately and efficiently even in narrow aisles and compact layouts and enhance the reliability of the storage process. Owing to these factors, the demand for AGVs in Logistics and warehouses boosted the global Automated Guided Vehicle Market during the forecast period.

Automated Guided Vehicle Market - By Industry:

• Automotive
• Metals & Heavy Machinery
• Food & Beverages
• Chemicals
• Healthcare
• 3PL
• Semiconductors & Electronics
• Aviation
• E-commerce
• Others

Based on Industry, the global Automated Guided Vehicle Market is segmented into Automotive, Metals and heavy Machinery, Food and beverages, Chemicals, Healthcare, 3PL, Semiconductors and electronics, Aviation, E-commerce, and Others. AVG demand for AVGs is prominent in the automotive & food industry due to bulk material handling (storage, packing, and movement), etc. In addition, the E-commerce segment is expected to have vigorous growth in the future due to increasing e-commerce activities by major e-commerce players.

Automated Guided Vehicle Market - By Region:

• North America
• Europe
• Asia Pacific
• Latin America 
• Middle East and Africa

North America is the largest contributor to the global automated guided vehicle market due to increasing import and export activities. The huge deployment of automated technologies in warehouses to optimize operations and work efficiency fuels the Automated Guided Vehicle Market's market growth between 2022 and 2027.

Asia Pacific is expected to have the highest growth rate in the global automated guided vehicle market. In the APAC region, China, India, and South Korea will contribute to the AGVs market growth due to the rapid growth of the automotive, food &beverages, e-commerce, and healthcare industries. Additionally, the government is more focused on safety and security in production areas as well as taking initiatives on the development of Industrial manufacturing to boost the growth of the Automated Guided Vehicles Market in the forecasted period.

Europe and Latin America are emerging countries in the Automated Guided Vehicle Market growth. The increasing deployment of Industrial 4.0 and industrial automation fuels the growth of the Automated Guided Vehicle Market in the future.

In the Middle East and Africa, manufacturers are more focused on automation technologies, which drives the Automated Guided Vehicle Market growth during the forecast period.

KEY MARKET PLAYERS:

Companies playing a leading role in the global automated guided vehicle market are Daifuku (Japan), JBT (US), KION (Germany), KUKA (Germany), Toyota Industries (Japan), Oceaneering International Inc., Hyster-Yale Material Handling Inc., JBT, Mitsubishi Caterpillar Forklift America Inc., Kollmorgen and Seegrid Corporation.

RECENT HAPPENINGS IN THE MARKET:

• In April 2021, Toyota Industries Corporation announced the creation of the global autonomous vehicle software development company T-Hive. T-Hive’s main aim is to provide a seamless control system for autonomous vehicles (AVs) within TICO, such as automated guided forklifts (AGF), automated guided vehicles (AGVs), and autonomous mobile robots (AMRs). The combined solution portfolio will be introduced at logistics sites worldwide, enabling TICO’s customers to enjoy the flawless movement, storage, and distribution of goods throughout their entire supply chain.
• At ProMatDX in April 2021, JBT introduced its Warehouse Freezer AGV, which can operate in temperatures ranging from -10°F to 110°F.