The automated guided vehicle market is seeing growing demand owing to the need for efficient material handling solutions in various industries. Automated guided vehicles help improve productivity and workflow by automating intra-logistics processes. They are powered by advanced navigation technology to transport goods within facilities without human intervention. Key applications include case picking, pallet handling, loading/unloading docks and automated storage/retrieval systems. The use of AGVs minimizes operational costs by lowering energy consumption and enhancing asset utilization compared to conventional forklifts and manual transportation.
Global automated guided vehicle market is estimated to be valued at US$ 2,100 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period from 2023 to 2030.
Key Takeaways
Key players operating in the automated guided vehicle market are JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Schaefer Systems International Pvt Ltd., E&K AUTOMATION LIMITED, Oceaneering International, Inc., Murata Machinery, Ltd., KNAPP AG, Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., Seegrid Corporation, Fetch Robotics, Inc., inVia Robotics, Inc., Crown Equipment Corporation, and Meidensha Corporation.
The market is witnessing lucrative opportunities owing to the growing e-commerce and warehouse automation. Automated guided vehicles help optimize warehouse operations and meet the rising consumer demand for fast delivery of products. Their ability to pick and transport goods expediently enables companies to achieve operational efficiencies.
North America, Europe and Asia Pacific are emerging as major markets for automated guided vehicles due to the rapid expansion of the warehousing and logistics industries. Leading AGV manufacturers are focusing on these regions by setting up manufacturing plants and forming strategic partnerships with regional players to cater to the burgeoning demand.
Market drivers: Rising emphasis on warehouse automation to minimize costs and boost productivity is a key factor driving the automated guided vehicle market. AGVs help streamline material movements in warehouses and eliminate dependency on manual labor. Growing e-commerce sector is also propelling the adoption of AGVs to efficiently handle increasing volumes of online orders.
Market restraints: High initial investment associated with automation equipment and technologies is a major restraint. AGVs also need frequent maintenance and software upgrades which increases long term ownership costs. Lack of standardization and interconnectivity issues also limit broader acceptance of AGVs. Infrastructure constraints in old warehouses hinder a smooth transition to automated logistics systems.
Segment Analysis
The warehouse segment is dominating the automated guided vehicle market currently as AGVs help in reducing costs and improving productivity in warehouse operations. These vehicles are widely used for pallet movements, piece picking, tugging and towing applications in warehouses. They provide accurate guidance and navigation within warehouses which has resulted in increasing adoption.
The manufacturing segment is also growing significantly. AGVs are used extensively on manufacturing floors for horizontal transportation of raw materials, work in process inventory and finished goods between workstations. They improve logistics within manufacturing facilities by streamlining material flows.
Global Analysis
The Asia Pacific region dominates the automated guided vehicle market currently. Rapid industrialization and growth of logistics sectors in China, India, Japan and Southeast Asian countries is driving adoption of AGVs. These countries have emerged as global manufacturing hubs and warehouses, which is boosting market revenues. Ease of availability of low cost AGVs also supports market growth.
Europe is also a major regional market for AGVs currently. Investments in automation by German automotive companies, growth of e-commerce sector and emphasis on Industry 4.0 are supporting market revenues. standardization of network connectivity protocols is further fueling regional market growth.
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- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it