Automated Guided Vehicle Market

Automated Guided Vehicle Market Growth Outlook (2022-2032)

The automated guided vehicle market is reached a valuation of US$ 2.71 Billion by 2021, and is likely to register a year on year growth rate of 10.0% in 2022, closing at US$ 3.05 Billion.

Furthermore, across the 2022-2032 period of assessment, growth is expected to accelerate at a whopping 12.5% CAGR, reaching US$ 9.9 Billion.

According to Fact.MR, increasing industrialization across the globe is one of the major factors that is expected to augment the demand for automated guided vehicles in oil & gas, transportation, and construction industry.

Growing demand can be attributed to advanced features offered by automated guided vehicles such as fuel efficiency and customized material handling, which will further shape the sales outlook of the market.

Additionally, retailing and other logistics-related companies are collaborating and partnering with tech giants to transform the material handling industry, which in turn will create lucrative opportunities for the market’s growth. For instance, in November 2021, OTSAW Digital Pte Ltd, an autonomous mobile robot solution, partnered with Swisslog Healthcare to develop automated guided vehicles for the healthcare sector to enable better patient care.

Report Attributes	Details
Market Size in 2021	US$ 2.71 Billion
Market Forecast Value in 2022	US$ 3.05 Billion
Projected Forecast Value (2032)	US$ 9.9 Billion
Global Growth Rate (2022-2032)	12.5% CAGR
Expected Growth Rate of the US (2022-2032)	12.4% CAGR
Anticipated Growth Rate of India (2022-2032)	12.3% CAGR
Prominent Automated Guided Vehicle Service Players	Addverb Technologies Aichi Machine Industry Co., Ltd. China SME Group Co., Ltd DAIFUKU GROUP Egemin Automation Inc. GreyOrange GRIDBOTS JBT Corporation KOLEC Konecranes KUKA AG Murata Machinery, Ltd. Oceaneering International, Inc. SHENZHEN MIRCOLOMAY TECHNOLOGY CO., LTD System Logistics S.p.A. TOYOTA INDUSTRIES CORPORATION

2017-2021 Revenue Analysis of Automated Guided Vehicle Market vs. Growth Outlook 2022-2032

According to Fact.MR’s report, Automated Guided Vehicle demand exhibited a CAGR of over 1.5% from 2017 to 2021.

The market’s growth is attributed to limited awareness and penetration of industry automation in various countries. However, the automated guided vehicles market has been gaining momentum, owing to increasing laser guided AGV’s production and reduced labor costs.

The automated guided vehicles are emerging as a feasible material handling solution, that significantly reduce transportation damage and provide accessibility in high volume storage and logistic facilities.

Advanced technologies such as telematics services and laser, magnetic, infrared, and optical navigation are being introduced in automated guided vehicles. Wireless communication is also gaining significant traction, since it enhances accuracy in tracking position. It has therefore become a key trend in the automated guided vehicles market.

Key Market Drivers Influencing Automated Guided Vehicle Industry Expansion

Deployment of Industry 4.0 in Warehouses to Boost the Market Growth

The integration of Industry 4.0 concepts has led the conventional industrial facilities to develop into smart, networked as well as highly efficient automated facilities. Also, the Industry 4.0 has the ability to transform a manufacturing facility into a self-contained operation as it is a single automated unit that incorporates computers, industrial automation systems, and robots.

A network of linked devices creates a smart architecture capable of making decentralized choices. In addition, the rise of Industry 4.0 is transforming the way warehouses operate & Industry 4.0 also intends to establish a productive working environment in which people and robots can collaborate well.

Moreover, the integration of Industry 4.0 and robots would turn processes into an industrial space with greater automation system coordination. This integration will enable high-velocity operations at lower costs along with making it time-critical, in the extremely demanding and constantly expanding supply chain environment.

Furthermore, the deployment of Industry 4.0 technology has aided active communication between warehouse activities along with improving warehouse system coordination and assists warehouse operators in performing time-critical as well as high-velocity activities at a reduced cost, which in turn is escalating the growth of the automated guided vehicle market growth over the analysis period.

Rising Automation Solution to Propel Market Growth Prospects

Today, improved technology in the material handling process has enabled industries to have linked factories, leading to the adoption of automated material handling operations with the help of advancements such as Machine Learning, Big Data, and others.

This allows them to have more flexible production processes, better labor management, and a better control of quality. The use of automated material handling systems is also increasing its presence, as the e-commerce sector is growing across the world. Amazon, Walmart, Alibaba, and others are focused on material handling process automation to cut operational costs and expand inventory sizes.

Further, the increasing demand for automation is also rising in the automotive, healthcare, e-commerce, and food and beverage industries, attributed to the general requirement for high efficiency.

Additionally, AGV-enabled industrial facility automation may assist satisfy material handling capacity needs while also lowering production time, minimizing the risk of human mistakes, assuring high production volumes, improving safety and boosting precision and repeatability.

Therefore, these systems are an aid in warehouses to save money in the long run, by reducing labor expenses in various ways, thereby increasing the global automated guided vehicle market share.

Key Challenges encountered by Automated Guided Vehicle Industry

High Maintenance Cost to Hinder the Market Growth

The businesses that deploy Automated Guided Vehicles to automate the production process or supply chain need to invest a significant amount of money. This includes the cost of purchase, installation, as well as the expense of making the working environment more AGV-friendly. Also, the expensive cost of high-end AGVs may deter manufacturers from using them.

As small industries are obligated to rely on traditional/manual forklift trucks as they cannot afford automated systems, the adoption of AGV could be slowed among smaller industries.

Additionally, the expense of maintaining AGVs, which varies depending on their age, kind, location, number of shifts each day, and condition, is also a stumbling block to the market expansion.

Therefore, due to high capital costs and a long return period, organizations find it difficult to invest in automation solutions. As automated guided vehicles can reduce labor, erroneous, and wastage costs significantly, the maintenance cost required for optimal performance of these vehicles is acting as a restraining factor.

High Installation Cost of AGVs to Hamper the Market Growth

Initial investment in Automated Guided Vehicles can be burdensome for smaller operations and could be more expensive than hiring personnel for similar tasks. These vehicles are not suitable for non-repetitive tasks, which can be normally performed by staff operating forklifts.

AGVs, like any other equipment, require routine maintenance and occasional repair. Increased dependency on AGVs is anticipated to restrain daily operations at the time of maintenance, which can result in losses if not handled carefully. This might limit the adoption of automated guided vehicles in emerging markets.

Country-wise Analysis

How will the US Perform in the Global Automated Guided Vehicle Industry Landscape?

High Quality Research & Development in Automation to Boost the Market Growth in the US

The Automated Guided Vehicle Market in the US will grow at a CAGR of 12.4% from 2022 to 2032.

According to Fact.MR, the growing demand for AGVs is attributable to the presence of numerous consumer-centric industries in the U.S., coupled with high-quality research and development in the field of robotics and automation.

Increasing demand for AGVs within consumer goods, automotive, food & beverage, oil & gas, and healthcare sector is another factor that is fueling the market growth. The manufacturers have increased the production of AGVs, owing to the rising demand, which in turn is widening the future growth prospects of the AGV market.

Additionally, the presence of leading players such as Bastian Solutions, AGVE Group, and JBT Corporation is facilitating fast adoption across the U.S. Also, growing demand for AGVs in warehouses will provide incremental opportunities for these players, fostering sales.

How will the Growth of Automated Guided Vehicle Market Escalate across India?

Expansion of eCommerce to Enhance the Market Prospects

The Automated Guided Vehicle Market in India is expected to grow at a CAGR of 12.3% from 2022 to 2032.

Industrial automation is a novel concept for many high-growth industries across India. With the expansion of e-commerce, several global players are increasing the adoption of AGVs. For instance, Flipkart, in May 2019, announced the adoption of 340 AGVs at its warehouse in India and planned to increase the adoption over the next decade.

Thanks to the presence of numerous fast-moving consumer goods companies in India, industrial automation is emerging as a key trend that is helping the country maintain its position in a highly competitive environment.

AGV's are viable instruments that support industrial automation and several Indian manufacturers are enjoying the benefits of reduced manual labor and robotized manufacturing. Enhanced productivity, increasing output and reliable accuracy are some prominent benefits that are propelling automated guided vehicle sales in India.

Country-wise Forecast CAGRs for the Automated Guided Vehicle Market

Country	CAGR
US	12.4%
India	12.3%
China	12.2%
Japan	12.1%
Germany	12.0%

Category-wise Insights

Which Segment to Remain Dominant in the Vehicle Type Category?

Automated Forklift Trucks Segment to Enhance Growth Prospects

According to Fact.MR’s data, preference for Automated Forklift Trucks segment is expected to expand at a CAGR of 12.3% over the forecast period.

Automated forklift trucks are anticipated to account for a significant amount of the market share. This is attributed to the machine's design and use, which gives forklift trucks improved stability, control, and storage capacity. In addition, the bulk of industry participants provides automated forklift trucks as standard equipment.

These trucks are great for long distances, repetitive tasks, and hazardous areas. Also, these are autonomous robots, which consequently reduce the requirement of human labor along with improving the worker’s safety. Trackable timing and product delivery are the added benefits of unit load carriers which make them efficient for the shipment of large products.

Which is the Most Sought-after Application Category?

Transportation & Distribution Segment to Boost the Market’s Growth

According to Fact.MR’s data, preference for Transportation & Distribution segment is expected to expand at a CAGR of 12.2% over the forecast period.

The transportation and distribution segment is anticipated to grow at a rapid pace, owing to its adoption across a variety of sectors.

AGVs are used in a range of industries and facilities to transport items and products from one location to another. Various industries employ the transportation and distribution process to transfer goods and commodities such as paper, plastic, metal, rubber, and steel.

For operations, such as the movement of empty bottles, containers, pallets, and carrying items from the end of the manufacturing line to storage, among others, storage & assembly as well as packaging applications are required.

Automated Guided Vehicle Market- Competitive Landscape

Prominent players in the Automated Guided Vehicle Industry are taking advantage of the rapidly increasing demand for the Automated Guided Vehicle in various applications. To further their outreach, players are relying on collaborations, partnerships and acquisitions with existing small, medium and large-scale vendors. Some prominent market developments are as follows :

• In January 2022, KUKA AG signed a contract with Ford Otosan for the supply of more than 700 robots for Ford’s next-generation electrical and connected commercial vehicle projects. The contract marks a continuation of the company’s partnership, which has been in place for more than 20 years.
• In April 2021, JBT Corporation exhibited its Warehouse Freezer AGV, which operates in an array of temperatures from -10°F to 110°F. It operates with a lift capacity of 2,500 pounds. The automatic guided vehicle (AGV) features a triple-stage hydraulic mast, which has an integrated side shift and tilt. Additionally, it provides a variety of lift heights, ranging from 357 inches (or less) to the top of its forks, to 422 inches.
• In August 2020, Murata Machinery, Ltd. signed a contract with Alpen Co. Ltd. for the construction of ALPHABOT, a 3D robot warehousing system. The ALPHABOT has been introduced at the Alpen Komaki Distribution Center, one of the main distribution centers, with the aim of complementing its storage capacity and reducing picking, sorting, and packaging operations by 60%.

Key Segments Covered in the Industry Survey

• By Vehicle Type :

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

• By Navigation Technology :

  • Laser Guidance
  • Magnetic Guidance
  • Inductive Guidance
  • Optical Tape Guidance
  • Vision Guidance
  • Others

• By Battery :

  • Lead Battery
  • Lithium-Ion Battery
  • Nickel-based Battery
  • Others

• By Application :

  • Transportation
  • Storage
  • Distribution
  • Assembly
  • Packaging
  • Waste Handling

• By End-User :

  • Automotive
  • Manufacturing
  • Food & Beverages
  • Aerospace
  • Healthcare
  • Logistics
  • Retail

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Middle East & Africa