Automated guided vehicles or AGVs are driverless vehicles that use autonomous navigation and various sensor-based technologies like magnetic guidance, laser guidance, vision guidance to transport materials within facilities and manufacturing plants. AGVs help reduce costs and improve productivity by streamlining workflows in warehouses and manufacturing facilities. The global automated guided vehicle market is driven by the need for automated material handling solutions in industries to optimize operations and maximize efficiency.
The 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 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.Samemax Refrigeration Sdn Bhd., GE Corporation, PT. Royal Sutan Agung, Hoshizaki Singapore Pte Ltd., and Midea Group.
The key opportunities in the automated guided vehicle market include optimized warehouse management through fleet management solutions and integration of advanced technologies like AI, IoT, and cloud computing in AGVs. Introduction of fuel cell and battery powered AGVs is enhancing efficiency and sustainability.
Advancements in navigation, guidance, sensing and integration of technologies like AI, ML, IoT and cloud computing are fueling automation in materials handling through AGVs. Multi-level storage solutions and customized solutions as per industry requirements are expanding applications of AGVs.
Market Drivers
The major driver for the automated guided vehicle market is the need to optimize operations and improve productivity in industries. AGVs help automate intralogistics workflows, improve inventory management and assist in just-in-time manufacturing. AGVs minimize downtime caused due to errors and reduce labor costs involved in material movement. The growing e-commerce industry is also augmenting demand for AGVs to efficiently manage constant inventory changes in warehouses.
Current challenges in the Automated Guided Vehicle Market
The Automated Guided Vehicle Market is currently facing several challenges which are hindering its growth. High initial investment required for AGVs and associated infrastructure like navigation systems is a major challenge. Integration of AGVs with existing warehouse management systems is also complex requiring significant time and cost. Lack of skilled workforce for operation and maintenance of advanced AGVs poses operational challenges. Safety issues while working alongside humans within warehouses is another concern limiting wide adoption of AGVs. Technology limitations of some AGVs in handling complex tasks effectively and efficiently is restricting their usage in certain applications.
SWOT Analysis
Strength: precision & accuracy of AGVs reduces errors; Ability to work in hazardous environments.
Weakness: high initial costs; required specialized infrastructure and technicians for maintenance.
Opportunity: Growing e-commerce sector increasing demand for automation; Advancements in AI & sensor technologies improving capabilities.
Threats: limited applications in complex logistics; competition from alternative technologies like automated robotics.
Geographical regions with high market concentration
North America accounts for the largest share in the Automated Guided Vehicle market in terms of value currently. This is attributed to large presence of major automotive and e-commerce companies in the region adopting AGVs for intralogistics. Asia Pacific is expected to be the fastest growing regional market owing to expanding manufacturing sector and rapid industrialization in major countries like China and India.
Fastest growing region
Asia Pacific region is poised to witness the highest growth in the Automated Guided Vehicle market during the forecast period from 2023 to 2030. This rapid growth can be attributed to rising labor costs making automation more viable, expansion of warehouses and manufacturing facilities of global companies in Asia, and government support for development of smart factories and Industry 4.0 initiatives in emerging economies.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
