Automated guided vehicles use sensors and guidance software to transport materials without human operators. Used commonly in warehouses and distribution centers for transporting goods, automated guided vehicles improve productivity and increase accuracy by reducing product damage and fulfilling a high volume of picks.
The 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 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Rising E-commerce demand has propelled the growth of the automated guided vehicle market. Rapid growth of the e-commerce industry has increased the pressure on warehousing and logistics companies to scale up operations and improve efficiency. Automated guided vehicles help e-commerce companies efficiently manage surging order volumes throughout the order fulfillment process. They leverage guidance technology, sensors, and mapping software to streamline material movement within facilities. This allows e-commerce businesses to lower operational costs and maximize throughput while meeting customers’ expectations of fast delivery. Integrating automated guided vehicles improves productivity in picking, packing, and shipping tasks significantly.
SWOT Analysis
Strength: Automated guided vehicles offers efficient material handling and reduces operational costs. It provides 24/7 operations with minimal human intervention.
Weakness: High initial investment for AGVs and associated infrastructure like navigation systems. These vehicles also require regular maintenance and software/hardware upgrades.
Opportunity: Growing e-commerce and logistics industry is driving the adoption of AGVs. These vehicles help in overcoming labor shortage faced by many industries. Rising demand from industries like automotive, metal, and healthcare also present opportunities.
Threats: Presence of alternatives like conventional forklifts poses competition. Operational and technical issues can hamper productivity. Cyber security threats to navigation systems can disrupt operations.
Key Takeaways
The global automated guided vehicle market is expected to witness high growth over the forecast period of 2023 to 2030. The increasing demand from material handling, manufacturing, logistics and other industries is a key factor expected to drive the market. The market size is projected to reach US$ 2,100 Mn in 2024.
Regional analysis: North America region currently dominates the AGVs market owing to advanced industrial infrastructure and technological adoption. Asia Pacific region is anticipated to grow at fastest CAGR due to rapid industrialization and expansion of e-commerce sector in countries like China and India. Countries in Europe region like Germany also have major companies operating in AGVs market.
Key players analysis: Key players operating in the automated guided vehicle market are JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIAL CORPORATION. These companies offer comprehensive portfolio of AGVs that can integrated with warehouse management systems for material handling applications. Players are focusing on developing intelligent and autonomous vehicles by incorporating advanced technologies like AI, IoT, and analytics. They also follow strategies like collaborations, mergers and new product launches to strengthen market position.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
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