Automated Guided Vehicle Market - Forecast(2024 - 2030)

Automated Guided Vehicle Market Overview

The global automated guided vehicle market size was estimated at $6.3 billion in 2030. Due to rising industrial development and trending automation, the global automated guided vehicles market is projected to grow at a CAGR of 8.05%, during the forecast period 2024-2030. Automation, flourishing under the industry 4.0 trend, is revolutionizing processes at a radical pace. This technology is reducing human efforts and potential errors in numerous industries. These advanced automatic machineries are a consequence of the continuous and intensive innovation in robot technology. Automatic guided vehicles (AGV) are a combination of intelligent software and agile hardware robots. These vehicles are majorly used in factories, plants, warehouses, and related manufacturing setups. AGV supports hassle-free and secure movement of the product or an object, at a fast speed using motorized rollers and advanced sensors. It can transport material to multiple places and is not dependent on humans for decision making and physical interaction. Transportation of raw materials, spare parts, tools, and finished goods at various sections of the factory from manufacturing lines and storage to picking warehouse components, and inventory distribution applications are the major applications of AGV. 

The Automated Guided Vehicle (AGV) market is increasingly integrating with Industry 4.0 technologies, including IoT, AI, and machine learning. This integration enhances AGVs' capabilities in navigation, obstacle detection, and decision-making, leading to increased efficiency and adaptability in dynamic industrial environments. Such advancements are making AGVs indispensable in smart manufacturing setups, driving market growth. There's a growing trend towards the development of smaller, more flexible AGVs. These compact vehicles are ideal for navigating narrow aisles and tight spaces, making them suitable for small to medium-sized enterprises and urban warehouses. Their flexibility and adaptability make them a popular choice for various applications, fostering innovation and expanding market reach.

Market Snapshot:

North America: The Most Lucrative Region in the Automated Guided Vehicle Market

North America generated the maximum revenue in the global automated guided vehicle market in 2023, and the region accounted for 36.72% of the global market share. The U.S. started integrating automation in warehouses for the retail sector. Moreover, the radical growth in the e-commerce segment of the retail sector has boosted the demand for AGV in warehouses. High import and export rates in the region demand automatic mobility systems in the warehouses and plants, therefore the region is witnessing a significant demand for automatic guided carts (AGC), AGV, assembly line vehicles (ALV), and sorting transfer vehicles (STV). The expansion of cross-border trade and increased number of shipments across the continent is another driving factor supporting the automated guided vehicle market growth in the region.

Material Handling Poised as Key Application in the Market

AGVs are gaining popularity and leveraging wide applications in various end-user industries, however, the material handling application of AGV in warehouses and factories is cited as the most prominent application in the global AGV market, and the demands for the same are projected to grow at a CAGR of 10.67% during the forecast. Automation is being widely adopted in end-user verticals to reduce human errors. It is changing the business landscape by reducing manual intervention and is considered the latest trend to streamline both basic and complex human tasks in industrial processes. Other major applications of AGVs are staging, sorting, cross-docking, replenishment, picking, and trash removal which are supporting the revenue growth in the AGV market. These applications have created opportunities for key players in the AGV market to develop customized automated vehicles such as laser-guided vehicles (LGV), Automated Guided Carts (AGCs), Fahrerlose Transport systems (FTS), motorized rollers (conveyor), pallet trucks, and Assembly Line Vehicles (ALV). So, the requirement for specific AGVs from distinct industrial segments is the major aspect on which the AGV business leaders are relying.

For More Details on This Report - Request for Sample

Disruptive Trends in the AGV Market

Increased Production and Efficiency: AGVs are helping to boost the production rate in industries. Since machines can offer much more efficiency and scalability in performing redundant tasks at a surprisingly reduced operating cost. With AGVs, production is flourishing as these machines can accomplish tasks without stopping or taking a break, unlike humans. Hence, the return on investment on these vehicles is tremendous, as this technique will speed up the processes and operations in an industry.

Popular One-Day Delivery Feature in the E-commerce Sector: The unprecedented growth in the e-commerce industry is driving the AGS vehicle market. The major competitive factor in the e-commerce industry is the service quality and customer satisfaction. Companies are offering single-day consignment delivery options with some surcharges, and with the growing disposable income in both developing and developed economies, the commercial viability of these schemes is increasing considerably. The single-day delivery option is carried out by e-commerce warehouses with the help of AGVs. Thus, the incrementing customer satisfaction factor in the e-commerce sector is changing the business landscape for AGV market vendors.

3D Imaging Camera for Navigation: Innovations and advancements in the camera market have led to the obtainability of 3D imaging cameras. This camera is gaining popularity in the majority of end-user industries, owing to optimal 3D imaging features. Therefore, warehouses and factories are using 3D cameras in AGV for imaging and navigation purposes in the warehouse or a plant. Advancement in navigation technology is paramount for AGV to perform accurate and efficient operations inside the warehouse; henceforth, supporting the global AGV market growth.  

Big Data Analytics Supporting the Work Progress by Analysing the Data Generated by AGVs: With automated processes and multiple sensors in AGVs, the volume of data generated will be phenomenal, and this data can further be analysed to extract relevant insights to optimize the time and cost factor involved in the industrial processes.    

Risks of Automated Guided Vehicles               

The Amazon warehouse in the U.S. suffered a treacherous outcome due to an automated machine. The 1.3 million-square-foot warehouse in Robbinsville was affected by the 9oz. can of bear repellent which was accidentally damaged by an automated machine. This affected a substantial number of warehouse employees who were immediately hospitalized. Since automation techniques are new in the market, there is space left for achieving utter efficiency and safety. Therefore, the key vendors in the AGV market are investing significant capital in the R&D department of AGVs. 

Automated Guided Vehicles Market Companies 

• The companies ahead of the curve in the automated guided vehicle market are Daifuku, JBT Corporation, KION Group, KUKA, Toyota Industrial, Hyster-Yale Materials Handling, Kollmorgen, EK Automation, Sigrid Corporation, and SSI Schaeffler.

For more Automation and Instrumentation Market reports, please click here