Global Automated Guided Vehicle Market to Hit Revenue of Nearly USD 9,866.0 million by 2032 | Astute Analytica

New Delhi, Feb. 14, 2024 (GLOBE NEWSWIRE) -- Global automated guided vehicle market was valued at US$ 3,734.0 million in 2023 and is projected to hit the market valuation of US$ 9,866.0 million by 2032 at a CAGR of 11.4% during the forecast period 2024–2032.

Automated Guided Vehicles (AGVs) have been revolutionizing material handling and intra-logistics for over five decades since their debut in a Volvo factory in Sweden. The demand for AGVs has surged, driven by labor shortages and the unyielding quest for cost reduction. Small- and mid-sized enterprises (SMEs), in particular, face significant challenges in attracting and retaining warehouse and fulfillment labor, amidst a backdrop of rising employment levels and wages in the United States and several European countries. This has made automation not just a luxury but a necessity for sustainable growth. As a result, venture capital is increasingly invested in warehouse-automation innovations and technologies that integrate multiple solutions, facilitating easier access to automation for SMEs. AGVs are categorized into unit loaders, forklift-type AGVs, and tugs, each designed for specific tasks within manufacturing and logistics environments. They traditionally follow predefined paths marked by wires, markers, or employ vision or laser guidance. In contrast, Autonomous Mobile Robots (AMRs) offer more flexibility and adaptability, using sophisticated sensors and computing to navigate dynamically and perform asynchronous transportation tasks without human intervention.

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The transition from AGVs to AMRs represents a significant shift towards more intelligent, flexible automation solutions. Companies like Vecna Robotics and Locus Robotics are at the forefront of this transition, offering innovative AMRs that work collaboratively with human workers, enhancing productivity without compromising job security. Moreover, new entrants in the market, such as MuL and Combilift, are introducing autonomous vehicles and smart technologies that promise even greater efficiency and safety in material handling. These advancements include navigation systems that use natural features of the environment, eliminating the need for altering facility designs, and sophisticated safety systems that dynamically respond to obstacles and adjust detection fields based on speed and steer angle.

As the industry evolves, the integration of artificial intelligence and prompt AI with AGVs is poised to bring a new level of intelligence and efficiency to the AGV market. This integration promises to streamline workflows, enhance collaboration, and optimize operational efficiency further. However, as we embrace this automated future, caution and responsibility are paramount to ensure data security and maintain operational integrity.

E-commerce Boom and Labor Shortage Shaping the Automated Guided Vehicle Market

In the first quarter of 2022, North America witnessed a remarkable 28% increase in robot density per 10,000 workers when compared to the same period in 2021. This surge in robot deployment marks a historic growth rate for the industry, signaling a profound shift towards automation, primarily driven by the soaring demand in the e-commerce sector. The rapid expansion of e-commerce has presented significant challenges, particularly in the form of labor shortages and escalating wage pressures within warehouse and fulfillment centers. Employment levels in distribution centers across the United States have soared to unprecedented heights, with hourly wages soaring beyond the $18 mark. Despite these substantial wage increases, attracting and retaining warehouse employees continues to be a formidable task for companies operating in this space.

The scarcity of available labor, coupled with the relentless growth of e-commerce, has transformed automation in warehousing from being considered a luxury to becoming an absolute necessity. To ensure sustainable growth and competitiveness amidst the ongoing labor crunch, companies are making substantial investments in Automated Guided Vehicles (AGVs) and various other automation technologies. This surge in demand for advanced warehousing solutions to accommodate the e-commerce boom has also captured the attention of venture capital investors. Substantial funding is flowing into innovations related to warehouse automation, supply-chain-as-a-service models, and integrated technology solutions. These investments reflect the recognition of the pivotal role automation plays in addressing the evolving needs of the e-commerce industry. For instance, companies like Ocado, an online grocery retailer, leverage sophisticated AGV systems in their highly automated fulfillment centers to process thousands of orders with precision and efficiency, showcasing the transformative impact of AGVs on retail logistics.

AGVs are Evolving from a 'just in time' to a 'Just in Case' Mentality

Automated Guided Vehicles (AGVs) are spearheading a logistics revolution across industries. These tireless machines, from conveyor belts to futuristic forklifts, have become essential for efficient material handling. Mitsubishi Heavy Industries (MHI) offers a range of AGVs, powering businesses through supply chain disruptions. Moreover, supply chain challenges, such as the COVID-19 pandemic and geopolitical events, have highlighted the importance of operational efficiency. MHI's AGVs, equipped with rechargeable batteries and advanced guidance technology, ensure precise navigation in tight spaces. Fleet control software optimizes coordination, enhancing efficiency.

AGVs are evolving from a 'just in time' to a 'just in case' mentality. They now adapt to unpredictable workflows and changing needs, requiring flexibility to absorb variability over extended periods. The AGV market is booming, with affordability, reliability, and versatility on the rise. Their modular design suits various industries and aligns with sustainability efforts, operating carbon-neutral with renewable energy sources. Importantly, AGVs aren't replacing jobs; they're creating them. New opportunities in sales, service, and fleet management emerge. Human operators remain crucial for adjusting AGV tasks, ensuring a harmonious dance between automation and human expertise that keeps global commerce flowing smoothly.

Tow Vehicles are Leading the Global Automated Guided Vehicle Market wit More than 32% Market Revenue Contribution

The tow vehicle segment within the automated guided vehicle (AGV) market is particularly significant due to its extensive utilization in warehouses and distribution centers for transporting goods, pallets, or containers. Known for their efficiency in moving heavy loads with multiple trailers more effectively than single fork trucks, tow vehicles, or tuggers, represent a productive choice for towing and tugging applications. This segment's dominance is attributed to its ability to enhance operational efficiency by facilitating the movement of inventory within facilities, including loading and unloading trucks, replenishing picking areas, and transferring products between storage areas. The automotive industry, for example, relies heavily on tow vehicles for the handling of car parts, assemblies, and sub-assemblies within manufacturing facilities​​.

Globally, the tow vehicle demand is driven by factors such as rising workplace safety concerns, labor shortages, and the push for reduced operational costs and increased productivity. Technological advancements and the trend toward industrial automation, particularly among small and medium enterprises (SMEs) to mitigate high labor costs in developed countries like the U.S., Germany, and Japan, are expected to boost the market growth. The historical dominance of the tow vehicle category is due to its increasing replacement and adoption over conventional tow vehicles across various industries, signaling a continued growth trajectory for this segment​​.

Europe and North America Secured Top Position in the AGVs Market Thanks to Robust Focus on Automation 

North America and Europe have consistently been at the forefront of the Automated Guided Vehicle (AGV) market, driven by a combination of technological innovation, strong industrial bases, and proactive adoption of automation technologies. These regions are characterized by a well-developed end-use industry landscape, including automotive, manufacturing, e-commerce, and logistics, which extensively utilize AGVs to enhance operational efficiency, safety, and productivity.

In North America, the push towards automation is largely influenced by the need to address labor shortages and increase competitiveness in manufacturing and logistics. The United States, being a significant player in the region, hosts a number of leading AGV companies such as Daifuku, JBT, and Seegrid, which contribute to the innovation and expansion of the AGV market. These companies are engaged in continuous research and development activities to introduce advanced AGV systems that are more efficient, safer, and capable of handling complex operational tasks. The region's emphasis on technology adoption is further evidenced by the integration of artificial intelligence (AI), machine learning, and Internet of Things (IoT) technologies with AGV systems, making them more autonomous and adaptable to various industrial environments.

Europe, on the other hand, benefits from a strong manufacturing base, particularly in the automotive sector, and a high level of focus on sustainability and efficiency. In line with this, the region is boasting more than 35% market share. Wherein, countries like Germany, Italy, and the Netherlands have been early adopters of AGV technologies, leveraging them to streamline production processes and reduce environmental impact. European AGV manufacturers such as KION Group, Dematic, and Swisslog are known for their engineering excellence and have been instrumental in advancing AGV technology, including the development of navigation, safety, and fleet management solutions. The region's commitment to Industry 4.0 principles has also fostered a conducive environment for the growth of the AGV market, with many businesses seeking to enhance their logistics and supply chain operations through automation.

Top Players in Global Automated Guided Vehicle Market 

• Balyo
• Bastian Solutions, Inc.
• Daifuku Co., Ltd.
• Dematic
• E&K Automation Gmbh
• Elettric80 S.P.A.
• Fetch Robotics, Inc.
• Hyster-Yale Materials Handling, Inc.
• Invia Robotics, Inc.
• Kmh Fleet Solutions
• Kollmorgen
• Locus Robotics
• Schaefer Systems International, Inc.
• Scott.
• Seegrid Corporation
• Swisslog Holding Ag
• System Logistics Spa
• Toyota Industries Corporation
• Other Prominent Players

Astute Analytica has segmented the Global Automated Guided Vehicle Market report based on Product Type, Battery Type, Navigation Technology, Application, End-User Industry, and Region

By Product Type 

• Tow-Vehicles
• Unit Load Carriers
• Pallet Trucks
• Assembly Line Vehicles
• Forklift Vehicles
• Others

By Battery Type

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

By Navigation Technology

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

By Application

• Logistics and Warehousing
  • Transportation
  • Cold Storage
  • Wholesale & Distribution
  • Others
• Assembly
• Packaging
• Trailer Loading and Unloading
• Raw Material Handling
• Others

By End-user Industry

• Manufacturing Sector
  • Automotive
  • Electronics
  • Pharmaceuticals
  • FMCG
  • Others
• Wholesale and Distribution Sector
  • E-commerce
  • Retail Chains/Conveyance Stores
  • Grocery Stores
• Hotels and Restaurants

By Region

• North America (U.S., Canada, Mexico)
• Europe (Western Europe [The UK, France, Germany, Italy, Spain Rest of Western Europe], Eastern Europe [Poland, Russia, Rest of Europe])
• Asia Pacific (Japan, China, India, Australia & New Zealand, ASEAN, Rest of Asia pacific)
• South America (Brazil, Argentina, Rest of South America)
• Middle East & Africa (UAE, Saudi Arabia, South Africa, Rest of MEA)

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