Automated Guided Vehicle (AGV) Market

2021 Analysis and Review: Automated Guided Vehicle Market by Application Type –Transportation, Distribution, and Storage for 2021-2031

Automated Guided Vehicle Market Snapshot

Recent market study by Future Market Insights (FMI) opines that growing demand for efficient material handling solutions has significantly propelled the sales of automated guided vehicles. Spurred by this overall sales will total US$ 996 Mn in 2021.

Surging applications in various industries, including logistics, food and beverage, healthcare, and manufacturing will guarantee consistent growth in automated guided vehicles based on this, FMI has forecast the market to expand at an impressive 7.9% CAGR between 2021 and 2031.

While manufacturing growth remained tepid amid unprecedented COVID-19 outbreak, sales of automated guided vehicles grew substantially, registering 5.4% year on year growth in 2021.

Key Points Covered in Automated Guided Vehicle Market Survey

  • Market estimates and forecast 2021-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Brand share and Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Automated Guided Vehicle Market and how to Navigate
  • Recommendation on Key Winning Strategies

Automated Guided Vehicles (AGV) Market Historic Sales Compared to 2021-2031 Forecast Outlook

As per FMI’s market analysis on automated guided vehicles, the market registered sluggish growth at 1.5% CAGR during 2016-2020, due to limited awareness and penetration of industry automation in various countries. However, the market gained immense traction in the following year, owing to increasing laser guided AGV’s production and reduced labor costs.

Emerging as a feasible material handling solution, automated guided vehicles 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 gaining significant traction, since it enhances accuracy in tracking position. It has therefore  become a key trend in the automated guided vehicles market.

In 2020,  losses due to the COVID-19 outbreak in various industries such as automotive, logistics, food and beverage, and manufacturing had a direct impact on automated guided vehicles market growth.

With relaxations in movement, industries are getting back on track and are resuming production to attain pre-pandemic status. These developments are paving a road to recovery for automated guided vehicles, with the market yielding y-o-y growth at 5.4% in 2020-21.

Increasing industrialization across the globe is propelling 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

How Urbanization is Fueling Demand for Automated Guided Vehicle?

Expansion in urbanization is directly proportional to growth in population. With increasing urbanization and expansion of key industries such as construction, logistics, and automotive, AGV sales are increasing..

Bulk production  across key industries is creating demand for AGVs. Deploying AGVs help streamlining operations, reducing overheads and curtailing transit time to consumer markets..

Incorporation of artificial intelligence, robotics, and machine learning in AGV is creating wide berth opportunities for key players. With rising demand for advanced automation in material across handling processes across diverse end-use verticals, AGV’s sales are expected to soar.

In addition, automated guided vehicles offer better scalability as compared to fixed equipment. As demand for automation rises, manufactures can add a fleet for automated guided vehicles for shorter operational time and increase productivity, instead of investing in bulky fixed conveyors.

Demand for Material Handling Technology to Increase Automated Guided Vehicle Sales

Automated guided vehicles are known for minimizing damages to materials, products, machinery, and infrastructure. Equipped with motion sensors, these vehicles effectively avoid collisions in walls and columns, protecting the items stored in shelves, crates, and pallets.

AGVs are intelligently programmed to handle products as gently as needed, thereby acting instrumentally to quality material handling in warehouses, airports, healthcare, and other production facilities.

In warehouses, these vehicles take care of repetitive tasks such as loading and unloading, picking, packing, and moving goods, without human assistance or supervision.

AGVs do not eliminate the human task force, but they certainly make operations easier and safer for the staff, which is a chief factor driving automated guided vehicle sales.

In the upcoming years, these vehicles will play a critical role in industrial automation. Delivery trucks can now arrive at loading points, plugged into an AGV system, and have their pallets safely unloaded by these machines.

Automated forklifts can move the pallets to their storage destination, following the given order of arrangement. When not in use, AGVs can move themselves to charge stations and wait for the next shipment to arrive, reducing staff interference and saving time.

Real-time interaction and navigation in AGVs let the staff keep track of their locations in warehouses. These vehicles can be integrated into software including warehouse management systems (WMS) and enterprise resource planning (ERP) to enhance operational efficiency.

Additionally, AGV's significantly reduce the time used in manual inventory tracking, which is a growing concern in high-volume production facilities. These vehicles considerably reduce handling and tracking errors and ensure timely delivery of products.

A perfect combination of WMS and automated guided vehicles can maintain storage availability and shelf adjustments and support material requisition and procurement, which can help ensure supreme material handling.

Demand for Enhanced Accuracy and Productivity Will Shape AGV Sales Outlook

AGV manufacturers keep safety at the forefront, to avoid collisions and reduce operational accidents while dealing with heavy product volumes in warehouses. These vehicles are packed with sensors, cameras, and lasers, allowing them to safely navigate around staff and shelves, thereby reducing operational downtime and cost.

In addition to safety, automated guided vehicles are capable of operating in harsh climatic conditions such as extreme heat or cold or around hazardous material. With the help of AGVs, manufacturers can increase profitability in many operations, providing tailwinds to automated guided vehicle sales during the assessment period. /p>

AGVs also improve productivity by operating round the clock. By launching a fleet of AGVs instead of additional human task forces, manufacturers can reduce workflow errors, increase output and allow operations to be more accurate and productive.

Considering aforementioned factors, sales of AGV are expected increase over the forecast period.

High Maintenance Cost May Stunt Automated Guided Vehicle Growth

As automated guided vehicles can reduce labor, erroneous, and wastage costs significantly, the maintenance cost required for optimal performance of these vehicles may act as a restraining factor. 

Initial investment in AGVs 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.

Like any other equipment, AGVs require routine maintenance and occasional repair. Increased dependency on AGVs can hinder 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 Insights

What Is The Scope of AGV Market Expansion in the U.S.?

FMI projects a positive growth outlook for automated guided vehicles in the U.S., with the market expanding at around 5.4% CAGR through 2031. 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 automation and robotics.

Increasing demand for AGVs within consumer goods, automotive, food & beverage, oil & gas, and healthcare sector is fuelling growth. Owing to the rising demand, manufacturers have increased the production of AGVs, widening future growth prospects.

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 U.K. Experience Spike in AGV Sales?

Currently, growing demand for advanced AGVs within healthcare, aerospace, and e-commerce industry across the U.K. is fuelling growth. Deployment of AGVs for streamline operations in warehouses is boosting the demand within these industries.

As per FMI’s analysis, the UK is anticipated to spearhead the Europe AGV market, expanding at a robust 6.8% CAGR during the forecast period.

Demand of AGVs is anticipated to bolster during the assessment period, which will create lucrative growth opportunities for AGV manufacturers in the U.K. Growth in the retail sector is projected to spur demand for automated guided vehicles in the U.K., owing to the presence of a highly functional fashion industry in the country.

Additionally, the application of automated guided vehicles in the hospitality sector will generate lucrative outcomes. Use of forklifts and light load transporters in hotels for the distribution of food, bathroom supplies, linen, and laundry will boost sales in the automated guided vehicles market.

Will China Lead Automated Guided Vehicles Sales?

In China, automated guided vehicles are highly being adopted in automotive, consumer electronics, chemicals and materials, and eCommerce industries. These industries have been displaying high-growth potential, which has a direct impact on promoting AGV sales in China.

Technological advancements in automotive sector have aided the growth of AGV across China. Adoption of advanced technologies such as laser guidance, wireless and sales magnetic systems in AGV will improve demand over the coming years..

Rapid industrialization and reduced labor costs have encouraged AGV manufacturers to expand their production facilities across China. For instance, in 2019, leading player Yunnan KSEC ’s AGV business revenue exceeded 100 million yuan and is expanding with growing AGV demand within the country.

Also, logistic giants such as Alibaba, is expanding its logistic arm through adoption of more than 100 AGV robots in its ‘China’s smartest warehouse’. Hence, growing interest of such industry giants in AGV will provide lucrative growth opportunities over the coming years across China.

How will Industrial Automation Boost AGV Sales in India?

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.

Following the outbreak of COVID-19 across India, hospitals have also increased the adoption of AGVs for medicine delivery to reduce the human interaction.

Category-wise Insights

Laser Guidance Technology Will Lead the Technology Segment

AGVs equipped with laser guidance technology are anticipated to account for maximum sales in the market, owing to advanced features such as security, flexibility and reliability, and precise navigation.

Laser guidance technology in AGV’s is easy to install and does not interrupt arrangement patterns in a storage facility. Laser used for navigation emits continuous beams of laser light in a 360-degree pattern, interacting with reflectors and targets positioned in the area.

These reflectors send back uninterrupted reflection signals for navigation, allowing AGVs to access coordinates and place themselves accordingly. Laser-guided AGVs calculate and correct their position approximately 40 times per second, which makes them highly accurate and a popular choice in the market.

Demand from Logistics Industry Will Spur Sales of Automated Guided Vehicles

In terms of end-use, logistics industry is anticipated to showcase an upward trend in demand for automated guided vehicles during the forecast period.

Increasing demand posed by the logistics industry is attributable to the ability of AGVs to work in hazardous environments, irrespective of weather and temperature, which eliminated interruptions in daily operations.

Expansion in the eCommerce industry will also propel sales of automated guided vehicles, as AGVs are highly efficient in streamlining logistic operations, helping retailers to cater to the growing customer demand.

AGVs Applications to Increase in Transportation Sector

Based on application, transportation will be the most preferred application avenue for automated guided vehicles, especially in automotive, logistics, and manufacturing industries.

Features such as accuracy, round-the-clock assistance, load-bearing, and reduced labor cost will further increase the adoption of AGVs in transportation during the assessment period.

Also, growing need for automation in material handling solutions will complement the growth of AGVs over the forecast period, fostering sales.

Tow Vehicles to Register High Sales, Followed by Unit Load Carrier

As per FMI’s market survey, tow vehicles, also known as tuggers, will lead the vehicle type segment, accounting maximum sales during the assessment period. These vehicles can comparatively tow more trailers than single fork trucks, thereby enhancing operations in warehouses.

Unit load carrier segment will also witness growth through 2031, finding applications in logistics and transportation sector. These vehicles are used for delivering pallets and containers while reducing aisle congestion and material damage, making them an ideal choice for various high-volume warehouses.

Competitive Landscape

Top manufacturers of automated guided vehicles account for approximately 43% of the total market share, finds FMI in this study.

Leading players are emphasizing on expansion of their already existing wide range of product portfolio.  Increasing investment in research to develop enhanced products is also a key strategy for market players to maintain their position in the market.

Other key strategies include facility expansions and strategic partnerships to assist the growing demand for AGVs from various end-use industries. For instance:

  • In February 2021, Daifuku Co. Ltd. announced a business partnership with Germany-based AFT Industries to leverage the material handling capabilities of both companies in the automotive industry. The partnership is aimed to open global investment channels and support increasing demand from automotive manufactures for material handling systems.
  • In July 2021, Kion Group AG opened a new truck production facility in a Polish town known as Kolbaskowo near Szczecin. The site will expedite the production of counterbalance trucks for all brand companies that come under the KION Industrial Trucks and Services segment, to enhance automation and digitization in production sites.

Scope of Report

Attribute

Details

Forecast Period

2021-2031

Historical Data Available for

2016-2020

Market Analysis

USD Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia, Oceania, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa

Key Segments Covered

Technology Type, Application Type, Vehicle Type, End-Use and Regions

Key Companies Profiled

  • JBT Corporation
  •  Kuka AG,
  • Daifuku Co., Ltd.
  • Kion Group AG
  • Omron Adept Technologies, INC.
  • AGVE Group, Inc.
  • Murata Machinery
  • Transbotics Corporation
  • Oceaneering International Inc.
  • Seegrid Corporation
  • Murata Machinery
  • SSI Schaefer
  • AVT Europe NV
  • Cassioli Srl
  • Toyota Industries Corporation
  • Robotnik
  • Kollmorgen
  • E&K Automation GMBH
  • BEUMER Group GmbH & Co. KG
  • Mecalux, S.A
  • Bastian Solutions, Inc.

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered in the Report

  • What is the current automated guided vehicle market value?

    The automated guided vehicles market totaled US$ 996 Mn in 2021.

  • At what rate did the automated guided vehicle market grow between 2016 and 2020?

    The automated guided vehicles market experienced sluggish growth at 1.5% CAGR between 2016 and 2020.

  • What are the key trends driving automated guided vehicle sales?

    Increasing automation in material handling solutions, coupled with rapid adoption of laser-guided AGVs are key trends driving automated guided vehicle sales.

  • Who are the leading players in the automated guided vehicles market?

    Leading players operating in the automated guided vehicles market are Kion Group, Murata Machinery, JBT Corporation, Daifuku Co., Ltd., and Toyota Industries Corporation.

  • What will be the demand outlook for North America automated guided vehicle market?

    North America automated guided vehicles market is anticipated to witness high growth patterns, expanding at a steady 5.4% CAGR.

  • At what rate will automated guided vehicle demand rise in Europe?

    The automated guided vehicles market in Europe will grow at a robust 6.8% CAGR during the forecast period.

  • What is the market share of leading players in automated guided vehicles market?

    Top manufacturers of automated guided vehicles account for approximately 43% of the total market share.

  • What is the current market share of Japan and South Korea in the global automated guided vehicles market?

    Japan and South Korea, collectively, will account for 12.3% of the total market share in 2021.

Automated Guided Vehicle Market by Category

By Technology Type:

  • Laser Guidance
  • Magnetic Guidance
  • Infrared Guidance
  • Wire Guidance
  • Inertial Guided
  • Optical Guided

By Application Type:

  • Transportation
  • Distribution
  • Storage

By Vehicle Type:

  • Unit Load Carrier
  • Pallet Truck
  • Assembly Line Vehicle
  • Tow Vehicle
  • Forklift Truck
  • Light Load Transporters

By End Use:

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

By Region:

  • North America
  • Latin America
  • Western Europe
  • Eastern Europe
  • APEJ
  • Japan
  • MEA

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