+1-206-701-6702
+44-020-8133-4027
+050-5539-1737
+91-848-285-0837
Press Release: Automated Guided Vehicle Market to Reach US$ 21.3 Billion by 2027
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
An automated guided vehicle or an autonomous guided vehicle (AGV) is a material handling system that travels throughout a warehouse, manufacturing unit or distribution center without any human intervention. It is used to transport various materials such as rubber, plastic, paper, metal, and others. For instance, automated guided vehicles are used to transport materials from the warehouse to the production facility. Manufacturers are using an automated guided vehicle to make the process faster, accurate, and cost-efficient. AGV is used to reduce labor costs, increase productivity, and reduce product damages. Automated guided vehicles are majorly used in food and beverages, pharmaceuticals, chemical, semiconductor & electronics, retail, healthcare, and other industries. In addition, automated guided vehicles are used in the work-in-progress application and with finished goods to support manufacturing and production units. Due to increasing competition across industries, many manufacturing industries are adopting automated guided vehicles that increases efficiency of large scale operations.
The increasing demand for automation and automated guided vehicles (AGV) is expected to drive the market growth significantly during the forecast period (2020–2027). An automated guided vehicle is considered as the most reliable solution for material handling, which in turn, increases the production capacity of many industries. This material handling equipment is used to minimize physical damages to the goods that are usually caused by human operators and also, increases the efficiency in the production. Automated guided vehicles are used in many industries such as logistics, automotive, food & beverages, and others. The increasing need for high efficiency, reducing production time, less human error, enhanced safety, and increasing accuracy are some of the factors that are expected to drive the market growth during the forecast period. Moreover, e-commerce companies in developed and emerging economies are adopting automated guided vehicles to enhance productivity and reduce labor costs. Companies such as Amazon.com Inc., Walmart, Alibaba, and Flipkart are focusing on automation in order to reduce operating costs and increase efficiency. For instance, in March 2019, Flipkart, an Indian e-commerce company, launched the first automated guided vehicle in Bengaluru. AGV helped Flipkart to meet growing customer demand and provide faster delivery and enhance user online experience. The automated guided vehicle is used to help operators to process or complete 4,500 shipments per hour with high accuracy.
The major factor restraining growth of the global automated guided vehicle market is high installation and maintenance cost. Huge capital is needed to install an automated guided vehicle. The high cost of AGV can discourage manufacturing companies to install high-end vehicles. The cost of maintaining automated guided vehicle vary from age, type, and location. For instance, automated guided vehicles are used in manufacturing, chemical, and construction industries that require high maintenance costs. Thus, it becomes difficult for companies to invest in AGVs due to high capital spending. This, in turn, is expected to hinder growth of the automated guided vehicle market over the forecast period.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2019 | Market Size in 2019: | US$ 5.1 Bn |
| Historical Data for: | 2017 to 2019 | Forecast Period: | 2020 to 2027 |
| Forecast Period 2020 to 2027 CAGR: | 12.1% | 2027 Value Projection: | US$ 21.3 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
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 |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Automated Guided Vehicle Market - Impact of Coronavirus (Covid-19) Pandemic
Due to the COVID-19 pandemic, players operating in the manufacturing industry have witnessed a positive shift in their business. Non-availability of labor and issues in the transportation of goods have increased demand for industrial robots in the manufacturing industry. For instance, in March 2020, according to Coherent Market Insights’ analysis, 140 million migrant people migrated to their native hometown from cities in India. Thus, due to the shortage of labor, the demand for automated guided vehicles has increased in order to minimize cost on manpower and save time for each operation. To minimize the transmission of virus, companies are using automated guided vehicle in order to contain the spread of coronavirus. This is expected to facilitate demand for automated guided vehicles in the near future.
Asia Pacific held dominant position in the global automated guided vehicle market in 2019
Statistics:
Asia Pacific held dominant position in the global automated guided vehicle market in 2019, accounting for 38.2% share in terms of value, followed by North America and Europe.
Figure 1: Global Automated Guided Vehicle Market Share (%), By Region, 2019
Asia Pacific held a dominant position in the global automated guided vehicle market in 2019 and is projected to retain its dominance throughout the forecast period, owing to increased demand for automation in emerging economies such as India and China. As a result of this, it is becoming more economically viable to opt for automation. According to Coherent Market Insights’ analysis, the average wage per hour in countries such as India has increased significantly from US$ 3.5 in 2007 to US$ 5.1 in 2014. Increasing conversion rate and currency fluctuations have also impacted the overall market, resulting in increased labor costs, as labor cost is directly linked to inflation. Hence, there is a huge demand for automated guided vehicle so that these industries can maintain productivity and cost-efficiency. Therefore, these factors are expected to drive growth of the global automated guided vehicle market during the forecast period.
North America region is expected to exhibit highest growth during the forecast period, owing to high presence of industrial equipment manufacturers and advanced manufacturing facilities in the region. For instance, in March 2019, Crown Equipment Corporation, a U.S.-based material handling equipment company, announced collaboration with JBT, a U.S company that provides automated guided vehicles. Through this collaboration, JBT products help clients to maximize the benefits of material handling automation and achieve high return on investments.
Automotive segment is expected to drive the market growth during the forecast period
Among industry, automotive segment is expected to hold dominant position in the global automated guided vehicle market during the forecast period. This is attributed to growing utilization of automated guided vehicles in manufacturing and painting processes of vehicles. Moreover, increasing utilization of automated guided vehicles in distribution centers to support material handling and ensure safety in the workplace is propelling the market growth. For instance, DURR Group, a Germany-based mechanical and plant engineering company, launched EcoProFleet of automatic guided vehicles for paint shops in automobile production plant. It is designed with maximum load capacity of 1,000 kg and also, ensures safety in the workplace.
Figure 2: Global Automated Guided Vehicle Market Value (US$ Bn) Analysis and Forecast, 2017 - 2027
The global automated guided vehicle market was valued at US$ 5.1 Bn in 2019 and is expected to reach US$ 21.3 Bn by 2027 at a CAGR of 12.1% between 2020 and 2027.
Major players operating in the global automated guided vehicle market include 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.
The automated guided vehicle is a material handling automated machine that is used to move pallets, carts, and trays from manufacturing to warehouse facilities. AGVs are set up by companies to increase the efficiency and profitability of the company. Industries are now focusing on increasing efficiency and not only increasing productivity. The automated guided vehicle can navigate without human intervention. The automated guided vehicle is used to reduce physical damage to goods and materials that are caused by human operators. Moreover, AGV is a better option for lifting trucks, which is operated manually. Companies are adopting methodologies such as JIT, KANBAN, etc. to increase efficiency in the automation process. These automated guided vehicles are used in many industries such as food and beverages, pharmaceuticals, chemical, consumer electronics, logistics, retail, and others.
Market Dynamics
The global automated guided vehicle market is expected to grow significantly during the forecast period, owing to increasing demand for automated guided vehicles in the e-commerce sector. The major competitors in the e-commerce industry are focusing on customer satisfaction and service quality. There is surge in online orders, as people in developed & emerging economies are placing online orders due to increasing disposable income. For instance, in China, according to the National Bureau of Statistics (NBS) rural and urban per capita, disposable income reached US$ 5,658.45 from US$ 2,107.2 in 2018. Moreover, according to the U.S. Bureau of Economic Analysis (BEA), disposable personal income in the U.S. increased to US$ 16,706.40 billion in December 2019 from US$ 16,675.80 billion in November of 2019. The single-day delivery option was carried out by the e-commerce industry with the help of an automated guided vehicle. For instance, Alibaba, a China-based e-commerce company, opened a new automated warehouse with 700 robots to deliver the parcel to customers within 24 hours nationally and 72 hours internationally. Thus, in turn, increases customer satisfaction in the e-commerce sector, which is expected to drive the market growth.
Moreover, major use of automated guided vehicles in manufacturing sector can create lucrative growth opportunities for the global automated guided vehicle market. Automated guided vehicles are optimizing production processes and making them more flexible not only in the automotive sector but also in other segments such as electrical and electronics, machinery, and food & beverages. For instance, in March 2020, Seegrid Corporation, a U.S.-based company who provides self-driving vehicles, launched GT10 Series 7 Plus, a first vision guided vehicle with auto charging feature for manufacturing, transportation, and e-commerce companies. Deployment of automated guided vehicles has helped industry players to design the overall process in a smooth and efficient manner. The work occurs in more than two shifts in manufacturing sector to meet the demand-supply gap of the product. Thus, the automated guided vehicles have helped the industry players to achieve the demand-supply gap with the help of high speed, accuracy, and precision offered over humans.
Furthermore, major global players across different regions are focusing on developing new products with new features and technologies to gain competitive edge in the market. Industries are expanding their businesses through acquisition and partnership of large scale robotics provider companies. In August 2019, Alert innovation, Inc., a U.S.-based automation company, announced partnership with Murata Machinery, Ltd., a Japan-based company who manufactures and sells industrial machinery. Through this partnership, Murata Machinery, Ltd. had technical knowledge transfer on the ALPHABOT robot system and Alert innovation Inc. will be able to take advantage of Murata Machinery, Ltd.’s resources as a global material handling solution provider to expand their business.
Key features of the study:
Detailed Segmentation
“*” marked represents similar pointers will be covered for each company.
*Browse 60 market data tables and 40 figures on "Automated Guided Vehicle Market - Global forecast to 2027”.
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
Contact Us
