Automated Guided Vehicle Market Analysis & Forecast 2032

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 Global Automated Guided Vehicle Market is estimated to account for US$ 4,097.5 Mn in terms of value by the end of 2030.

Recent Developments:

On 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.

Market Driver:                                                      

The increasing demand for automation and automated guided vehicles (AGV) is expected to drive the market growth significantly during the forecast period

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.

Restraint:

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.

Global 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.

Figure 1. Global Automated Guided Vehicle Market, Revenue Share (%), By Region, 2021

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Market Trends

Trend 

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. 

Figure 2: Global Automated Guided Vehicle Market (US$ Mn) Analysis and Forecast, 2022 - 2030        

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Global Automated Guided Vehicle Market was valued at US$ 2100 Mn in 2021 and is expected to reach US$ 4097.5 Mn by 2030, growing at a CAGR of 7.8% between 2022 and 2030.         

Major players operating in the Global Automated Guided Vehicle Market are 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.Samemax Refrigeration Sdn Bhd., GE Corporation, PT. Royal Sutan Agung, Hoshizaki Singapore Pte Ltd., and Midea Group.