Automated Guided Vehicle Market Size, Share & COVID-19 Impact Analysis, By Type (Tow Vehicles, Automated Forklift Trucks, Underride/Tunneling Vehicles, Assembly Line Vehicles, and Others), By Navigation Technology (Laser Guided, Magnetic Guided, Vision Guided, and Others), By Application (Transportation & Distribution, Storage & Assembly, and Packaging), By Industry (Automotive, Food & Beverage, E-commerce, and Others), and Regional Forecast, 2023-2030

The global automated guided vehicle market size was valued at USD 2.12 billion in 2022 and is projected to grow from USD 2.30 billion in 2023 to USD 4.43 billion by 2030, exhibiting a CAGR of 9.8% during the forecast period. North America dominated the automated guided vehicle market with a market share of 29.24% in 2022.

An Automated Guided Vehicle (AGV) uses computer software to move and position itself. Powered by batteries or electric motors, production, storage, charging, and other tasks can be performed without human intervention. Self-propelled AGVs can perform functions previously performed by humans: moving goods, moving and loading pallets, and towing complete sets and heavy loads.

The vehicles have improved production efficiency, removed people from hazardous and potentially dangerous situations, and overcome potential human error. The term AGV may seem self-explanatory, but there are many ways AGVs can receive instructions and programming, including wires implanted in the ground, cameras, radio waves, lasers, or other forms of technology.

Automated guided vehicles started as a way to pull trailers to speed up production. At the time, they were considered convenient to save time. In the second half of the 20th century, designers looked for other ways to use this technology to improve facility conditions, leading to a wide range of capabilities, applications, and capabilities for AGV technology.

COVID-19 IMPACT

Adoption of AGVs in Warehouses across Various Industries Boosted the Market Growth amid COVID-19 Pandemic

The pandemic caused both partial and complete lockdowns across the globe. Numerous industries experienced productivity gaps that resulted in significant losses. Staff reductions as a result further slowed down business. The use of automated guided vehicle has emerged as a solution to these issues in these unpredictably occurring times. AGVs were adopted in the healthcare sector to deal with the COVID-19 situation. For the Karnataka Institute of Medical Sciences COVID-19 hospital block, an AGV was developed in October 2020 by a group of Indian students. The purpose of this AGV was to meet the demand for food deliveries without physical contact.

In various industries, the adoption of these AGVs accelerated the product demand due their working capabilities without physical contact. Autonomous Mobile Robots (AMR) move warehouses without workers on board. To achieve this, they use sensors that encode and learn from the environment. AGVs follow a fixed route on the ground and also have a driver on board. Both AMRs and AGVs are used for repetitive and heavy work in warehouses.

LATEST TRENDS

Deployment of Industry 4.0 Technologies in Warehouses to Boost the Market Growth

Existing industrial facilities are gradually being transformed into intelligent, networked, and highly efficient automation factories incorporating Industry 4.0 concepts. In addition, Industry 4.0 is a single unit of automation that includes computers, industrial automation systems and robots, enabling manufacturing facilities to become autonomous operations. In addition, the integration of Industry 4.0 and robots will transform the industrial space by adapting process automation systems.

In a highly demanding and constantly evolving supply chain environment, the application of Industry 4.0 technologies has enabled active communication between warehouse operations, improved coordination in their systems, and helped warehouse operators to perform high-speed, time-consuming activities at lower costs, further contributing toward the automated guided vehicle market growth.

DRIVING FACTORS

Rising Product Demand in E-commerce Industry to Boost the Market Expansion      

Despite the growth of the manufacturing industry, there is a significant demand for e-commerce services in the warehousing and logistics sector. The use of AGVs offers opportunities for different areas of e-commerce. AGVs appear to be particularly well-suited to handling high-volume orders, with small orders for a wide range of SKUs covering large warehouse areas. The use of autonomous robots for horizontal movement increases the efficiency of order fulfillment.

The growth of e-commerce has increased the number of packages handled and transported, necessitating the development of efficient and effective material handling solutions. In addition, with the advent of Industry 4.0, advanced technologies such as artificial intelligence, machine learning, and the Internet of Things (IoT) are being integrated, allowing AGVs to become smarter and more efficient.

RESTRAINING FACTORS

Increased Vulnerability with Virtual Connectivity and Lack of Flexibility to Hinder Market Growth

The disadvantage of automated guided vehicle is that the unit will not operate until AGV faults are detected and corrected. AGVs are complex machines equipped with many sensors and software to control their operation. Repairs or replacements can take time if it is a highly customized and specialized device. Mechanical problems can be solved by replacing parts, but software or sensor problems can be a bit more difficult to diagnose and fix.

Also, one of the major limitations of AGVs is that guidance systems cannot always improvise when encountering unexpected obstacles. For example, when an automated guided vehicle encounters an object in its path, it will stop and wait until the path is cleared. Some degree of human intervention is always required. Therefore, the control room monitoring the operation of the AGV must be ready to take action if an obstacle prevents the automated guided vehicle from moving.

SEGMENTATION

By Type Analysis

Automated Forklift Trucks Segment to Depict Leading Share due to its Mobility

By type, the market is classified into tow vehicles, automated forklift trucks, underride/tunneling vehicles, assembly line vehicles, and others (unit load carriers).

The automated forklift trucks segment is estimated to depict the highest market share during the forecast period. This is due to the machine's usage and design, which gives forklift trucks improved storage capacity, control, and stability. Moreover, these forklift trucks can transport goods at different heights. This shows that the AGV stacker makes it easy to move loads into racks or hang them in other spaces. Common forklifts include wide, upright, balanced, and hybrid models.

Moreover, tow vehicles are projected to show major development in the coming years due to their greater throughput and the ability to haul multiple carts simultaneously. Also, it can carry greater loads with several trailers compared to a single fork truck. This is the most productive form of AGV utilized for towing and pulling.

The market's highest CAGR is anticipated to be found in the category of unit load carriers and others. Underride/tunneling vehicles and assembly line vehicles are also likely to develop at a moderate rate over the course of the forecast period due to their specific use cases.

By Navigation Technology Analysis

Laser Guided Navigation to Exhibit Rise Due to Accurate Positioning Tolerances

By navigation technology, the market is divided into laser guided, magnetic guided, vision guided, and others (wire guided).

The laser guided segment is expected to witness a considerable rise over the study period. These AGVs are positioned with receivers and laser transmitters. The lasers are reflected from the tape in the field of view and are used to calculate the angle and distance from the target of the AGV.

Moreover, magnetic guided navigation is predicted to have decent growth as some AGVs are equipped with magnetic sensors and follow a track with the help of magnetic tape.

In addition, vision guided technology is set to experience major progress over the forecast period. As no alteration is required to the structure for vision-guided AGVs. These vehicles are equipped with cameras which record the features along with the route and these vehicles rely on the recorded feature to navigate.

By Application Analysis

Transportation & Distribution to Have Highest Growth Due to Adoption in Various Industries

By application, the market is segmented into storage & assembly, transportation & distribution, and packaging.

As more industries adopt it, the transportation and distribution sub-segment is anticipated to grow quickly. In many different types of facilities and industries, AGVs are used to transport products and goods from one place to another. To transfer goods and commodities, such as paper, plastic, metal, and rubber, many industries use the transportation and distribution process.

The storage and assembly segment is anticipated to grow significantly over the forecast period. It is attributed to the modern retrieval and automated storage systems as well as other material handling equipment. These are being rapidly adopted by businesses modernizing existing facilities and developing new facilities to save labor costs and increase efficiency and production.

The packaging segment is predicted to witness considerable growth owing to the trying of businesses to improve the efficiency of their operations. These companies are using AGV systems as they can navigate correctly and effectively across short aisles and compact layouts as well as improve the storage process' dependability.

By Industry Analysis

Increasing Material Handling Process from E-commerce Industry to Accelerate AGV Market Revenue

By industry, the market is segmented into automotive, food & beverage, e-commerce, and others.

Due to the growing businesses of major e-commerce industries such as Amazon, Alibaba, and others, the e-commerce sub-segment is predicted to experience strong growth over the study period. AGVs are utilized in the automotive sector to transfer tools, automobiles, engines, chassis, and other items. Pickup, transfer, and drop are the three steps required.

AGVs also help integrate material handling systems, ERP systems, high-ceiling storage systems and warehouse management in the food and beverage industry and e-commerce. In addition, these companies' products can be identified with barcodes and RFID, making it easier for AGVs to find and transport them to the right place.

Moreover, the automotive industry is expected to show higher growth during the forecast period. This is due to the AGVs large presence in industries where there is requirement for transporting bulk material, such as the automobile and food & beverage industries, among others as well as adoption of industry 4.0 technologies.

The benefits of AGVs in terms of productivity, safety, and precision are driving their widespread adoption across numerous sectors such as healthcare. AGVs are outfitted with cameras, laser heads, and other sensors to aid in their safe operation around machinery, buildings, and people. While operators in a production or distribution facility might make mistakes that lead to accidents and disasters, AGVs can assist in improving workflow precision, decreasing waste, and increasing efficiency.

REGIONAL INSIGHTS

The report's scope comprises five major regions, North America, Europe, Asia Pacific, the Middle East & Africa, and South America.

North America holds a major automated guided vehicle market share and is predicted to exhibit rapid growth during the forecast period. The growth is being driven by the production of goods in higher caliber more quickly and cheaply. Modern manufacturing facilities rely on new technologies and innovations. Due to the manual labor dearth in the area, executing more hardware & smart software is proving to be the way to survive in the current competitive environment. The advantages of these technologies for manufacturers are numerous and quantifiable, including lower operating costs and greater material throughput, but they can go even further. Utilizing material handling automation to streamline the first mile raises a business' profitability and client satisfaction across all warehouses.

The U.S. is one of the biggest and most developed markets for automated solutions across the globe. The demand for automated solutions across the country's logistics industry is driven by the robust economy, which is accompanied by improved e-commerce activity, evident port traffic and key manufacturing guides all of which result in significant growth in manufacturing. The biggest consumers of these vehicles in the nation are the automotive, retail, pharmaceutical, and food and beverage industries, which is contributing to the rise in the market share.

Asia Pacific is expected to experience rapid growth in the upcoming years as more AGV manufacturers adopt Industry 4.0 technologies and place a better emphasis on improving workplace safety. AGVs are anticipated to become more popular in material handling applications as demand is rising which is driving the market. Manufacturers are anticipated to benefit from new growth opportunities with the introduction of highly sophisticated, various types of these machines which has also increased the industrial operations automation. Numerous types of vehicles are in greater demand now than they were a few years ago. Software for AGVs is increasingly used for transport management, traffic management, and steering. As a result of technological advancements, such as machine learning and Big Data, increase in more automated material handling activities, there will be a rise in the market share.

Europe is poised to exhibit lucrative growth during the forecast period due to the strong demand for huge warehouse areas. There is also a rising demand for warehouses near urban zones to upkeep last-mile delivery models. In addition, rising online sales are driving up the need for e-commerce merchants as well as warehouse areas. As a result, more businesses in the area are implementing AGVs. The demand for AGVs in the area is also being boosted by growing acceptance of AGVs and ongoing corporate sector growth.

The Middle East & Africa and South America regions are expected to exhibit considerable growth during the forecast period, owing to rise in urbanization and rising industries, significantly contributing toward the market growth. In addition, AGVs in warehouses assisting e-commerce companies are automating intralogistics processes such as sorting, picking, and palletizing, resulting in increased productivity. Additionally, the growing financial institution is assisting in the development of technologies, which might boost the industry in this region.

KEY INDUSTRY PLAYERS

Leading Players Offering Variety of Solutions to Intensify the Competition

Leading players are enhancing their offerings in the market and using a variety of organic and inorganic development tactics. These include new product releases, contracts, partnerships, collaborations, acquisitions, and business expansions. These key players are investing in R&D to integrate the latest technologies to improve the performance, which is surging the demand for these vehicles.

LIST OF KEY COMPANIES PROFILED:

• Oceaneering International Inc (U.S.)


• Toyota Advanced Logistics (Japan)


• Daifuku Co., Ltd. (Japan)


• KION GROUP AG (Germany)


• Dematic (U.S.)


• Hyster-Yale Materials Handling, Inc., (U.S.)


• JBT (U.S.)


• Mitsubishi Caterpillar Forklift America Inc. (U.S.)


• Crown Equipment Corporation (U.S.)


• Seegrid Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2023: Oceaneering announced that its Mobile Robotics group launched a new guiding software for its fleet of autonomous mobile robots.


• March 2023: Dematic announced the delivery of the newest warehouse automation technology to subsidiary KION Group at its site in Germany.


• January 2023: The KION Group stated that they intend to introduce their own 24 V fuel cell system for warehouse equipment to the market in the spring of 2023.


• December 2022: Daifuku Co., Ltd. announced its construction plans for a new manufacturing division in Hyderabad, Telangana, India, at its subsidiary Vega Conveyors and Automation Private Limited.


• August 2022: Oceaneering International announced its collaboration agreement with InnetiQs GmbH (IQ) to develop advanced inspection solutions for the onshore and offshore energy markets.

REPORT COVERAGE

The research report provides a detailed analysis of the type and application. It provides information about leading companies and their business overview, types, and leading applications of the product. Besides, it offers insights into the competitive landscape, SWOT analysis, and current market trends and highlights key drivers and restraints. In addition to the aforementioned factors, the report encompasses several factors contributing to the market growth in recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2019-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2019-2021
Growth Rate	CAGR of 9.8% from 2023 to 2030
Unit	Value (USD Billion)
By Type	Tow Vehicles Automated Forklift Trucks Underride/Tunneling Vehicles Assembly Line Vehicles Others (Unit Load Carriers)
By Navigation Technology	Laser Guided Magnetic Guided Vision Guided Others (Wire Guided)
By Application	Transportation & Distribution Storage & Assembly Packaging
By Industry	Automotive Food & Beverage E-commerce Others (Healthcare)
By Region	North America (By Type, Navigation Technology, Application, Industry, and Country) U.S. (By Type) Canada (By Type) Europe (By Type, Navigation Technology, Application, Industry, and Country) U.K. (By Type) Germany (By Type) France (By Type) Italy (By Type) Rest of Europe Asia Pacific (By Type, Navigation Technology, Application, Industry, and Country) China (By Type) Japan (By Type) India (By Type) Southeast Asia (By Type) Rest of Asia Pacific Middle East & Africa (By Type, Navigation Technology, Application, Industry, and Country) GCC (By Type) South Africa (By Type) Rest of Middle East & Africa South America (By Type, Navigation Technology, Application, Industry, and Country) Brazil (By Type) Argentina (By Type) Rest of South America