Automated Guided Vehicle Market Size, Share, Competitive Landscape and Trend Analysis Report, by Type, Navigation Technology, Application, Industry and Mode of Operation : Global Opportunity Analysis and Industry Forecast, 2020-2027

Automated Guided Vehicle Market Analysis 2020-2027:

The global automated guided vehicle market size was valued at $5.21 billion in 2019 and is projected to reach $13.52 billion by 2027, registering a CAGR of 16.6% from 2020 to 2027. Asia-Pacific accounted for the highest share in the global automated guided vehicle market in 2019, in terms of revenue, and LAMEA is anticipated to exhibit remarkable growth rate during the forecast period. 

 

Automated guided vehicles are self-guided material handling systems or load carriers that can travel autonomously across distribution centers, warehouses, or manufacturing facilities without any onboard operator and with the help of sensors that are installed in them. In recent years, supply chain management has witnessed automation in form of automated guided vehicles such as forklifts, automated stackers, small rack-carrying robots, and pallet trucks. In addition, these vehicles are programmed to perform some tasks by using machine learning and deep learning, which are the safest alternatives for material handling by personnel. Further, it provides significant advantages such as safety inside facilities, increase in precision & productivity, and reduction in labor cost.

COVID-19 Impact Analysis on Automated Guided Vehicle Market:

In the present COVID-19 pandemic scenario, unavailability of workforce, owing to lockdowns imposed by governments and halt of manufacturing operations at has significantly impacted the automated guided vehicle market. However, the market is anticipated to exhibit remarkable growth rate in the future, owing to increase in demand for contact less and effective logistics infrastructure.

Rise in demand for automation and automated guided vehicles in various industries and increase in safety, accuracy, and productivity drive growth of the automated guided vehicle market. In addition, reduction of labor cost in organizations also boosts growth of the market. However, high initial investment costs and lack of flexibility hinders growth of the automated guided vehicle market. Further, incorporation of industry 4.0 is anticipated to provide lucrative growth opportunities for players operating in the automated guided vehicle market.

The automated guided vehicle market is segmented on the basis of type, navigation technology, application, industry, mode of operation, and region. By type, the market is classified into tow-vehicles, unit load carriers, pallet trucks, assembly line vehicles, and forklift trucks. By navigation technology, it is divided into laser guidance, magnetic guidance, inductive guidance, optical tape guidance, vision guidance, and others. By application, it is categorized into transportation, distribution, storage, assembly, packaging, and waste handling. By industry, it is analyzed across automotive, manufacturing, food & beverages, aerospace, healthcare, logistics, retail, and others. On the basis of mode of operation, it is classified into indoor and outdoor. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

Rise in number of e-commerce companies, coupled with growth in import & export activities drives the automated guided vehicle industry in North America. In addition, companies operating in the region are introducing new products with advanced technologies to cater to increasing customer demands.

Owing to technically advanced manufacturing facilities, high presence of industrial equipment manufacturers and supportive government free trade agreements in the U.S. and Mexico, North America has witnessed rapid growth in the automated guided vehicle market. For instance, in June 2018, The-Scott-Group, a service provider in European manufacturing market, acquired Transbotics, a U.S. based AGV manufacturer, to expand its geographic presence in the U.S. In addition, warehouse owners in the region are increasingly adopting automation technologies to optimize warehouse operations and gain maximum efficiency, which in turn, boosts the market growth.

The U.S. started integrating automation in warehouses for the retail sector. In addition, radical growth in the e-commerce segment of the retail sector in U.S. has increased the demand for automated guided vehicles in warehouses. Moreover, growth in collaborations and mergers between market players in the country to enhance technologies is expected to fuel growth of the automated guided vehicles market. For instance, in August 2019, GreyOrange pte ltd. (a global provider in warehouse automation systems) partnered with eight warehouse solution providers in the U.S., namely Avik Services, Bricz, Hy-Tek, Info-Sun, McCombs-Wall, S&H Systems, TREW, and UST Global. Under this partnership, these supply chain solution providers would help GreyOrange pte ltd. sell, deploy, and service GreyOrange technology.

Asia-Pacific is one of the leading markets for automated guided vehicles, owing to increase in investments in the automation sector and prospering automobile and electronics industries. This rise is attributed to extensive efforts of governments of emerging economies in the region for development and digitalization of the manufacturing industry. Rise in adoption of auto guided robots in automotive, e-commerce, food & beverages, and pharmaceuticals & healthcare industries in emerging economies such as China, India, and South Korea contributes to growth of the automated guided vehicles market in the region. For instance, in October 2019, HRG (HIT Robot Group) launched its new AGVs, which integrate simultaneous localization and mapping (SLAM) to move on floors of industries or facilities at South China International Intelligent Manufacturing, Advanced Electronics and Laser technology (LEAP) Expo.

Key players profiled in the Automated guided vehicle market report include BALYO, Daifuku Co., Ltd., E&K Automation GmbH, inVia Robotics, Inc., JBT, KUKA AG, Oceaneering International, Inc., Seegrid Corporation, SSI Schaefer, Toyota Material Handling, and others.

Key Developments:

• In April 2020, inVia Robotics, Inc has established an agreement with Ecentria, an eBusiness platform, to deploy inVia’s robotics-as-a-service system to automate order fulfillment in the Ecenteia distribution center in Aurora, Illinois.
• In March 2020, Seegrid Corporation launched GT10 Series 7 Plus automated tow tractor. This is first vision guided vehicle (VGV) to feature auto-charge integration and an enhanced sensing technology, further advancing automated material movement for manufacturing, distribution and ecommerce companies.
• In March 2020, E&K Automation GmbH launched new material handling automated guided transport robot named VARIO MOVE. The new VARIO MOVE consists of a drive unit that can be flexibly equipped with different load handling attachments via universal interface.
• In January 2019, Balyo entered into strategic agreement with Amazon, a leading e-commerce company to sell Balyo’s auto guided forklift trucks, which could cut costs and accelerate deliveries of Amazon. As per the agreement, Amazon will receive free stock warrants up to 29% of Balyo’s capital based on orders placed for company’s products.

 

Surge in demand for automation and automated guided vehicles (AGVs) 

In recent years, adoption of AGVs has increased significantly as they are considered reliable solution for material handling, which, in turn, increases production capacity of industries. These material handling solutions are used to decrease physical damages to goods (usually caused by human operators) and increase efficiency of operations. Automated guided vehicles are adopted in almost all industries such as logistics, automotive, food & beverages, manufacturing, and others. In addition, companies operating in the e-commerce industry in India are adopting automated guided vehicles to enhance productivity and reduce labor cost. For instance, Flipkart uses artificial intelligence (AI) powered bots that enable bots and humans to work together efficiently. Around 350 AI-powered bots – monikered automated guided vehicles (AGVs) assists operators to process almost 4,500 shipments per hour at twice the speed with remarkable accuracy. Further, it claims that with adoption of these bots the throughput and storage capacity has doubled as well. Thus, rise in demand for automation and automated guided vehicles drives growth of the automated guided vehicle market.

Increase in safety, accuracy, and productivity

Automated guided vehicles are designed with a focus on safety and are equipped with lasers, cameras, and sensors that allow vehicles to safely operate with workers as well as with surrounding infrastructure.

However, some vehicles, such as forklifts, rely on human inputs and are not equipped with safety features. Thus, there is always a potential danger that an operator can get distracted or tired, which could cause accidents. Hence, to avoid such issues, there is rise in adoption of automated guided vehicles. In addition, when personnel are replaced with AGVs, potential inaccurate workflow is reduced, which, in turn, results in increased, productive, and accurate output. Further, integration of AGV allows continuous flow of operation with streamlined processes. Thus, increase in safety, accuracy, and productivity offered by automated guided vehicles in warehouses boosts growth of the automated guided vehicle market.

High initial investment costs

Adoption of automated guided vehicles by companies increases profitability of an operation by reducing labor cost and increasing productivity. Adoption of automated guided vehicles is not much profitable compared to hiring personnel for labor or using other human operated equipment. However, profitability from adoption of automated guided vehicle can be observed by the organization in longer term. In addition, automated guided vehicles are projected to undergo routine maintenance and repair, which results in some operational downtime. Thus, it can be burdensome on smaller organizations, which do not have readily available access to capital. Therefore, high initial investment and maintenance costs is anticipated to hinder growth of the automated guided vehicle market.

Incorporation of industry 4.0.

Industry 4.0 can be defined as the new phase in industrial revolution that is highly focused on automation, interconnectivity, real time data, and machine learning. Industry 4.0 is also referred to as smart manufacturing and operations with smart digital technology to create a better connected ecosystem for companies focused on manufacturing and supply chain management. Adoption of automated guided vehicles in industry 4.0 is expected to enhance safety at warehouse and allow companies with higher level of lean manufacturing. In addition, it is expected to increase productivity and profitability of companies with significant reduction in the long-term labor costs. Further, the overall adoption of industry 4.0 by companies is significantly low and holds a potential opportunity for the AGV market players. Thus, manufacturing of automated guided vehicles with a focus on incorporation of industry 4.0 is anticipated to provide remarkable growth opportunities for players operating in the automated guided vehicle market. 

Key Benefits For Stakeholders

• This study presents analytical depiction of the global automated guided vehicle market analysis along with current trends and future estimations to depict imminent investment pockets.
• The overall automated guided vehicle market opportunity is determined by understanding the profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current AGV market is quantitatively analyzed from 2019 to 2027 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of buyers and suppliers in the industry.

Key Market Segments

By Type

• Tow vehicles
• Unit load carriers
• Pallet trucks
• Assembly line vehicles
• Forklift Trucks

By Navigation technology

• Laser guidance
• Magnetic guidance
• Inductive guidance
• Optical tape guidance
• Vision guidance
• Others

By Application

• Transportation
• Distribution
• Storage
• Assembly
• Packaging
• Waste handling

By Industry

• Automotive
• Manufacturing
• Food & beverages
• Aerospace
• Healthcare
• Logistics
• Retail
• others

By Mode of operation

• Indoor
• Outdoor

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Rest of Asia-Pacific
• LAMEA
  • Latin America
  • Middle East
  • Africa

Key Market Players

• BALYO
• Daifuku Co., Ltd.
• E&K Automation GmbH
• inVia Robotics, Inc.
• JBT
• KUKA AG
• Oceaneering International, Inc.
• Seegrid Corporation
• SSI schaefer
• Toyota Material Handling

  Automated Guided Vehicle Market Report Highlights