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.
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.
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.
Automated Guided Vehicle Market
By Type
Assembly line vehicles segment is projected as the most lucrative segments
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.
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.
Automated Guided Vehicle Market
By Navigation Technology
Inductive guidance segment is projected as the most lucrative segments
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.
Automated Guided Vehicle Market
By Application
Storage segment is projected as the most lucrative segments
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.
Automated Guided Vehicle Market
By Industry
Logistics segment is projected as the most lucrative segments
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.
Automated Guided Vehicle Market
By Mode of operation
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.
Automated Guided Vehicle Market
By region
LAMEA region segment is projected as the most lucrative segments