Automated Guided Vehicles Market Size, Share & Trends Analysis Report By Product Type (Automated Forklift, Automated Tow/Tractor/Tug, Unit Load, Assembly Line, Special Purpose), By End-user (Food & Beverage, Automotive, Retail, Electronics & Electrical, General Manufacturing, Pharmaceuticals, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2022-2030

Market Overview

The global automated guided vehicles market revenue valued at USD 3,620 million in 2021. It is expected to reach USD 32,863 million by 2030, growing at a CAGR of 31.75% during the forecast period (2022–2030). The surge in e-commerce, with China's B2C sector generating USD 1.5 trillion in 2019, has escalated the need for efficient logistics, spurring the adoption of Automated Guided Vehicles (AGVs) for safer and faster fulfillment. As industries prioritize workplace safety and single-day deliveries become the norm, AGVs are increasingly replacing manual labor, enhancing both efficiency and employee safety in sectors from manufacturing to retail.

 Automated guided vehicles (AGVs), also known as self-guided or autonomous guided vehicles, are material handling systems or load carriers that move around a warehouse, distribution center, or manufacturing facility independently without a driver or operator on board. Automated guided vehicle systems are used to repeatedly move sizable amounts of material in tasks typically handled by forklifts, conveyor systems, or manual carts. AGVs have many different applications. They are frequently used to transport raw materials like paper, rubber, plastic, metal, and rubber. Without human intervention, AGVs efficiently and reliably deliver the raw materials required, guaranteeing that production lines never run out of what they need. Additionally, in recent years, the uses for these automated vehicles have expanded to incorporate sophisticated robotics technology that is no longer only applicable in industrial settings.

Complete automation in warehouses eliminates several additional expenses. Various manufacturing facilities have made achieving lights-out automation a priority. Fully automated manufacturing systems for multiple components are referred to as lights-out automation. Most factories have been working to reduce human involvement, reduce the potential for mistakes, and boost industry productivity. The demand for automation in material handling in significant manufacturing buildings, like a factory or warehouses, the quick transition in demand from mass manufacturing to mass customization, and improved workplace safety standards all contribute to the growth of the AGV market. In addition, the automated guided vehicles market is likely to expand due to the explosive growth of industrialization in emerging economies, the growing adoption of industrial automation by SMEs, and the existence of the intralogistics sector.

Market Dynamics

Market Drivers

Speedy Advancements in the E-commerce Sector

Distribution and fulfillment operations are continually being under tremendous stress by the relentless march of e-commerce. Digital Commerce 360 reports that online retail sales increased from 7.4% in 2016 to 14.1% of all retail spending in 2019. Supply chain operations are now under more pressure as a result of this. China's B2C e-commerce generated USD 1.5 trillion in revenue alone in 2019, according to the E-commerce Foundation. The demand for effective logistics and warehousing systems is rising due to the high activity volumes in various regions' e-commerce sectors. There is a massive requirement for automated guided vehicle machinery as a result.

Robots are taking the place of people in many industries, including food & beverage production and manufacturing, retail, and others. Automation benefits employment opportunities in the e-commerce sector more than in other industries. This is mainly due to the extensive use of collaborative robots, like AGVs, in third-party warehouses and e-commerce fulfillment centers. Since single-day delivery orders are becoming increasingly popular in both developed and developing economies, e-commerce companies are forced to meet this demand, which has significantly increased efficiency. Thus, increasing the usage of AGVs.

Growing Emphasis on Workplace Safety

Employee safety is of utmost importance in many industries, including manufacturing, metals & heavy machinery, automotive, and logistics and warehousing, because workers must perform potentially hazardous tasks and operate equipment in hazardous environments. Most industries still rely on people to perform dangerous manual tasks like loading, unloading, storing, and moving goods. AGVs guarantee fewer accidents and increased worker safety. Businesses are putting more effort into enhancing workplace safety to reduce accidents and downtime and boost productivity. AGVs are becoming more widely known, and many companies are installing them in their warehouses. These machines can swiftly transport materials while also having the ability to lift heavier loads. Consequently, boosting AGV demand.

Market Restraints

Use of Mobile Robots as AGV Substitutes

The retail and e-commerce sectors rely heavily on the logistics industry for efficient operations. Mobile robots are used by businesses in the e-commerce sector to automate warehouse tasks. The e-commerce and retail sectors use mobile robots as self-driving logistics vehicles for indoor operations. With features like mobile shelves, robotic drive units, sophisticated control software, and workstations that automate the pick, pack, and ship procedures, they present a novel method of warehouse automation. Comparatively to conveyors, AGVs, carousels, and conventional ASRS, these portable solutions can be adjusted to changes in product types and velocities, order prioritization, and other operational realities. AGVs are more challenging to install, and mobile robots are less expensive to install and commission than AGVs. These features of mobile robots might prevent the retail and e-commerce sectors from adopting AGVs.

Market Opportunities

Adoption of Industrial Automation by SMEs

AGV solutions have a high upfront cost depending on the integrated battery type and navigational technology. Due to their high initial costs, small and medium-sized businesses (SMEs) find it challenging to adopt automation technologies for material handling; most large-scale industries can afford them. The expansion and revenue of these SMEs are hampered by factors like rising labor costs, concerns about quality, and a shortage of skilled workers.

Since automation enables SMEs to compete globally with more significant market players, they are shifting toward automated warehouse operations despite high initial capital investments. AGVs can significantly increase SMEs' productivity, efficiency, and profitability, making them more competitive. To improve their level of competitiveness on a global scale, many SMEs have begun to invest in AGVs. AGV deployment is anticipated among SMEs in the e-commerce, automotive, food & beverage, pharmaceuticals, and chemicals sectors during the forecast period.

Regional Analysis

The regional segmentation of the global automated guided vehicles market includes North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific will command the leading market position, expanding at a CAGR of 32.6% over the forecast period. The increasing urbanization, e-commerce sales, and the strong foothold of technology providers are the main factors propelling the growth of the Asia-Pacific regional market. The major players are investing in research and development to provide cutting-edge solutions and remain competitive. Asia-Pacific has become one of the largest e-commerce hubs in the world. The region saw a sharp increase in retail e-commerce because of the burgeoning middle class in China, India, and Indonesia and the growing acceptance of mobile technology. China alone accounts for 40% of global e-commerce retail sales. Additionally, the regional auto and electronics industry will probably increase the use of automated guided vehicles.

North America is projected to generate USD 7,408 million by 2030, growing at a CAGR of 30.7%. Advanced production lines in North America rely on innovative discoveries to produce goods of higher quality more quickly and cheaply. Due to the labor shortage in the region, incorporating more sophisticated software and hardware is proving to be the only way to survive in the current competitive environment. Numerous significant and quantifiable advantages, including reduced operating costs and increased material throughput, are offered by AGV technology to manufacturers in North America. The business's profitability and customer satisfaction are increased across all North American warehouses by optimizing the first mile with material handling automation.

The US market for automated material handling (AMH) solutions is one of the biggest and most developed in the world. The region's demand for AGVs is expected to be driven by the region's robust economy, which is reflected in the region's high port traffic, rising e-commerce activity, and leading manufacturing indices. Additionally, automation enables small American businesses to compete on an equal footing with established rivals around the globe. Additionally, the United States has one of the largest automotive markets in the world and is home to over 13 significant automakers, contributing to the market's expansion in the region.

Segmental Analysis

The global automated guided vehicles market is classified based on product type, end-user.

Based on product type, the global automated guided vehicles market comprises Automated Forklift, Automated Tow/Tractor/Tug, Unit Load, Assembly Line, and Special purposes.

The Automated Forklift section is projected to advance at a CAGR of 30.5% and hold the largest market share over the forecast period. A forklift is one of the most popular automated guided vehicles because it performs the essential stacking and unstacking tasks. It can occasionally be used for short-distance transportation in a manufacturing setting. It is one of the first AGVs to be modified and is in high demand in the current market environment. Forklifts are the most sought-after type of AGV due to their versatility in various material handling tasks, including loading, unloading, transporting, and stacking. These are helpful in almost every manufacturing plant. They are therefore in great demand across all industries. Additionally, because these machines are modular in design, they are simple to upgrade and expand, making them flexible to change.

The Unit Load section will hold the second-largest market share. Unit weight AGVs, also known as Top Carriers, are widely used in the pharmaceutical, food and beverage, and general manufacturing sectors. They transport goods on top of their structure and are the earliest type of AGV. The primary driver of demand for these AGVs is the automation boom in laboratories and medium-sized businesses, which must manage lighter loads than large-scale manufacturers. Numerous end-user industries are investing in these products due to the wide range of customization offered by the vendors with these vehicles.

Based on end-user, the global automated guided vehicles market comprises Food & Beverage, Automotive, Retail, Electronics & Electrical, General Manufacturing, Pharmaceuticals, and Others.

The Retail section is projected to advance at a CAGR of 33.6% and hold the largest market share over the forecast period. Online and bulk retail, globalization, and the use of AGVs in factories and warehouses have increased the need for automated guided vehicles in the retail industry. The two most critical competitive elements in the e-commerce market are service quality and customer satisfaction. Businesses offer single-day delivery options for a fee, and as disposable income rises in both developed and developing economies, the commercial viability of these programs is significantly improving. E-commerce warehouses use AGVs to complete one-day deliveries. The e-commerce sector is adopting AGVs at a rapid rate as incumbents in the sector work to implement a dependable storage process and boost productivity.

The Automotive section will hold the second-largest market share. AGVs are a vital part of flexible manufacturing systems and are a tried-and-true technology to improve productivity, security, and quality in automotive manufacturing. For implementation to be successful, communication capabilities must be dependable, adaptable, simple to program, and real-time. AGVs have many uses in the automotive industry, from moving vehicles and large parts like front-end modules, instrument panels, fascias, and seats along the assembly line to "chassis marriage," which synchronizes the chassis with the body of the vehicle. Additionally, AGVs improve workplace safety by streamlining workflow procedures.

Impact of covid-19

COVID–19 has caused significant breakdowns in the value chains of multiple business sectors across the globe. The disease has been declared by the World Health Organization as a global pandemic. After the outbreak of COVID–19, many defence equipment manufacturers faced considerable disruptions in their value chain and supply chain management. Import and export operations also faced hardships due to restrictions on the trade of non-essential commodities.

Additionally, a reduction in revenue generation of governments across the globe and subsequently decreased expenditure on defence projects during the pandemic further curbed market growth across most regions. Many global manufacturers decided to halt operations, which decreased the overall production of defence equipment across the market.

Recent Developments

• 2022- Seegrid Corporation launched the Seegrid Help Center, a new customer resource. It is an online knowledge base that provides premium access to specialized observations, product information, and cutting-edge mobile automation use cases curated by Seegrid's knowledgeable engineering, service, and support teams to its global logistics, e-commerce, and manufacturing customers.