The global automated guided vehicle market is expected to grow at a CAGR of approximately 10.5% during the forecasted period 2021–2027.
Automated Guided Vehicle: Providing in More Efficient and Optimistic Logistics
Automated Guided Vehicle: AGVs have been in operation for many years, and while they provide numerous benefits in terms of material flow, they require the installation of a mapping grid, tape magnets, or laser beacons inside that floor, as well as other lengthy and costly site adaptations. AGVs have low interruption and work at a fair amount, allowing operational activities easier to arrange.
Furthermore, they are computer-controlled, which reduces human errors in terms of facility damage, inventory spills, and pedestrian safety. AGVs are widely used because of various advantages, including lower labor costs, less product damage, higher productivity, and the ability to grow to support automation operations. These significant benefits are encouraging transportation and logistics companies to use AGVs to improve the efficiency of their operations.
The growing demand for automation in various industries and manufacturing facilities is propelling the automated guided vehicle market forward. In businesses and manufacturing plants, using an autonomous guided vehicle eliminates human effort while also increasing worker safety.
To change the material handling business, retailers and other logistics-related organizations are teaming and cooperating with technology companies. For example, Murata Machinery, Ltd. (Japan), a global provider of material handling solutions, teamed up with Alert Innovation (US), a company that specializes in automated solutions such as automated storage and retrieval systems, in August 2019.
Another instant, PULSE Integration, a provider of agnostic engineering solutions for automation facility design, material handling, and system integration, teamed with Tompkins Robotics, a global provider of autonomous mobile robots, in October 2019. This collaboration was formed to provide automated material handling sorting solutions to clients in the third-party logistics, manufacturing, and distribution sectors.
Demand for Automation and Automated Guided Vehicles is on the Rise
AGV usage has risen dramatically in recent years since they are seen as a trustworthy material handling solution, allowing companies to expand their production capacity. These material handling technologies are utilized to reduce physical damage to items (which is generally caused by human operators) while also increasing operational efficiency. Almost every industry uses automated guided vehicles. Furthermore, e-commerce enterprises in India are implementing autonomous guided cars to increase production and save labor costs.
Flipkart, for example, employs artificial intelligence (AI)-powered bots that allow robots and people to collaborate effectively. Around 350 AI-powered drones, dubbed AGVs, let operators handle about 4,500 deliveries per hour at double the pace and with incredible precision. It thus claims that the deployment of these bots has increased throughput and storage capacity.
Need for Enhanced Productivity, Precision, and Safety is Fueling the Market Demand
Automated guided vehicles are developed with safety in mind and are outfitted with cameras, lasers, and sensors that allow them to safely interact with employees and equipment. However, other vehicles, such as forklifts, depend solely on human intervention and lack safety measures. As a result, there is also the risk that an operator is becoming preoccupied or weary, resulting in an accident. As a result, autonomous guided cars are becoming more popular as a way to prevent such problems.
Furthermore, when employees are substituted with AGVs, the risk of inaccuracy is decreased, resulting in higher, productive, and accurate production. In addition, AGV integration provides for a continuous flow of operations with optimized procedures. As a result, the expansion of the automated guided vehicle market is boosted by the increased safety, precision, and productivity given by automated guided vehicles in warehouses.
Rapid integration of Industry 4.0 is Influencing Market Demand
Industry 4.0 is a key development of industrialization that emphasizes automation, interconnection, real-time data, and machine learning. Industry 4.0 is however known as the smart product and process design method, which combines smart digital technology with smart manufacturing and operations to create a more connected environment for manufacturing and supply chain management organizations.
Industry 4.0 use of autonomous guided vehicles is projected to improve warehouse safety and help enterprises to achieve better levels of lean production. Furthermore, it is predicted to boost company productivity and profitability by lowering long-term labor expenditures significantly. Furthermore, firms' total adoption of Industry 4.0 is relatively low, posing a potential risk. As a result, companies of automated guided vehicles with a focus on implementing industry 4.0 are expected to have significant growth prospects in the automated guided vehicle market.
COVID-19 has spread rapidly disturbing the supply chain and manufacturing industry heavily. The manufacturing industry has seen a significant drop in earnings and income as a result of the epidemic. Businesses have seen a large reduction in workforce, resulting in a loss in industrial activity overall. Due to significant layoffs, financial difficulties, and attrition, SMEs (Small and Medium Enterprises) are the worst impacted. The implementation of AGVs and industrial automation are critical.
Tow Vehicle is Expected to be a Larger Contributor to the Automated Guided Vehicle Market
In 2020, the tow vehicle category led the market, accounting for more than 35% of total sales. Tow vehicles pull non-powered carts carrying massive weights. Because it can carry more cargo with several trailers than a single fork truck, this is the most productive form of AGV utilized for towing and pulling. Due to the rising pressure on retail enterprises to fulfill the ever-rising demand of their clients, the firms are focused on running more efficiently.
The tow vehicles are adjustable as per the length or capacity requirement; hence these are expected to exhibit a steady growth rate. Tow vehicles offer advantages over trucks as these trucks are only used in a case in the industries. For instance, these trucks are comparatively bigger, which requires extra space while movement limits its applications.
Laser-Guided Segment is Expected to Hold the Largest Market Share in Upcoming Years
The market for laser-guided AGVs is growing because of the laser guiding technology's versatility, scalability, and precision. It also boosts performance, enhances security, and reduces downtime. The most adaptable technology for vehicle movement, laser guiding provides precise navigation. It permits the trucks to run without the usage of obtrusive barriers in a warehouse.
Companies are experiencing serious cash flow challenges as a result of the imposing of lockdowns across many nations as a result of the COVID-19 outbreak. A drop in demand for AGVs has come from the halting or slowing of output across industries.
Europe to Come-up As a Dominating Region in Automated Guided Vehicle Market
In 2020, Europe led the market, accounting for more than 27% of total sales. Over the projection period, Europe is expected to be the dominating regional market. The rising demand for material handling equipment by the manufacturing industry's incumbents is driving the regional market's expansion. Due to the increased utilization of industrial and home space and significant technical breakthroughs in robotics and automation, Europe is one of the major regions in the worldwide automated guided vehicle industry.
The fast rate of product supply is aided by high demand for electronics and retail items, as well as the growing automobile sector. The need for AGVs is growing in the food and beverage, electronics, automotive, and construction industries. In addition, the e-commerce and retail distribution businesses are linked to a variety of other businesses, making them a key engine of economic development. The implementation of energy-efficient solutions, the acceptance of linked devices, enhanced efficiency and productivity, mobile communication technologies, and the deployment of PLC automation systems are all priorities in Germany.
To enhance their offerings in the market, AGV players have used a variety of organic and inorganic development tactics, including new product releases, contracts, partnerships, partnerships, acquisitions, and business expansions. The key player in the global automated guided vehicle market consist of Swisslog Holding AG, Bastian Solutions, Inc., Daifuku Co., Ltd., Dematic, JBT, Seegrid Corporation, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., BALYO, E&K Automation GmbH, Kollmorgen, KMH Fleet Solutions, ELETTRIC80 S.P.A., Fetch Robotics, Inc., inVia Robotics, Inc., Locus Robotics, Schaefer Systems International, Inc., System Logistics Spa, Scott, among others.
Automated Guided Vehicle Market: Segmentation
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