The Automated Guided Vehicle Market involves the usage of driverless vehicles that can transport materials autonomously in various industrial settings such as warehouses, production facilities and hospitals. AGVs use guidance technologies like magnets, lasers, vision cameras or radio frequencies for navigation within industrial facilities without any onboard operators or drivers. They offer advantages over conventional manual handling equipment by providing flexibility, improved productivity and reduced labor costs. The growing demand for automation in logistics and warehouse operations to enhance efficiency is a key factor driving increased adoption of AGVs.

The Global Automated Guided Vehicle Market is estimated to be valued at US$ 2,100 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Automated Guided Vehicle market are JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Schaefer Systems International Pvt Ltd., E&K AUTOMATION LIMITED, Oceaneering International, Inc., Murata Machinery, Ltd., KNAPP AG, Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., Seegrid Corporation, Fetch Robotics, Inc., inVia Robotics, Inc., Crown Equipment Corporation, and Meidensha Corporation.

The growing demand for automation and optimization of warehouse operations is fueling increased adoption of AGVs. AGVs help reduce labor costs, improve productivity through 24/7 operations and enhance inventory management. This is promoting their increased usage in various warehousing, logistics and material handling applications.

AGVs are also witnessing a wider proliferation globally with expansion of warehousing and logistics infrastructure across major world economies. Especially in emerging Asian markets, growing e-commerce industries are catalysing investments in fully automated warehouses, boosting sales of AGVs.

Market drivers

One of the key drivers for the Automated Guided Vehicle market is the growing labor costs and shortage of workforce especially for 3D (dirty, dangerous and difficult) jobs. AGVs help address this issue by performing repetitive, tedious and hazardous material handling tasks, while ensuring better safety, accuracy and productivity. This increasing demand for labor alternatives is promoting increased adoption of AGVs globally.

Automated Guided Vehicle Market:

The current geopolitical tensions and conflicts around the world are posing challenges for the growth of Automated Guided Vehicle Market. Major economies like US, China and countries in Europe are engaged in trade wars and adopting protectionist policies. This is disrupting global supply chains which is a key area of operations for AGVs. These vehicles are extensively used in warehouses and manufacturing facilities for inventory management and transportation of goods within facilities. Rising costs of raw materials and components due to tariffs is increasing production costs for AGV manufacturers. This can negatively impact their profitability. The unstable political environment is also creating uncertainty among businesses about future trade policies and demand outlook. This is discouraging many from making new investments in technology upgradation including adoption of AGVs. The ongoing Russia-Ukraine conflict has exacerbated the supply disruptions further. The manufacturers need to carefully plan supply sources and invest in developing alternate suppliers to counter rising political risks in different parts of the world. Localizing production also needs consideration to tackle trade barriers. Overall, addressing geo-political challenges in a systematic manner will be crucial for the long term sustainable growth of this market.

Automated Guided Vehicle market is concentrated in terms of value:

North America currently dominates the Automated Guided Vehicle market and holds the largest share in terms of value. The region contributed over 35% to the global market revenue in 2023 led by strong demand from the US. Well established automotive and e-commerce sectors drive significant usage of AGVs for material movement within factories and warehouses. Asia Pacific followed North America and accounted for around 30% market share in 2023. China represents the major country driving the regional market. Expanding manufacturing industry, increasing labor costs and rising automation adoption fuel the need for AGVs. Europe held the third largest value share globally. Countries like Germany, UK, France and Italy actively use AGVs. Massive industrial and retail sectors utilizing automated guided vehicles for varied in-plant logistics functions make regions of North America, Asia Pacific and Europe primary geographies for AGV market presently in terms of revenue generation.