Automated Guided Vehicle Market Size

Automated Guided Vehicle Market Size Snapshot

Note – Market size depicts the revenue generated over the financial year

The AGV market is expected to reach a size of $46 921,000 in 2024, and reach $8584,000,000 in 2032. This represents a healthy CAGR of 7.7%. The growing demand for automation in many industries, including manufacturing, logistics, and health, is a major driving force behind this growth. Companies are increasingly adopting AGVs in order to improve their operating efficiency and reduce labour costs. Further, technological advancements, such as the integration of AGVs with artificial intelligence, machine learning, and the Internet of Things, are also driving market growth. These innovations allow AGVs to operate more efficiently and independently, thereby improving productivity and safety in industrial settings. The major players in the AGV market, including Kiva Systems (now a part of Amazon Robotics), Dematic, and Toyota Industries, are investing heavily in research and development, entering into strategic partnerships, and launching new products in order to meet this growing demand. Recent collaborations between technology companies and logistics service providers, for example, aim to enhance the capabilities of AGVs and ensure that they meet the changing needs of modern supply chains.

Regional Market Size

Regional Deep Dive

AGVs are a good example of the latter. The market for AGVs is growing rapidly in many regions, driven by advances in automation, greater efficiency in logistics, and a need for safe working conditions. In North America, the market is characterized by a strong presence of key players and a robust manufacturing sector, while Europe is focusing on the environment and regulatory compliance. The Asia-Pacific region is seeing the most rapid growth, mainly due to the booming e-commerce sector and manufacturing sector. The Middle East and Africa (MEA) region is slowly embracing automation, influenced by development in its infrastructural sector, while Latin America is exploring AGVs to improve operational efficiency in various industries.

North America

• The rise of e-commerce has brought about a greater investment in automation of warehouses, and companies like Amazon and Walmart have started to use AGVs to improve the productivity of their warehouses.
• AGVs are a good solution to improve the safety of production lines. They reduce the risk of human error and increase the safety of the production process.
• The most important suppliers are Kiva and Seegrid. They are developing new, advanced navigational systems, which will improve the efficiency and reliability of the AGVs.

Europe

• Green logistics is the main concern of the European Union, and in this respect the electric AGV is the vehicle that is gaining in acceptance.
• AGVs have been adapted to the latest developments in artificial intelligence and machine learning. For example, ABB is developing a vehicle that can learn to move on its own.
• The laws of Germany and France encourage the use of A.G.V.’s in production and transport, thus encouraging a shift to automation in the traditional industries.

Asia-Pacific

• During the next few years, as China's industry develops rapidly and the e-commerce industry grows, the demand for AGVs will continue to grow. Siasun and Hikrobot are two of the companies that will lead this trend.
• A number of government initiatives to promote manufacturing, such as Made in China 2025, have helped create a favourable environment for the use of AGVs.
• The Xiangyang District is now a region of high investment in smart factories, in which AGVs play an important role in automation and the digitisation of the supply chain.

MEA

• Especially in the countries of the Gulf Cooperation Council (GCC) there is a lot of investment in logistics and warehousing, which is also causing a lot of interest in AGVs.
• The United Arab Emirates, in line with its Vision 2021, is promoting innovation and technology and encouraging local companies to adopt AGVs to increase their operational efficiency.
• Local and foreign AGV manufacturers have entered into joint ventures, which have helped transfer knowledge and technology.

Latin America

• Brazil's expanding manufacturing industry is beginning to experiment with AGVs to increase productivity and reduce labour costs.
• AGVs are in great demand in urban areas. Governmental programs to modernize the logistics sector are opening the way for their use.
• There is a growing tendency among local companies to work with international suppliers of AGVs to implement automation in their operations, which is a sign of their desire to modernize.

Did You Know?

“The AGV market is expected to be characterized by the increasing adoption of AMRs, which are a sub-set of AGVs, in particular in the warehousing and distribution centers.” — Research and Markets

Segmental Market Size

The Automatic Guided Vehicles segment is of crucial importance to the logistics and manufacturing industries, which are undergoing a strong growth due to the increasing automation requirements. In particular, the labor shortages in many industries are causing companies to adopt AGVs for the purpose of achieving a higher degree of automation in material handling and transportation. Also, as the development of robots and artificial intelligence (AI) is bringing new capabilities to AGVs, these are proving to be more attractive to businesses looking to optimize their supply chains.

Among the leading companies in this field are Amazon and Tesla. The main use of AGVs is in the automation of warehouses, assembly lines and distribution centers, where they help to transport goods without human participation. The demand for these vehicles is growing rapidly, especially due to the need for reducing costs and improving safety in the workplace. Lidar, computer vision and the Internet of Things are the key to the development of these vehicles, enabling smarter navigation and greater operational efficiency.

Future Outlook

The AGV market is forecast to grow significantly from 2024 to 2032, with an increase in value from $ 4,692,100,000 to $ 8,484,000,000. This represents a robust compound annual growth rate of 7.7%. This growth will be driven by the growing automation demand in the manufacturing, logistics and healthcare industries. AGVs are expected to penetrate deeper into the supply chain, reaching a penetration rate of 30% in key industries by 2032, compared to a penetration rate of 15% in 2024. AGVs will be further enhanced by the rapid developments in automation, artificial intelligence and machine learning.

The introduction of the Internet of Things and the use of real-time data in the AGV market will have a significant impact on the market for this type of vehicle, as it will make fleet management and navigation systems more accurate. Moreover, government policies to promote automation and smart manufacturing will also stimulate the growth of this market. E-commerce will also have an impact on the AGV market, as will the need for contactless delivery solutions. Companies are becoming more aware of the need for sustainable development, which will help AGVs with electric and hybrid technology to gain in popularity and support the worldwide trend towards reducing the carbon footprint. Generally speaking, the AGV market is set to change a great deal, mainly due to the technological developments and changes in the industry.