PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930284
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1930284
The global automated guided vehicle (AGV) market is experiencing significant growth, driven by rising adoption of automation technologies across industries. According to Fortune Business Insights, the market was valued at USD 2.75 billion in 2025, projected to grow to USD 3.01 billion in 2026, and expected to reach USD 6.76 billion by 2034, registering a CAGR of 10.6% during the forecast period. Asia Pacific dominated the market in 2025 with a 35.5% share, attributed to rapid industrialization, the expanding e-commerce sector, and high adoption of automated material handling solutions.
AGVs encompass a variety of vehicles, including automated forklift trucks, tow vehicles, assembly line vehicles, and unit load carriers, which optimize material handling in warehouses, manufacturing facilities, and distribution centers. The COVID-19 pandemic highlighted their value, as disruptions in labor availability and supply chains accelerated AGV adoption to maintain operational efficiency and continuity in logistics.
Market Trends
A key trend driving the AGV market is the integration of Artificial Intelligence (AI), which enables vehicles to perform complex tasks with precision and adaptability. AI-powered AGVs can navigate autonomously, avoid obstacles, optimize routes in real-time, and adapt to dynamic environments such as busy warehouses or production floors. AI also facilitates predictive maintenance, reducing downtime and enhancing reliability. As industries increasingly demand smarter, autonomous solutions, AI integration is set to expand AGV capabilities, strengthening the market's growth trajectory.
Market Growth Factors
The growth of the AGV market is strongly fueled by the e-commerce boom. With rising online shopping, companies face challenges in handling large inventories, processing high volumes of orders, and meeting stringent delivery timelines. AGVs streamline transportation, storage, and distribution processes, enhancing efficiency and reducing labor dependency. Their scalability allows businesses to adapt quickly to fluctuating order volumes, making AGVs indispensable for modern logistics and distribution operations.
Restraining Factors
Despite the benefits, the high initial investment required for AGV deployment can impede adoption. Capital expenditure includes the cost of vehicles, infrastructure, technology integration, and ongoing maintenance. Small and medium enterprises may find these costs prohibitive. Additionally, deployment complexity, training requirements, and potential operational disruptions during transition periods add to the financial burden, restraining growth in some sectors.
By Type
By Navigation Technology
By Application
By Industry
Key Industry Players
Leading AGV manufacturers include:
Recent developments include partnerships to integrate motion tracking, AI, and industrial IoT to enhance AGV efficiency and capabilities. Companies are also expanding manufacturing facilities to meet global demand, such as Daifuku's new division in India.
Conclusion
The global AGV market is expected to grow from USD 2.75 billion in 2025 to USD 6.76 billion by 2034, driven by e-commerce expansion, industrial automation, and AI-enabled advancements. Asia Pacific leads regionally, followed by North America and Europe. Automated forklift trucks, laser-guided navigation, and transportation/distribution applications dominate the market. While high initial investment poses a challenge, the increasing need for efficiency, scalability, and automation across industries ensures sustained market growth, positioning AGVs as a cornerstone of modern material handling and logistics solutions.
Segmentation By Type
By Navigation Technology
By Application
By Industry
By Region