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Europe Automated Guided Vehicle (AGV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Published: | Mordor Intelligence Pvt Ltd | 120 Pages | Delivery time: 2-3 business days


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Europe Automated Guided Vehicle (AGV) Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
Published: January 17, 2022
Mordor Intelligence Pvt Ltd
Content info: 120 Pages
Delivery time: 2-3 business days
  • Description
  • Table of Contents

The Europe Automated Guided Vehicle market was valued at USD 508.7 million in 2020 and is expected to reach USD 3014.8 million by 2026 and grow at a CAGR of 31.6% over the forecast period (2021-2026). The recent outbreak of the Coronavirus, which hit the region severely, is expected to influence the market's growth during 2020, as almost all production, logistics, and warehouses are under lockdown and seized activities. The operations in these industries are expected to resume and reach a previous optimal position over the next four months. Owing to the decline in the tourism industry, the need for automation for material and baggage handling declined. Airports, where extensive scale material handling is required, were increasingly adopting AGVs in addition to their automated material handling solutions. However, the demand in specific industries, such as electronics, retail, and automotive, is expected to decline and recovery by 2021.

Key Highlights

  • The retail industry's growth is primarily driven by the increasing demand from e-commerce, primarily for automated warehouse solutions. Furthermore, the concentration of the market is expected to be focused in Western Europe; a majority of the turnover from the B2C platform is from the region (66%). Owing to such developments, vendors in the market are increasingly adopting automation.
  • For instance, ThyssenKrupp's material handling division plans to invest over EUR 70 million in its European warehousing and logistics network. Its new logistics center is expected to be built in Rotenburg/ Wumme (Lower Saxony), with an area of 36,000 square meters, and it can store up to 20,000 metric tons of materials. Such developments in the region are driving the demand for AGVs. Apart from retail, the automotive industry is one of the significant adopters of automation. Europe is one of the major automotive markets that accounts for a considerable share of the global automotive production units.
  • Moreover, the automotive industry is increasingly adopting automation and AGVs in its production floors. For instance, the SEAT plant in Martorell, Spain, is moving toward a digitalized smart factory, and the manufacturer adopted AGVs with SLAM navigation, 4 G connection, and induction battery charging. To date, the facility took eight AGVs for outdoor operation and had over 200 AGVs that deliver parts inside the assembly workshops at the Martorell and Barcelona factories. For instance, automotive supplier Brose invested EUR 2 million in AGVs, and the company provides seats and window regulators for auto manufacturers, such as Nissan, Jaguar, Land Rover, and Toyota.
  • Further, the pharmaceutical industry is another prominent adopter of automation in its manufacturing space, as it is one of the highly regulated industries in the European region. For instance, Hoffmann-La Roche AG, a pharmaceutical company headquartered in Basel, Switzerland, implemented Industry 4.0 for storage and picking of medications in its cold storage logistics facility at Roche's Kaiseraugst location. The storage warehouse has 8,100 pallet locations, and the facility adopted Swisslog's automation solutions. Over the coming years, vendors are expected to invest significantly in R&D related to charging and battery technologies while improving communication modules. With the advent of 5G, the operation of AGVs is expected to enhance, along with the adoption of high-speed communication modules.
  • Moreover, the Audi plants have been using automated guided vehicles (AGVs) for many years. These vehicles assist in supermarket logistics areas where employees pre-pick components in the correct sequence. In July 2020, the company introduced a logistics system in which automated guided vehicles (AGVs) move containers of parts in series to human-crewed pick stations on the assembly line. According to the company, rather than the traditional setup in which employees go to containers of components to pick in sequence for assembly, the Supermarket 2.0 system reverses the process on a 'goods-to-person principle. It is being used at Audi's plant in Ingolstadt (Germany) and the FAW-Volkswagen joint venture plant in Foshan (China).

Key Market Trends

Food and Beverages is Expected to Witness Significant Growth

  • The food and beverage industries are significantly adopting AGVs, as these spaces are highly regulated for maintaining hygiene and safety. Europe is home to one of the most abundant food and beverage industries in the world. With over 286,000 food and beverage companies operating in the region, food and beverage are among the fastest-growing end-use industries in Europe.
  • According to Eurostat, almost 14.6% of household expenditure is spent on food and beverages and is expected to increase further over the forecast period. As the domestic demand is on the downside and most of the food business owners are small families in the country, such opportunities are expected to increase production in the region and thus the scope of automation.
  • Moreover, the growing food and beverage e-commerce industry in the region is another driving factor. E-commerce growth directly leads to warehouse automation for optimizing the operations hence positively influencing the market. The warehouses deploy AGVs to carry out warehouse logistics and procedures, which can lift heavy weights and have been reported to save the time taken to complete the logistical processes threefold. The growing penetration of online shopping in the region is another contributing factor.
  • Further, another factor pushing the market for AGV is its ability to provide alert capabilities that notify the user about a product kept in the inventory for too long and possibly reaching its expiration date. The notification function is enabled by the inventory management software available with the AGV, and it allows the companies to achieve cost-effective operations by reducing wastage.
  • In addition to this, the large-scale growth and expansion of the third-party logistics companies in the food and beverage industry are also expected to drive the market for AGV due to their heavy use by these organizations, to achieve process optimization and cost-effective operations.

United Kingdom Accounts for the Largest Market Share

  • Throughout the United Kingdom and Europe, political, economic, and technological developments affect the manufacturing industry's growth proportionally. Although the BREXIT vote sent shockwaves across all sectors, the manufacturing industry remained positive. Also, the predicted labor shortage is strengthening the case for logistics automation as firms seek to make their operations less labor-intensive. High demand and opportunities for the market's growth invoked optimism among the automated logistics suppliers.
  • With rising labor costs and supply chain pressure for better accuracy, speed, and responsive operations in the country, automated sortation systems are gaining prominence in supply chains for delivering productivity, throughput capacity, efficiency, and accountability for business's cost-effective and efficient flow of goods to consumers. Manufacturers of many fast-moving consumer goods use sortation systems, primarily for handling cantonized products. Also, the United Kingdom is widely recognized for sophisticated construction work, with less floor space to operate for construction activities. Thus, particular purpose automated guided vehicles are gaining popularity in the construction sector.
  • Moreover, AGVs achieved significant success in hospitals, with NHS installing AGV solutions throughout hospitals in the United Kingdom. AGVs in hospitals carry all the payloads that move repetitively between departments, such as food, linen, stores, waste, pharmacy, and sterile supplies. Reliable and timely delivery of various shipments helps hospitals run more efficiently and better target other resources. The demand for AGVs is primarily driven by the country's automotive, metal, healthcare, and pharmaceutical industries. With the recent coronavirus outbreak, the need for automation is expected to increase over the long run, primarily to cope with the shortage of labor and rising costs.
  • In the country, the current AGV technologies are run on magnetic tapes and account for a significant share in the market. Companies, such as IMA, are focusing on offering AGVs that operate on advanced technology. During the forecast period, vendors in the country are expected to adopt new scanning and communication technologies as a part of their AGV modules and set up facilities. For instance, SICK UK launched a safety-certified outdoor laser scanner mounted on AGVs to operate in indoor and outdoor spaces. Such examples in the region are expected to witness a significant increase over the coming years.
  • Further, in September 2020, the British government has invested GPB 147 million into the second round of "Manufacturing Made Smarter." This should enable UK Manufacturing companies to develop cost-effective, innovative solutions for deployment in the manufacturing sector.

Competitive Landscape

The European automated guided vehicle (AGV) market is fragmented and is home to various significant vendors depending on the location. The major vendors in the market garner a more in-depth product portfolio catering to customers' different requirements. In contrast, other vendors operate in niche segments providing customizations and customer-specific orders. Key players include Amerden Inc., Swisslog Holding AG, Schaefer Systems International Pvt Ltd, KUKA AG, Jungheinrich AG, etc. Some of the recent developments in the market are -

  • September 2020 - Bohus, a significant furniture player of Norway, has commissioned Jungheinrich to construct a new central warehouse in Lillestrom near the Norwegian capital of Oslo. The project involves comprehensive automation solutions, including a high pallet racking warehouse, Miniload, conveyor systems, and software. The operation of the warehouse is scheduled to begin in 2021.
  • April 2020 - Murata Manufacturing Co., Ltd. developed a FORTELION 24V Battery Module ideal for industrial equipment requiring high output, such as automated guided vehicles and robots. This module is equipped with "FORTELION," a proprietary lithium-ion secondary battery, which uses olivine-type lithium iron phosphate as the cathode material and combines long life with an exceptionally high level of safety.

Additional Benefits:

  • The market estimate (ME) sheet in Excel format
  • 3 months of analyst support
Product Code: 50352



  • 1.1 Study Assumptions and Market Definition
  • 1.2 Scope of the Study




  • 4.1 Market Overview
  • 4.2 Market Dynamics
    • 4.2.1 Market Drivers
      • Rapid Growth of the E-commerce Industry
      • Need for Automation in Maritime Applications for Improvement in Terminal Efficiency
    • 4.2.2 Market Restraints
      • Limitation of Real-time Wireless Control Due to Communication Delays
  • 4.3 Industry Attractiveness - Porter's Five Forces Analysis
    • 4.3.1 Bargaining Power of Suppliers
    • 4.3.2 Bargaining Power of Buyers
    • 4.3.3 Threat of New Entrants
    • 4.3.4 Threat of Substitute Products
    • 4.3.5 Intensity of Competitive Rivalry
  • 4.4 Industry Value Chain Analysis
  • 4.5 Assessment of Impact of Covid-19 on the Market


  • 5.1 By Product Type
    • 5.1.1 Automated Fork Lift
    • 5.1.2 Automated Tow/Tractor/Tugs
    • 5.1.3 Unit Load
    • 5.1.4 Assembly Line
    • 5.1.5 Special Purpose
  • 5.2 By End-User Industry
    • 5.2.1 Food & Beverage
    • 5.2.2 Automotive
    • 5.2.3 Retail
    • 5.2.4 Electronics & Electrical
    • 5.2.5 General Manufacturing
    • 5.2.6 Pharmaceuticals
    • 5.2.7 Other End-user Industries
  • 5.3 By Country
    • 5.3.1 United Kingdom
    • 5.3.2 Germany
    • 5.3.3 France
    • 5.3.4 Italy
    • 5.3.5 Rest of Europe


  • 6.1 Company Profiles
    • 6.1.1 Amerden Inc.
    • 6.1.2 Swisslog Holding AG
    • 6.1.3 Schaefer Systems International Pvt Ltd
    • 6.1.4 KUKA AG
    • 6.1.5 Jungheinrich AG
    • 6.1.6 Murata Machinery Ltd
    • 6.1.7 Dematic Corp.
    • 6.1.8 Toyota Material Handling International AB
    • 6.1.9 Transbotics Corporation
    • 6.1.10 John Bean Technologies (JBT) Corporation
    • 6.1.11 ABB Ltd
    • 6.1.12 Seegrid Corporation