PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1117076
PUBLISHER: Stratistics Market Research Consulting | PRODUCT CODE: 1117076
According to Stratistics MRC, the Global Automated Guided Vehicles Market is accounted for $2.41 billion in 2022 and is expected to reach $3.98 billion by 2028 growing at a CAGR of 8.7% during the forecast period. Automated guided vehicles (AGVs) are totally automated transport systems that are used in manufacturing of unmanned vehicles. The main function of these vehicles is to safely transport all types of products and materials without any human interference. Automated guided vehicles are widely being used in areas of production, logistics, warehousing, and distribution as they ensure profitability through efficient and accurate operations.
According to the e-commerce Europe report, the region's online-sales increased by 13% in 2019, and total sales were valued at EUR 621 billion, and 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 is investing over EUR 70 million in its European warehousing and logistics network. Its new logistics centre is expected to be built in Rotenburg/ Wumme (Lower Saxony), with an area of 36,000 square meters and store up to 20,000 metric ton of materials. Such developments in the region are driving the demand for AGV.
Increasing automation solution in material handling process
Better-quality technology in the material handling process has permitted industries to have linked factories, leading to the acceptance of automated material handling operations with the help of advancements such as Big Data, machine learning, and others. This allows them to have more flexible production processes, better quality control, and better labor management. As the e-commerce sector is growing across the world, the use of automated material handling systems is also increasing its presence. In addition, the increasing demand for automation is further rising in the automotive, healthcare, e-commerce, and food and beverage industries due to the general requirement for high efficiency. Additionally, AGV-enabled industrial facility automation may assist satisfy material handling capacity needs while also lowering production time, minimizing the risk of human mistakes, improving safety, assuring high production volumes, and boosting precision and repeatability.
High Maintenance Cost
As automated guided vehicles can decrease labour, erroneous, and wastage costs significantly, the maintenance cost necessary for optimal performance of these vehicles may act as a restraining factor. Initial investment in AGVs can be burdensome for smaller operations and could be more expensive than hiring personnel for similar tasks. These vehicles are not suitable for non-repetitive tasks, which can be normally performed by staff operating forklifts.Like any other equipment, AGVs require routine maintenance and occasional repair. Increased dependency on AGVs can hinder daily operations at the time of maintenance, which can result in losses if not handled carefully. This might limit the adoption of automated guided vehicles in emerging markets.
Growing preference for mobile robots over AGVs in retail and e-commerce industries
The e-commerce and retail industries are extremely dependent on the logistics sector for their smooth operations. For improving their operational efficiency the companies in the e-commerce and retail industries are choosing automated material handling equipment. In the e-commerce industry, companies are using mobile robots for automating warehouse operations.Mobile robots are used as self-driving logistics vehicles for indoor operations in the e-commerce and retail industries. They offer a new approach to warehouse automation because of their features such as mobile shelves, robotic drive units, sophisticated control software, and workstations to automate pick, pack, and ship processes.
The on-time technical challenges related to any detecting element in material handling equipment could stop the complete process. For example, an AGV will not respond to provided commands efficiently if the sensing element of the AGV is not installed correctly. Failure of the sensor in this system would stop the entire process as a sensor is the most critical element of any AGV system for navigation and other operations. Besides, any fault in the control software may lead to improper functioning of the AGVs; this could delay the entire production process. Mechanical failures can result from improper maintenance, causing loss of production and performance.
Many businesses have suffered or are experiencing losses, owing to a production gap due to statewide imposed lockdowns to stop the virus transmission. The manufacturing industry witnessed a significant drop in earnings and income as a result of the COVID-19 pandemic. Business operations have seen a large reduction in workforce, resulting in overall loss in manufacturing activity. Due to significant layoffs, financial difficulties, and attrition, small & medium enterprises (SMEs) were the worst impacted. Furthermore, during such instability, the deployment & industrial automation of AGVs played a critical role in safeguarding enterprises to achieve their production goals. The pandemic has formed several opportunities for this industry by enabling businesses to continue operating. However, industry operations are rising as a result of mass vaccination in numerous nations. The market is anticipated to exhibit remarkable growth rate in the future, owing to increase in demand for contact less and effective logistics infrastructure.
The Vision Guidancesegment is expected to be the largest during the forecast period
The Vision Guidance segment is expected to be the largest during the forecast period. As vision-guided vehicles learn a route by "seeing" as it travels through the 360-degree in-built camera. The visual record is then transformed into computer code. The vehicle then can respond to directions, recognizing routes by matching what it sees to what it learned.
The lead segment is expected to have the highest CAGR during the forecast period
The lead segment is expected to have the highest CAGR during the forecast period. These batteries have low-cost advantages over other battery types. Moreover, it offers good reversibility, stable voltage, and long service life, and is suitable for an extensive range of applications.
Region with highest share:
North America is projected to hold the largest market share during the forecast period,owing to an increase in expenditure across the U.S. and Canada. Also, the U.S is witnessing continuous growth in import and export activities. Moreover, the modern manufacturing facilities in North America rely on technological innovation to maximize the product's quality. The presence of major companies in the province is driving revenue growth of the regional market. Manufacturers are relying on modern technology and innovations to manufacture improved products at lower expense and faster time.
Region with highest CAGR:
Asia Pacific is projected to have the highest CAGR over the forecast period. The province growth is supported by the increasing manufacturing and logistics activities in the emerging countries such as China and India. The flourishing manufacturing and automobile sectors in the region are expected to spur the demand for the market growth.The e-commerce industry has been growing considerably in emerging economies of the Asia Pacific region, such as China and India. For instance, in October 2021, Shenzhen Casun Intelligent Robot Co., Ltd., an automation machinery manufacturing company, launched CASUN Intelligent Robot "little giant." The CASUN's self-deployed intelligent control lets AGV perform in and out of the warehouse to achieve and fulfill the loading and unloading in various industries. Such a surge in the e-commerce industry is encouraging several e-commerce companies to consider a foray into these regional markets.
Key players in the market
Some of the key players profiled in the Automated Guided Vehicles Market include KonecranesMotum, ABB Ltd, Daifuku Co., Ltd, Seegrid Corporation, Fetch Robotics, Transbotics Corporation, Savant Automation, SSI Schaefer Systems International DwcLlc, KUKA Group, Jungheinrich Group, Murata Machinery, Dematic Corp, Toyota Material Handling, John Bean Technologies (Jbt) Corporation, Addverb Technologies, Swisslog Holding, AmerdenInc and Oceaneering AGV Systems.
In March 2020:Seegrid Corporation announced to raise a fund of USD 25 million by venture capital firm G2VP. The company mentioned that the funding was driven due to the COVID-19 outbreak, and the industry requires non-essential workers to follow social distancing regulations coupled with industrial roles that require people to be present physically.
In April 2019:Daifuku Co., Ltd. acquired Vega Conveyors & Automation. The latter company is involved in designing, consulting, installation, manufacturing, and after-sales service of conveyors and other equipment within its domestic market in India..
Battery types Covered:
Navigation Technologies Covered:
End Users Covered:
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Note: Tables for North America, Europe, Asia Pacific, South America & Middle East & Africa, regions are also represented in the same manner as above.