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The Automated Guided Vehicle (AGV) Software Market size is projected to increase by USD 450.49 million, at a CAGR of 9.88% between 2023 and 2028. The growth rate of the market depends on several factors, including the growing e-commerce industry, the need to improve warehouse operational efficiency, and rising digital transformation. Automated guided vehicle (AGV) software is the brains behind the brawn of AGVs. It's a complex set of programs that controls the navigation, safety, and traffic management of these driverless vehicles, enabling them to move materials autonomously within warehouses, factories, and other facilities.
The report includes a comprehensive outlook on the market offering forecasts for the industry segmented by Type, which comprises in-built vehicle software and integrated software. Additionally, it categorizes End-user into distribution and logistics, food and beverages, automotive, retail, and others and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD million for each of the mentioned segments.
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The growing e-commerce industry is notably driving market growth. With an increasing number of users looking to buy products online, vendors need to expand their order processing capacities in warehouses and distribution centers. The number of warehouses and distribution centers has increased rapidly over the last few years. The global e-commerce industry has been recording an annual growth rate of more than 10%. China, India, the US, the UK, Germany, France, and Japan are the largest e-commerce markets and are recording rapid growth. Moreover, the increasing vendor capacity to deliver items in the shortest possible time, maintain accuracy in order processing to minimize product returns, and offer services with low costs is driving the growth of the automated guided vehicle (AGV) software market.
For instance, Amazon.com (through Amazon Prime) offers its members free two-day shipping. Vendors can achieve this target by incorporating AGV software in their operations. The demand for AGVs and AGV software has increased because of the significant growth of the e-commerce industry. These factors will drive the growth of the market during the forecast period.
The increasing number of fulfillment centers worldwide is an emerging trend shaping market growth. The growing e-commerce industry and the rise of omnichannel distribution systems have increased the number of orders processed per day, which results in immense pressure on e-commerce vendors. AGVs help vendors in the e-commerce industry process orders at a fast rate. The growth of the e-commerce industry is driving the demand for AGVs (including software) in facilities.
Moreover, various logistics service providers are expanding their network facilities to capture the growing logistics market. For instance, DHL is planning to automate most of its distribution centers across the world, which will use highly automated systems to improve efficiency, save money, and maximize space use for operations. Therefore, the demand for AGV software is on the rise and is expected to follow the same growth trajectory during the forecast period.
Resistance to adopt new technologies related to AGV software is a significant challenge hindering the market growth. Many industries, such as manufacturing, retail, transportation and logistics, and healthcare, are facing several challenges associated with the adoption of modern technologies for warehouse management. Many project teams are reluctant to adopt new technologies as most of the construction firms rely on traditional manual warehouse management techniques that are not software-based or automated. However, with the emergence of advanced technologies, firms are facing difficulties in transitioning from conventional applications to advanced automated applications.
Moreover, the emergence of new technologies has heightened the level of responsibilities for companies as they must remain updated with the latest ones for them to be able to adopt the systems. Therefore, the resistance among end-user firms to shift to the advanced versions of AGVs is expected to pose a major challenge to the growth of the market during the forecast period.
The market share growth by the in-built vehicle software segment will be significant during the forecast period. This is due to the increasing popularity of AGVs among end-user industries such as manufacturing, distribution and logistics, retail, and automotive. AGVs such as unit load carriers, tow vehicles, pallet trucks, and assembly line machines use in-built vehicle software such as navigation and management software. The software guides vehicles on the shop floor and helps in performing transportation operations.
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The in-built vehicle software segment was the largest and was valued at USD 359.24 million in 2018. The growth momentum of the in-built vehicle software segment is increasing due to the high adoption of AGVs among end-user industries such as automotive, manufacturing, retail, etc., and customization options available in the software at the operational level. Dynamic routing and large warehouse areas slow down the operations of end-user warehouses. AGVs, with the help of in-built vehicle software, such as navigation and management software, assist in quick task performance. These AGVs also reduce labor costs. These factors have been driving the growth of the in-built vehicle software segment, which will drive the growth of the market during the forecast period.
The distribution and logistics segment plays an important role in the smooth operation of supply chains across a variety of industries. As companies look to become more efficient and cost-effective, the integration of AGV software is becoming increasingly important within the distribution and logistics segment. AGVs equipped with cutting-edge software solutions provide a sophisticated solution for managing material handling tasks within warehouses, distribution centers, and logistics facilities. Further, the software solutions address the unique needs of efficient warehouse administration, order handling, and transportation scheduling. By taking a focused approach, AGV technologies are tailored to meet your distribution and logistics needs, increasing efficiency and reducing costs. These factors under the distribution and logistics segment will propel the growth of the market during the forecast period.
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APAC is estimated to contribute 39% to the growth of the global market during the forecast period. Technavio's analysts have provided extensive insight into the market forecast, detailing the regional market trends and analysis along with drivers influencing the market's trajectory throughout the forecast period. APAC is an attractive market for automated guided vehicle software market because of its high growth potential. The automated guided vehicle software market is expected to record substantial growth in APAC during the forecast period because of the rapid adoption of technologies across industries and an influx of SMEs in the region. The late adoption of technologies and the overall maturity of the industrial sector are the main reasons for APAC lagging behind North America and Europe. The in APAC is in its early growth stage, and China dominates it. The key industrial countries, including Japan and South Korea, have recently launched initiatives for the industrial automation revolution.
In addition, China is the largest country for manufacturing in the world. Therefore, the demand for smart processes in manufacturing operations is increasing in China. The steady economic growth in APAC is also positively influencing the development of smart cities. This is augmenting the growth of the automated guided vehicle software market in APAC during the forecast period.
The market forecasting report includes the adoption lifecycle of the market research and growth, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Alstef Group SAS - The company offers automated guided vehicle solutions that integrate a transit network of conveyors integrated with complementary and often inseparable systems with support quality control.
Balyo SA - The company offers automated guided vehicles such as Very Narrow Aisles, Stackers, and Counterbalanced stacker for material handling that can help warehouses increase efficiency.
Daifuku Co. Ltd - The company offers automated guided vehicle system which offers flexible movement of materials without human intervention for a variety of industries and various production phases such as raw material supply to production lines according to schedule.
The Market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Automated Guided Vehicle (AGV) Software Market Scope |
|
Report Coverage |
Details |
Page number |
179 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 9.88% |
Market Growth 2024-2028 |
USD 450.49 million |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
8.07 |
Regional analysis |
APAC, North America, Europe, South America, and the Middle East and Africa |
Performing market contribution |
APAC at 39% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alstef Group SAS, Balyo SA, Daifuku Co. Ltd, Danaher Corp., E80 GROUP SPA, Gotting KG, Honeywell International Inc., Hyster Yale Materials Handling Inc., John Bean Technologies Corp., KION GROUP AG, KMH Fleet Solutions, KUKA AG, Murata Machinery Ltd., Oceaneering International Inc., Scott Technology Ltd., Seegrid Corp., TALUMIS BV, TGW LOGISTICS GROUP GmbH, Toyota Industries Corp., and SSI Schafer IT Solutions GmbH |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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