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The automated guided vehicle (AGV) market size is estimated to grow at a CAGR of 8.97% between 2022 and 2027, and the size of the market is forecast to increase by USD 1,395.15 million. The growth of the market depends on several factors, such as the rapid growth in e-commerce retail, the growing adoption of automation in the manufacturing process, and the need to improve warehouse operational efficiency.
This report extensively covers market segmentation by product (unit load carrier, tow vehicle, pallet truck, assembly line vehicle, and others), end-user (automotive, food and beverages, electronics and electrical, pharmaceuticals, and others), and geography (Europe, APAC, North America, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2022 to 2027.
Global Automated Guided Vehicle (AGV) Market Customer Landscape
Our researchers studied the data for years, with 2022 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market. Although there has been a disruption in the growth of the market during the COVID-19 pandemic, a holistic analysis of drivers, trends, and challenges will help companies refine marketing strategies to gain a competitive advantage.
The rapid growth in e-commerce retail is notably driving the AGV market growth. Consumer preferences are rapidly shifting from traditional retail to e-commerce due to various factors such as a diverse portfolio of product offerings, competitive pricing, and shopping convenience. E-commerce is experiencing significant growth not only in developed markets such as the United States but also in emerging markets such as India and China, with several key players such as Amazon Inc. and Walmart Inc. expanding their presence across emerging markets in APAC, which will grow the market.
Moreover, with substantial growth in the popularity of e-commerce retail, there is an increasing requirement for warehouses and distribution centers, especially in emerging markets. Thus, the growth in e-commerce retail is expected to continue to drive the growth of the global AGV market during the forecast period.
Rising warehouse automation is the key trend driving the AGV market growth. The end-users of consumer goods are demanding products with different packaging proportions. The different array of packaging systems is increasing the SKUs in the warehouses of consumer goods. The rising SKU proliferation is increasing warehouse automation across the globe. To maintain many such SKUs, manufacturers of consumer goods will be facing productivity and cost-effectiveness issues. This is prompting manufacturers and wholesalers to opt for automated warehouses.
Moreover, warehouse automation will increase the speed and accuracy of order fulfillment before the expiry of the products (in the case of perishable products such as food items). Moreover, warehouse automation can maintain the efficiency of the supply chain even in the case of seasonal demands for products. Automation of warehouses can also reduce the time in restocking the shelves. Such factors will increase the market growth during the forecast period.
The major challenge impeding the AGV market growth is the fluctuating prices of raw materials. Raw materials and parts used in the manufacture and construction of AGVs include structural steel, forged and worked steel bars, steel tubes, steel bars, electric motors, reducers, bearings, and other electromechanical components. Steel is one of the most important raw materials for manufacturing various AGVs. Since steel is obtained from iron ore, fluctuations in iron ore prices directly affect steel prices.
For instance, the price of iron ore increased by about 90% in July 2019 compared to January 2019. As the prices of raw materials have reached a threshold limit, raw material suppliers are compelled to pass on the increased price to their downstream industries. Such decisions made by raw material suppliers are affecting the growth of various industries as well as handling and lifting equipment manufacturers. This is expected to be a challenge for the growth of the global AGV market during the forecast period.
Vendors 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.
Aichikikai Techno System Co. Ltd.: The company offers automated guided vehicle through its subsidiary Aichi Machine Industry Co. Ltd.
Atab Automationsteknik AB: The company offers automated guided vehicle through its subsidiary Aichi Machine Industry Co. Ltd.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market vendors, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies vendors into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Vendors are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The unit load carrier segment will account for a major share of the market's growth during the forecast period. Unit load carriers are designed to function in industrial environments to move high volumes of materials, and they are used in manufacturing and assembly operations for horizontal transportation. They are integrated with conveyors or storage retrieval systems.
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The unit load carrier segment was valued at USD 687.12 million in 2017 and continued to grow until 2021. Unit load carriers are mainly used in warehouses where guideways are relatively short and large amounts of material are involved. The loading and unloading functions of unit load carriers are performed manually or by other automated equipment such as cranes, forklifts, and trucks. Transport materials on pallets, drums, carts, slip sheets, and boxes. Unit load carriers are in great demand as they can move more loads compared to a single forklift. Intentional electronic activities and measures to ensure worker safety in warehouses are some of the factors expected to drive the demand for unit load carriers. Such factors will increase segment growth during the forecast period.
Based on end-user, the market has been segmented into automotive, food and beverages, electronics and electrical, pharmaceuticals, and others. The automotive segment will account for the largest share of the end-user segment. The automotive industry has been one of the early adopters of AGVs due to their ability to increase efficiency, reduce costs, and improve safety in manufacturing and logistics processes. AGVs are used in various applications within the automotive industry, such as material handling, assembly line, maintenance, and warehousing, and logistics. Overall, the automotive industry is one of the major end users of AGVs and is expected to continue to drive the growth of the global automated guided vehicle market in the forecast period.
Europe is estimated to contribute 36% to the growth by 2027. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Europe sees strong demand for large warehouse spaces. There is also a growing demand for warehouses near major cities to support last-mile delivery models. In Europe, the demand for warehouse space is increasing among e-commerce players, with the rise in online sales has increased the demand for warehouse space in the region. This has increased demand for his AGVs in Europe. Increasing adoption of AGVs and continued growth in the business sector are also fueling the demand for AGVs in the region. Moreover, the European energy industry is undergoing a major transformation with investments in smart grids and renewable energy. Several European countries have plans to increase the share of renewable energy in their energy mix in order to reduce CO2 emissions from fossil fuels. Such factors will increase the market growth during the forecast period.
The COVID-19 pandemic had a significant impact on the European automated guided vehicle market, both in terms of short-term disruptions and long-term trends. However, the easing of lockdowns since Q4 2020 and the initiation of stage-wise COVID-19 vaccination drives have resulted in the resumption of business activities. Vendors operated as per the guidelines laid down by regulatory bodies in the region. Hence, the global market for automated guided vehicles is expected to gain momentum and grow during the forecast period.
The automated guided vehicle market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Automated Guided Vehicle (AGV) Market Scope |
|
Report Coverage |
Details |
Page number |
186 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.97% |
Market growth 2023-2027 |
USD 1,395.15 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.52 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 36% |
Key countries |
US, Japan, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aichikikai Techno System Co. Ltd., Atab Automationsteknik AB, Balyo SA, Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., Dearborn Mid West Co., ek robotics GmbH, Fritz SCHAFER GmbH and Co KG, Groupe Gorge, Hitachi Ltd., Hyster Yale Materials Handling Inc., John Bean Technologies Corp., KION GROUP AG, Meidensha Corp., MIDEA Group, Murata Machinery Ltd., Oceaneering International Inc., Scott Technology Ltd., Seegrid Corp., and Toyota Industries Corp. |
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 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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