December 5, 2023

Automated Guided Vehicles (AGV) Market Growth Trends and Forecast: Revolutionizing Industrial Automation

Automation has ushered in a new era in the industrial sector, transforming the way businesses operate. Over the past few decades, machines have replaced human labor, becoming the profit centers that deliver tasks with unparalleled efficiency and precision. This shift has not only reduced accidents and fatalities but has also significantly boosted productivity while minimizing downtime and the need for constant monitoring.

Industrial manufacturers, warehouse operators, and logistics companies have long sought accuracy, flexibility, and enhanced productivity, making Automated Guided Vehicles (AGVs) a perfect fit for their needs. Despite sluggish global industrial sector growth, the AGV market has shown promise with a 2.1% expansion rate. Industries, storage facilities, warehouses, and logistics companies continue to prioritize increased efficiency, profit margin management, and cost reduction.

AGVs are commonly employed in manufacturing areas to transport raw materials and finished goods efficiently, ensuring the seamless movement of goods from warehouses to distribution points or end-users. Headways in AGV technology, driven by growing automation in the industrial sector and rising demand for accuracy, safety, reduced downtime, and minimal human error, have fueled market growth. The flourishing e-commerce industry and the proliferation of warehouses have further accelerated this growth.

Minimized labor costs and efforts to reduce product damage have made AGVs an attractive alternative to conventional methods of moving goods. The logistics industry has played a pivotal role, growing at nearly 8%-9%, creating significant opportunities for the AGV market. The need to optimize warehouse facilities and narrow aisles has also contributed to the rising demand for AGVs, addressing concerns about human error and product damage during goods movement.

The COVID-19 pandemic temporarily slammed the brakes on production units and disrupted supply chains worldwide. However, as the world gradually recovers, manufacturing sectors are reopening, and demand is approaching pre-pandemic levels. Increased online sales during the pandemic, particularly through e-commerce channels, have been a significant factor driving AGV demand.

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Automakers are actively investing in research and development to create cutting-edge AGVs with hybrid and electric drivetrains, promising more efficient and environmentally friendly solutions. Advancements in navigation methods, including laser and optic sensors, have led to precise and seamless operations in compact facilities with narrow aisles.

AGVs find applications in various industries, including defense, automotive, electronics, aerospace, pharmaceuticals, FMCG, chemicals, and plastics, among others. The retail sector, convenience stores, restaurants, hotels, grocery stores, and e-commerce businesses also benefit from AGVs.

The automated guided vehicles market is segmented based on types, applications, components, end-users, and battery utilization. Asian countries, including India, China, Japan, and South Korea, are spearheading market growth due to the rising e-commerce industry, which demands efficient logistics and warehouse management.

In this competitive landscape, key players are focusing on pioneering and deploying robotic technologies. Tech giants are collaborating with retail and logistics companies to redefine material handling, while retail companies are incorporating collaborative robots into their storage spaces. Business expansion, new product development, and pricing strategies are among the tactics employed by key players.

Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., JBT, Seegrid Corporation, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Balyo, E&K Automation Gmbh, Kollmorgen, KMH Fleet Solutions, Fetch Robotics, Inc., inVia Robotics, Inc., Locus Robotics, Schaefer Systems International Pvt Ltd, and System Logistics S.p.A. are some of the major manufacturers driving the global automated guided vehicles market.

In a world that increasingly values efficiency and precision, AGVs are poised to continue transforming industries, driving productivity, and delivering a brighter future for manufacturing, logistics, and warehousing.

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Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad