Automated Guided Vehicle Market by Type (Tow Vehicles, Unit Load Carriers, Forklift Trucks, Assembly Line Vehicles, Pallet Trucks), Navigation Technology (Laser Guidance, Magnetic Guidance, Vision Guidance), Industry, Region - Global Forecast to 2028
The automated guided vehicle market size is estimated to be valued USD 2.4 billion in 2023 and is anticipated to reach USD 3.3 billion by 2028, at a CAGR of 6.9% during the forecast period. The market growth is ascribed to rising demand for automation solution in a variety of industries, increased focus on enhancing workplace safety, and marked shift to mass customization from mass production.
Automated Guided Vehicle Market Forecast to 2028
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Automated Guided Vehicle Market Trends
Driver: Rising demand for automation solution in a variety of industries
The market for automated guided vehicle (AGVs) is being significantly stimulated by the rising demand for warehouse automation. The overall need for high efficiency in the automotive, healthcare, e-commerce, food & beverages, logistics, and manufacturing industries is increasing the demand for automation. AGV-enabled automation of industrial facilities can help meet the requirements related to material handling capacity, along with reducing production time, lessening the chances of human errors, enhancing safety, ensuring high production volumes, and increasing accuracy and repeatability.
The use of AGVs enables just-in-time (JIT) delivery of raw material, computerized control of received assembled parts, and tracking of shipped articles. AGVs help store, distribute, and transport material without human intervention, thereby ruling out the possibilities of injuries to workers and damage to products and also with greater accuracy. Further, AGVs reduce labor costs for long-term perspective in warehouses in many ways. For instance, by replacing a human worker with an AGV, a company pays a one-time expense for the equipment—the initial investment—contrary to various ongoing costs relevant to labor.
Furthermore, the deployment of AGV enables companies in various industries to apply new technologies that would deliver immediate value and long-term returns. This trend is driving the need for information-enabled systems such as AGVs that can help industries to manage plant assets and make better operational decisions.
Restraint: Growing acceptance of AMRs over AGVs in e-commerce and retail industry
The logistics sector plays a crucial role in ensuring smooth operations for the e-commerce and retail industries. To enhance operational efficiency, companies in these sectors are increasingly turning to automated material handling equipment. In the realm of e-commerce, mobile robots have gained popularity as a means to automate warehouse operations.
Mobile robots serve as self-driving logistics vehicles for indoor tasks within the e-commerce and retail industries. Their suitability for these fast-paced sectors stems from their ability to handle unstructured environments more effectively and adapt their routes accordingly. Moreover, they can interact directly with people and manipulate objects, speeding up the picking and packing processes when compared to Automated Guided Vehicles (AGVs). Recent technological advancements have significantly improved the performance and reliability of mobile robots, making them a viable alternative. These portable solutions easily adapt to changes in product types, velocities, order prioritization, and other operational requirements, setting them apart from conveyors, AGVs, carousels, and traditional Automated Storage and Retrieval Systems (ASRS). Additionally, the installation and commissioning cost of mobile robots are lower than AGVs, and their ease of installation further adds to their appeal. As a result, these characteristics of mobile robots may restrain the widespread adoption of AGVs in the retail and e-commerce industries.
Opportunity: Rising deployment of Industry 4.0 in warehouses
Traditional industrial facilities are slowly evolving into smart, connected, and highly efficient automated facilities by adopting Industry 4.0 principles. Industry 4.0 is capable of converting an industrial facility into an autonomous plant. It combines computers, industrial automation solutions, and robotics to form a single automated unit. The network of connected devices creates a smart architecture capable of making decentralized decisions. The growth of Industry 4.0 is changing the functioning of warehouses. Industry 4.0 also aims to create an operational environment wherein humans and robots can work together efficiently. Furthermore, the integration of Industry 4.0 and robotics would transform processes into an industrial space with improved coordination between automation systems. This integration will facilitate time-critical, high-velocity operations at lower costs in the highly demanding and continuously evolving supply chain ecosystem.
The adoption of Industry 4.0 technologies in warehousing has enabled effective communication between warehouse operations. It increases the coordination between warehouse systems and helps warehouse operators perform time-critical and high-velocity operations at a lower cost in the highly demanding and continuously evolving supply chain ecosystem. This, in turn, is expected to create growth opportunity for AGVs.
Challenge: Low labor costs restricting adoption of AGVs in emerging economies
Low labor wage rates in emerging economies such as India, Bangladesh, and Tanzania restrict the adoption of automated technologies across industries in these countries. The automation of industrial facilities makes little or no economic sense in these countries where cheap labor is available in abundance. The average daily wage of a semiskilled worker in India is ~USD 3. In these emerging economies, automation in manufacturing facilities is less prevalent than in other developed countries since the cost advantage in labor trade-off with robots is less due to the availability of cheap labor. Emerging countries such as Bangladesh, Cuba, and Tanzania have very low average daily wages. Thus, companies in emerging countries are reluctant to invest in automated equipment, such as AGVs. Various operations in the manufacturing sector of emerging economies are carried out by human laborers as the combination of manual efforts with precise and semiautomatic machines proves to be profitable to them.
Market Ecosystem
Automated Guided Market Market: Key Trends
Daifuku, JBT, KION, Toyota Industries, KUKA are the top players in the AGV market. These AGV companies with advance robotics and AI technology trends and navigation technology with a comprehensive product portfolio and solid geographic footprint.
Tow vehicle segment accounted for the largest share of automated guided vehicle market in 2022
The tow vehicles segment held the largest share of the AGV market in 2022. Towing AGVs offer the advantage of simultaneously transporting multiple trolleys, leading to a reduced need for vehicles and increased productivity. These tow vehicles are specifically utilized in pallet operations that involve frequent long-distance deliveries, carrying substantial loads, and may or may not include intermediate pickup and drop points along the route. They are thoughtfully designed to operate at pre-programmed speeds, effectively meeting production targets while adhering to safety regulations. The growth of this segment can be attributed to the widespread adoption of these vehicles across various industries, including automotive, manufacturing, aerospace, and logistics. In these sectors, where the efficient and timely transportation of heavy loads is essential, towing AGVs have proven indispensable due to their numerous advantages.
Laser guidance navigation technology to account for the largest share in the market during forecast period.
The Laser guidance navigation technology account for the largest share in the market during forecast period. Laser guidance provides high accuracy and precision in AGV navigation, enabling them to navigate with exceptional precision and avoid obstacles effectively. Laser guidance technology's popularity stems from its ability to adapt and excel in various environments. Furthermore, its proven success and widespread implementation in industries like manufacturing, logistics, and warehousing solidify its market dominance. Technological advancements, such as improved sensors and software algorithms, continually strengthen its position in the market. The growth of this segment can be attributed to the flexibility, scalability, and accuracy offered by laser guidance technology. It also improves safety, increases throughput, and minimizes downtime.
Asia Pacific region to grow at a highest CAGR during the forecast period.
The AGV market in Asia Pacific has been segmented into China, Japan, Australia, South Korea, India, Malaysia, Taiwan, Indonesia, and Rest of Asia PAcific. Currently, the adoption of automated material handling systems in the industrial sector in Asia Pacific is moderate. The AGV market in Asia Pacific is expected to grow at the highest CAGR during the forecast period due to growing awareness about automation and its success among users, thereby encouraging more companies to invest in these vehicles. Moreover, the strong economic growth in this region is attracting further investments from AGV suppliers for establishing sales and support facilities. The growth of the AGV market in Asia Pacific can be attributed to the rising labor costs, need for scaling up production processes without compromising on quality standards, and incentives offered by the governments of various countries for industrial infrastructure improvement projects.
Automated Guided Vehicle Market by Region
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Key Market Players
The major companies in the Automated Guided Vehicle companies are Daifuku, JBT, KION, Toyota Industries, KUKA, Hyster-Yale Materials Handling, Oceaneering International and EK Robotics are among others. These companies have used both organic and inorganic growth strategies, such as product launches, acquisitions, and partnerships to strengthen their position in the automated guided vehicle market.
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Report Metric |
Details |
| Estimated Value | USD 2.4 billion in 2023 |
| Projected Value | USD 3.3 billion by 2028 |
| Growth Rate | CAGR of 6.9% |
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Years Considered |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD million/billion) |
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Segments Covered |
Type, Navigation Technology, Industry, and Region |
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Regions covered |
North America, Asia Pacific, Europe, and Rest of the World |
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Companies covered |
Daifuku (Japan), JBT (US), KION (Germany), Toyota Industries (Japan), KUKA (Germany). |
Automated Guided Vehicle Market Highlights
In this report, the overall automated guided vehicle market has been segmented based on Type, Navigation Technology, Industry, and Region
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Segment |
Subsegment |
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By Type |
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By Navigation Technology |
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By Industry |
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By Region |
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Recent Developments
- In April 2023, EK Robotics launched MEDI MOVE, a new transport platform for the health care industry. With its customized design and high performance, the MEDI MOVE has been designed Automated transport system in hospitals. This AGVs navigates through underground route networks as well as over several floors to deliver to hospital wards, sterile departments and nursing areas.
- In September 2022, Toyota Industries launched lift truck, an AI-based technology that automatically recognizes the location and position of trucks and loads and generates automated travel routes to perform loading operations.
- In April 2021, JBT lntroduced warehouse freezer AGV, which can operate in an array of temperatures, from -10ºF to 110ºF. Offering operations a lift capacity of 2,500 pounds, the automatic guided vehicle (AGV) features a triple stage hydraulic mast, which has an integrated side shift and tilt.
Frequently Asked Questions (FAQ):
What will be the global automated guided vehicle market size in 2023?
The automated guided vehicle market is expected to be valued USD 2.4 billion in 2023.
Who are the global automated guided vehicle market winners?
Companies such as Daifuku, JBT, KION, Toyota Industries, KUKA fall under the winners’ category.
Which region is expected to hold the highest global automated guided vehicle market share?
Europe will dominate the global automated guided vehicle market in 2023. The growth of the European AGV market is mainly driven by the significant investments made by automotive players in robotic systems and AGVs.
What are the major drivers of the automated guided vehicle market?
Rising demand for automation solution in a variety of industries, increased focus on enhancing workplace safety, and marked shift to mass customization from mass production.
What are the major strategies adopted by AGV companies?
The companies have adopted product launches, acquisitions, expansions, and contracts to strengthen their position in the market.
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The study involves four major activities that estimate the size of the automated guided vehicle market. Exhaustive secondary research was conducted to collect information related to the market. Following this was validating these findings, assumptions, and sizing with the industry experts across the value chain through primary research. Both top-down and bottom-up approaches were employed to estimate the overall size of the automated guided vehicle market. Subsequently, market breakdown and data triangulation procedures were used to determine the extent of different segments and subsegments of the market.
Secondary Research
Secondary sources in this research study include corporate filings (such as annual reports, investor presentations, and financial statements); trade, business, and professional associations; white papers, certified publications, articles from recognized authors; directories; and databases. The secondary data were collected and analyzed to estimate the overall market size, further validated by primary research. The relevant data is collected from various secondary sources, it is analyzed to extract insights and information relevant to the market research objectives. This analysis has involved summarizing the data, identifying trends, and drawing conclusions based on the available information.
Primary Research
In the primary research process, numerous sources from both supply and demand sides were interviewed to obtain qualitative and quantitative information about this report. The primary sources from the supply-side included various industry experts such as Chief X Officers (CXOs), Vice Presidents (VPs), and Directors from business development, marketing, product development/innovation teams, and related key executives from automated guided vehicle providers, (such as Daifuku, JBT, KION, Toyota Industries, KUKA) research organizations, distributors, professional and managed service providers, industry associations, and key opinion leaders. Approximately 25% of the primary interviews were conducted with the demand side and 75% with the supply side. These data were collected mainly through questionnaires, emails, and telephonic interviews, accounting for 80% of the primary interviews.
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Market Size Estimation
In the market engineering process, both top-down and bottom-up approaches were implemented, along with several data triangulation methods, to estimate and validate the size of the automated guided vehicle market and other dependent submarkets listed in this report.
- The key players in the industry and markets were identified through extensive secondary research.
- Both the supply chain of the industry and the market size, in terms of value, were determined through primary and secondary research.
- All percentage shares, splits, and breakdowns were determined using secondary sources and verified through primary sources.
Market Size Estimation Methodology-Bottom-up Approach
Data Triangulation
After estimating the overall market size, the total market was split into several segments. The market breakdown and data triangulation procedures were employed wherever applicable to complete the overall market engineering process and gauge exact statistics for all segments. The data were triangulated by studying various factors and trends from both the demand and supply sides. The market was also validated using both top-down and bottom-up approaches.
Market Definition
Automated guided vehicles (AGVs) are portable, automatic vehicles and load carriers that can travel on the floor without a manual operator. They are used for material handling in various industries. These vehicles safely handle and transport all kinds of products, eliminating the requirement for human intervention in production, logistic, warehouse, and distribution environments. They increase the efficiency and productivity of industries, as well as reduce product damages and labor costs. AGVs are an integral part of manufacturing processes and are indispensable in the material handling industry.
The AGV ecosystem comprises manufacturers of AGV products and solutions. The AGV market is diversified, consisting of companies from different regions of the world competing across its value chain to sustain their position and increase their market share. The AGV market is likely to witness significant growth in the coming years due to the surging demand for automation in the automobile, e-commerce, healthcare, and other key industries.
Stakeholders
- AGV manufacturers
- End users
- Government bodies, venture capitalists, and private equity firms
- Manufacturers of sensors, microcontrollers, RFID modems, and related accessories
- Material handling associations
- Professional service/solution providers
- Research institutions and organizations
- Standards organizations and regulatory authorities related to the material handling industry
The main objectives of this study are as follows:
- To define, describe, and forecast the global automated guided vehicle (AGV) market, in terms of value, by type, navigation technology, region, and industry
- To forecast the market size, in terms of value, by region—North America, Europe, Asia Pacific (APAC), and the Rest of the World (RoW)
- To provide detailed information regarding the major factors influencing the growth of the market, namely, drivers, restraints, opportunities, and industry-specific challenges
- To strategically analyze the micromarkets1 with respect to individual growth trends, prospects, and contributions to the total market
- To study the complete value chain of the AGV ecosystem, along with market trends and use cases
- To analyze opportunities in the market for stakeholders by identifying high-growth segments of the global AGV market
- To strategically profile key players and comprehensively analyze their core competencies2 along with detailing the competitive landscape for market leaders
- To analyze competitive developments such as product launches, acquisitions, partnerships, and expansions in the global AGV market
- To benchmark market players using the company evaluation quadrant, which analyzes players based on various parameters within broad business categories and product strategies
Available Customizations:
With the given market data, MarketsandMarkets offer customizations according to the specific requirements of companies. The following customization options are available for the report:
Country-wise Information:
- Analysis for additional countries (up to five)
Company Information:
- Detailed analysis and profiling of different market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Automated Guided Vehicle Market