Europe Automated Guided Vehicle (AGV) Market
Europe Automated Guided Vehicle (AGV) Market by Type (Tow Vehicles, Unit Load Carriers, Pallet Trucks, Assembly Line Vehicles, Forklift Trucks), Navigation Technology (Laser, Magnetic, Inductive, Optical Tape, Vision) – Forecast to 2032
OVERVIEW
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
The Europe automated guided vehicle (AGV) market is expected to grow from USD 0.87 billion in 2026 to USD 1.37 billion by 2032, at a CAGR of 7.9%. Growth is driven by rising automation in manufacturing and warehousing, high labor costs, and a growing focus on safety and operational efficiency. AGVs are widely used for internal material transport, pallet handling, and production supply across automotive, food and beverage, e-commerce, pharmaceuticals, and logistics/3PL facilities. Improvements in navigation technologies, fleet management software, and system monitoring are enhancing reliability and ease of deployment. Continued investment in factory modernization and regional distribution infrastructure is supporting steady AGV adoption across Europe.
KEY TAKEAWAYS
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BY COUNTRYThe market in Germany is expected to grow at the highest CAGR of 9.4% during the forecast period.
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BY TYPEPallet trucks are expected to grow at a significant CAGR in Europe, driven by their flexible pallet-handling capabilities and rising adoption across automated warehouses, manufacturing plants, and distribution facilities.
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BY INDUSTRYIn Europe, the automotive segment is expected to account for 22.5% of the automated guided vehicle (AGV) market by 2032, supported by sustained adoption across vehicle manufacturing operations.
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COMPETITIVE LANDSCAPE - KEY PLAYERSDaifuku Co., Ltd., KION GROUP AG, and KUKA were identified as key players in Europe's automated guided vehicle (AGV) market, supported by their strong regional footprint and broad AGV portfolios aligned with factory automation, internal material flow optimization, and the growing demand for reliable, scalable intralogistics solutions across Europe.
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COMPETITIVE LANDSCAPE - STARTUPS/SMESNEURA Mobile Robots GmbH and BALYO, among others, have established strong positions among startups and SMEs in Europe's automated guided vehicle (AGV) market by focusing on specialized automation niches. Their growth is supported by targeted AGV solutions for warehouse, manufacturing, and logistics applications, meeting demand for flexible deployment, software-driven control, and scalable intralogistics automation across European facilities.
The European automated guided vehicle (AGV) market is poised for steady growth as manufacturers and logistics operators expand automation in internal material transport. A rising focus on consistent material flow, operational efficiency, and workplace safety is driving AGV adoption for pallet movement, production supply, and warehouse transport. Improvements in navigation technologies, fleet management software, and system coordination are enhancing deployment reliability and operational stability. As companies modernize existing factories and distribution facilities, AGVs are increasingly becoming a core component of scalable, efficient intralogistics automation across Europe.
TRENDS & DISRUPTIONS IMPACTING CUSTOMERS' CUSTOMERS
In Europe’s automated guided vehicle (AGV) market, the influence on clients' enterprises is primarily driven by the necessity to standardize internal material movement, enhance operational reliability, and oversee labor-intensive processes within manufacturing and warehousing settings. Organizations are increasingly adopting AGVs to automate material transportation, diminish manual handling, and promote workplace safety, all while sustaining stable multi-shift operations. The integration of AGVs with fleet management software, system visibility instruments, and condition-based monitoring systems is contributing to reductions in downtime, the control of operating costs, and overall system performance enhancement. These capabilities empower clients to optimize internal workflows, maintain consistent throughput, and modify operations with minimal disruption to facilities, thereby establishing AGVs as a vital facilitator of long-term efficiency and operational resilience throughout Europe.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
MARKET DYNAMICS
Level
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Expansion of warehouse automation across Europe driven by e-commerce, retail and Logistics/3PL operators
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Rising labor costs and workforce constraints accelerating adoption of automated material transport
Level
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High initial cost of AGV systems for small and mid-sized operators
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Longer implementation timelines in older facilities
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Rising demand for flexible AGVs that can be deployed in existing layouts
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Increased use of AGVs in regional distribution and fulfillment facilities
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Need to adapt AGV solutions to different facility layouts and operating practices
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Driver: Expansion of warehouse automation across Europe driven by e-commerce, retail and Logistics/3PL operators
Growth in e-commerce and omnichannel fulfillment is driving investment in automated warehouses across Europe. Logistics/3PL operators are deploying AGVs to handle higher order volumes, improve fulfillment reliability, and maintain consistent internal material flow, particularly in brownfield facilities with space constraints and high throughput requirements.
Restraint: High initial cost of AGV systems for small and mid-sized operators
AGV adoption requires upfront investment in vehicles, control software, and integration services, which can slow decision-making for operators with limited automation budgets.
Opportunity: Rising demand for flexible AGVs that can be deployed in existing layouts
Operators are showing strong interest in AGVs capable of operating in narrow aisles and mixed-traffic environments. Flexible deployment and scalability are making AGVs more attractive for gradual automation.
Challenge: Need to adapt AGV solutions to different facility layouts and operating practices
Facilities vary widely in layout and workflow, requiring project-specific configuration. This can increase engineering effort and extend deployment timelines.
EUROPE AUTOMATED GUIDED VEHICLE (AGV) MARKET: COMMERCIAL USE CASES ACROSS INDUSTRIES
| COMPANY | USE CASE DESCRIPTION | BENEFITS |
|---|---|---|
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KUKA supplies automated guided vehicles across Europe as part of flexible intralogistics and production automation solutions for manufacturing and warehouse environments. Its AGVs are deployed for internal material transport, line-side supply, work-in-process movement, and inter-station logistics within automotive, industrial manufacturing, and electronics facilities. KUKA integrates AGVs with production systems and factory automation platforms to support synchronized material flow within connected factory environments. | Improves production flow reliability and material handling precision across automated factories | Reduces manual transport dependency while supporting coordinated, digitally connected operations | Enables scalable automation aligned with smart factory and Industry 4.0 initiatives |
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KION Group AG delivers AGVs and automated industrial trucks across Europe to support warehousing, manufacturing, and distribution operations. Its solutions are used for pallet transport, warehouse replenishment, production supply, and internal logistics, supported by integrated fleet and control software. AGVs are deployed across mixed manual and automated environments to improve material flow consistency within existing facilities. | Enhances warehouse efficiency, traffic coordination, and material handling accuracy | Reduces reliance on manual forklift operations in labor-constrained environments | Supports flexible automation deployment across brownfield sites and multi-shift operations |
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SSI SCHAEFER provides AGVs as part of broader intralogistics solutions for warehouses, production supply, and distribution environments. Its AGVs support carton, bin, and pallet transport across goods-in, storage, production feeding, and shipping operations. Deployments are designed for phased automation and gradual scaling within existing warehouse layouts. | Improves internal material flow predictability and reduces manual handling across logistics and industrial facilities | Enables step-by-step automation with limited infrastructure changes | Supports scalable intralogistics operations aligned with changing throughput and layout requirements |
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET ECOSYSTEM
The Europe automated guided vehicle (AGV) market ecosystem is structured around a well-established network of AGV manufacturers, industrial automation suppliers, navigation and sensor technology providers, battery and drive system vendors, software developers, and system integrators. This ecosystem supports the full AGV lifecycle, from system design and customization to commissioning, operation, and long-term support across factories and warehouses. Europe’s strong base in industrial engineering, automation software, and safety systems enables effective integration within complex and legacy environments. Close coordination between AGV OEMs and local integrators supports accurate system configuration, reliable traffic control, and smooth connectivity with warehouse and manufacturing systems. This coordinated ecosystem improves deployment reliability, supports phased automation upgrades, and enables steady adoption of advanced AGV solutions across Europe.
Logos and trademarks shown above are the property of their respective owners. Their use here is for informational and illustrative purposes only.
MARKET SEGMENTS
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
Europe Automated Guided Vehicle (AGV) Market, By Industry
Logistics/3PL is expected to grow at the highest CAGR in the Europe automated guided vehicle (AGV) market, supported by expanding e-commerce activity, cross-border distribution requirements, and rising labor costs across warehouse operations. Logistics service providers are increasingly deploying AGVs to automate pallet movement, internal transport, and order consolidation within multi-client facilities, improving throughput stability and service reliability. AGVs also enable greater operational flexibility, allowing Logistics/3PL operators to adapt layouts and scale capacity without major infrastructure changes while maintaining predictable operating costs.
Europe Automated Guided Vehicle (AGV) Market, By Type
Pallet trucks are expected to grow at a significant CAGR in the Europe automated guided vehicle (AGV) market, driven by their widespread use in pallet handling, internal transport, and warehouse operations across manufacturing, logistics, and distribution facilities.
Europe Automated Guided Vehicle (AGV) Market, By Payload Capacity
Medium-duty AGVs are expected to hold a significant share of the Europe market, driven by their balanced payload capacity, operating efficiency, and suitability across a wide range of industrial and logistics applications. These AGVs are widely used for pallet transport, line feeding, and internal material movement, offering reliable performance without the complexity or cost of heavy-duty systems.
REGION
Germany to be fastest-growing country in Europe automated guided vehicle (AGV) market during forecast period
By country, Germany is expected to register the fastest CAGR in the Europe automated guided vehicle (AGV) market, supported by high automation maturity, strong industrial activity, and continued modernization of manufacturing and logistics facilities. The rising focus on operational efficiency, safety, and reliable internal material flow is accelerating AGV adoption across both production and warehouse environments.
EUROPE AUTOMATED GUIDED VEHICLE (AGV) MARKET: COMPANY EVALUATION MATRIX
In the Europe automated guided vehicle (AGV) market matrix, KION GROUP AG (Star) and KUKA (Star) are positioned as leading players. KION GROUP AG leads with a broad portfolio of AGVs and automated industrial trucks, strong fleet-control software, and deep integration with warehouse management and manufacturing execution systems, enabling reliable deployment in mixed manual and automated environments. KUKA strengthens its position with robotics-led AGV solutions tightly integrated into production automation and smart factory architectures, backed by strong system engineering expertise and proven execution in complex, production-intensive European manufacturing environments.
Source: Secondary Research, Interviews with Experts, MarketsandMarkets Analysis
KEY MARKET PLAYERS
- KION Group AG
- KUKA
- Daifuku Co., Ltd.
- Toyota Industries Corporation
- SSI SCHAEFER
- JBT
- Scott
- NEURA Mobile Robots GmbH
- Hyster-Yale, Inc.
- MITSUBISHI LOGISNEXT CO., LTD.
- Jungheinrich AG
MARKET SCOPE
| REPORT METRIC | DETAILS |
|---|---|
| Market Size in 2025 (Value) | USD 0.82 Billion |
| Market Forecast in 2032 (Value) | USD 1.37 Billion |
| Growth Rate | CAGR of 7.9% from 2026-2032 |
| Years Considered | 2021-2032 |
| Base Year | 2025 |
| Forecast Period | 2026-2032 |
| Units Considered | Value (USD Billion), Volume (Thousand Units) |
| Report Coverage | Revenue forecast, company ranking, competitive landscape, growth factors, and trends. |
| Segments Covered |
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| Countries Covered | Germany, UK, France, Italy, Spain, Netherlands, Rest of Europe |
DELIVERED CUSTOMIZATIONS
We have successfully delivered the following deep-dive customizations:
| CLIENT REQUEST | CUSTOMIZATION DELIVERED | VALUE ADDS |
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| E-commerce Operator / 3PL Provider |
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| Automotive / Industrial Manufacturer |
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| Retail/Food & Beverage Operator |
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RECENT DEVELOPMENTS
- November 2025 : Dematic expanded its AGV portfolio with the launch of the RTS 120 Reach Truck Series AGV, designed for high-bay, single-selective racking environments. The driverless reach truck handles loads up to 1,200 kg and lifts to heights of up to 10 meters, enabling precise, safe high-bay pallet handling. Engineered for existing warehouse layouts, the RTS 120 integrates with Dematic’s MANAGE+ AGV warehouse control software and supports operations in ambient, chilled, and freezer environments.
- May 2025 : KION opened a highly automated Regional Distribution Center (RDC) in Kahl am Main. The 22,000 m² facility features a fully automated high-bay warehouse, a multishuttle system, conveyors, AMRs, and Linde industrial trucks. The center improves spare parts supply efficiency, strengthens supply chain resilience and sustainability, and supports customers across Central Europe.
- December 2024 : SSI SCHAEFER was appointed as the general contractor for intralogistics at Losan Pharma’s new manufacturing and logistics facility in Germany. The scope includes a fully automated high-bay silo warehouse, storage and retrieval machines, conveyor systems, and automated guided vehicles (AGVs) supplied by DS Automotion. The AGVs support material transport between pallet lifters, conveyor systems, and production areas, with system integration into SAP EWM to enable automated, production-linked logistics operations.
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Growth opportunities and latent adjacency in Europe Automated Guided Vehicle (AGV) Market