"The growing trend of industrial automation is anticipated to drive the AGV market"
The automated guided vehicle market size was valued at USD 810.4 million in 2015 and is expected to expand at a CAGR of 7.3% over the forecast period. Industries across the globe are emphasizing on increasing productivity and minimizing operational costs. AGVs enable industries in adopting lean manufacturing techniques, subsequently minimizing the waste incurred in the manufacturing processes.
Globally, high labor costs pose a major challenge for industries. With mounting labor costs around the world, it is becoming increasingly necessary for manufacturers to undertake efforts to increase their output per employee in order to stay competitive. Progression, in robotics and related manufacturing technologies, provides remarkable opportunities to increase productivity. However, the high initial set-up costs are expected to challenge the industry growth. The average cost of a single magnetic guided vehicle is approximately USD 100,000. The high initial investments have restricted AGV applications to small and medium-sized enterprises and for large corporations.
Asia Pacific AGV Market Revenue, By End-Use Industry, 2014 - 2024 (USD Million)
"Tow vehicles segment topped the total market in terms of revenue in 2015"
The tow vehicles segment accounted for 36.7% of the overall market share (in terms of revenue) in 2015. The segment is predicted to witness a considerable growth and is expected to reach 37.4% (in terms of revenue) by 2024.The ability to transport heavy loads coupled with improved material handling capabilities is fueling the demand for tow vehicles. The pallet trucks segment is anticipated to gain momentum with its increasing usage in distribution applications. The segment is expected to grow at a CAGR of 6.8% from 2016 to 2024.
"The requirement of minimum change, in the existing infrastructure, is anticipated to drive the adoption of natural navigation technology-based AGV"
The natural navigation technology is replacing the traction, gathered by Automated Guided Vehicles working on other technologies, as it eliminates the need for reflectors or markers for navigation. Moreover, such AGVs are highly flexible and facilitate on-demand delivery to any location. The AGVs, based on vision guidance navigation technology, in 2015, accounted for 36.7% of the overall market (in terms of revenue). As the vision guided vehicle can navigate without the use of lasers, wires, magnets, or tape and does not require infrastructure modification, their popularity has been increased worldwide in the recent past.
"The assembly and packaging application segment accounted for the highest market share"
The growing demand for assembly line vehicles and unit load carriers in the automotive and food & beverage industry is propelling the demand for automated guided vehicles in assembly and packaging applications. The segment accounted for 67.1% of the overall market share in 2015 (in terms of revenue).
"The healthcare industry is estimated to emerge as the fastest growing end-use industry"
Medical automated guided vehicles are emerging as new automation standards in the healthcare sector, as they facilitate efficient transport of medical equipment, patient meals, and surgical case carts, among others. The automobile end-use industry accounted for the highest share in 2015 in terms of revenue. The increased adoption across the automobile industry can be attributed to the escalating use of assembly line vehicles for auto parts assembly, engine, and transmission assembly lines.
"The Asia Pacific region is expected to observe the largest adoption of AGVs during the forecast period"
The Asia Pacific regional market is expected to witness a strong growth over the forecast period, owing to the increasing demand for AGVs in the automobile and the retail sectors. The augmentation of manufacturing companies, owing to the availability of cheap labor in the emerging countries such as India and China, is presumed to drive the market growth in the Asia Pacific region. The region accounted for 39.6% of the overall market share (in terms of revenue) in 2015. The segment is expected to account for 40.4% of the total market share (in terms of revenue) by 2024.
"Egemin Automation, Inc., Kiva Systems, Dematic Corporation, Kollmorgen Corporation, and JBT Corporation hold a significant market position"
The industry is highly competitive and is led by innovation. The major companies in the industry are focusing on inorganic growth strategies to expand their global presence. For instance, Dematic Corporation, in March 2016, acquired NDC Automation, a prominent provider of AGVs in Australia and New Zealand, to expand its presence in Australia. Few of the prominent players in the market include Swisslog Holding AG, Egemin Automation, Inc., Bastian Solutions, Inc., Daifuku Co., Ltd., Dematic Corp., JBT Corporation, Seegrid Corporation, Toyota Industries Corporation, Hyster-Yale Group, Inc., Baylo, Inc., EK Automation, Kollmorgen, and KMH Systems, Inc.
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