Automated Guided Vehicles (AGV) Market Report

Automated Guided Vehicles (AGV) Market Analysis Report By Type (Tow Vehicle, Unit Load Carrier), By Navigation Technology, By Application (Logistics & Warehousing), By End-use Industry, And Segment Forecasts, 2018 - 2025

  • Published Date: Sep, 2018
  • Base Year for Estimate: 2017
  • Report ID: GVR-1-68038-153-5
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2016
  • Number of Pages: 184

Industry Insights

The automated guided vehicles (AGV) market size was USD 2.0 billion in 2017 and is expected to register a CAGR of 16.5% from 2018 to 2025. AGVs can deliver numerous benefits, particularly augmenting the efficiency of warehousing operations and logistics management processes. Deploying them for repetitive material handling tasks can also allow enterprises to save on labor costs and reassign staff on other essential tasks, such as enhancing customer satisfaction.

Automated guided vehicles can carry out material handling operations reliably and effectively. These vehicles are equipped with various accessories and devices, such as smart sensors and load protection devices, which can aid in improving efficiency and reducing product damages. AGVs can also be programmed using software tools to follow specific paths and undertake specific tasks as well as track movement of goods in material handling and supply chain operations.

India AGV market

Tasks such as material handling, pallet handling, and finished product handling tend to involve safety concerns. Some material handling and pallet handling operations, particularly those requiring workers to handle heavy and bulky goods, are often labor-intensive and involve safety hazards. Deploying automated guided vehicles on such tasks can help in avoiding any potential mishaps or accidents and ensuring safer operations.

Although high initial costs can be a major concern for those considering deployment of automated guided vehicles, these high initial costs can translate into a high return on investment (ROI) in the long term. For instance, deploying five AGVs in three shifts can lead to potential savings worth USD 1.56 million during five years of operation. Moreover, the ROI can be realized within a mere 16 months.

Type Insights

Based on type, the market has been segmented into tow vehicle, unit load carrier, pallet truck, forklift truck, hybrid vehicles, and others. The unit load carrier segment is anticipated to grow at the highest CAGR over the forecast period.

The forklift truck segment is anticipated to expand at a notable CAGR of 18.0% from 2018 to 2025. Forklifts operated manually feature no built-in safety mechanism. Such forklifts rely on inputs given by their operators. Any errors in these inputs can lead to mishaps and accidents. Forklift automated guided vehicles can reduce the potential of any such incidences.

AGVs can also be deployed in working environments involving lower temperatures and exposure to hazardous chemicals, among others, which may not be safe for humans. Deployment of such equipment in chemical and pharmaceuticals industries can particularly help in reducing risks of contamination and extending shelf life of products.

Navigation Technology Insights

Based on navigation technology, the market has been segmented into laser guidance, magnetic guidance, vision guidance, inductive guidance, natural navigation, and others. While the laser guidance segment generated the highest revenue in 2017, the vision guidance segment is expected to exhibit the highest CAGR of 22.6% over the forecast period. Need for efficient and intelligent routing is contributing to the rising adoption of automated guided vehicles. Advances in computer vision and software solutions are allowing AGVs to better analyze the environment surrounding them in real time, thereby boosting its demand for operations in challenging environments.

Camera-based vision complemented by LiDAR sensors and computer systems installed on AGVs can help in ensuring accurate navigation within production facilities and warehouses. These cameras are capable of obtaining information in real time, detecting obstacles, and analyzing infrastructure within facilities. Information provided by these cameras and LiDAR sensors can help in creating a 3D image of the operational area.

Application Insights

Based on application, the automated guided vehicles market has been segmented into logistics and warehousing, assembly, packaging, trailer loading and unloading, raw material handling, and others. The logistics and warehousing segment has been further broken down into transportation, distribution, cold storage, wholesale and distribution, and cross-docking.

While the logistics and warehousing segment generated the highest revenue in 2017, the assembly segment is expected to witness a strong CAGR of 20.0% over the forecast period. Enterprises upgrading their existing facilities and building new facilities are aggressively adopting new retrieval and automated storage systems and other material handling equipment as part of their efforts to save on labor costs and enhance efficiency and productivity.

Global AGV market

Logistics and warehousing firms are trying to retain their competitiveness by opting for compact layouts, taller racks, and narrow aisles within their facilities. At the same time, they are also trying to boost the efficiency of their operations in line with rising demand for their services. These firms are deploying automated guided vehicles as they can maneuver accurately and efficiently through compact layouts and narrow aisles and also enhance reliability of the storage process and save on labor costs.

End-use Industry Insights

Based on end-use industry, the market has been segmented into manufacturing sector and wholesale and distribution sector. The manufacturing sector is further categorized into automotive, aerospace, electronics, chemical, pharmaceuticals, plastics, defense, FMCG, tissue, and others. The wholesale and distribution sector is sub-segmented into e-commerce, retail chains/conveyance stores, grocery stores, and hotels and restaurants.

Growing adoption of AGVs across various industries can be attributed to the benefits they offer in terms of productivity, safety, and accuracy. AGVs are equipped with laser heads, cameras, and other sensors, which help them in operating safely around structures, machinery, and employees. While operators are prone to making errors that can lead to accidents and mishaps, AGVs can help in improving accuracy of workflows, thereby reducing waste and augmenting productivity.

Aerospace and defense production facilities tend to be massive owing to the size of the components, such as nacelles, engine pods, fuselages, and wings, among others. However, the paths through which these components are moved within the facility tend to be narrow. Human errors while moving heavy components through these narrow paths could lead to mishaps and accidents. Aerospace and defense companies are deploying AGVs so that heavy components can be moved within the manufacturing facility on predefined routes and any such events stemming from human errors can be avoided.

Regional Insights

Europe dominated the global market in 2017 and is projected to retain its lead over the forecast period. The market is primarily driven by increasing demand for material handling equipment and rapid adoption of automation solutions by incumbents in the manufacturing industry.

The e-commerce industry has been growing considerably in emerging economies, such as China and India. This is prompting several e-commerce companies to consider a foray in these regional markets. Competition in the e-commerce industry is intensifying subsequently and industry incumbents are trying to differentiate themselves by reducing time taken to deliver products to end users. Deploying AGVs in warehouses can help e-commerce companies in automating intralogistics tasks, such as sorting and picking, thereby augmenting efficiency.

AGV Market Share Insights

Key players in the market include Swisslog Holding Ltd.; Egemin Automation Inc.; Bastian Solutions, Inc.; Daifuku Co., Ltd.; Dematic Corp.; JBT Corporation; Seegrid Corporation; Toyota Industries Corporation; Hyster-Yale Group, Inc.; Balyo Inc.; EK Automation; Kollmorgen; KMH Systems, Inc.; Elettric80 SpA; Fetch Robotics, Inc.; inVia Robotics, Inc.; Locus Robotics; Schaefer Systems International, Inc.; System Logistics Spa; and Transbotics.

Increasing collaborations and mergers and acquisitions are expected to maximize environmental and economic benefits for market players by enabling them to share ideas and enhance their internal skills and technologies. For instance, in February 2017, Toyota Industries Corporation announced that it had agreed to acquire Bastian Solutions, Inc. The acquisition was aimed at helping Toyota Industries Corporation expand its presence in the North America material handling solutions market.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2016

Forecast period

2018 - 2025

Market representation                                

Revenue in USD Million and CAGR from 2018 to 2025

Region scope

North America, Europe, Asia Pacific, South America, MEA

Country scope

U.S., Canada, Mexico, Germany, U.K., France, China, Japan, India, Australia, South Korea, and Brazil

Report coverage      

Revenue forecast, company share, competitive landscape, growth factors, and trends

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Segments Covered in the Report

This report provides forecasts for revenue growth at global, regional, and country levels and analyses of the latest industry trends and opportunities in each of the sub-segments from 2014 to 2025. For this study, Grand View Research has segmented the global automated guided vehicles (AGV) market report based on type, navigation technology, application, end-use industry, and region.

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Tow Vehicle

    • Unit Load Carrier

    • Pallet Truck

    • Forklift Truck

    • Hybrid Vehicles

    • Others

  • Navigation Technology Outlook (Revenue, USD Million, 2014 - 2025)

    • Laser Guidance

    • Magnetic Guidance

    • Vision Guidance

    • Inductive Guidance

    • Natural Navigation

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Logistics and Warehousing

      • Transportation

      • Distribution

      • Cold Storage

      • Wholesale & Distribution

      • Cross-docking

    • Assembly

    • Packaging

    • Trailer Loading and Unloading

    • Raw Material Handling

    • Others

  • End-Use Industry Outlook (Revenue, USD Million, 2014 - 2025)

    • Manufacturing Sector

      • Automotive

      • Aerospace

      • Electronics

      • Chemical

      • Pharmaceuticals

      • Plastics

      • Defense

      • FMCG

      • Tissue

      • Others

    • Wholesale and Distribution Sector

      • E-commerce

      • Retail Chains/Conveyance Stores

      • Grocery Stores

      • Hotels and Restaurants

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • Japan

      • India

      • Australia

      • South Korea

    • South America

      • Brazil

    • Middle East and Africa (MEA)

Key questions answered by the report
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