Automated Guided Vehicle Market Size, Share & Trends Report

Automated Guided Vehicle Market Size, Share & Trends Analysis Report By Vehicle Type, By Navigation Technology, By Application, By End-use Industry, By Component, By Battery Type, By Region, And Segment Forecasts, 2021 - 2028

  • Published Date: May, 2021
  • Base Year for Estimate: 2020
  • Report ID: GVR-1-68038-153-5
  • Format: Electronic (PDF)
  • Historical Data: 2017 - 2019
  • Number of Pages: 200

Report Overview

The automated guided vehicle market size was valued at USD 3.39 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 13.0% from 2021 to 2028. Automated Guided Vehicle (AGV) systems assist to move and transport items in manufacturing facilities, warehouses, and distribution centers without any permanent conveying system or manual intervention. It follows configurable guide paths for optimization of storage, picking, and transport functions in the environment of premium space. AGVs are being highly adopted owing to several benefits, such as reduced labor costs, reduced product damage, increased productivity, and scale to support automation processes. These notable advantages are encouraging the transportation and logistics firms to deploy AGVs to boost the efficiency of their operations.

Asia Pacific automated guided vehicle market size, by vehicle type, 2017 - 2028 (USD Million)

Retailing and other logistics-related companies are collaborating and partnering with tech giants to transform the material handling industry. For instance, in August 2019, Murata Machinery, Ltd. (Japan), a global provider of material handling solutions, collaborated with Alert Innovation (U.S.), which is specialized in providing automated solutions such as automated storage and retrieval system. Under this partnership, Murata Machinery, Ltd. has adapted the latter company’s Alphabot technology to transform grocery retail by developing and commercializing the Alphabot materials handling technology. For another instance, in October 2019, Tompkins Robotics, a global provider of autonomous mobile robots, partnered with the PULSE Integration, which provides agnostic engineered solutions for automation facility design, material handling, and system integration, among others. This partnership was done to deliver automated material handling sortation systems to its clients in the third-party logistics, manufacturing, and retail industries.

Furthermore, retail and commerce-based companies and businesses are deploying collaborative robots in their warehouses and expanding their businesses through acquisitions of large-scale co-bot providers. For instance, in November 2019, Teradyne, Inc., a global provider of collaborative and autonomous robots, acquired the AutoGuide Mobile Robots, which is a global provider of mobile robotic solutions for increased flexibility, reduced costs, and improved workflow. This partnership was done to bring autonomous mobile robots to Teradyne’s manufacturing, warehouse, and logistics market. For another instance, in October 2019, Shopify Inc., the Canada-based multinational e-commerce company, completed the acquisition of 6 River Systems, Inc., a global provider of fulfillment solutions using collaborative robots. The former company took this strategic initiative to enable the Shopify Fulfillment Network by using 6 River Systems’ fleet of collaborative mobile robots and cloud-based software. In addition, in June 2018, The-Scott-Group, a service provider in European manufacturing markets, acquired Transbotics, a U.S.-based AGV manufacturer, to expand its geographic presence in the U.S.

Automated guided vehicles are being used in various end-use industries, such as logistics, automotive, healthcare, manufacturing, food and beverages, and others. Increased productivity and reduced labor costs are the key factors driving the need for industrial equipment. The demand for AGVs is expected to grow owing to the increasing automation in industries. Increasing industrialization has led to the continuous need for customized material handling and transport solutions for fueled efficiency.

COVID-19 Impact Insights

The COVID-19 outbreak has created economic turmoil for almost every industry at the global level. Many organizations have suffered or are suffering losses due to a shortfall in productivity as governments across the world inflicted nationwide lockdown to control the epidemic's spread. The pandemic has resulted in a vast decline in profits and revenue for the manufacturing industry. Businesses have experienced a significant cut down of their staff resulting in an overall loss to manufacturing activities. The SMEs (Small and Medium Enterprises) are the worst hit due to substantial layoffs, financial crises, and attritions. Industrial automation and deployment of AGVs hold a crucial role in ensuring that businesses meet their certain production levels during such turmoil. The pandemic has brought numerous opportunities for the global AGV market as it helps industries continue their production operations.

A few research insights into the opportunities of the AGV market amid the pandemic are given as follows: In October 2020, in India, a team of fresh graduates and technology students has developed an AGV for the COVID-19 hospital block of the Karnataka Institute of Medical Sciences (KIMS). This AGV named Pradhaaya moves on a designated track for contactless delivery of food to COVID-19 patients. Furthermore, In June 2020, In India, IIT Kharagpur’s AGV research group students have developed a low-cost AI-equipped cyber-physical AGV for monitoring social distance in public places.

Vehicle Type Insights

The tow vehicle segment dominated the market in 2020 and accounted for a revenue share of over 40%. The unit load carrier segment is expected to grow at the fastest CAGR of 15.3% over the forecast period. The unit load carrier segment is anticipated to demonstrate substantial growth over the forecast period. Unit load AGVs are used for delivering pallets, large containers, and roll handling. Also, it provides the ability to schedule the task efficiently by reducing aisle traffic and product damage.

The unit load AGVs are utilized in the place of fork truck that requires an employee to operate. Thus, these AGVs are great for long distances, repetitive tasks, and hazardous areas. Also, these are autonomous robots, which consequently reduce the requirement of human labor along with improving the workers’ safety. Track able timing and product delivery are the added benefits of unit load carriers which make them efficient for the shipment of large products.

Navigation Technology Insights

The laser guidance segment dominated the market in 2020 and accounted for a revenue share of over 35%. The natural navigation segment is expected to expand at the fastest CAGR of 21.0% over the forecast period. The vision guidance segment is expected to witness healthy growth over the forecast period. The need for intelligent and efficient routing is contributing to the increasing adoption of automated vehicles. Advances in computer vision and related software solutions are allowing AGVs to better analyze the environment in real-time, thereby boosting the demand for AGVs for operations in challenging environments, such as maneuvering significant components through narrow aisles.

Camera-based vision available in the automated guided vehicles, which is complemented by the LiDAR sensors and computer systems, helps in ensuring accurate navigation within production facilities and warehouses. The cameras installed on these vehicles can assist with obtaining information and detecting obstacles. It can also help with analyzing the infrastructure in real-time within the facilities. The information provided by the LiDAR sensors and the cameras can help in the creation of a 3D image of the operational area.

Application Insights

The logistics and warehousing segment dominated the automated guided vehicle market in 2020 and accounted for a revenue share of over 40%. The Assembly segment is expected to expand at the fastest CAGR of 16.2% over the forecast period. The logistics and warehousing segment has been further segmented into transportation, distribution, cold storage, wholesale and distribution, and cross-docking. Enterprises upgrading their existing facilities and building new facilities are aggressively adopting modern retrieval and automated storage systems and other material handling equipment to save on labor costs and boost efficiency and productivity.

The logistics and warehousing firms are trying to retain their competitiveness by opting for taller racks, compact layouts, and narrow aisles within their distribution facilities. At the same time, they are trying to boost the efficiency of their operations in line with the growing demand for their services. These firms are particularly deploying AGV solutions as they can maneuver accurately and efficiently through narrow aisles and compact layouts, along with the enhancement in the reliability of the storage process. The growing demand for AGVs from logistics and warehousing firms is expected to boost the growth of the AGVs market.

End-use Industry Insights

The manufacturing segment dominated the market in 2020 and accounted for a revenue share of over 75%. The manufacturing industry is further sub-segmented into aerospace and defense, automotive, electronics, pharmaceuticals, chemicals, plastics, FMCG, tissue, and others. The wholesale and distribution sector segment is expected to register the fastest CAGR of 15.2% over the forecast period. Also, the wholesale and distribution sector is further sub-segmented into e-commerce, grocery stores, retail chains/conveyance stores, and hotels and restaurants. The growing adoption of AGVs across various industries can be attributed to the benefits offered by AGVs in terms of productivity, safety, and accuracy. AGVs are equipped with cameras, laser heads, and other sensors, which help them in operating safely around machinery, structures, and employees. While operators can make errors that can lead to accidents and mishaps in a manufacturing or distribution facility, AGVs can help in improving the accuracy of the workflows, thereby reducing wastes and augmenting productivity.

Aerospace & defense manufacturing facilities tend to be massive owing to the size of the components, such as fuselages, nacelles, engine pods, and wings, among others. However, the paths through which these components are moved within the facility tend to be narrow. Natural errors, while moving heavy elements through such narrow pathways, could lead to mishaps and accidents. Aerospace and defense companies are deploying automated guided vehicles so that heavy components can be moved within the facility on predefined routes and human errors can be avoided.

Component Insights

The hardware segment dominated the market in 2020 and accounted for a revenue share of over 70%. The growth can be attributed to the increasingly deployed collaborative robots for reduced human labor and replacement for repetitive tasks in manufacturing or distribution facilities. The service segment is expected to grow at the fastest rate of 14.6% over the forecast period. The growth can be attributed to the growing demand among the end-users for various services, which include preventive and corrective maintenance, vehicle and software health check, and training employees involved directly or indirectly with the operation of AGVs.

AGVs have become a mainstay in distribution center operations and manufacturing facilities where tasks are highly repetitive and standardized. Based on the requirement, automated vehicles are available for various industries, such as pharmaceuticals, automotive, warehouses and distribution, and food and beverages, among others. Based on the intensity of the task, automated guided vehicles are available of different payload capacities from 3 kg up to 65 tons. The availability of the various hardware solutions in these vehicles, such as cobots, material handling equipment, gear heads, and actuators has contributed to the largest share of the hardware segment.

Battery Type Insights

The lead battery segment dominated the market in 2020 and accounted for a revenue share of over 60%. These batteries have low-cost advantages over other battery types. Besides, it offers good reversibility, stable voltage, long service life, and is suitable for a wide range of applications. The lithium-ion battery segment is expected to expand at the fastest CAGR of 19.2% over the forecast period.

Global automated guided vehicle market share, by battery type, 2020 (%)

The AGVs market is witnessing a progressive switch from lead-acid batteries to lithium-ion batteries. As compared to the lead-acid battery, lithium-ion batteries have higher costs. Lithium-ion batteries support the high-power charge and discharge. Also, it meets different industry conditions of user demand, including excellent temperature performance, high energy density, and long-life cycle. These advantages of lithium-ion batteries are anticipated to encourage the AGV manufacturers to adopt lithium-ion among battery types.

Regional Insights

Europe dominated the market in 2020 and accounted for a revenue share of over 30%.Europe is also projected to remain the dominant regional market over the forecast period. The growth of the regional market is primarily driven by the increasing demand for material handling equipment by the incumbents of the manufacturing industry. Furthermore, automation in every sector has also augmented regional market growth. For instance, in March 2018, a Germany-based robotics company E&K Automation GmbH has launched its autonomous ultra-flat transport robot, FAST MOVE, to support the development of industry 4.0 and industrial automation.

Asia Pacific is expected to expand at the fastest CAGR of 14.1% over the forecast period. The e-commerce industry has been growing considerably in emerging economies of the Asia Pacific region, such as China and India. Such a surge in the e-commerce industry is encouraging several e-commerce companies to consider a foray into these regional markets. The competition in the e-commerce industry is intensifying subsequently, and industry incumbents are trying to differentiate themselves by trying to reduce the time taken to deliver the products to the end-users. Deploying AGVs in warehouses is helping e-commerce companies in automating the intralogistics tasks, such as sorting, picking, and palletizing, thereby augmenting efficiency. The adoption of AGVs by the e-commerce industry is increasing substantially as industry incumbents try to roll out a reliable storage process and enhance efficiency.

Key Companies & Market Share Insights

Increasing collaborations and mergers and acquisitions are expected to maximize the environmental and economic benefits for the market players by enabling them to share ideas and enhance their internal skills and technologies. For instance, in August 2019, GreyOrangePteLtd., a global provider in warehouse automation systems, has partnered with eight warehouse solution providers in the U.S., named Avik Services; Bricz; Active Network, LLC; Infosun; S&H SYSTEMS; TREW, Inc.; UST GLOBAL INC.; and McCombs-Wall, Inc Engineering. Under this partnership, these supply chain solution providers would help GreyOrangePteLtd. to sell and deploy GreyOrange technology. This integration is expected to help provide a complete end-to-end warehouse management solution to clients and partners jointly. Some prominent players operating in the global automated guided vehicle market are:

  • Swisslog Holding AG

  • Bastian Solutions, Inc.

  • Daifuku Co., Ltd.

  • Dematic

  • JBT

  • Seegrid Corporation

  • TOYOTA INDUSTRIES CORPORATION

  • Hyster-Yale Materials Handling, Inc.

  • BALYO

  • E&K Automation GmbH

  • Kollmorgen

  • KMH Fleet Solutions

  • ELETTRIC80 S.P.A.

  • Fetch Robotics, Inc.

  • inVia Robotics, Inc.

  • Locus Robotics

  • Schaefer Systems International, Inc.

  • System Logistics Spa

  • Scott

Automated Guided Vehicle Market Report Scope

Report Attribute

Details

Market size value in 2021

USD 3.95 billion

Revenue forecast in 2028

USD 9.32 billion

Growth Rate

CAGR of 13.0% from 2021 to 2028

Base year for estimation

2020

Historical data

2017 - 2019

Forecast period

2021 - 2028

Quantitative units

Revenue in USD million and CAGR from 2021 to 2028

Report coverage

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

Segments covered

Vehicle type, navigation technology, application, end-use industry, component, battery type, region

Regional 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; Brazil

Key companies profiled

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; ELETTRIC80 S.P.A.; Fetch Robotics, Inc.; inVia Robotics, Inc.; Locus Robotics; Schaefer Systems International, Inc.; System Logistics Spa; Scott

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

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Segments Covered in the Report

This report provides forecasts for revenue growth at the global, regional, and country levels and analyses of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2028. For this study, Grand View Research has segmented the global automated guided vehicle market report based on vehicle type, navigation technology, application, end-use industry, component, battery type, and region:

  • Vehicle Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Tow Vehicle

    • Unit Load Carrier

    • Pallet Truck

    • Forklift Truck

    • Hybrid Vehicles

    • Others

  • Navigation Technology Outlook (Revenue, USD Million, 2017 - 2028)

    • Laser Guidance

    • Magnetic Guidance

    • Vision Guidance

    • Inductive Guidance

    • Natural Navigation

    • Others

  • Application Outlook (Revenue, USD Million, 2017 - 2028)

    • Logistics and Warehousing

      • Transportation

      • Cold Storage

      • Wholesale & Distribution

      • Cross-docking

    • Assembly

    • Packaging

    • Trailer Loading and Unloading

    • Raw Material Handling

    • Others

  • End-use Industry Outlook (Revenue, USD Million, 2017 - 2028)

    • 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

  • Component Outlook (Revenue, USD Million, 2017 - 2028)

    • Hardware

    • Software

    • Service

  • Battery Type Outlook (Revenue, USD Million, 2017 - 2028)

    • Lead Battery 

    • Lithium-ion Battery

    • Nickel-based Battery 

    • Others

  • Regional Outlook (Revenue, USD Million, 2017 - 2028)

    • 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)

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