The global market for automated guided vehicles is projected to expand at a CAGR of 10.2% between 2024 and 2032. AGV systems transport and transport products in factories, warehouses, and distribution centres without a permanent conveying system or human intervention. It follows programmed guidelines to optimise storage, selection, and transfer in premium space. Automated guided vehicles (AGVs), also known as autonomous guided vehicles or self-directed vehicles, are used in warehouses, manufacturing and distribution facilities. AGVs transport raw materials or finished goods, perform work in progress, and manipulate objects. In factories, warehouses, and distribution centres, these systems move and transport products without a permanent conveying system or manual interaction. It follows programmed guidelines to optimise storage, selection, and transfer in premium space.
AGVs are commonly utilised because they reduce labour costs and product damage, increase productivity, and facilitate automated processes. These advantages encourage transportation and logistics firms to use AGVs to increase productivity. Companies in the retail and commercial sectors are deploying collaborative robots in warehouses and acquiring large-scale robot suppliers. AGVs are used in the logistics, automotive, healthcare, manufacturing, food & beverage, and other industries. Industrial equipment is required for increased output and decreased labour costs. AGV demand will rise as a result of industrial automation. Increasing industrialization necessitates the development of efficient material handling and transport systems.
AGVs have revolutionised the material transport process in manufacturing and distribution facilities. These vehicles enable a predictable and consistent transfer of raw materials and processed goods from one location within the facility to another, thereby preventing a potential production disruption. These vehicles can operate safely around structures, machinery, and personnel because they are equipped with camera vision and LiDAR sensors to recognise intersections, recognise floor signs, and prevent collisions.
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Several manufacturers are automating their facilities and developing connected technologies using AGV systems from the companies. Utilization of industry 4.0 will increase, which will boost the AGV market. Several factories and warehouses utilise material handling equipment to locate inventories, fulfil orders, and transport merchandise. This equipment is being utilised by transportation and logistics companies to increase the efficacy of their operations in response to increased demand. AGV solution provider Scott (Transbotics Corporation) partnered with German robot manufacturer KUKA AG in February 2021 to integrate industrial robots into material handling systems. With these robots, the warehouse staff could construct, pack, weld, store, and ship. Material handling solutions increase transportation efficiency, reduce material damage, and reduce employee costs.
AGVs can replace human labour, which is cost-effective for any company. Replacing existing employees or not hiring new ones reduces costs, since finding and training new personnel is more expensive. According to the BLS, worker wages and salaries increased by 1.2%, whereas benefit costs increased by 1.8%. Every current employee anticipates a pay and benefit increase with experience, which annually raises labour expenses. Profits from AGV projects are pure profit after deducting maintenance and energy costs. Sometimes, AGVs can operate fixed systems such as conveyors.
Fixed automation systems are costly and occasionally hinder workflow. Several automation systems can halt the operation of another facility, reducing production. AGVs are less expensive and have no effect on the operations of other facilities. Fixed automation systems are costly and difficult to relocate, whereas AGVs can be reprogrammed for new tasks and have superior capabilities.
It is anticipated that Europe will have the largest market revenue share. High labour costs in the region are driving expansion. This encourages the adoption of AGVs by regional operators. Due to Asia-expanding Pacific's e-commerce industry, industrial sector, and planned AGV facilities in China and India, it is anticipated that the AGV market will increase steadily. As a result of the new coronavirus that is sweeping the region, hospitals are increasingly employing AGVs to transport medications to patients. In March of 2020, Homagama Base Hospital in Sri Lanka considered using AVG to treat COVID-19 patients.
High initial investment costs and a lack of flexibility inhibit the growth of the AGV market. Industry 4.0 integration is likely to stimulate the autonomous guided vehicle market. Implementation and maintenance of AGVs are costly. These costs include the initial equipment investment, integration, maintenance, reorienting the warehouse architecture, and the purchase of data collection and activity tracking technology solutions. AGVs are multisensory, complex machines. Damage of a technical nature could impede their operation or result in catastrophic failure. It may take longer to identify and fix problems in highly customised and specialised units, thereby reducing productivity. Long-unused units are detrimental to production and profits. Sensor and software defects can be difficult to detect and repair.
Tow vehicles contribute 41% of revenue in 2023. This is the result of improved lifestyles in developing countries, a growing middle class, and urbanisation. As disposable income rises, more individuals drive their own cars rather than carpool. These variables affect the growth of tow vehicles. The unit load carrier market will increase by 15.5% annually. Unit load carriers provide enhanced weather protection and quicker loading and unloading of cargo.
Lasers had the highest market revenue in 2023. Multiple reflector targets embedded in poles, walls, and columns enhance the effectiveness of an AGV's navigation system. Reflectors are reflective tapes with a level centre relative to the navigational device. The device rotates lasers through 360 degrees. The reflector transmits back the navigation signal. At least three signal feedbacks are required for vehicle placement calculation. One of the most prevalent AGV navigation technologies is laser navigation. They are ideal for warehouse stacking and racking due to their precision.
AGVs' magnetic sensors follow a magnetic taped path. Magnetic tape is placed on the floor, and vehicle sensors detect the magnetic field of the tape to direct the vehicle in the desired direction. Installation-friendly magnetic sensors. They are more affordable and precise than other navigation methods. It is not impacted by noise or dust, generating income growth prospects over the next few years.
In 2020, North America led the global AGV market in terms of revenue. The U.S. has the strongest economy in North America. The manufacturing sector of this region produces AGVs. Automation enables small businesses or regional market participants to compete with multinational market participants. The United States is a leading global automaker. Thus, the demand for AGVs in the United States contributes to regional growth. Europe is also a significant market due to the prevalence of industrial automation and rising quality expectations. Demand for delivery drones and warehouse cobots is driven by consumer demand for intelligent devices and doorstep delivery.
Asia-Pacific is anticipated to be the most lucrative market segment. Asia-Pacific retail, particularly e-commerce, is expanding at a faster rate. Rapid growth in the use of AGVs in e-commerce is driving the Asia-Pacific market. In China and India, the online business sector is thriving. Some online businesses are prompted to enter local markets by the deluge in the internet business industry. In the APAC region, highly fragmented markets make automation services affordable, and rising auto production boosts AGV demand. Rapid urbanisation and increasing industrial activity have boosted the transportation industry in the region.
AGVs are replacing lead-acid batteries with lithium-ion batteries. Lead-acid batteries are inferior to lithium-ion batteries. smaller and lighter More charge cycles, longer runtimes, and quicker charging. Lithium-ion batteries are ideal for AGVs because they do not require recharging during shifts or under 24x7 conditions. In addition, they offer increased round-trip efficiency. Nissan Motor Co., Ltd., a major auto, bus, and truck manufacturer, announced in March 2021 that its autonomous guided vehicles are powered by lithium-ion batteries and no longer require a worker to remove and plug in the battery. These batteries increase the longevity of AGVs and improve their warehouse.
