April 24, 2024

The Global Automated Guided Vehicle Market is set for growth through adoption of Industry 4.0

An automated guided vehicle or AGV is an unmanned, computer-controlled mobile transport unit used for material handling in various industries including automotive, manufacturing, warehouse, and food and beverages. Key advantages of AGVs include increased productivity due to continuous operation, reduced labor costs, improved workflow efficiency, and optimal utilization of warehouse space. The growing need for automation across industries to enhance productivity and efficiency has been a major driver for the AGV market.

The Automated Guided Vehicle (AGV) Market is estimated to be valued at US$ 2,100 Mn in 2024 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.

Key Takeaways

Key players: Key players operating in the Automated Guided Vehicle market are JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Schaefer Systems International Pvt Ltd., E&K AUTOMATION LIMITED, Oceaneering International, Inc., Murata Machinery, Ltd., KNAPP AG, Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., Seegrid Corporation, Fetch Robotics, Inc., inVia Robotics, Inc., Crown Equipment Corporation, and Meidensha Corporation.

Growing demand: The growing demand for automation across industries along with benefits such as improved productivity and efficiency is driving the growth of the AGV market. Various industries are increasingly adopting AGVs to optimize workflows.

Global expansion: Leading AGV manufacturers are expanding their global footprint by establishing manufacturing and distribution facilities across major markets. They are also undertaking strategic collaborations to offer customized, industry-specific solutions and strengthen their market position.

Market key trends

Adoption of Industry 4.0 technologies: The integration of AGVs with advanced technologies such as artificial intelligence, IoT, cloud computing is allowing for higher levels of automation and data-driven decision making. This trend is expected to significantly accelerate over the forecast period.

Porter’s Analysis

Threat of new entrants: Low capital requirements and lack of proprietary technology limit barriers to entry. However, established companies have economies of scale advantages.

Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products. However, switching costs are low.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power as raw materials are commonly available. However, production concentration provides some power.

Threat of new substitutes: Potential for new technologies like autonomous mobile robots and robot arms to substitute certain automated guided vehicle applications.

Competitive rivalry: Intense competition amongst major players to gain market share through product innovation, expansions and partnerships.

Geographical Regions

In terms of value, the Automated Guided Vehicle (AGV) Market is highly concentrated in North America and Europe. North America currently holds around 40% share of the global market due to strong demand from industries such as automotive, metal and machinery. Europe is another major region accounting for over 30% share backed by government support for advanced technologies.

The fastest growing region for the automated guided vehicle market is expected to be Asia Pacific excluding Japan between 2023-2030. Countries like China, India, South Korea and Thailand are anticipated to showcase growth rates over 10% annually. Expanding manufacturing sector, rising labor costs and initiative for Industry 4.0 drive adoption of AGVs in the region. Government incentive programs also encourage factory automation.

*Note:

  1. Source: Coherent Market Insights, Public sources, Desk research
  2. We have leveraged AI tools to mine information and compile it