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The automated guided vehicle (AGV) market size is estimated to grow by USD 1.59 billion at a CAGR of 9.45% between 2023 and 2028. The market is experiencing significant growth, driven by the rapid expansion of e-commerce retail and the increasing applications of AGVs in industries such as refrigerated warehousing and semiconductors. The e-commerce sector's surging demand for efficient and accurate order fulfillment is fueling the adoption of AGVs, which offer automation and flexibility in material handling. In addition, the refrigerated warehousing industry is leveraging AGVs to maintain precise temperature control and optimize inventory management. The semiconductor industry is utilizing AGVs for high-precision material handling and just-in-time manufacturing. Furthermore, the market growth is propelled by the need for efficient data management and analysis, the increasing demand for cloud computing services, and the integration of IoT technologies in logistics and supply chain operations. However, the market faces challenges such as fluctuating prices of raw materials, including batteries and steel, which can impact the cost-effectiveness of AGVs. Despite these challenges, the market is expected to continue its growth trajectory due to its numerous benefits, including increased productivity, reduced labor costs, and improved safety.
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The unit load carrier segment will account for a major share of the market's growth during the forecast period. Unit load carriers are designed to function in industrial environments to move high volumes of materials, and they are used in manufacturing and assembly operations for horizontal transportation. They are integrated with conveyors or storage retrieval systems.
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The unit load carrier segment was valued at USD 714.90 million in 2018. Unit load carriers are mainly used in warehouses where guideways are relatively short and large amounts of material are involved. The loading and unloading functions of unit load carriers are performed manually or by other automated equipment such as cranes, forklifts, and trucks. Transport materials on pallets, drums, carts, slip sheets, and boxes. Unit load carriers are in great demand as they can move more loads compared to a single forklift. Intentional electronic activities and measures to ensure worker safety in warehouses are some of the factors expected to drive the demand for unit load carriers. Such factors will increase segment growth during the forecast period.
Based on end-user, the market has been segmented into automotive, food and beverages, electronics and electrical, pharmaceuticals, and others. The automotive segment will account for the largest share of the end-user segment. The automotive industry has been one of the early adopters of AGVs due to their ability to increase efficiency, reduce costs, and improve safety in manufacturing and logistics processes. AGVs are used in various applications within the automotive industry, such as material handling, assembly line, maintenance, warehousing, and logistics. Overall, the automotive industry is one of the major end users of AGVs and is expected to continue to drive the growth of the market in the forecast period.
Europe is estimated to contribute 40% to the growth by 2028. Technavio’s analysts have elaborately explained the regional trends, drivers, and challenges that are expected to shape the market during the forecast period.
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Europe sees strong demand for large warehouse spaces. There is also a growing demand for warehouses near major cities to support last-mile delivery models. In Europe, the demand for warehouse space is increasing among e-commerce players, with the rise in online sales has increased the demand for warehouse space in the region. This has increased demand for his AGVs in Europe. Increasing adoption of AGVs and continued growth in the business sector are also fueling the demand for AGVs in the region. Moreover, the European energy industry is undergoing a major transformation with investments in smart grids and renewable energy. Several European countries have plans to increase the share of renewable energy in their energy mix to reduce CO2 emissions from fossil fuels. Such factors will increase the market growth during the forecast period.
Our analysis of the adoption life cycle of the market indicates its movement between the innovator’s stage and the laggard’s stage. The report illustrates the lifecycle of the market, focusing on the adoption rates of the major countries. Technavio has included key purchase criteria, adoption rates, adoption lifecycles, and drivers of price sensitivity to help companies evaluate and develop growth strategies from 2023 to 2028.
Global Market Customer Landscape
The market is experiencing significant growth due to advancements in new technology such as smart manufacturing and AI technologies. Companies like AR Controls and Starship are pioneering the use of autonomous mobile robots in warehouse operations and goods transportation. Machine Learning and the Internet of Things are also playing a crucial role in enhancing pallet handling and order picking processes. With the increasing demand from heavy industries and large-scale enterprises, the AGV market is expected to witness continuous expansion in the logistics sector and E-commerce industry. Technologies like Laser Guided Navigation, Magnetic Guided Navigation, and Vision Guided Navigation are further improving storage and assembly operations. Our researchers studied the data for years, with 2023 as the base year and 2024 as the estimated year, and presented the key drivers, trends, and challenges for the market.
The rapid growth in e-commerce retail is notably driving the AGV market growth. Consumer preferences are rapidly shifting from traditional retail to e-commerce due to various factors such as a diverse portfolio of product offerings, competitive pricing, and shopping convenience. This includes storage and assembly, order picking, new technology, AR controls, e-commerce industry, and vision-guided navigation. E-commerce is experiencing significant growth not only in developed markets such as the United States but also in emerging markets such as India and China, with several key players such as Amazon Inc. and Walmart Inc. expanding their presence across emerging markets in APAC, which will grow the market.
Moreover, with substantial growth in the popularity of e-commerce retail, there is an increasing requirement for warehouses and distribution centers, especially in emerging markets. Thus, the growth in e-commerce retail is expected to continue to drive the growth of the global AGV market during the forecast period.
Rising warehouse automation is the key trend driving the AGV market growth. The end-users of consumer goods are demanding products with different packaging proportions. The different array of packaging systems is increasing the SKUs in the warehouses of consumer goods. The rising SKU proliferation is increasing warehouse automation across the globe. To maintain many such SKUs, manufacturers of consumer goods will be facing productivity and cost-effectiveness issues. This is prompting manufacturers and wholesalers to opt for automated warehouses.
Moreover, warehouse automation will increase the speed and accuracy of order fulfillment before the expiry of the products (in the case of perishable products such as food items). Moreover, warehouse automation can maintain the efficiency of the supply chain even in the case of seasonal demands for products. Automation of warehouses can also reduce the time in restocking the shelves. Such factors will increase the market growth during the forecast period.
The major challenge impeding the AGV market growth is the fluctuating prices of raw materials. Raw materials and parts used in the manufacture and construction of AGVs include structural steel, forged and worked steel bars, steel tubes, steel bars, electric motors, reducers, bearings, and other electromechanical components. Steel is one of the most important raw materials for manufacturing various AGVs. Since steel is obtained from iron ore, fluctuations in iron ore prices directly affect steel prices.
For instance, the price of iron ore increased by about 90% in July 2019 compared to January 2019. As the prices of raw materials have reached a threshold limit, raw material suppliers are compelled to pass on the increased price to their downstream industries. Such decisions made by raw material suppliers are affecting the growth of various industries as well as handling and lifting equipment manufacturers. This is expected to be a challenge for the growth of the global AGV market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Aichikikai Techno System Co. Ltd.: The company offers automated guided vehicle through its subsidiary Aichi Machine Industry Co. Ltd.
Atab Automationsteknik AB: The company offers automated guided vehicle through its subsidiary Aichi Machine Industry Co. Ltd.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
Technavio report provides an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market is witnessing significant growth driven by factors such as Alibaba's focus on improving order fulfillment speed using Artificial Intelligence. AGVs play a crucial role in downtime reduction and enabling real-time data exchange in warehouses. They offer dynamic route planning and adaptive navigation to meet the demands of mass customization and mass production. With changing lifestyle preferences and evolving regulatory standards, there is a growing need for AGVs to cater to customer demand for customizations. AGVs also help in managing business expenses by offering efficient automation solutions and reducing capital expenditure. High-end AGVs are increasingly adopted by both small enterprises and large-scale industries to reduce maintenance cost and setup cost.
Furthermore, they optimize warehouse layouts for better space utilization and accessibility. AGVs are essential for businesses facing rising labor costs and aiming to maintain quality with a skilled workforce. They enhance global competitiveness by addressing technical challenges and providing advanced features like sensing element, control software, tow vehicles, and laser guidance. The healthcare industry and e-commerce sector are experiencing increased AGV adoption, driven by investors seeking efficient inventory and logistics solutions.
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Market Scope |
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Report Coverage |
Details |
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Page number |
188 |
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Base year |
2023 |
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Historic period |
2018 - 2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 9.45% |
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Market growth 2024-2028 |
USD 1.59 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
8.42 |
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Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
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Performing market contribution |
Europe at 40% |
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Key countries |
US, Germany, Japan, China, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Aichikikai Techno System Co. Ltd., Atab Automationsteknik AB, Balyo SA, Beumer Group GmbH and Co. KG, Daifuku Co. Ltd., Dearborn Mid West Co., ek robotics GmbH, Exail Technologies, Hitachi Ltd., Hyster Yale Materials Handling Inc., John Bean Technologies Corp., KION GROUP AG, Meidensha Corp., MIDEA Group Co. Ltd., Murata Machinery Ltd., Oceaneering International Inc., Scott Technology Ltd., Seegrid Corp., SSI Schafer IT Solutions GmbH, and Toyota Industries Corp. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Market Forecasting, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for market forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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