Automated Guided Vehicle Market revenue to hit USD 15 Billion by 2035, says Research Nester

Key automated guided vehicle market players include Hyster-Yale Materials Handling, Inc., Bastian Solutions, Inc., ELETTRIC80 S.P.A., Fetch Robotics, Inc., Hit Robot Group, EK Robotics, Seegrid Corporation, and KUKA AG.

New York, March 05, 2024 (GLOBE NEWSWIRE) -- The global automated guided vehicle market size is predicted to expand at 14% CAGR between 2023 and 2035. The market is projected to garner a revenue of USD 15 billion by the end of 2035, up from a revenue of USD 4 billion in the year 2022. Technology development such as AI and machine learning can be seen to have led to the expansion of the market. For example, the use of automated guided vehicles has increased in several sectors due to advances in technologies like AI, machine learning, and computer vision that have made them smarter and more efficient. Artificial Intelligence is projected to bring about a USD 15 trillion increase in the world economy between 2025 and 2030.

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Moreover, it is considered to be the main driver of growth on the automated guide vehicle market as more people are beginning to accept online shopping all over the world. In response to the growing demands of e commerce in rapidly developing countries such as China and India, eCommerce companies have been increasing their use of AGVs at warehouses by a significant margin so that they increase productivity. It is expected that in 2026, 24% of sales will take place on the internet. The exponential growth of the e-commerce sector serves as a significant driver for AGV market expansion. With the surge in online retail activities, warehouses and fulfillment centers face heightened demands for efficient and rapid material handling. AGVs play a pivotal role in streamlining warehouse operations, enhancing order fulfillment speed, and minimizing errors in the supply chain.

Automated Guided Vehicle Market: Key Takeaways

  • Market in Asia Pacific to propel highest growth
  • The tow vehicles segment to garner the highest growth
  • Market in Europe to grow at a highest rate

Increasing Requirement for Workplace Safety across the Globe to Boost Market Growth

Given the increased incidence of injuries and accidents within organizations, it is expected that this market will continue to grow over the coming years. An accident reduction, which significantly increases output while improving security, is ensured by AGVs. In the US, about 3 million industrial accidents per year result in nonfatal injuries. Industrial automation is also being used by enterprises for improving productivity and reducing workforce costs, which are expected to support automated guided vehicle market growth. According to a 2020 poll, more than 60% of businesses around the globe have automated one or more business units. The market is anticipated to increase further in the following years due to the rising incidence of chronic illnesses such as heart diseases, osteoarthritis, stroke throughout the world. AGVs can be a great help to hospitals if they are unable to dispose of these hazardous wastes. In addition, hospital staff are relieved and can devote much of their time to the direct care of patients by using automatic transport systems. According to the most recent expenditure statistics, United States health expenditures increased by over 2% in 2021.

Automated Guided Vehicle Industry: Regional Overview

The global automated guided vehicle market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa region.

Rising Manufacturing Industry Expansion to Drive the Market Growth in Asia Pacific Region

The automated guided vehicle market in Asia Pacific region is estimated to garner the largest revenue by the end of 2035. A key driver for the growth of the market in the Asia Pacific region is the continuous expansion of the manufacturing sector. Many countries in the region, such as China, Japan, and South Korea, are witnessing robust growth in manufacturing activities. AGVs play a crucial role in optimizing material handling processes, streamlining production, and enhancing overall efficiency in manufacturing plants. According to the Asian Development Outlook 2021 by the Asian Development Bank, the manufacturing sector in Asia Pacific was noted to grow by 4.4% in 2021. Government initiatives promoting automation and Industry 4.0 technologies are fostering the growth of AGV adoption in the Asia Pacific region. Countries like India, China, and Japan are actively encouraging the implementation of automated solutions in manufacturing to improve productivity, reduce costs, and stay competitive on a global scale. AGVs align with these goals, making them a preferred choice in industries supported by such initiatives.

Growing Emphasis on Sustainable Logistics to Propel the Growth in the Europe Region

The European automated guided vehicle market is estimated to garner the highest CAGR by the end of 2035. Europe's focus on sustainable and environmentally friendly practices is driving the adoption of AGVs in logistics and supply chain operations. AGVs, often powered by electric or alternative energy sources, align with the region's commitment to reducing carbon emissions in transportation. As companies prioritize sustainable logistics, AGVs become instrumental in achieving eco-friendly material handling solutions. The European Commission aims to reduce CO2 emissions from transport by 60% by 2050, as part of its European Green Deal. The booming e-commerce sector in Europe is a key driver for the AGV market. As online retail continues to grow, there is an increased demand for efficient and automated warehouse operations. AGVs play a crucial role in modernizing warehouses, streamlining order fulfillment processes, and meeting the expectations of consumers for quick and accurate deliveries.

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Automated Guided Vehicle Segmentation by Type

  • Tow Vehicles
  • Unit Load Carriers
  • Forklift Trucks
  • Assembly Line Vehicles
  • Pallet Trucks

Amongst these segments, the tow vehicles segment in automated guided vehicle market is anticipated to hold the largest share over the forecast period. Workplace safety concerns and the emphasis on ergonomic solutions are propelling the adoption of tow vehicles. These vehicles assist in reducing manual material handling tasks, mitigating the risk of musculoskeletal disorders among workers. As companies prioritize employee well-being and seek solutions to improve workplace ergonomics, tow vehicles contribute to creating safer and more efficient working environments. The tow vehicles segment is witnessing growth driven by the imperative for enhanced material handling efficiency in manufacturing processes. Tow vehicles play a crucial role in streamlining the movement of materials within manufacturing facilities. As manufacturers seek ways to optimize production cycles and reduce labor-intensive tasks, the demand for tow vehicles rises to improve the overall efficiency of material transportation. According to a study by the National Institute of Standards and Technology (NIST), inefficient material handling accounts for 25% of labor time in manufacturing.

Automated Guided Vehicle Segmentation by Application

  • Logistics & warehousing
  • Raw material handling
  • Trailer Loading
  • Assembly
  • Packaging

Amongst these segments, the logistics & warehousing segment in global automated guided vehicle market is anticipated to hold a significant share over the forecast period. The integration of robotics and automation is a key growth driver for the logistics and warehousing segment. Robotics streamline order fulfillment, reduce errors, and increase operational efficiency. Warehouses are increasingly deploying robotic systems for tasks like sorting, packing, and transporting goods, contributing to the overall advancement of the logistics and warehousing industry. The logistics and warehousing segment is experiencing growth through the adoption of autonomous vehicles, including unmanned drones and robots. These technologies enhance the efficiency of warehouse operations by automating tasks such as inventory management, picking, and packing. As the logistics industry embraces automation, the demand for autonomous vehicles in warehouses continues to grow. According to the International Federation of Robotics (IFR), the number of operational industrial robots is estimated to reach 3 million by 2025. With the increasing need to transport temperature-sensitive goods, the demand for cold chain logistics is on the rise. Pharmaceuticals, fresh produce, and other perishable items require specialized handling and storage.

Automated Guided Vehicle Segmentation by Battery Type

  • Lead
  • Nickel-Based
  • Lithium -Ion

Automated Guided Vehicle Segmentation by Industry

  • Healthcare
  • Manufacturing
  • Aerospace & Defense
  • Logistics
  • Retail
  • Food & Beverages
  • Paper
  • Chemical

Few of the well-known market leaders in the global automated guided vehicle market that are profiled by Research Nester are Hyster-Yale Materials Handling, Inc., Bastian Solutions, Inc., ELETTRIC80 S.P.A., Fetch Robotics, Inc., Hit Robot Group, EK Robotics, Seegrid Corporation, KUKA AG, and other key market players.

Recent Development in the Market

  • Swisslog Holding AG a provider of best-in-class warehouse automation and software, introduced the next generation of its CarryPick mobile robotic goods-to-person storage and retrieval system. Further, the new, updated CarryPick mobile robotic platform offers a much faster working speed and is known to be quicker and more agile.
  • Schaefer Systems international, Inc. acquired DS AUTOMOTION, in order to fulfill the rising demand for Automatic Guided vehicles (AGVs). Further, the range of vehicle kinds, experience in navigation technology, and general project management will all receive big boost from this new alliance.

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