Automated Guided Vehicle (AGV) Market Size - By Type (Tow Vehicle, Unit Load Carrier, Pallet Truck, Forklift Truck, Assembly Line Vehicles), Mode of Operation (Indoor, Outdoor), Navigation Technology, Application, End-User Industry & Forecast, 2024 - 2032

Automated Guided Vehicle Market Size

Automated Guided Vehicle Market size was valued at USD 9.7 billion in 2023 and is estimated to register a CAGR of over 7% between 2024 and 2032. The surge in the e-commerce industry is fueling the adoption of automated guided vehicles. E-commerce businesses are under pressure to deliver orders promptly and effectively.  Traditional manual fulfilment systems might get overloaded with a large volume of orders, resulting in delays and inaccuracies. AGVs automate processes such as picking, packaging, and shipping, considerably speeding up the fulfilment process and increasing accuracy.
 

E-commerce enterprises frequently operate in warehouses with limited space. AGVs can increase storage capacity by efficiently crossing small aisles and working in multi-level buildings. The e-commerce boom has resulted in increased demand for warehouse labor, which may be cost-intensive. AGVs can minimize dependency on manual labor for repetitive tasks, allowing human workers to concentrate on higher-value activities like quality control and customer service.
 

In March 2022, the International Monetary Fund (IMF) released a report on the surge in the share of online spending by consumers. It stated that the online share of total spending rose sharply from 10.3 percent in 2019 to 14.9 percent at the peak of the pandemic. The online share of spending is still above pre-pandemic trends in about half of the globe, from large emerging economies such as Brazil and India to other middle-income countries like Bahrain and Jamaica. These statistics illustrate the overall growth in the e-commerce sector, consequently driving the expansion of the AGV market.
 

The high initial investment in setting up an AGV system is a major challenge to the automated guided vehicle market, potentially slowing down the growth. AGVs can cost anywhere from tens to hundreds of thousands of dollars per, depending on size, capacity, and technology. AGVs need infrastructure upgrades, such as the installation of magnetic strips, wiring, or navigation sensors.
 

System design and integration expenses include layout planning, traffic management software, and AGV interface with current warehouse management systems (WMS). Personnel training on how to operate and maintain AGVs increases the overall cost. For smaller enterprises with low capital resources, the hefty initial expenditure is a significant barrier.
 

Automated Guided Vehicle Market Trends

Advancements in areas like sensors, navigation systems, and artificial intelligence (AI) are making AGVs more sophisticated and capable. LiDAR, 3D cameras, and better obstacle detection sensors enable AGVs to navigate complicated settings with greater precision and safety. They can also perform a broader range of tasks, such as selecting and arranging things of various shapes and sizes.
 

New advances in SLAM (Simultaneous Localization and Mapping) technology allow AGVs to build and adapt to dynamic surroundings without depending on pre-programmed pathways. This increases their flexibility and adaptability to changing warehouse layouts or procedures. Additionally, AI-powered software can optimize AGV routes, anticipate and avoid congestion, and even learn and adapt to changing situations.
 

For instance, in March 2024, VisionNav Robotics, an automated warehouse vehicle provider launched its automatic trailer truck loading and unloading system in North America at MODEX 2024. The new system is equipped with VisionNav’s VNST20 PRO automated guided vehicle (AGV). Also, the new offering combines its VNST20 autonomous forklift, a robot control system (RCS) for fleet scheduling, and 3D LiDAR for simultaneous location and mapping (SLAM) with deep learning positioning technology.
 

Automated Guided Vehicle Market Analysis

Based on the mode of operation, the market is categorized into indoor and outdoor. The indoor segment accounted for around 80% of the market share in 2023 and is expected to exceed USD 14 billion by 2032. Indoor locations provide more regulated and predictable operation conditions for AGVs. Indoor navigation reduces factors such as weather, uneven terrain, and unanticipated objects, making it more precise and trustworthy. This is critical to guaranteeing the safety and efficiency of AGV operations.
 

Warehouses and manufacturing facilities frequently have existing infrastructure that allows for interior AGVs. Magnetic strips, cables, or beacons can be simply deployed to direct AGVs down certain courses. This reduces the requirement for major infrastructure changes as compared to external conditions.
 

Based on application, the automated guided vehicle market is divided into logistics & warehousing, assembly, packaging, trailer loading & unloading, raw material handling, and others. The logistics & warehousing segment accounted for a market share of around 43% in 2023. Warehouses and distribution hubs are known for repetitive tasks such as transporting pallets, containers, and individual products.
 

AGVs excel at automating these processes with great precision and consistency, freeing up human workers to do more complicated jobs. In today's fast-paced e-commerce world, warehouses must deliver orders promptly and effectively. AGVs can significantly boost throughput by improving material handling procedures, shortening trip times, and decreasing congestion in warehouses.
 

North America holds a major share of around 35% in the global automated guided vehicle market in 2023. North America has a strong industrial sector and a booming e-commerce ecosystem. Both sectors rely largely on efficient material handling systems, hence AGVs are a viable alternative. Many North American corporations are experiencing labor shortages and an ageing workforce. AGVs can serve to cover labor gaps and automate repetitive operations, hence enhancing production and efficiency.
 

The rapid growth of e-commerce in the U.S. is driving demand for automated material handling solutions, including AGVs. As consumers increasingly turn to online shopping, businesses are under pressure to fulfill orders quickly and accurately, spurring the adoption of AGVs in warehouses and distribution centers.
 

The APAC region is experiencing rapid industrialization, particularly in countries like China, India, and South Korea. This surge in manufacturing activity fuels the demand for efficient material handling solutions, making AGVs a compelling option. Furthermore, the APAC region is seeing an e-commerce boom, creating a desire for faster and more effective fulfilment operations. AGVs may automate work in warehouses and distribution centers, speeding up order fulfilment to satisfy e-commerce needs.
 

European countries including France, Germany, UK, and the Netherlands are witnessing significant growth in the automated guided vehicle (AGV) market. These countries have a strong manufacturing industry, notably in automotive, aerospace, and healthcare. These sectors rely largely on efficient material handling procedures; therefore, they are ideal candidates for AGV adoption. Several European governments are sponsoring Industry 4.0 programs, which encourage automation and digitization in production. Financial incentives and tax exemptions for using AGVs can accelerate market expansion.
 

Moreover, countries in the Middle East & Africa (MEA) region, such as the UAE and Saudi Arabia, are experiencing significant infrastructure development and logistics hubs, fueling the growth of the overall market in that region.
 

Automated Guided Vehicle Market Share

JBT and Daifuku Co., Ltd. hold a significant market share in the AGV industry in 2023. JBT focuses on developing tailored AGV solutions for industries where it has expertise, such as food and beverage, airports, and aerospace. By understanding the unique challenges and requirements of each sector, JBT offers specialized AGV systems that address specific pain points and deliver maximum value to customers.
 

Daifuku Co., Ltd. invests heavily in emerging technologies such as artificial intelligence, machine learning, and IoT to enhance the capabilities of its AGV systems. By leveraging these advanced technologies, Daifuku focuses on improving navigation accuracy, increase operational efficiency, and enable predictive maintenance capabilities.
 

Automated Guided Vehicle Market Companies

Major players operating in the automated guided vehicle (AGV) industry are:

• Bastian Solutions, Inc.
• Daifuku Co., Ltd.
• Dematic
• E&K Automation Gmbh
• Fetch Robotics, Inc.
• Hyster-Yale Materials Handling, Inc.
• JBT
• Schaefer Systems International, Inc.
• Seegrid Corporation
• Toyota Industries Corporation
   

Automated Guided Vehicle Industry News

• In April 2024, HMS Networks significantly enhanced the efficiency of Mercedes-Benz's Automated Guided Vehicle (AGV) system at their Ludwigsfelde automotive factory. The upgrade involved deploying an advanced wireless system to support expanded AGV operations, improving efficiency, and ensuring compliance with the EU Machinery Regulation 2023/1230.
   
• In April 2024, Siemens Nederland and VDL Automated Vehicles strengthened their partnership to launch the second generation of their automated logistics platform based on Automated Guided Vehicles (AGVs). This partnership builds on their previous work on AGVs, with the new generation offering enhanced capabilities and features.
   

The automated guided vehicle (AGV) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Billion) and shipment (Units) from 2021 to 2032, for the following segments:

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Market, By Type

• Tow vehicle
• Unit load carrier
• Pallet truck
• Forklift truck
• Assembly line vehicles

Market, By Navigation Technology

• Laser guidance
• Magnetic guidance
• Vision guidance
• Natural navigation
• Others

Market, By Application

• Logistics & warehousing
• Assembly
• Packaging
• Trailer loading & unloading
• Raw material handling
• Others

Market, By Mode of Operation

• Indoor
• Outdoor

Market, By End-User Industry

• Food & beverage
• Automotive
• Retail
• Electronics & electrical
• Manufacturing
• Pharmaceuticals
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • South Africa
  • UAE
  • Saudi Arabia
  • Rest of MEA