Automated Guided Vehicle (AGV) Market Size

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.

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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.