Competitive Landscape and Upcoming Developments in Automated Guided Vehicle (AGV)
The Insight Partners
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The automated guided vehicle (AGV) market is experiencing significant growth due to constant technological advancements and increasing demand for efficient and cost-effective material handling solutions. AGVs are self-operating, driverless vehicles that can navigate and transport materials within industrial and commercial settings, eliminating the need for manual labor and reducing human error.
One of the key factors driving the AGV market growth is the ongoing revolution in automation and Industry 4.0. As industries embrace digitization and smart manufacturing processes, integrating AGVs into existing systems becomes a logical step to optimize production and logistics workflows. AGVs can seamlessly connect with other machinery and software systems, allowing for synchronized and streamlined operations, thereby enhancing productivity and throughput. Industry 4.0 also aims to create an operational environment wherein humans and robots can work together efficiently in warehouses. For instance, DHL Supply Chain, a contract logistics leader within Deutsche Post DHL Group, uses AGVs and robots in its warehouses for picking. The company collaborated with Robomotive, a Dutch industrial automation company, to develop a robot cell capable of depalletizing, picking, and order fulfilment functions.
Factors such as a diverse product catalog, competitive pricing, and shopping ease have surged the traction of e-commerce among consumers. E-commerce is growing rapidly in developed countries and in emerging nations, owing to the presence of several large corporations such as Amazon and Walmart. The growing popularity of e-commerce has surged the demand for warehouses and distribution centers. As a result, the increasing demand for e-commerce retail is further propelling the AGV market.
Another factor fueling the growth of the AGV market is the increasing emphasis on safety and efficiency in various industries. AGVs are equipped with advanced sensors, cameras, and collision avoidance technologies, making them capable of navigating complex environments without accidents or damage to goods. These features make AGVs an attractive option for industries looking to enhance their safety standards.
The AGV market is segmented into technology, type, vehicle type, and end-use industry. Based on technology, the automated vehicle market is subsegmented into wired navigation, guide tape navigation, laser target navigation, magnet navigation, and others. In terms of type, the market is further divided into standard, hybrid, compact, and others. Based on vehicle type, the industry is categorized into tow vehicle, tugger trains, forklift trucks, pallet trucks, and others. By end use, the market is segmented into general manufacturing, food & beverages, aerospace, retail, healthcare, logistics, automotive, and others.
Industrialization and automation are revolutionizing the way businesses and industries operate across the world. Automation has enabled businesses to become more cost-effective and efficient by excluding labor-intensive tasks and increasing production accuracy and speed. Automation also has the potential to improve product quality and decrease human error. It has allowed businesses to improve customer service, modernize their operations, and reduce customer wait times. Automation is also helping businesses become more flexible, acknowledging them to respond quickly to changes in the market. As businesses embrace automation, they quickly realize the benefits it can bring to their operations. Industrialization and automation in industries are growing significantly. For instance, in June 2023, Rockwell Automation announced that 85% of automotive manufacturers plan to maintain or even increase their workforce due to technology adoption. In addition, 64% of businesses use software to automate processes, and 54% of leaders are increasing automation to address labor shortages.
According to the data of SSE Automation, industrial production has grown rapidly, and almost 90% of companies perceive benefits in automation. China and India represent 70% of industrial automation growth. Industrial automation is expected to create US$ 2.3 million jobs by 2025. As investments in automation increase and technology becomes more accessible, the market will witness massive growth. Automated guided vehicles are widely used for several purposes: increasing safety, lowering production time, assuring high production volume, and minimizing the risk of human mistakes. Thus, growing industrialization and automation in industries drive the automated guided vehicles market.
The growing e-commerce sector worldwide has surged the adoption of the automated material handling process. E-commerce companies such as Alibaba, Walmart, Amazon, and Flipkart are increasing their focus on automated material handling to reduce operational costs and increase inventory size. According to the E-commerce Europe report, in 2020, online sales in the region increased by 13%, accounting for US$ 735 billion. The market concentration is expected to be focused on Western Europe, as the region accounts for most B2C platform turnover (~66%).
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In 2020, the material handling division of ThyssenKrupp invested over US$ 83 million in its European warehousing and logistics network to build a new logistics center in Rotenburg/Wümme to hold up to 20,000 metric ton of materials. MonotaRO, an e-commerce company that supplies industrial products, uses Hitachi's Racrew—a compact, low-floor, automated guided vehicle to increase picking efficiency. In October 2021, Shenzhen Casun Intelligent Robot Co., Ltd launched CASUN Intelligent Robot called little giant. The CASUN's self-organized intelligent control lets its AGV perform in and out of the warehouse to fulfill and achieve the loading and unloading in several industries.
The players operating in the e-commerce industry are upgrading, and industry executives are trying to stand out by lowering the time taken to deliver products to end users. The adoption of AGVs in the e-commerce industry is increasing extensively as industry executives try to roll out a reliable storage process and improve efficiency. Further, the deployment of AGVs in warehouses is helping e-commerce companies automate the intralogistics tasks, such as picking, sorting, and palletizing, thereby increasing efficiency.
The top five companies in the market Toyota Material Handling Inc, Kuka, Kion Group AG, Hyster-Yale Group Inc, and Daifuku Co Ltd. The above listing of key players is derived by considering multiple factors such as overall revenue, current well-completion equipment and services portfolio, new product launches, market initiatives, investment in technology up-gradation, mergers & acquisitions, and other joint activities.
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