Automated guided vehicles or AGVs are computer-controlled load carriers that operate autonomously without any human intervention to carry materials within facilities and warehouses. They are programmed to follow visual markers or wires in the floor to safely transport goods from one destination to another. Common applications of AGVs include transportation of finished goods from the manufacturing line to the warehouse for storage, conveying raw materials from the warehouse to the production floor and moving components within production facilities.

The global automated guided vehicle market is estimated to be valued at US$ 2,100 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

The increasing adoption of AGVs in the manufacturing sector is expected to be a major driver for market growth over the forecast period. AGVs help improve operational efficiency by reducing turnaround time and inventory costs for manufacturers. They seamlessly carry loads from one workstation to another without interfering with the production workflow. This allows companies to maximize output and minimize downtime. In addition, the growing labor costs is also prompting more industries to automate internal transportation and adopt AGVs to lower operating expenses. However, high initial investment required for AGVs and associated infrastructure remains a key challenge for market growth especially among small and medium enterprises.

SWOT ANALYSIS
Strength: The automated guided vehicle market benefits from factors such as rise in demand for automation across industries to minimize human errors and enhance operational efficiency. AGVs can transport materials over short and long distances while improving workplace safety. They allow material tracing and real-time monitoring of operations.
Weakness: High initial investments needed for AGVs limits their adoption. Operational and technical challenges arise during integration of AGVs with existing infrastructure. Network issues and equipment downtimes also affect workflow.
Opportunity: Growth of e-commerce and demand for automation in warehouses and distribution centers presents opportunities for AGVs. Offering AGVs-as-a-service allows smaller companies to utilize technologies at lower costs. Demand is expected from food and beverage, automotive and healthcare industries.
Threats: Presence of alternative technologies for material handling such as autonomous mobile robots and robot arms. Regulation changes affecting automation and integration of AGVs pose threats. Supply chain disruptions can delay equipment delivery.

Key players operating in the automated guided vehicle market are JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Schaefer Systems International Pvt Ltd., EK AUTOMATION LIMITED, Oceaneering International, Inc., Murata Machinery, Ltd., KNAPP AG, Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., Seegrid Corporation, Fetch Robotics, Inc., inVia Robotics, Inc., Crown Equipment Corporation, and Meidensha Corporation. 

Key Takeaways
The global  automated guided vehicle market  is expected to witness high growth over the forecast period of 2023 to 2030 supported by expanding e-commerce, manufacturing and healthcare industries. The global Automated Guided Vehicle Market is estimated to be valued at US$ 2,100 Mn in 2023 and is expected to exhibit a CAGR of 7.8% over the forecast period 2023 to 2030.

Asia Pacific accounts for the largest share of the automated guided vehicle market currently supported by strong industrial activities and manufacturing sectors in China, Japan, South Korea and India. China in particular has seen rapid digital transformation of supply chains and adoption of automation. Europe is another major regional market for AGVs driven by countries such as Germany, UK, France, Italy and Spain.