Automated Guided Vehicle Market Size Worth $9.32 Billion By 2028
The global Automated Guided Vehicle Market size is expected to reach USD 9.32 billion by 2028, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 13.0% from 2021 to 2028. AGVs have transformed the way materials can be moved within the manufacturing and distribution facilities. In a production environment where several operations are carried out simultaneously, the Automated Guided Vehicles (AGVs)ensure a predictable and reliable transfer of raw materials as well as manufactured products from one point to another point within the facility, thereby eliminating any potential disruption in production. These vehicles can operate safely around structures, machinery, and employees, as they are equipped with accessories, such as camera vision and LiDAR sensors, among others, which help in detecting junctions, identifying floor signs, and avoiding collisions with any obstacle.
Several manufacturing plants and warehouses are deploying material handling equipment for various activities, such as locating stock, picking orders, and moving products and raw materials. Transportation and logistics firms are mainly focusing on the deployment of such equipment to boost the efficiency of their operations in line with the growing demand for their services. For instance, in September 2019, a U.S.-based robotic solutions provider AHS, LLC partnered with Exotec, which is a France-based mobile robot picking system provider. The former company introduced 3D mobile robots that can move in three dimensions and enable warehouse team members to focus on packing and shipping and neglecting the long-distance walks to access inventories. Also, material handling solutions are used to increase the efficiency of transportation, decrease physical damage to the material, and reduce overheads by limiting the number of employees.
The AGV market is witnessing a progressive switch from lead-acid batteries to lithium-ion batteries. Lithium-ion batteries offer several advantages over lead-acid batteries. They tend to be lighter and compact. They can charge faster, provide longer runtimes, and support more charge cycles. Hence, they are ideal for AGVs, as they are not required to be charged frequently during operating shifts or in 24×7 operating environments, and AGVs running on lithium-ion batteries can offer higher round-trip efficiencies.
Related Press Release@ Automated Guided Vehicle Market Report
Automated Guided Vehicle Market Report Highlights
- The adoption of material handling equipment and automation solutions is growing significantly across several industries
- The growing adoption of AGVs by the automotive industry as well as the automotive supply industry to move intermediate products within the facility is expected to drive the growth of the AGV market
- The manufacturing industry is increasingly adopting AGVs to save on labor costs. While AGV can operate on a 24×7 basis, the costs associated with the procurement and maintenance of AGV tend to be lesser than the costs incurred on salaries and employee benefits
- The logistics and warehousing segment happen to be the largest application of automated guided vehicles. The segment generated the highest revenue in 2020and is expected to retain its dominance over the forecast period
- Europe dominated the global market in 2020. However, the Asia Pacific region is projected to expand at the highest CAGR from 2021 to 2028