GLOBAL AUTOMATED GUIDED VEHICLE MARKET
The growth of the AGV market is driven by demand growing demand for automation in material handling across industries, shift in demand from mass production to mass customization, rising popularity of e-commerce owing to COVID-19, and improved safety standards at workplaces.
Moreover, industrial growth in emerging economies, presence of intralogistics sector in Southeast Asia, and rising adoption of industrial automation by SMEs is likely to fuel the growth of the market.
OVERVIEW OF THE AUTOMATED GUIDED VEHICLE MARKET
Push Towards Greater Efficient Processes
The overall need for high efficiency in automotive, healthcare, e-commerce, and food & beverages industries is increasing the demands for automation. The AGV-enabled automation of industrial facilities can help meet the requirements related to material handling capacity, along with reducing production time, lessening the chances of human errors, enhancing safety, ensuring high production volumes, and increasing accuracy and repeatability.
Industry 4.0 Movement
Traditional industrial facilities are slowly evolving into smart, connected, and highly efficient automated facilities by integrating Industry 4.0 with automation systems. Industry 4.0 is capable of converting an industrial facility into an autonomous plant.
It combines computers and industrial automation solutions with the help of robotics to form a single automated unit. The network of connected devices creates a smart architecture capable of taking decentralized decisions. The growth of Industry 4.0 is changing the functioning of warehouses. Industry 4.0 also aims to create an operational environment wherein humans and robots can work together efficiently.
Developing Countries As An Alternative
Low labor prices in emerging economies such as India, Bangladesh, and Tanzania restricts the adoption of automation across the industries in these countries. The automation of industrial facilities makes little or no economic sense in these countries where abundant cheap labor is readily available.
In India, automation in manufacturing facilities is less prevalent than their foreign counterparts, since the cost advantage in labor trade-off with robots is less due to the availability of cheap labor. Moreover, emerging countries such as Bangladesh, Cuba, and Tanzania have low average daily wages. The companies in emerging countries are reluctant to invest in automated equipment, such as AGVs, due to the availability of low-cost labors.
High Cost Of Investment
Huge capital expenditure is required to install and set up AGVs. The high cost can discourage manufacturing companies from choosing high-end AGVs. Small enterprises cannot afford automated systems and hence opt for traditional/manual handling forklift trucks.
The cost of maintaining AGVs, which varies according to the age, type, location, number of shifts per day, and condition of the equipment, also acts as a barrier for the growth of this market.
For instance, AGVs used in the manufacturing, chemicals, and construction industries have a high maintenance cost. Moreover, it is difficult for companies to invest in automation solutions due to high capital spending and long payback period.
The costs associated with the overall setup of AGV systems is high as these vehicles are programmed and require navigation and communication systems to interact with other material handling equipment. The average payback period for AGVs usually ranges from 3 to 5 years. Therefore, it is difficult for many companies to invest in AGVs due to high capital spending and a long payback period.
E-Commerce And Online Retail Driving The Market
The retail industry’s growth is primarily driven by the increasing demand from e-commerce, primarily for automated warehouse solutions. According to the e-commerce Europe report, the region’s online-sales increased by 13% in 2019, and total sales were valued at EUR 621 billion, and the concentration of the market is expected to be focused in Western Europe, a majority of the turnover from the B2C platform is from the region (66%). Owing to such developments, vendors in the market are increasingly adopting automation.
AUTOMATED GUIDED VEHICLE TRENDS IN THE MARKET
Tow vehicles, also known as tuggers, pull non-powered carts carrying huge loads. This is the most productive type of AGV used for towing and tugging as it can move more load with multiple trailers than a single fork truck.
The companies are focusing on operating in a more efficient manner due to the growing pressure on retail companies to meet the ever-increasing demand of its customers. The foreseeable decline in the growth of end-user industries may have a considerable direct impact on the AGV market
The growth of the laser-guided AGVs market can be attributed to their flexibility, scalability, and accuracy of the laser guidance technology. It also improves safety, increases throughput, and minimizes downtime. Laser guidance is the most flexible system for vehicle movement and offers accurate navigation. It allows the vehicles to operate in a warehouse without the need for invasive barriers.
APAC is likely to be the fastest-growing region in the AGV market. China and Japan are the countries driving the growth of the AGV market in APAC. The rapid growth of automotive, e-commerce, food & beverages, and healthcare industries in emerging economies, such as China, India, and South Korea, has contributed to the growth of the AGV market in APAC.
Moreover, governments in APAC countries are increasingly emphasizing safety and security on production floors, which can be best achieved by the implementation of AGVs. Asian countries under lockdown have suffered tremendous loss of business and revenue due to the shutdown of many manufacturing units. This has impacted the demand for AGV in 2020.
- Daifuku (Japan)
- JBT (US)
- KION (Germany)
- KUKA (Germany)
- Toyota Industries (Japan)
- Hyster-Yale (US)
- SSI Schaefer (Germany)
- E&K Automation (Germany)
- Oceaneering (US)
- Murata Machinery (Japan)
- KNAPP (Austria)
- Seegrid (US)
- AGV International (Netherlands)
- Addverb Technologies (India)
- America in Motion (US)
- Meiden America (US)
- Grenzebach (US)
- Rocla (Finland)
- Denbach Robot (China)
- Uncease Automation (India)
- ECA (France)
- Scott Automation (New Zealand)
- Redviking (US)
- IKV Robot (China)
- Echkart (US)