In 2022, the Global Automated Guided Vehicles (AGV) in Supply Chain Market was valued at USD 3.81 billion and is projected to reach a market size of USD 8.29 billion by 2030. The market is anticipated to witness a compound annual growth rate (CAGR) of 10.2% over the forecast period of 2023 - 2030. AGV systems help move and transfer products in industrial plants, warehouses, and distribution centres without the necessity of a fixed conveying system or user involvement. It follows adjustable guide pathways in the environment of premium space to optimise warehousing, selection, and transport operations. Growth for automation in material handling across sectors, a shift in demand from mass production to mass customisation, the rise in acceptance of e-commerce, and enhanced workplace safety norms are all driving the AGV in the supply chain industry forward.
INDUSTRY OVERVIEW:
Automated guided vehicles are material-handling equipment that is programmed to transport pallets, trolleys, and trays, among other items, between manufacturing and warehousing sites. These facilities help to increase efficiency, which leads to increased output and, as a result, a higher profit margin for the company. In today's world, industries are increasingly focusing on efficiency rather than just increasing productivity. Many industrial plants and others are exploring applying approaches like JIT (Just in Time), KANBAN, and others. AGV systems assist in the movement and transportation of products in industrial plants, warehouses, and distribution centres without the use of a fixed conveying system or user interaction. In a limited space context, it follows configurable principles to optimise storage, picking, and transportation duties. AGVs are widely employed for a variety of reasons, including decreased labour costs, reduced product damage, increased productivity, and the capacity to scale up to accommodate automated operations. Transportation and logistics organisations are encouraged to adopt AGVs to improve the efficiency of their operations because of these major benefits.
The automated guided vehicle market is growing due to a rise in demand for automation and automated guided vehicles in many industries, as well as improvements in safety, accuracy, and productivity. The automated guided vehicle market, on the other hand, is hampered by high initial investment costs and a lack of flexibility. Industry 4.0 is also expected to present lucrative growth possibilities for players in the automated guided vehicle market. The autonomous guided vehicle market has been greatly disrupted by the current COVID-19 pandemic scenario due to a lack of labour due to government-imposed lockdowns and the halting of production operations. However, due to an increase in demand for contactless and effective logistics infrastructure, the market is expected to grow at a significant rate in the future.
Due to the COVID-19 epidemic and the resulting suspension in several sectors' operations, the AGV market size shrank in 2020. However, as a result of widespread immunisation in numerous countries, industry operations are rising. As global situations normalise and demand industrial products rises, the AGV industry is likely to regain traction in 2022 and ahead. The COVID-19 outbreak and expansion caught industries and businesses off guard, leaving them with little time to prepare or protect themselves against losses. As a result of the pandemic affecting numerous industries around the world, the AGV market in 2020 will be lower than the previous year. In most industrial units around the world, it resulted in the closure or suspension of production facilities. Many industries, including healthcare, e-commerce, and food and beverage, have seen significant changes as a result of the new normal. Global demand for both industrial and consumer goods has risen as well. As a result, compared to 2020, the AGV market is expected to expand in 2021 and ahead. As automation increases in all industries, the market size is predicted to grow faster than it was pre-pandemic in 2022, paving the path for more AGV use in 2026.
MARKET DRIVERS:
Market Growth will be aided by the increasing use of automation in the material handling process:
The demand for automation is expanding in the supply chain industries due to the overall requirement for high operational efficiency. AGV-enabled industrial facility automation can help satisfy material handling capacity requirements while also saving production time, lowering the risk of human mistakes, improving safety, ensuring high production volumes, and increasing precision and repeatability. With the use of developments such as Big Data, machine learning, and others, enhanced technology in the material handling process has enabled industries to have linked factories, leading to the adoption of automated material handling services. They can have more flexible production processes, better quality control, and better labour management as a result of this. The use of automated material handling systems is developing in tandem with the growth of the e-commerce sector around the world.
An increase in safety, accuracy, and productivity is going the propel market with positive growth:
Automated guided vehicles are built with safety in mind and are outfitted with lasers, cameras, and sensors that allow them to securely interact with workers and infrastructure. Some vehicles, such as forklifts, rely on human input and lack safety safeguards. As a result, there is always the risk of an operator becoming preoccupied or weary, resulting in an accident. As a result, the use of automated guided vehicles is on the rise to avoid such problems. Furthermore, replacing employees with AGVs reduces the risk of inaccuracy in the process, resulting in more productive and accurate output. AGV integration also provides for a constant flow of operations with improved processes. As a result, there was a boost in terms of safety, precision, and productivity.
MARKET RESTRAINTS:
AGVs' high installation, initial investment, maintenance, and switching costs can stifle market growth:
When compared to hiring people or using other human-operated equipment, the adoption of automated guided vehicles is not very profitable. The industries, on the other hand, can see the long-term benefits of adopting an autonomous guided vehicle. Furthermore, autonomous guided vehicles require routine maintenance and repair, resulting in considerable downtime. As a result, it might not be affordable for smaller businesses that don't have easy access to cash. As a result, the market for automated guided vehicles is expected to be hampered by high initial investment and maintenance expenses.
In emerging economies, the easy availability of low labour costs is limiting the deployment of AGVs:
The use of automated technologies across industries is limited in emerging economies such as India, Bangladesh, and Tanzania due to low worker pay rates. In many countries, where inexpensive labour is readily accessible, industrial automation makes little or no economic sense. Because the cost-benefit in labour trade-off with robots is lower in these emerging economies than in other industrialised countries due to the availability of inexpensive labour, automation in manufacturing facilities is less frequent. Bangladesh, Cuba, and Tanzania are among the countries with the lowest average daily salaries in the world. As a result, emerging-market companies are wary of investing in automated equipment such as AGVs. In emerging economies' manufacturing sectors, human labourers undertake a range of tasks and in combination with semiautomatic tools turn out to be an economical option for businesses.
AUTOMATED GUIDED VEHICLES (AGV) IN SUPPLY CHAIN MARKET REPORT COVERAGE:
|
REPORT METRIC |
DETAILS |
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Market Size Available |
2022 - 2030 |
|
Base Year |
2022 |
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Forecast Period |
2023 - 2030 |
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CAGR |
10.2% |
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Segments Covered |
By Components, By Vehicle Type, By Battery Type, By Navigation Technology, By Application, By End - User, and Region |
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Various Analyses Covered |
Global, Regional & Country Level Analysis, Segment-Level Analysis, DROC, PESTLE Analysis, Porter’s Five Forces Analysis, Competitive Landscape, Analyst Overview on Investment Opportunities |
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Regional Scope |
North America, Europe, APAC, Latin America, Middle East & Africa |
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Key Companies Profiled |
Swisslog Holding AG, Egemin Automation Inc., Bastian Solutions, Inc., Daifuku Co., Ltd., Dematic, JBT, Seegrid Corporation, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., BALYO, E&K Automation GmbH |
This research report on Automated Guided Vehicles (AGV) in Supply Chain Market has been segmented and sub-segmented based on Components, By Vehicle Type, By Battery Type, By Navigation Technology, By Application, By End - User, and By Region.
Hardware
Software
Service
Based on Components, the Automated Guided Vehicles in the supply chain industry are segmented into Hardware, Software and Services. In 2021, the hardware category dominated the market, accounting for more than 70% of total sales. The trend can be ascribed to the increased use of collaborative robots in production and distribution facilities to minimise human labour and redundant jobs. The accessibility of numerous optimization techniques in these vehicles, such as cobots, material handling equipment, gearheads, and actuators, has led to the hardware segment's greatest market share. Besides this, the services segment is poised to contribute significantly to the market growth of the Automated Guided Vehicles in the supply chain industry. The Services segment is anticipated to grow at the highest CAGR of 11.7% over the forecast period of 2023 - 2030. End-user demand for different services, including preventative and corrective maintenance, vehicle and software health checks, and training staff associated directly or indirectly with the operation of AGVs, is driving the expansion.
Tow Vehicle
Unit Load Carrier
Pallet Truck
Forklift Truck
Hybrid Vehicles
Others
Based on Vehicle Type, the Automated Guided Vehicles in the supply chain industry is segmented into Tow Vehicle Unit Load Carrier, Pallet Truck, Forklift Truck and Hybrid Vehicles among others. In 2021, the tow vehicle sector led the market, accounting for more than 40% of total sales. These vehicles are used to transport huge payloads in non-powered trailers. They are the most efficient type of AGV used for towing and pulling since they can carry larger loads with many trailers than a single fork truck.
Over the projected period, the unit load carrier category is predicted to grow at the fastest CAGR of 12.4 per cent. Pallets, huge containers, and roll handling are all delivered using unit load AGVs. It also allows for more effective work scheduling by decreasing aisle traffic and product damage. Unit load carrier AGVs are also used instead of fork trucks, which require workers to operate. As a result, these AGVs are ideal for lengthy journeys, repetitive jobs, and potentially dangerous environments. Moreover, they are autonomous robots, which minimize the need for human labour while also enhancing worker safety. Unit load carriers provide the extra benefits of trackable scheduling and product delivery, making them effective for the shipping of large items.
Lead Battery
Lithium-Ion Battery
Nickel-based Battery
Others
Based on Battery Type, the Automated Guided Vehicles in the supply chain industry is segmented into Lead Battery, Lithium-Ion Battery and Nickel-based Battery among others. In 2021, the lead battery sector led the market, accounting for more than 60% of total sales. Compared to other battery varieties, these batteries are less expensive. It also has excellent reversibility, a steady voltage, a long service life, and can be used in a variety of applications. Over the forecast period, the lithium-ion battery segment is expected to grow at the fastest rate of 15.8 per cent.
Laser Guidance
Magnetic Guidance
Vision Guidance
Inductive Guidance
Natural Navigation
Others
Based on Navigation Technology, the Automated Guided Vehicles in the supply chain industry are categorized into Laser Guidance, Magnetic Guidance, Vision Guidance, Inductive Guidance and Natural Navigation among others. Among these, in 2021, the laser guidance category led the market, accounting for more than 35% of total revenue. Due to its role as an electronic eye to evade obstacles in the path, the laser guiding sub-segment in the logistics industries is predicted to increase. As the AGVs encounter challenges while executing operations, laser systems are appealing owing to their combination of adaptability and accuracy to evade any disruptions or obstacles.
Over the projected period, the vision guidance market is likely to develop at a healthy pace. The growing use of autonomous cars is fueled by the need for optimized and efficient routing. Developments in computer vision and associated software solutions are helping Automated vehicles to better evaluate the surroundings in real-time, increasing demand for AGVs for activities in difficult conditions such as navigating large components down small aisles. Besides this, the Natural Navigation segment is also poised to significantly contribute to the market growth. Over the projected period, the natural navigation category is predicted to grow at the fastest rate of 17.4%.
Logistics & Warehousing
Storage & Assembly
Packaging
Others
The Automated Guided Vehicle is used in a wide range of industries including Transportation & Distribution, Storage & Assembly and Packaging industries among others. In 2021, the logistics and warehousing category led the market, accounting for more than 40% of total revenue. Modern retrieval and automated storage systems, as well as other material handling equipment, are being rapidly adopted by businesses modernising existing facilities and developing new ones to save labour costs and increase efficiency and production and is consequently driving the segmental growth.
The storage and assembly segment is anticipated to expand at a CAGR of 13.1% over the forecast period. Taller racks, compact layouts, and tight lanes are being used by logistics and storage companies to stay competitive. Simultaneously, they are attempting to increase the efficiency of their operations to meet the increased demand for their services. These businesses are employing AGV solutions in particular because they can navigate correctly and effectively through small aisles and compact layouts, as well as improve the storage process's dependability. The market for AGVs in the supply chain industry is predicted to rise in response to increased demand from logistics and warehousing companies.
Automotive
Food & Beverage
E-commerce
Manufacturing
Others
Based on End Use, the Automated Guided Vehicles in the supply chain industry is widely used in the Automotive, Food & Beverage, Ecommerce and Manufacturing industry. In 2021, the manufacturing category dominated the market, accounting for more than 75% of total sales. AGVs are installed with laser heads, cameras, and other sensors to aid in their safe operation around machinery, buildings, and people. While employees in a production or distribution facility might make mistakes that lead to accidents and disasters, AGVs can assist improve workflow precision, decreasing waste and increasing efficiency. The E-Commerce segment is projected to contribute significantly to the market growth. The market growth is driven by the growth of the eCommerce giants such as Amazon, Alibaba, and others. In the e-commerce industry, AGVs assist in the proper material handling, ERP systems, high-rack storage systems, and warehouse management.
North America
Europe
The Asia Pacific
Latin America
The Middle East
Africa
Based on region, the Automated Guided Vehicles in the supply chain industry are grouped into North America, Europe, Asia Pacific, Latin America, The Middle East, and Africa. North America is expected to develop rapidly as the region with the greatest automated guided vehicle market share. Key Players' Strong Presence in the United States to drive market growth during the forecast period. The increase in the number of import and export operations is driving the expansion. Warehouse operators are increasingly relying on automation technology to improve warehouse operations and increase efficiency. Companies operating in the region are developing new tools and equipment using cutting-edge technology to fulfil expanding client demands. Furthermore, being one of the world's most advanced nations, the United States is predicted to grow greatly.
The rapidly growing e-commerce business in many nations, such as China, India, and Japan, is predicted to propel the Asia Pacific to exponential growth over the forecast period. Several governments in the Asia Pacific are taking a range of efforts to help the region's manufacturing industry to thrive, which presents an appealing market expansion opportunity. Furthermore, the e-commerce industry is booming, and several e-commerce companies are thinking about expanding into these regional markets. As a result, e-commerce competition has risen, and industry incumbents are striving to differentiate themselves by lowering the time it takes to deliver things to end-users.
The European market is expected to grow steadily over the projection period. The regional market is growing due to the rising demand for material handling equipment among incumbents in the manufacturing industry. Additionally, automation has supported regional market expansion in every business. Key players are also concentrating on improving their product portfolio to promote the development of industry 4.0 and industrial automation. Furthermore, public and private sector investments in the field of sustainable development are projected to rise which is propelling market growth in the region.
AUTOMATED GUIDED VEHICLES (AGV) IN THE SUPPLY CHAIN MARKET- BY COMPANIES
Due to the presence of several market players, the industry for the automated guided vehicle is moderately fragmented and competitive. Factors like digitalization and the emergence of integrated Industry 4.0 with IoT will present significant development prospects for the autonomous guided vehicle industry. The major players are focusing on innovation, mergers and product launches to capture market share and increase their product portfolio. Major market participants include:
NOTABLE HAPPENING IN AUTOMATED GUIDED VEHICLES (AGV) IN THE SUPPLY CHAIN MARKET
Global automotive lighting refers to all vehicle lighting systems, from headlamps that illuminate the road to taillights that communicate movements. They guarantee motorists and other road users alike safety, visibility, and style. While taillights frequently use LEDs for improved visibility, headlights are available in a variety of technologies, including LED and laser. Interior illumination, DRLs, and signal lights all have a role to play. This market, which was estimated to be worth $33.64 billion in 2022, is anticipated to rise to $67.39 billion by 2030 because of laws, luxury tastes, safety concerns, and technological developments like OLED taillights and adaptive headlights. Anticipate a future dominated by intelligent, connected, personalized, and sustainable lighting systems that enhance the safety, efficiency, and aesthetic appeal of automobiles.
Car lighting works its magic to provide safety, visibility, and style. Headlights cut through the night, taillights express intent, and interiors shine with comfort. The billion-dollar global business is expected to rise due to consumer demand for high-end experiences, safer roads, and cutting-edge technology. Imagine dynamic messages being painted by taillights, headlights that adjust to the road, and interiors that customize their atmosphere. Driven by technological advancements like linked systems and laser beams, this future is calling. Anticipate even more visually attractive, environmentally friendly, and intelligent lighting to illuminate the way ahead, making cars safer, more efficient, and unquestionably cooler.
In the market for automobile lighting, safety is the driving force behind demand from the public and laws. While automated high beams smoothly react to traffic, adaptive headlights modify their beams so as not to blind other people. With visually striking displays, dynamic taillights convey intentions for braking and turning. Beyond these developments, integrated pedestrian identification and lane departure alerts will soon make roads safer and brighter for everyone.
Luxurious automobile lighting creates a distinct visual identity that goes beyond simple illumination. Personalized interior lighting customizes the driving experience by setting the mood with a range of colours and intensities, while intricate designs and distinctive DRLs modify exteriors. As you approach your automobile at night, welcoming lights lead the way, resulting in an interior that is perfectly lit. Not only is this symphony of light aesthetically pleasing, but it also stands as a tribute to luxury. Upcoming developments like gesture-controlled lighting and holographic displays promise to further enhance the experience.
The worldwide automotive lighting market is undergoing a significant transition towards energy-efficient solutions, as environmental concerns gain prominence. LED technology is leading the way, providing a ray of hope for the environment and drivers alike. LED lights beam brighter and use a lot less energy than conventional halogen lamps. There are some tangible advantages to this. For drivers, this translates to increased fuel economy, which lowers petrol prices and lessens reliance on fossil fuels. Greater air quality and a reduction in the transport sector's contribution to climate change are the results of reduced overall emissions.
Although the global automotive lighting business is booming, there are still unknowns. Difficulties impede growth even as innovation propels it with eye catching features like laser beams and adaptable headlights. These technologies are luxury items due to their high cost and difficult integration, which puts producers' abilities to the test. The worldwide patchwork created by unclear legislation limits the potential of innovation. Durability issues persist, particularly when complex systems are subjected to challenging conditions. Ultimately, a lot of drivers still don't fully understand how these improvements can help them. Together, we can overcome these obstacles. The keys to reducing costs are improved production, more seamless integration, and unified regulations. Their full potential can be realized by educating customers about the safety, efficiency, and aesthetic value of these lighting wonders. By working together, we can pave the way for an even brighter and safer future for vehicle lighting.
It is made possible by advanced LED technology, which gives drivers the ability to customize their illumination for the highest level of comfort and flair. Consumers that care about the environment want greener products, and vehicle lighting complies. While solar- and self-powered lighting technologies offer a future powered by clean energy, energy-efficient LEDs lower pollution. The advent of connected lighting systems heralds a new age. Envision automobiles interacting with infrastructure and one another to minimize accidents and enhance traffic efficiency. Integrated headlights with pedestrian recognition provide unmatched safety, while dramatic taillights with eye-catching displays alert onlookers to your intentions. The possibilities are endless in the future. Gesture-controlled interior illumination, holographic displays projected onto the road, and even light fixtures with self-healing capabilities.
Due to laws requiring safety features like headlights, taillights, and brake lights, exterior lighting presently holds the most market share in the vehicle lighting industry. The dominance of this market is partly attributed to advancements in safety-focused technologies such as adaptive headlights and daytime running lights. The market value of external lighting is increased by the quick adoption of technology like LED bulbs and laser lights, which improve performance and aesthetics. Conversely, the interior lighting market is expected to increase at the fastest rate in the upcoming years. Innovations like ambient lighting and technology breakthroughs like LED and OLED displays, driven by consumer demand for comfort and personalisation, open new possibilities. The spread of sophisticated interior lighting systems is further driven by the growing emphasis on safety and the expansion of the luxury car market.
The worldwide vehicle lighting market is currently dominated by halogen because of its more affordable price, advanced technology, and useful illumination. With its dependable supply chain and affordable option for manufacturers and cost-conscious customers, halogen holds the biggest market share. The fastest-growing market right now is LEDs, which are predicted to shortly overtake halogen. The rapid expansion of LEDs is driven by their higher efficiency, longer lifespan, flexibility in design, and technological breakthroughs including enhanced brightness. Because LEDs use less energy and produce fewer emissions and better fuel economy, they are becoming more and more popular in the changing automotive lighting market.
Passenger automobiles rule the worldwide automotive lighting market. The sheer number of passenger cars produced which surpasses that of business vehicles and fuels the need for lighting systems is the primary cause of this popularity. The growing demand for personal automobiles in developing nations is a result of rising disposable income, which in turn drives the rise of the passenger car market. The importance that consumers place on safety and aesthetics elements helps to drive market expansion. But in the upcoming years, the market for electric and hybrid cars is expected to develop at the quickest rate. The exponential rise of the worldwide electric car market, which is still expanding and shows no signs of slowing down, is what is driving this surge. Specialised lighting solutions are required since electric and hybrid vehicles have different lighting requirements because of their specific functionality and design aesthetics.
Most lighting systems sold nowadays are sold by OEMs (Original Equipment Manufacturers), primarily because manufacturers pre-install lighting systems in new cars. But in the next years, the aftermarket is expected to develop at the quickest rate. This spike in demand for replacement parts, especially lighting systems, can be linked to several variables, one of them being the average age of cars. The industry is expanding because of consumers' growing desire to personalise their cars with aftermarket lighting upgrades such LED upgrades and decorative lighting. The availability and affordability of technologies like adaptive headlights and laser lights in the aftermarket, together with other advancements in lighting technology, are driving demand even more. Moreover, the growing market for electric cars (EVs).
Throughout the forecast period, Asia Pacific is anticipated to be the automotive lighting market with the highest profitability. Over the past few years, Asia Pacific countries like China and India have seen notable increases in automotive manufacturing and sales, primarily in the medium-to premium luxury car segment. Asia Pacific is predicted to see an increase in the manufacturing of passenger cars, with India experiencing the strongest growth rate. Depending on the state of the national economy, the area offers a suitable selection of both high-end and cheap cars. For instance, there is a substantial demand for halogen, Xenon/HID, and LED since China and India produce more economy and mid-range automobiles. On the other hand, luxury car adoption rates are greater in South Korea and Japan, where LED lighting is the norm.
A brief shadow was thrown by COVID-19 over the worldwide automotive lighting market. Production was stopped by lockdowns and supply chain disruptions, while luxury lighting upgrades were shelved by consumers on a tight budget. Resources became scarce, and R&D stagnated. Still, the market is recovering thanks to resurgent demand and rearranged priorities. While energy-efficient LEDs are being pushed towards adoption by sustainability, safety concerns are driving interest in features like pedestrian detection and adaptive headlights. The digital push of the epidemic creates opportunities for intelligent, networked lighting systems that may interact with infrastructure and other cars. Ultimately, the industry is positioned to shine brighter, focused on safety, sustainability, and a connected future, even though the pandemic dimmed its brilliance.
A development collaboration between OSRAM Continental and REHAU aims to incorporate lighting into external components, providing automobile manufacturers with innovative lighting options that improve functionality and design flexibility. For rear combination lamps, Hella unveiled a revolutionary lighting innovation called Hella FlatLight technology. A Memorandum of Understanding (MoU) was signed by Samvardhana Motherson Automotive Systems Group BV (SMRPBV), a division of Motherson Group, and Marelli Automotive Lighting to investigate a technology collaboration focused on intelligently lighted external body components. Valeo debuted their revolutionary 360° lighting system at the Shanghai Auto Show. This technology surrounds the car with a band of light, projecting instantaneous, clear signs that other drivers can see from a distance. Pedestrians, cyclists, and scooter riders are especially susceptible to these signals
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