CHICAGO – The Automated Guided Vehicle (AGV) market is projected to grow from US$2.3 billion in 2020 to 3.6 billion by 2025; it is expected to grow at a compound annual growth rate (CAGR_ of 9.3 percent from 2020 to 2025.
According to a new report published by MarketsandMarkets, the key factors fueling the growth of the market include growing demand for automation in material handling across numerous industries, improved safety standards at workplaces, and a shift in demand from mass production to mass customization. Additionally, integration of industry 4.0 technologies with robotics is also augmenting the growth of the AGV market.
The laser guidance segment to hold the largest size of the AGV market by 2025
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 allows the vehicles to operate in a warehouse without the need for invasive barriers.
Due to the imposition of lockdowns across different countries as result of COVID-19 outbreak, companies are facing severe cash flow issues. Halting or slowing down of production across industries has resulted in a decline in demand for AGVs this year. The foreseeable decline in the growth of end-user industries may have a considerable direct impact on the AGV market in FY20.
Europe projected to be the largest market for a AGV from 2020 to 2025
Europe is projected to be the largest market for AGVs during the forecast period. The presence of a large number of key players in this region, along with the large customer base, is among the major factors driving the AGV market in Europe. The region has exceptionally high labour costs which is driving manufacturers in European countries to adopt automated solutions.
The key players operating in the AGV market include Daifuku (Japan), JBT (US), KION (Germany), KUKA (Germany), Toyota Industries (Japan), Hyster-Yale (US), SSI Schaefer (Germany), E&K Automation (Germany), Oceaneering (US), and Seegrid (US).