by The global Automated Guided Vehicle (AGV) Market is estimated to be valued at US$2,100 million in 2023 and is projected to reach a value of US$2,300 million by 2022, growing at a CAGR of 7.8% over the forecast period from 2023 to 2030, according to a new report published by Coherent Market Insights
Market Overview:
AGVs are autonomous vehicles used for material handling and transportation tasks in various industries such as manufacturing, logistics, and healthcare. They are primarily used to eliminate manual labor and increase efficiency in warehouse operations. AGVs offer several advantages, including increased productivity, reduced labor costs, enhanced safety, and improved accuracy in material movement. The need for these products is driven by the growing demand for warehouse automation and the need for cost-effective and efficient material handling solutions.
Market Key Trends:
One key trend observed in the AGV market is the adoption of advanced technologies such as artificial intelligence (AI) and machine learning. AGVs equipped with AI and machine learning capabilities can analyze data, learn from past experiences, and make real-time decisions to optimize material handling processes. These advanced technologies enable AGVs to adapt to dynamic environments, navigate complex pathways, and interact with humans and other machines efficiently. The integration of AI and machine learning in AGVs is expected to revolutionize the warehouse automation industry and drive market growth in the coming years.
Porter’s Analysis:
Threat of New Entrants: The threat of new entrants in the automated guided vehicle (AGV) market is relatively low. The market is highly competitive and capital-intensive, requiring significant investments in research and development, manufacturing facilities, and distribution networks. Established players have already secured a strong foothold in the market, making it difficult for new entrants to capture significant market share.
Bargaining Power of Buyers: The bargaining power of buyers in the AGV market is moderate. Buyers have the option to choose from a wide range of AGV manufacturers, giving them some leverage in price negotiations. However, the high switching costs associated with AGVs and the need for long-term support and maintenance create a certain dependence on the suppliers, limiting the bargaining power of buyers.
Bargaining Power of Suppliers: The bargaining power of suppliers in the AGV market is high. AGV manufacturers rely on a complex supply chain, including components such as sensors, batteries, navigation systems, and control software. The limited number of suppliers for specific components gives them the ability to dictate terms and prices. Manufacturers need to build strong relationships with suppliers and ensure a stable supply of high-quality components.
Threat of New Substitutes: The threat of new substitutes in the AGV market is low. AGVs offer significant advantages over traditional material handling equipment, such as increased efficiency, reduced labor costs, and improved safety. The integration of advanced technologies, such as artificial intelligence and machine learning, further strengthens the value proposition of AGVs. The high initial investment required for AGVs also acts as a barrier to the adoption of substitutes.
Competitive Rivalry: The competitive rivalry in the AGV market is intense. The market is dominated by a few major players, including JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, and Hyster-Yale Materials Handling, Inc. These companies compete on factors such as product quality, pricing, innovation, and customer service. Additionally, smaller players and new entrants are constantly striving to gain market share, leading to heightened competition.
Key Takeaways:
The Global Automated Guided Vehicle Market Demand is expected to witness high growth, exhibiting a CAGR Of 7.8% over the forecast period. This growth can be attributed to the increasing adoption of automation in various industries, such as manufacturing, warehousing, and logistics. AGVs offer a wide range of benefits, including improved efficiency, reduced operational costs, and enhanced safety, driving their demand globally.
In terms of regional analysis, Asia Pacific is expected to be the fastest-growing and dominating region in the AGV market. Rapid industrialization, expanding e-commerce sector, and increasing investments in automation technologies in countries like China, Japan, and South Korea are contributing to the growth of the AGV market in this region.
Key players operating in the automated guided vehicle market include JBT, KION GROUP AG, KUKA AG, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Schaefer Systems International Pvt Ltd., E&K 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. These key players are focusing on strategic partnerships, product innovations, and technological advancements to strengthen their market position and gain a competitive edge.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
