Automation has significantly revolutionised the industrial sector over the last couple of decades. Machines have replaced humans thereby acting as profit centres. The machines deployed have not only increased the productivity but also delivered tasks worth the efforts of hundred humans with absolute efficiency.
Reduced accidents and fatalities, increased productivity with hardly any down time, and negligible monitoring has made automation a preferable choice in the manufacturing and logistics sector.
Accuracy, flexibility, and productivity have been of paramount importance to the manufacturers, warehouse operators, and logistic companies, which makes AGVs a perfect fit.
Despite sluggish industrial sector growth globally, 2.1% expansion rate looks promising for global market for AGV. Industries, storage, and warehouse along with logistic companies are consistently looking forward towards increased efficiencies, managing with profit margins, and reduced costs.
AGVs are commonly utilized for support in manufacturing areas, where work is in progress. These are used for transporting raw materials or finished goods to and from storage and to ensure movement of goods from warehouse to distribution or end use.
Industrialization and e-Commerce Redefine Norms for Supply Chain Generating Demand for AGVs
Headways in the technology of AGVs with growing automation in the industrial sector and their rising demand have sculpted the market growth over the past decade. Rising demand for precise accuracy, heightened safety levels, squeezed down-times, and negligible scope for human error have equally contributed towards the demand growth for AGVs in the recent past. Subsequently, the flourishing e-commerce industry and growing numbers of warehouses have bolstered the market growth significantly.
Additionally, the minimized labour overheads and efforts to reduce product damage have created a keen interest in AGVs over conventional methods of moving goods. Logistics industry grew at nearly 8%-9%, which has been instrumental in providing significant opportunity for the AGV market proliferation. Squeezing warehouse facilities and narrowing aisles have raised the growing human error concerns and product damages during their movement that has been propelling the demand for the global AGV market.
COVID-19 Slams Brakes on Production Units
COVID-19 has led to an enormous loss of lives, disorder in the production, and supply chain across all sectors and in all areas of life. During pre-COVID-19 era, the growth of industrialization and manufacturing sector was moderate to high.
Disastrous COVID-19 pandemic had a severe impact worldwide, affecting the capital and R&D investments in the industrial and logistic sectors. Additionally, most of the manufacturing sectors and logistic operations along with warehouses were completely shut.
The pandemic led to collapsed sales with disruption in the supply chain and logistics. However, manufacturing sectors are now opening up with demand surfacing near to pre-COVID-19 levels.
Some of the benefitting factors attributing towards rise in the AGV demand were increased online sales activity during the pandemic through the e-commerce channels.
Burgeoning Trade Augments AGV Market Growth
Automakers are relentlessly investing in the research and development to build the automated guided vehicles with cutting-edge technology. Inception of the hybrid and electric drivetrains are likely to bring about the incorporation of efficient electric automated guided vehicles in the foreseeable future.
Technological progression in navigation methods have introduced some of the overwhelming systems comprising of laser sensors and optic sensors. This has led to accurate and seamless operations in the compact facilities having narrow aisles for material movements.
Automated guided vehicles have specified applications in manufacturing and warehouse or distribution centres, where the end uses differ as per the industrial necessities. Defence, automotive, electronics, aerospace, pharmaceuticals, FMCG, chemicals, and plastics among others are placed under the manufacturing class. While the retail chain or convenience stores, restaurants and hotels, grocery stores, and e-commerce are classified under the whole/ distribution centre segment.
For the purpose of this research study, the automated guided vehicles market report is segmented primarily on the basis of types, application, components used, end use, and battery utilized.
Asian Countries to Spearhead Market with Hybrid and Electric Powered AGVs
Rising e-commerce industry in the Asian countries have aided in the demand escalation for proper logistics and warehouse management. AGV deployment has increased the efficacy of intra-logistics tasks with minimal error and monitoring. This in turn has bolstered the opportunity for the key industry incumbents seeking effective solution for storage and improvised efficiency.
Technological evolution is also likely to keep the market demand upbeat with the inception of new advancements such as laser guidance among other types.
Asian countries comprising of the emerging nations such as India, China, Japan, and South Korea are likely to be few of the geographies, where the automated guided vehicles market is anticipated to augment.
Key Players Focus on Pioneering and Deploying Robotic Technologies
The competitive rivalry in the automated guided vehicles market is likely to be intensified in the coming years as technological evolution continues at a rapid pace. Tech-giants are collaborating with retail and logistic companies to redefine the material handling business.
Besides, commerce and retail companies are installing collaborative robots within their storage spaces and growing their business capabilities by acquiring large-scale robot players.
Owing to the aforementioned factors, the key players are relying on different strategies such as business expansion preferably through organic and in-organic growth, new product development and launches, and pricing strategies.
Business strategies related to pricing, R&D investments, and joint ventures are being well adopted by the key players with intent to penetrate emerging economies to grab a market share. For the same, the manufacturers are likely to embrace strategic partnerships that shall entail them in acquiring technology expertise and geographic expansion.
Swisslog Holding AG, Dematic, Bastian Solutions, Inc., Daifuku Co., Ltd., JBT, Seegrid Corporation, TOYOTA INDUSTRIES CORPORATION, Hyster-Yale Materials Handling, Inc., Balyo, E&K Automation Gmbh, Kollmorgen, KMH Fleet Solutions, Fetch Robotics, Inc., inVia Robotics, Inc., Locus Robotics, Schaefer Systems International Pvt Ltd, and System Logistics S.p.A. are some of the major manufacturers steering the global automated guided vehicles market.
Key Elements Included In The Study: Global Automated Guided Vehicles (AGV) Market
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