AGV market set for 12.5% CAGR, report says

April 15, 2020
Post pandemic, the research groups says organizations will increasingly root for automated guided vehicles as a solution to decrease dependency on human labor

Logistics and transportation departments across industries are utilizing automated guided vehicles to move items in production facilities, warehouses, and distribution centers says Facts.MR. According to the research company in a new report, the global automated guided vehicle market is set to exhibit a 12.5% CAGR from 2020 to 2030. It cites innovation and new developments in installation, control and monitoring of automated guided vehicles will continue to garner traction as well as the importance of reducing carbon emission by introducing energy efficient intermediate manufacturing processes.

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Fact.MR's findings say that tow vehicles will lead as the segment will account for 44% of total market value share. The elimination of floor accidents, coupled with adaptability of tow vehicles for narrow paths are driving demand

Forklift trucks will offer the most lucrative growth opportunities with a 15% CAGR during the forecast period. Laser guidance is emerging as the front-runner among navigation technologies used by automated guided vehicles and this segment holds 47% of the total market value share. The highest growth is offered by vision guidance navigation at 14%. Lead batteries account for the largest market share of more than 65% of the total market value. Nickel batteries have a14.5% CAGR during the forecast period. High energy density of nickel batteries is cited as the main growth driver.

The report also finds that Europe emerges as the leader of global sales because of ubiquitous adoption of industry 4.0 technology across industry verticals. North America accounts for the second largest share of over 23% of the total market value. 

Amid the COVID-19 pandemic, automotive manufacturers are witnessing a drop in orders and production capacities as most of the automotive manufacturing activities involve import of parts and components from China. Many automated guided vehicle manufacturers face hurdles in producing new products. However, it is expected that post pandemic, organizations will increasingly root for automated guided vehicles as a solution to decrease dependency on human labor.