A portable robot called an automated guided vehicle (AGV) navigates by following lengthy lines or cables on the floor, or by using radio waves, vision cameras, magnets, or lasers. They are most typically used in industrial settings to transport heavy products throughout a large industrial building, such as a warehouse or factory.

Automated Guided vehicles are commonly employed in material handling systems, flexible production systems, and container handling applications to transfer material from one position of the factory floor to another without the need for an accompanying human. With the advancement of technology, more complex equipment is now accessible, reducing machines and internal setup time significantly. Along with speedy production, the goal of production planning is to ensure effective material transfer between workstations and in and out of storage. To execute an effective routing of material with random handling capacity, flexible material handling systems are necessary. The use of AGVs enables flexibility because the flow channel may be easily picked from a variety of alternate channels or changed to accommodate additional sites.

Market Growth Factors:

• Reduction in Direct Labor Costs: AGV’s help to save money on labor in a variety of ways. For example, when a corporation replaces a human worker with an AGV, it pays a single investment cost for the equipment, rather than the continuous costs of a new hire including salary and other benefits such as healthcare.
• Automated Guided Vehicles aid in the prevention of labor shortages: Under software control, unit loads of inventory are loaded onto a conveyor for direct delivery to numerous destinations. The load is automatically stored and retrieved using an automated storage and retrieval mechanism. Loads are transported to pick-up stations or fed into high-speed sortation systems by automated guided trucks. There isn’t a single break along the way. Hence, the labor shortage can be prevented.
• Automation increases Traceability and Inventory accuracy: AGVs interact with the environment in real-time, relaying the vehicle’s location to dispatching systems, considerably improving the productivity of manufacturing lines and warehouses. To merge logistics and manufacturing processes and improve operational efficiency, AGV Technology can be categorized with Factory Manufacturing Execution Systems, Warehouse Management Systems, Enterprise Resource Planning, and other systems.
• AGVs Permit Layout Freedom: The concept is brought to increase the usage of AGVs, instead of traditional physical structures such as floor chains, moving mats, conveyors, overhead cranes, etc., which all require significant civil work to build. This is crucial, not just for traffic feasibility, but also for safety, as fixed conveyors act as a physical barrier, blocking and restricting escape routes. The working space stays open and free for humans and forklifts because the AGVs are not attached.
• Improvements in Workplace Health and Ergonomics: AGVs can operate in environments where humans are either unable to function or do not work optimally, such as high heat or cold, or around hazardous materials such as chemical facilities or nuclear power plants.

Market Drivers and restraints:

Drivers:

• Demand for automation in material handling procedures is increasing across sectors: The demand for automation is growing in the automotive, healthcare, e-commerce, and food and beverage industries due to the overall requirement for high efficiency. AGVs provide for just-in-time raw material delivery, computerized management of received completed parts, and tracking of dispatched items. AGV-enabled industrial facility automation can help satisfy material handling capacity requirements while also lowering production time, minimizing the risk of human mistakes, improving safety, ensuring high production volumes, and increasing precision and repeatability.
• AGVs in the healthcare industry: AGVs are capable of carrying weights weighing in the thousands of pounds. They can also transport large machinery required in advanced healthcare from one location to another, in addition to linen, trash, food, and medicine. X-ray machines must frequently be moved from room to room and then to the operating room according to the patient’s needs. Although this may appear to be a daunting task for humans, it can be completed in no time with the assistance of AGVs. Hospitals and laboratories generate hazardous waste regularly. It is a critical yet challenging task to transport this material from the collection place to the safe disposal area. Even when wearing safety equipment, the individuals doing this are always at risk. AGVs can be quite useful in the disposal of hazardous garbage.

Restraints:

• Costs of installation, maintenance, and switching are all high: AGVs demand a significant amount of capital to install and set up. The expensive cost of high-end AGVs may deter manufacturers from using them. Because small businesses cannot afford automated systems, they must rely on traditional/manual forklift trucks. The expense of maintaining AGVs, which varies depending on their age, type, location, number of shifts each day, and condition, is also a stumbling block to the market’s expansion. Because these vehicles are programmed and require navigation and communication systems to connect with other material handling equipment, the expenses involved with the total setup of AGV systems are significant. Maintenance costs are considerable for AGVs used in the manufacturing, chemical, and construction industries. Moreover, due to high capital costs and a long return period, organizations find it difficult to invest in automation solutions.

Market Developments:

• Industry 4.0 with robotics integration: By combining Industry 4.0 with automation technologies, traditional industrial facilities are gradually developing into smart, networked, and highly efficient automated facilities. Industry 4.0 can transform a manufacturing facility into a self-contained operation. It is a single automated unit that combines computers and industrial automation technologies with the help of robotics. The rise of Industry 4.0 is changing the way warehouses operate. Industry 4.0 also aims to create a productive working environment in which humans and robots can collaborate effectively. Smart architecture is created by a network of linked devices that can make decentralized judgments.
• Artificial Intelligence (AI): Machine learning, deep learning, and computer vision are examples of artificial intelligence technologies that are used in robotic automation in the automotive sector. These help self-driving cars navigate, manage fleets, and aid drivers in improving safety while also improving services such as vehicle inspection and insurance. AI also has uses in the automotive industry, where it helps save costs by speeding up production.

Region-wise developments:

The increasing demand for material handling equipment by the manufacturing industry’s incumbents is driving the European region’s market growth. E&K Automation GmbH, a robotics business based in Germany, has created FAST MOVE, an autonomous ultra-flat transport robot that will aid in the growth of industry 4.0 and industrial automation in the region. The Asia Pacific e-commerce industry has been rapidly expanding in Asia’s emerging economies, such as China and India. As a result of the e-commerce boom, some e-commerce companies are considering expanding into these regional markets. Competition in the e-commerce business has increased, and industry incumbents are attempting to differentiate themselves by reducing the time it takes to deliver products to end-users.

The report covers the following major segments of the market:

• By Vehicle Type: Tow Vehicles, Unit Load Carriers, Pallet Trucks Assembly Line Vehicles, Forklift Vehicles, and Others.
• By Navigation Technology: Laser Guidance, Magnetic Guidance, Inductive Guidance, Optical Tape Guidance, Vision Guidance, and Others.
• By Industry: Automotive, Metals & Heavy Machinery, Food & Beverages, Chemicals, Healthcare, 3PL, Semiconductors & Electronics, Aviation, E-commerce, and Others
• By Applications: Warehouse & Logistics, Assembly, Packaging, Trailor Loading & Unloading, Raw Material Handling, and Others
• By Battery Type: Lead Battery, Lithium-ion Battery, Nickel-based Battery
• By Region: North America, Europe, Asia-Pacific, South America, and ME&A