Market Trends of AGV Industry
Rapid Growth of E-commerce Demanding Higher Efficency
- Despite growth in the manufacturing industry, considerable demand from the warehousing and logistics sector is dedicated to e-commerce activity. Furthermore, the Canadian warehouse portfolio majorly comprises e-commerce, which is estimated to make up more than 50% of the warehouse business in the country.
- The deployment of AGVs provides an opportunity for different areas in e-commerce. Specifically, the AGVs are suited for fulfillment operations involving large quantities of small orders for large SKU ranges spread across large warehouse areas. Using autonomous robots to perform horizontal traveling can increase order fulfillment efficiency.
- With the introduction of always-on e-commerce, the demand for faster responses, and the need to manage a more significant number of stock-keeping units with fewer errors, warehouses need to scale up and meet the standards of an intelligent, efficient, and automated warehouse. Such increasing globalization and the rise of online retail and bulk retail have increased demand for AGVs in the retail industry.
- The rising demand for e-commerce companies to cater to the increasing number of single-day delivery orders, both in advanced and emerging economies, has resulted in a significant increase in efficiency owing to the commercial viability of these schemes. E-commerce warehouses carry out the single-day delivery method with the aid of AGVs. According to the IBEF, India has significant potential in the e-commerce industry. The market value of India's e-commerce industry is growing at an exponential rate, and it is expected to reach USD 350 billion by 2030.
- According to the U.S. Census Bureau, retail e-commerce sales in the United States totaled nearly USD 269.5 billion from April to June 2023, representing a 6.6 percent increase over the previous quarter. The rapidly changing retail market compels distribution centers to seek out and implement innovative, flexible, and automated approaches to e-commerce order fulfillment. Such a rise in e-commerce purchases will push companies to deploy automated material handling equipment in their operation process to enhance smooth workflow.
- Moreover, supply chains began using AGVs in distribution centers in response to increased e-commerce demand, allowing industries to function at high productivity. AGVs' use has expanded in sectors like pharmaceuticals to keep up with demand and maintain sanitation. AGVs were utilized by hospitals and other healthcare facilities to undertake the contactless transfer of food, trash bins, linens, and sterile supplies.
Understand The Key Trends Shaping This Market
Download Sample
Asia-Pacific is expected to Witness a Significant Growth
- Asia-Pacific is the world's largest AGV consumer. Because of the fragmented market, it is easy to find affordable automation services. Also, the increased production in the automobile sector is driving up demand for AGVs in this region.
- In China, the market is primarily driven by the proliferating manufacturing industry of the country. China has the largest manufacturing industry in the world, and the sector is also a key contributor to the country's economic growth. As per the State Council Information Office of China, the country accounted for 27.7% of the global manufacturing output in 2022, marking a significant increase from 22.5% in 2012, with the industry growing bigger and stronger in recent times.
- Moreover, China is a major adopter of Industry 4.0, and the region is home to some of the most advanced manufacturing facilities in the world, ahead of regions like the European Union, the United States, and Japan. For instance, according to the World Economic Forum, of the 69 factories around the world now considered leaders using Industry 4.0 technologies, China is now home to 20, followed by 19 in the European Union, 7 in the United States, and 5 in Japan. Besides being the foundation for plant-wide automation, the automated storage and retrieval system also serves as a foundation for Industry 4.0.
- Moreover, with the increasing e-commerce demand in emerging countries, such as India, China, and neighboring countries, e-commerce companies have significantly been deploying AGVs at warehouses. According to the IBEF, India's e-commerce market is anticipated to be worth USD 350 billion by 2030. Furthermore, India's e-commerce market is expected to reach USD 220 billion in gross merchandise value (GMV), and there are expected to be about 530 million shoppers by 2025.
- In addition, universities in Thailand are collaborating with manufacturing plants to deliver Automated Guided Vehicles (AGVs). For instance, the Sirindhorn International Thai-German School of Engineering (TGGS) recently collaborated with the BMW Manufacturing plant in Rayong, Thailand. The project began with a vision from BMW for using AGVs that automatically carry heavy parts in the production line. A tailor-made AGV was developed by the university research team that exactly fits into the production process requirements while keeping the investment cost reasonably economical compared to imported solutions.
Get Analysis on Important Geographic Markets
Download Sample
