Market Trends of Europe Automated Guided Vehicle (AGV) Industry
This section covers the major market trends shaping the Europe Automated Guided Vehicle Market according to our research experts:
Food and Beverages is Expected to Witness Significant Growth
- The food and beverage industries are significantly adopting AGVs, as these spaces are highly regulated for maintaining hygiene and safety. Europe is home to one of the world's most abundant food and beverage industries. With over 286,000 food and beverage companies operating in the region, Food and beverage are among the fastest-growing end-use industries in Europe.
- According to Eurostat, almost 14.6% of household expenditure is spent on Food and beverages and is expected to increase further over the forecast period. As the domestic demand is on the downside and most of the food business owners are small families in the country, such opportunities are expected to increase production in the region and thus the scope of automation.
- Moreover, the growing regional food and beverage e-commerce industry is another driving factor. E-commerce growth directly leads to warehouse automation for optimizing operations, positively influencing the market. The warehouses deploy AGVs to carry out warehouse logistics and procedures, which can lift heavy weights and have been reported to save the time taken to complete the logistical processes threefold. The growing penetration of online shopping in the region is another contributing factor.
- Further, another factor pushing the market for AGV is its ability to provide alert capabilities that notify the user about a product kept in the inventory for too long and possibly reaching its expiration date. The notification function is enabled by the inventory management software available with the AGV, allowing the companies to achieve cost-effective operations by reducing wastage.
- In addition, the large-scale growth and expansion of the third-party logistics companies in the food and beverage industry are also expected to drive the market for AGV due to their heavy use by these organizations, to achieve process optimization and cost-effective operations.
- Food and beverage are one of the largest industries in the world, with about 80% of the total investment in equipment and machinery every year. Additionally, the consumption of flavored drinks, juices, and energy drinks are also on the surge, owing to diverse lifestyles and evolving consumer habits. For instance, according to Office for National Statistics (UK) 2021, consumer spending on Food and non-alcoholic drinks in the UK reached 118 billion British pounds in 2020 and 117 billion British pounds in 2021. So consumers' spending on Food and beverages increases the demand for AGVs in this region.
Understand The Key Trends Shaping This Market
Download Sample
United Kingdom Accounts for the Largest Market Share
- Throughout the United Kingdom and Europe, political, economic, and technological developments affect the manufacturing industry's growth proportionally. Although the BREXIT vote sent shockwaves across all sectors, the manufacturing industry remained positive. Also, the predicted labor shortage is strengthening the case for logistics automation as firms seek to make their operations less labor-intensive. High demand and opportunities for the market's growth invoked optimism among the automated logistics suppliers.
- With rising labor costs and supply chain pressure for better accuracy, speed, and responsive operations in the country, automated sortation systems are gaining prominence in supply chains for delivering productivity, throughput capacity, efficiency, and accountability for businesses' cost-effective and efficient flow of goods to consumers. Manufacturers of many fast-moving consumer goods use sortation systems to handle cantonized products. Also, the United Kingdom is widely recognized for sophisticated construction work, with less floor space for construction activities. Thus, particular purpose automated guided vehicles are gaining popularity in construction.
- Moreover, AGVs achieved significant success in hospitals, with NHS installing AGV solutions throughout hospitals in the United Kingdom. AGVs in hospitals carry all the payloads that move repetitively between departments, such as food, linen, stores, waste, pharmacy, and sterile supplies. Reliable and timely delivery of various shipments helps hospitals run more efficiently and better target other resources. The demand for AGVs is primarily driven by the country's automotive, metal, healthcare, and pharmaceutical industries. With the recent coronavirus outbreak, the need for automation is expected to increase over the long run, primarily to cope with the shortage of labor and rising costs.
- In the country, the current AGV technologies run on magnetic tapes and account for a significant market share. Companies, such as IMA, are focusing on offering AGVs that operate on advanced technology. During the forecast period, vendors in the country are expected to adopt new scanning and communication technologies as a part of their AGV modules and set up facilities. For instance, SICK UK launched a safety-certified outdoor laser scanner mounted on AGVs to operate in indoor and outdoor spaces. Such regional examples are expected to increase over the coming years significantly.
Get Analysis on Important Geographic Markets
Download Sample
