Latin America Automated Guided Vehicle (AGV) Market Size

Latin America Automated Guided Vehicle (AGV) Market Analysis

Latin America's automated guided vehicle market was valued at USD 177.5 million in 2020 and is expected to reach USD 963.8 million by 2026 and grow at a CAGR of 29.7% over the forecast period (2021 - 2026). The COVID-19 outbreak and lockdown restrictions across the globe have affected industrial activities across the world. Some of the effects of lockdown include supply chain disruptions, lack of availability of raw materials used in the manufacturing process, labor shortages, fluctuating prices that could cause the production of the final product to inflate and go beyond budget, shipping problems etc. All businesses across the region with crucial assets for manufacturing goods and services offering revenue have been experiencing a rapid decline due to the COVID-19 pandemic. The management of such companies has been feeling extreme urgency and panic, thereby, more emphasis being paid to cutting costs. Since manufacturing activity was low, companies were tempted to eliminate maintenance, resulting in significant expenses in the coming future.

• The region holds good potential for growth. However, the precarious political situations in the region are expected to hinder the growth. For instance, in the last 12 months, Mexico, Cuba, and Brazil have elected new leaders, and Argentina is preparing for elections. Venezuela continues to face upheaval the face of Nicolas Maduro's re-election. Despite such recent developments, the region's strong economies such as Brazil, Columbia, Mexico, and Chile are expected to drive growth in various industries.
• Moreover, the region holds a significant share of automotive and food & beverage industries across the globe, especially in automotive industry countries such as Mexico and Brazil produced more vehicles than Russia and Canada.
• The growing retail industry in the region is driving organizations to automate their warehouses to optimize the process. According to Euromonitor, retail sales value in Latin America is expected to reach USD 1.07 trillion by 2022.
• Further, Brazil, which is expanding, resourceful, and demographically buoyant, is a promising market for automation. The burgeoning population of upper and middle classes in Brazil is expected to result in increased consumption rates. However, due to a rapid increase in labor costs, many business models are likely to change.
• In addition, the high initial costs and the long period of return on investment involved in the adoption of the automated systems are expected to challenge the market growth over the forecasted period. However, the added benefits and customer satisfaction associated with adopting such systems are expected to benefit the organizations.