Key Market Trends

Retail and Warehousing to hold Major Share

• Automation has gained specific importance to improve the customer-fulfillment side of operations, particularly for retail and e-commerce, especially due to longer onboarding and training, rising benefit and compensation rates, and shortages in labor. 
• A type gaining popularity has been the AGV used in sortation called the t-Sort (unit load AGV), a new material handling system used for both unit and parcel sortation. It performs much like a traditional automated sortation system, such as a tilt tray or crossbelt sorter.
• The strong pharmaceutical industry has also been a significant driver for the AGV market as they hold a significant share of the warehousing sector. According to a study conducted by the Mayo Clinic, seven out of 10 people in the United States take at least one prescription drug. This creates a great need to preserve the quality of medicines from production to consumption. 
• This has boosted the demand for pharmaceutical warehousing, immensely in the region. Pharmaceutical warehousing often uses temperature controlled spaces to preserve the quality of the drug throughout its storage phase.
  

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United States to Hold Major Share

• The United States is the most dominant economy in North America. The region’s manufacturing sector, which is a huge source of demand for the AGV market hinges on the dominant US economy, which accounts for 82% of the region’s economic output.
• The country also has a high trading profile, especially with neighboring countries like Canada and Mexico. In fact, the United States is by far the largest trading partner for both Mexico and Canada, accounting for almost 80% of each country’s exports.
• With such high import and export activity in the country coupled with the highly active e-commerce sector, the need for warehouse space in the country has grown over the past few years.
• Further, the commercial developers and builders constructed about 183 million square feet of new warehousing space, compared with about 100 million new square feet of space each year over the past decade. 
• This has created a competitive environment among all the logistics players in the country, encouraging them to either increase their warehouse establishments or increase the efficiency of current warehouses establishments by automating the operations.

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