Market Trends of Latin America, Middle East and Africa Automated Guided Vehicles Industry
This section covers the major market trends shaping the Latin America, MEA Automated Guided Vehicles Market according to our research experts:
Retail Industry is Expected to Hold Significant Market Share
- E-commerce share of the total retail sales from the region is expanding year on year, which is expected to increase the need for automating the warehouses even further, driving the demand for automated guided vehicles. The e-commerce share of total retail sales from the region is expected to cross 3% by 2020.
- Brazil represents about 42% of all B2C e-commerce in Latin America. Amazon, though it entered Brazil in 2012, has been only primarily dealing with books. Further, Amazon added categories, such as smartphones, notebooks, tablets, and accessories, and further fine-tuned its logistics in a few months before offering a complete product assortment in the country.
- In October 2020, Amazon announced USD 100 million logistics investment in opening new warehouses in Mexico, including its first shipping centers outside the populous capital area, to offer faster deliveries. The new sites include two fulfillment centers, one near the northern city of Monterrey and another near the central city of Guadalajara. Additionally, the company is also striving to make inroads in Brazil, where it recently opened its fifth and biggest fulfillment center in the country, with 100,000 square meters. All these investments are expected to drive the utilization of AGV in the warehouse.
- Further, another factor pushing the market for AGV in the Middle East 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, and it allows the companies to achieve cost-effective operations by reducing wastage.
- In addition to this, 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.
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United Arab Emirates is Expected to Account For Significant Market Share
- The growing food and beverage e-commerce industry in the country is another driving factor. E-commerce growth directly leads to warehouse automation for optimizing the operations hence 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 country is another contributing factor.
- Further, advanced technology has given rise to equipment and processes that have transformed the country's food and beverage sector. The food and beverage industry has traditionally relied on human workers to handle functions like distribution and storing; robotics are being developed and implemented to streamline the process and produce more consistent output.
- Many people in the country are adopting e-commerce for their daily necessities, such as drinks, biscuits, and shampoos. The retail market is expected to experience rapid growth during the forecast period and help increase the adoption of automation in retails.
- Moreover, the consumers in the country seek shorter delivery times, increasing the application of AGV in warehouses and distribution centers. In, addition advancements in technology have made AGV's better and smaller; lower costs and shortage of labor in some places have fueled the growth of the market studied.
- Furthermore, AGVs achieved significant success in hospitals, with NHS installing AGV solutions throughout hospitals in the United Arab Emirates. 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.
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Latin America, Middle East and Africa Automated Guided Vehicles Report Snapshots
- Latin America, Middle East and Africa Automated Guided Vehicles Market Size
- Latin America, Middle East and Africa Automated Guided Vehicles Market Share
- Latin America, Middle East and Africa Automated Guided Vehicles Market Trends
- Latin America, Middle East and Africa Automated Guided Vehicles Companies
