Automated Guided Vehicles (AGVs) Market Size, Share, Trends, Growth 2034

Automated Guided Vehicles (AGVs) Industry Perspective:

The global automated guided vehicles (AGVs) market size was worth around USD 5.4 billion in 2024 and is predicted to grow to around USD 12.7 billion by 2034, with a compound annual growth rate (CAGR) of roughly 9.0% between 2025 and 2034.          

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Key Insights

• As per the analysis shared by our research analyst, the global Automated Guided Vehicles (AGVs) market is estimated to grow annually at a CAGR of around 9.0% over the forecast period (2025-2034).
• In terms of revenue, the global Automated Guided Vehicles (AGVs) market size was valued at around USD 5.4 billion in 2024 and is projected to reach USD 12.7 billion by 2034.
• The increasing labor shortage is expected to drive the Automated Guided Vehicles (AGVs) industry over the forecast period.
• Based on the vehicle type, the tow vehicle segment is expected to hold the largest market share over the forecast period.
• Based on the navigation technology, the laser guidance segment is expected to dominate the market over the projected period.
• Based on the application, the logistics and warehousing segment is expected to capture a significant revenue share during the anticipated period.
• Based on the industry vertical, the manufacturing segment is expected to capture a significant revenue share during the anticipated period.
• Based on region, North America is expected to dominate the market during the forecast period.

Automated Guided Vehicles (AGVs) Market: Overview

An Automated Guided Vehicle (AGV) system, also known as autonomous guided vehicles, self-guided vehicles, or mobile robots, is a vehicle designed to move things or materials in a controlled space without a person driving or operating the vehicle. They can often find them at factories, warehouses, and places where products are shipped. Automated guided vehicle systems are used to move huge numbers of items from one area to another, which is a job that is generally done by forklifts, conveyor systems, or manned carts. The best thing about these systems compared to old-fashioned ones is that they can work on their own, without requiring support from individuals.

The Automated Guided Vehicles (AGVs) market is driven by several factors, such as increasing demand for automation in material handling, expansion in e-commerce, technological advancements, and the increasing trend for automation. However, the high initial investment and maintenance costs act as a major restraining factor to the development of the Automated Guided Vehicles (AGVs) Market.

Automated Guided Vehicles (AGVs) Market: Growth Drivers

Why is the growing labor shortage worldwide propelling the expansion of the automated guided vehicles market?

The growing labor shortage across the manufacturing, warehousing, and logistics sectors is one of the key factors driving the Automated Guided Vehicles (AGVs) Market over the analysis period. For instance, according to the U.S. Bureau of Labor Statistics, employment in the manufacturing sector declined by 8.7 percent in 2023, with hours worked falling by 10.5 percent. So, these vehicles are viewed as a crucial solution to operational challenges created by workforce constraints, which enables companies to maintain productivity, reduce costs, and improve safety standards. They operate 24/7, do repetitive or risky jobs, and reduce the demand on expert operators, who are becoming difficult and costly to employ. Further, the equipment is now equipped with advanced technologies such as AI-based navigation, real-time fleet coordination (including 5G-enabled communication), and higher payload capacities, which drive revenue expansion.

Automated Guided Vehicles (AGVs) Market: Restraints

How do high initial investment and maintenance costs hinder the automated guided vehicles market growth?

The initial cost of AGV systems usually comprises the cost of the vehicles, installation, making them work with facility management, software, improvements to the infrastructure, and training for workers. Establishing an AGV in a medium-sized facility can cost anything from hundreds of thousands to millions of dollars, depending on how intricate it is and how many vehicles it includes. These costs act as a barrier to entry, which makes it challenging for organizations to invest in AGVs.

AGVs also require regular maintenance, including changing batteries, calibrating sensors, upgrading software, and addressing mechanical issues, to ensure continuous operation. AI and LiDAR are examples of advanced navigation systems that are more expensive and require more maintenance than standard AGVs. Thus, the high initial investment and maintenance costs pose a major restraint for the Automated Guided Vehicles (AGVs) industry.

Automated Guided Vehicles (AGVs) Market: Opportunities

Innovative product launch offers a potential opportunity for industry growth

The innovative product launch offers a lucrative opportunity to the Automated Guided Vehicles (AGVs) Market. For instance, in June 2023, Dematic announced the release of its latest freezer-rated automated guided vehicles (AGVs), including a third-generation model that incorporates advances in sensor and navigation technology that exceed newly upgraded global safety regulations. Dematic's whole AGV line, including high-reach and counterbalance models, is now rated for use in cold conditions after being designed and manufactured in Australia.

Automated Guided Vehicles (AGVs) Market: Challenges

How does cybersecurity risk pose a major challenge to the automated guided vehicles market expansion?

Cybersecurity risk is a challenging concern in the Automated Guided Vehicles (AGV) market. As AGVs connect to the cloud, use wireless communication, and get updates over the air, they become much easier to hack. Attackers can remotely take over AGV systems, compromising navigation, braking, and payload operations, thereby placing safety at risk and causing operational issues.

Also, AGVs employ Bluetooth, Wi-Fi, and V2X interfaces to coordinate their fleets. These can be used for illegal access, data breaches, and malicious network manipulation, which could lead to accidents or jams. AGVs also gather and send crucial operational and location data, which makes them good targets for data theft, exfiltration, and ransomware attacks.

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Automated Guided Vehicles (AGVs) Market: Report Scope

Automated Guided Vehicles (AGVs) Market: Segmentation

The global Automated Guided Vehicles (AGVs) industry is segmented based on vehicle type, navigation technology, application, industry vertical, and region.

Based on the vehicle type, the global Automated Guided Vehicles (AGVs) market is bifurcated into tow vehicle, unit load carrier, pallet truck, forklift truck, hybrid vehicles, and others. The tow vehicle segment is expected to hold the largest market share over the forecast period. The rapid growth is due to industries like automotive, manufacturing, and logistics needing better ways to move large products quickly and easily. Tow vehicles are great for moving carts and trailers around in industrial settings, as they are flexible and can carry a lot of weight. They can automate the movement of heavy objects across large facilities, which cuts down on the requirement for manual labor and keeps operations running smoothly.

Based on the navigation technology, the global Automated Guided Vehicles (AGVs) industry is bifurcated into laser guidance, magnetic guidance, vision guidance, inductive guidance, natural navigation, and others. The laser guidance segment held the highest market share. The fast growth is because a growing number of people want accurate navigation tools that ensure safety and efficiency in industrial settings. Laser guiding technology gives one accurate, reliable, and versatile navigation options that are very important for making AGVs work better in challenging industrial settings.

Laser-guided AGVs utilize laser scanners to accurately map and navigate their surroundings, enabling them to follow predetermined paths and avoid obstacles with minimal errors. This high level of accuracy is very important for places like enormous warehouses, factories, and distribution centers where things need to move around a lot and work well all the time.

Based on the application, the global Automated Guided Vehicles (AGVs) market is bifurcated into logistics and warehousing, assembly, packaging, trailer loading and unloading, raw material handling, and others. The logistics and warehousing segment is expected to capture a significant revenue share during the anticipated period. This market is increasing because there is an increasing need to make material handling processes in warehouses and distribution centers more efficient and effective. AGVs equipped with cutting-edge technologies can automate tasks that are repetitive, such as moving goods between storage facilities, sorting items, and restocking, which significantly reduces manual labor and operational errors. This automation makes the warehouse more efficient overall, promotes productivity, and speeds up the process of filling orders.

Based on the industry vertical, the global Automated Guided Vehicles (AGVs) industry is divided into food & beverage, automotive, retail, electronics & electrical, manufacturing, pharmaceuticals, and others. The manufacturing segment is expected to capture a significant revenue share during the anticipated period due to the rising trend of automation.

Automated Guided Vehicles Market: Regional Analysis

What factors will help North America dominate the automated guided vehicles market over the projected period?

North America is expected to dominate the market. The regional growth of the region is attributed to the growing e-commerce industry. The U.S. Census Bureau, a department of the Department of Commerce, estimated U.S. retail e-commerce sales for the second quarter of 2025 at $304.2 billion, adjusted for seasonal fluctuations but not for price adjustments. This represents a 1.4% (±0.9%) increase over the first quarter.

Also, the region's persistent labor shortages in logistics and manufacturing are pushing companies to automate material handling to maintain productivity. Further, the presence of major players such as John Bean Technologies Corporation, Seegrid Corporation, Toyota Material Handling, Swisslog Holding AG (KUKA AG), and Daifuku Co., Ltd. influences market sales in terms of revenue.

Automated Guided Vehicles (AGVs) Market: Competitive Analysis

The global Automated Guided Vehicles (AGVs) market is dominated by players like:

• Dematic
• BALYO
• Bastian Solutions LLC
• Daifuku Co. Ltd.
• Swisslog Holding AG
• JBT
• Seegrid Corporation
• TOYOTA INDUSTRIES CORPORATION
• Hyster-Yale Materials
• Handling Inc.
• KION GROUP AG
• E&K Automation GmbH
• Kollmorgen
• KMH Fleet Solutions
• ELETTRIC80 S.P.A.
• inVia Robotics Inc.

The global Automated Guided Vehicles (AGVs) market is segmented as follows:

By Vehicle Type

• Tow Vehicle
• Unit Load Carrier
• Pallet Truck
• Forklift Truck
• Hybrid Vehicles
• Others

By Navigation Technology

• Laser Guidance
• Magnetic Guidance
• Vision Guidance
• Inductive Guidance
• Natural Navigation
• Others

By Application

• Logistics and Warehousing
• Assembly
• Packaging
• Trailer Loading and Unloading
• Raw Material Handling
• Others

By Industry Vertical

• Food & Beverage
• Automotive
• Retail
• Electronics & Electrical
• Manufacturing
• Pharmaceuticals
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa