Cost Benefits Drive Adoption of Automated Guided Vehicles (AGVs) – Analysis and Forecast 2023
Automated Guided Vehicles or AGVs have been around since the early 1950s. The first AGV was developed by Barrett Electronics of Illinois, which was used to move products in a grocery store. Since then, technological advancements have led to the development of more sophisticated AGVs that can perform complex tasks in various industries, including automotive, healthcare, aerospace, and manufacturing, among others. Today, the global market for AGVs is expanding rapidly, and one of the primary drivers of this growth is the significant cost benefits that these vehicles offer.
Cost Benefits of AGVs
The implementation of an AGV system can provide numerous cost benefits for a variety of industries. The primary cost savings come from labor reduction. By automating material handling tasks, AGVs eliminate the need for human labor, reducing labor costs and allowing companies to reallocate employees to other areas of their business. Another significant cost benefit is the reduction in product damage. AGVs are designed to move products and materials more carefully and accurately, minimizing product damage and reducing replacement costs. Additionally, with the implementation of an AGV system, companies can expect to see improvements in efficiency, productivity, and reliability, which can translate into cost savings over time.
Forecast for the AGV Market
The global AGV market is projected to grow significantly in the coming years. According to a report by MarketsandMarkets, the AGV market is estimated to reach USD 2.3 billion by 2023, growing at a CAGR of 9.3% from 2018 to 2023. The increase in demand for automation and the growing need for workplace safety are expected to drive the growth of the AGV market. Additionally, the development of advanced navigation and localization technologies is expected to increase the efficiency and reliability of AGVs, further driving the growth of the market.
Current Trends in the AGV Market
Currently, there are several notable trends in the AGV market. One trend is the increasing use of mobile robots, also known as autonomous mobile robots (AMRs). AMRs are smaller than traditional AGVs and are better suited for smaller workspaces, making them ideal for applications in healthcare and hospitality industries. Another trend is the use of collaborative robots or cobots. Cobots work alongside human employees, performing tasks that would normally require heavy lifting or repetitive motions, improving workplace safety and efficiency. Additionally, the use of cloud-based AGVs is becoming more common, allowing companies to manage multiple AGV systems remotely, further improving efficiency and productivity.
In Summary: The global market for automated guided vehicles is on the rise, and the cost benefits that they bring are the main driver behind their adoption. From reducing labor costs to minimizing product damage, AGVs can improve efficiency, productivity, and reliability. According to a forecast by MarketsandMarkets, the AGV market is estimated to grow at a CAGR of 9.3% from 2018 to 2023, reaching USD 2.3 billion. The implementation of advanced navigation and localization technologies and the increasing use of mobile robots and collaborative robots are some of the current trends in the AGV market.
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