The rise of technology in manufacturing and warehousing has paved the way for automation and robotics to become a significant trend in these industries. The use of Automated Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs) has been increasing steadily, and it is expected to grow even more in the coming years. As per LogisticsIQ latest market research study, the AGV and AMR market is expected to reach more than 18 billion by 2027, with a growth rate of around 24% and 43% for AGV and AMR, respectively. Both AGVs and AMRs are projected to cross the installed base of 2.4 million in 2027, making mobile robots a new norm in day-to-day operational activities.
The Benefits of AGV and AMR in Manufacturing and Warehousing
The use of AGVs and AMRs can provide numerous benefits to manufacturing and warehousing facilities. These mobile robots are designed to move around factories and warehouses, transporting goods and materials without the need for human intervention. This feature alone can significantly reduce the risks associated with manual labor, such as workplace injuries and accidents. Additionally, AGVs and AMRs can improve productivity and efficiency, reduce downtime, and increase overall output.
The AGV and AMR Market by Region
The United States, Germany, the UK, China, and Japan are expected to lead the AGV and AMR market, with an annual demand of more than 200,000 mobile robots by 2027. Furthermore, China is set to be a hub for Autonomous Mobile Robots, both in terms of demand and supply, as it is expected that Made in China AMRs will be 30%-40% more economical due to labor cost advantages and huge volume consumption in China itself.
AGV and AMR Providers
With the growing trend of AGVs and AMRs in manufacturing and warehousing, several providers offer different types of mobile robots with various competencies. Below is a list of biggest AGV and AMR providers by region:
North America
- Fetch Robotics (Zebra)
- OTTO Motors (Clearpath Robotics)
- Locus Robotics
- Vecna Robotics
- Waypoint Robotics (Part of Locus Robotics)
- AutoGuide Mobile Robots (Teradyne)
- IAM Robotics
Europe
- HikRobot (HikVision)
- Mobile Industrial Robots – MiR (Teradyne)
- inVia Robotics
- 6 River Systems – 6RS (Shopify)
- GreyOrange
- Tompkins Robotics
- Scallog
- GIDEON Brothers
- Magazino GmbH
- DS Automation
- Mitsubishi Logisnext Europe Oy (Rocla)
- FlexQube
- TÜNKERS Maschinenbau GmbH
- CPM – Dürr Group
Asia-Pacific
- Geek+
- YouiBot
- Quicktron (Flashhold)
- ForwardX Robotics
- JATEN
- Bionic HIVE
- Oppent
- Eurotec (Lowpad)
- MALU Innovation (JD)
- CAJA Robotics
- Omron (Adept Technology)
- SEER
- Visionnav Robotics
- Megvii
It is essential to note that AGV and AMR providers have different competencies and expertise, making it crucial for adopters to choose a suitable provider for their specific needs. Additionally, the adoption of AGVs and AMRs will require significant investments and careful planning, but the potential benefits make it a worthy investment.
Key factors and Challenges
One of the main factors driving the growth of AGV/AMR market is the increasing demand for automation in the manufacturing and logistics sectors. With Industry 4.0 and Supply Chain 4.0 initiatives, the use of robotics is becoming more and more important for businesses to achieve sustainable growth. In the warehouse automation market, mobile robots like AGVs and AMRs could contribute more than 20% to the opportunity worth over $30 billion.
Another major factor driving the demand for AGVs/AMRs is the growth of e-commerce. Over the last decade, global e-commerce sales have grown at a CAGR of 20%, reaching approximately $4.5 trillion worldwide in 2021. It is expected to grow to $7.5 trillion by 2026. As the share of online retail sales grows from 2% of total to approximately 13%, it is further expected to reach 22% by 2026. The high personnel costs and wage rates in developed countries also make AGVs/AMRs an attractive solution to reduce costs and increase efficiency.
However, there are also challenges that need to be addressed. Safety is a top challenge for AGVs/AMRs as they operate in a range of machines and markets. While the intent is that no AGV/AMR should harm a human, service robots operate in the realm of human beings, making it a more challenging environment to navigate. Working environments for service robots may include operation in a grocery store, a retail store, a mall, a hospital, on the sidewalk, or in the home.
Another challenge is choosing the right AGV/AMR provider. With so many providers in the market, each with different competencies, it can be challenging for adopters to select a suitable one. Robotics as a Service (RaaS) and different leasing options are reducing upfront investment as end-users may not have enough CapEx for pilot runs to validate the ROI. However, it is essential to balance your OpEx and RaaS cost with the right provider.
Conclusion
The adoption of AGVs/AMRs will be a big trend for manufacturing and warehouse facilities, with China leading the market in terms of demand and supply. AGVs and AMRs collectively are projected to cross the installed base of 2.4 million in 2027, making mobile robots a new normal in our day-to-day operational activities.
While AGVs and AMRs have several advantages, it is important to address the challenges that come with their adoption. Safety concerns, choosing the right provider, and balancing OpEx and RaaS costs are some of the key challenges that businesses need to address. Nevertheless, with Industry 4.0 and Supply Chain 4.0 initiatives, the use of AGVs/AMRs is becoming more and more important for businesses to achieve sustainable growth.
AGVs (Automated Guided Vehicles) and AMRs (Autonomous Mobile Robots) are mobile robots used for material handling and transportation in warehouses and manufacturing facilities. AGVs are programmed to follow a fixed path or route, whereas AMRs use advanced algorithms and sensors to navigate and move freely in their environment.
The logistics industry is under immense pressure to improve efficiency and reduce operational costs. The adoption of AGVs and AMRs can help achieve these goals by automating material handling tasks, reducing errors, and increasing throughput. Additionally, the growth of e-commerce and the need for faster order fulfillment is driving the demand for mobile robots in warehouses.
There are many AGV/AMR providers in the market, each with different competencies and capabilities. When choosing a provider, it’s important to consider factors such as the type of application, the size and layout of your facility, and the level of customization required. It’s also important to evaluate the provider’s experience, track record, and support capabilities
