Automated Guided Vehicle Market: Impact of AI and Robotics on Industry

The global automated guided vehicle market was valued at USD 5.34 billion in 2024 and is expected to grow to USD 9.18 billion by 2030, registering a compound annual growth rate (CAGR) of 9.2% between 2025 and 2030. The rising need for increased productivity and cost reduction in labor are major factors driving demand for AGVs.

The growth of AGVs is propelled by increasing automation across industries. Innovations and research have led to the development of advanced AGVs incorporating artificial intelligence (AI) and machine learning (ML), enhancing their flexibility to adapt autonomously beyond predefined routes. For example, in September 2024, Toyota Material Handling Europe introduced a high-density AGV and pallet shuttle system designed to improve warehouse storage capacity and operational efficiency.

Technological advancements, including LiDAR, machine vision, and AI-based navigation systems, enable AGVs to execute complex tasks with improved accuracy and adaptability. The rise of AGV-as-a-Service (AGVaaS) has lowered entry barriers for small and medium enterprises by allowing automation adoption without large upfront investments. AGVs are becoming increasingly versatile, with applications spanning from warehouse automation to optimizing production lines, supported by the global push towards Industry 4.0 and smart manufacturing.

Key Market Trends & Insights

• North America dominated the AGV market in 2024 with over 23.0% revenue share. The region’s growth is driven by booming e-commerce, increased demand for automation, enhanced workplace safety standards, and a focus on sustainability. AGVs are used extensively to streamline material handling, improve inventory management, and automate order fulfillment.
• By vehicle type, tow vehicles led in 2024 with over 38.0% of global revenue. Their growth is attributed to high demand in sectors such as automotive, manufacturing, and logistics, where moving heavy loads efficiently is critical. Tow vehicles pull or push carts and trailers, offering flexibility and high load capacity.
• Regarding navigation technology, the laser guidance segment held the leading position in 2024. This technology is favored for its precision, reliability, and adaptability, which are essential for AGVs to perform effectively in complex industrial settings.
• In terms of application, the logistics and warehousing segment led the market in 2024. The rising need to optimize material handling within warehouses and distribution centers drives this demand. AGVs automate tasks like goods transport, item sorting, and stock replenishment, reducing manual labor and errors.
• By industry, the manufacturing sector led in 2024 due to increased adoption of automation to streamline workflows and minimize manual handling. AGVs support timely and accurate transport of materials, components, and finished goods across manufacturing stages.
• In the component category, hardware accounted for the largest revenue share in 2024. The emphasis on automation demands advanced sensors, motors, controllers, and batteries, which directly impact AGV efficiency, reliability, and scalability.
• For battery type, lead-acid batteries dominated in 2024. Their affordability and reliable power supply meet the needs of cost-sensitive industries, ensuring consistent AGV performance and longevity.
• By mode of operation, the indoor segment held the largest market share in 2024. The focus on automation within controlled environments such as warehouses and manufacturing plants supports demand for precise, space-optimized, and efficient AGV operations.

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Market Size & Forecast

• 2024 Market Size: USD 5.34 Billion
• 2030 Projected Market Size: USD 9.18 Billion
• CAGR (2025-2030): 9.2%
• North America: Largest market in 2024
• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights

Prominent players in the AGV market include BALYO, Bastian Solutions, LLC, and Daifuku Co., Ltd. These companies pursue strategies such as partnerships, mergers and acquisitions, collaborations, and product innovation to strengthen their market positions and respond to evolving industry demands.

• BALYO specializes in transforming standard forklift trucks into autonomous, intelligent vehicles. Their models can operate without reflectors or ground lines and support warehouse and factory automation with a broad range of AGVs.

• Bastian Solutions, LLC offers integrated material handling and automation solutions, including AGVs, robotics, conveyor systems, and Warehouse Management Systems (WMS). Their tailored solutions help businesses enhance operational efficiency and supply chain productivity.

Key Players

• Swisslog Holding AG
• KION GROUP AG
• Bastian Solutions, LLC
• Daifuku Co., Ltd.
• Dematic
• JBT
• Seegrid Corporation
• TOYOTA INDUSTRIES CORPORATION
• Hyster-Yale Materials Handling, Inc.
• BALYO
• E&K Automation GmbH
• Kollmorgen
• KMH Fleet Solutions
• ELETTRIC80 S.P.A.
• inVia Robotics, Inc.
• Locus Robotics
• Schaefer Systems International, Inc.
• System Logistics Spa
• Transbotics (A division of Scott Systems International Incorporated)
• Zebra Technologies Corp.

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Conclusion

The automated guided vehicle market is poised for robust growth, driven by increasing industrial automation, technological advancements, and rising demand for efficient, flexible material handling solutions. With a projected value of USD 9.18 billion by 2030, the market is benefiting from innovations such as AI and ML integration, and service-based AGV models that lower adoption barriers. North America leads the market due to strong e-commerce growth and automation demand, while Asia Pacific is the fastest-growing region. As industries continue to embrace Industry 4.0 and smart manufacturing, AGVs will play an increasingly critical role in optimizing productivity and operational efficiency.