Automated Guided Vehicles (AGVs) Market Size, Share, Growth Opportunity Analysis Report by Type (Forklift Vehicle, Assembly Line Vehicles, Automatic Guided Cart (AGC), Towing Vehicles, Unit Load Carrier, Pallet Truck, Autonomous Mobile Robots, and Others (Tuggers, etc.)), Technology, Battery Type, Battery Capacity, Load Capacity, End-use Industry, and Geography (North America, Europe, Asia Pacific, Middle East, Africa, and South America) - Global Industry Data, Trends - Forecast 2025‒2035

Responding the increasing industry interest in flexible and affordable automation, Scott Technology announced its new Automated Guided Vehicle (AGV), NexBot, at ProMat 2025. Modular and scalable in design, NexBot allows for quick deployment and affordable operations. This focuses the long-standing issues of operation namely, long lead times and system integration complexity with a streamlined solution that is consistent with evolving logistical and manufacturing needs.

NexBot resolves manufacturing obstacles through its modular construction that proceeds installations faster and reduces operational delays while monitoring operations continuously 24/7 hours per day.

— Mike Christman, CEO, Scott Technology

Recent advancements in the AGV sector now prioritize three main factors including operational speed and continuous plant operation combined with rapid return on investment.

Automated Guided Vehicles (AGVs) Market Size, Share, and Growth

The rapid growth for AGVs is attributed to the expansion by key players in the new market and geography.  Industry 4.0 and the greater adoption of smart factories have seen AGVs more in demand than ever before, as companies seek smarter and more efficient means to automate their business.

The AGVs market growth is increasing rapidly due to the advancement and adoption of new technology, and because of this the demand of AGVs is also rapidly increasing in automation industry. With new technologies and research, the AGVs are advancing with new generation technologies interaction like AI (Artificial Intelligence), IoT & Machine Learning. The increase in e-commerce also the reason for warehouse automation, which increase the demand for AGVs.

Automated Guided Vehicles (AGVs) Market Dynamics and Trends

Driver: Advancements in Technology Leading to Enhanced Performance, efficiency, accuracy, Rapid growth of E-commerce

• The new technology is interacting with the AGVs and it will improve the ability to handle the situation in complex environmental with very less human interaction. AI (Artificial Intelligence) also transforming this industry on big level as the use of AI in AGVs expands the scope in more accuracy in operations, less fault, enhance efficiency, time utilizing, improves movement, reduce the cost of operation. "As labor shortages persist and costs rise, businesses must adopt automation to stay competitive in an evolving logistics and warehousing landscape,” says Mike Christman, CEO of Scott Technology.
• New research in robotics enhances the capability of AGVs by use in accessing higher loads and using in major sectors like automotive, steel manufacturing & construction. In this the material in AGVs are durable and the sensors are robust. LiDAR (Light Detection and Ranging) and vision-based navigation systems are used in advanced AGVs and the result they automatically map environments without any human interaction.
• As E-commerce is growing the smart warehouse is also advancing with the use of AGVs with less interaction of humans. E-commerce platforms are becoming the first choice for the retail purchase of the goods and as of 2024, more than 60% companies have adopted online distribution network. This growth in the e-commerce sector increases the use of AGVs in warehousing and logistics. The use of automation in this industry is increasing as the Automated Guided Vehicles is the top priority.
• Major online retail giants rely majorly on the AGVs for their warehousing operations. For instance, e-commerce players such as Alibaba and Amazon has achieved more than 80% automation in their warehouses and are heavily depend on the robotics systems such as Automated Guided Vehicles (AGVs).

Restraint: High Initial Cost of AGVs and Supply Chain and Integration Challenges

• The raw material used by Automated Guided Vehicle (AGV) market include structural steels, forged and processed steel bars, steel pipes, steel roads, electric motor, bearings, gear reducers and other electrochemical parts for manufacturing and design purpose. Steel is one of the major raw materials that is obtained from iron ore, and its price fluctuation is a big issue. Raw material vendor’s actions for fluctuating the higher prices to depending sectors, such as Automated Guided Vehicles (AGVs) manufactures, may inhibit the market growth. These uncertainties create challenges for Automated Guided Vehicles (AGVs) manufacturers in raw material purchasing.
• Adoption of Automated Guided Vehicles (AGVs) is hampered by complex and potentially disruptive integration into current operations, incompatibility with legacy systems, and the accurate communication among AGVs, sensors, and infrastructure. 

Opportunity: Innovation and Customization Are Powering AGV Market Growth

• The Automated Guided Vehicles (AGVs) market is experiencing outstanding innovation created by technological advancement in artificial intelligence, robotics, machine learning and sensors. These technologies are making AGVs more autonomous and efficient across every sectors.
• The integration of AGVs with Warehouse Management Systems (WMS), IoT platforms, and new technologies like 5g and edge computing is enabling real time tracking of stock, predictive maintenance, and faster decision making. As more industries turn to automation, the global AGV market is seeing major growth, with companies seeking smarter, more affordable way to move materials efficiently.
• Corporations focus on supply chain flexibility and operational coordination, the demand for customized AGV solutions to meet the specific industry requirements is creating a major opportunity for manufacturers to look and expand their product portfolio.

Key Trend: Advanced Technologies Are Powering AGV Adoption across a Wide Range of Industries

• The period 2025-2035 will most probably witness major technology transformation driven by AI, IoT and 5G, also with growing adaption of environmental sustainability and smart manufacturing regulations, as businesses adapt greener alternatives, the trend towards growing freedom in AMRs will be most likely change AGVs design, leading to the hybrid solutions that mix the path guidance with dynamic AI-driven decision-making.
• The current trend in the Automated Guided Vehicles (AGVs) industry is the widespread adoption by big giants in e-commerce for improving operational effectiveness. For example, Indian e-commerce giant Flipkart has started using robot-driven sortation technology through Automated Guided Vehicles (AGVs) at its Bengaluru sortation center. It reflects the shifting focus in a way to increased automation to minimize logistics complexity, increase speed, and manage high load during the extra peak seasons.

Automated Guided Vehicles (AGVs) Market Analysis and Segmental Data

 Towing Vehicles and IoT-Driven Automation to Lead AGV Market Growth by 2035

• The Automated Guided Vehicles (AGVs) market is undergoing a major transformation, and this is because the involvement of AI-powered decision making, digital integration, and advance intelligent logistics that can change according to the real time. Towing vehicles are the most common form of AGV, their big impact for capacity to transport heavy loads majorly over the distance, especially in logistics, aerospace and e-commerce where maximizing productivity and costs reducing is the top most priority.

• As warehouses continue to face the increasing pressure for their efficiency and problem with shortage of staffing, AGVs are speedily becoming a big factor of warehouse systems today. Reason is integrated IoT sensors, AGVs can smoothly integrate with Warehouse Management Systems (WMS) and ERP systems for enabling the teams to observe inventory in real-time, manage maintenance needs and for shipping orders quickly. Companies such as Toyota Material Handling Europe already are at the forefront of introducing high-density Automated Guided Vehicles (AGVs) and pallet shuttle systems designed to adaption of optimize storage capacity and better utilize manpower.

Asia pacific dominates the market for Automated Guided Vehicles (AGVs)

• The Asia-Pacific, with big manufacturing giants including China and India are at the face, is likely to experience the highest CAGR in the Automated Guided Vehicles (AGVs) industry, generated due to high industrialization, increasing e-commerce, increasing investments in high-end automation, and the increasing demand for effective warehouse and inventory management in industries like automotive, food, retail and beverages. For instance, In India Sona Comstar and TiHAN-IIT Hyderabad collaborate to develop innovative connected, autonomous, and electric technologies for AGVs, drones, and eVTOLs, promoting advancements in future mobility solutions through shared expertise in research and manufacturing.

• The European AGV market is growing, due to the regions smart automation sector, increase use of automation in manufacturing and logistics, and sustainability drive. Italy, Germany and France are the face of combine AGVs into smart factories and technically advance warehouse, with electric AGVs showing the energy-efficient and greener operations.

Automated Guided Vehicles (AGVs) Market Ecosystem

Key players operating in the AGVs Market are Daifuku, JBT, KION Group AG, Jungheinrich AG, Hyster-Yale Material Handling, SSI Schaefer, Dematic, Seegrid Corporation, Bastian Solutions, Murata Machinery, Swissloog, E&K Automation, Transbotics Corporation, AGILOX, Zebra Technologies Corporation, Clearpath Robotics, inVia Robotics Inc and others.

In addition to these manufactures, the AGV ecosystem also consists of battery manufacturers, providers of charging infrastructure, and technology companies which specialize in electric drivetrains and energy storage solutions. Collaboration among all these stakeholders is necessary to drive technology improvements in AGVs and open up the markets for them.

Recent Development and Strategic Overview:

• In April 2025, Photoneo has published the PhoXi control and Firmware Update 1.14, which introduces new and major upgrades in 3D vision accuracy. These will benefit pick and place robotic arms and enhance AGV navigation, enhancing precision and efficiency in automated system and AGV.
• Siemens Smart Infrastructure has announced the acquisition of Danfoss Fire Safety, a subsidiary of the Danfoss Group that specializes in fire suppression technology, as of October 2024. This move will amplify the Siemens portfolio for fire suppression, more especially towards high-pressure water mist technology, as well as green solutions for fire safety, says the company official.