Automated Guided Vehicle Market

Market Definition

An automated guided vehicle (AGV) is a robotic vehicle designed to transport materials within a facility autonomously, navigating through pre-programmed paths or sensor-based guidance systems without human intervention. The market is focused on the production, development, and deployment of AGVs across various sectors to enhance efficiency, safety, and automation in material handling operations.

Automated Guided Vehicle Market Overview

The global automated guided vehicle market size was valued at USD 3.98 billion in 2024, which is estimated to be USD 4.40 billion in 2025 and reach USD 9.78 billion by 2032, growing at a CAGR of 12.07% from 2025 to 2032. 

The increasing adoption of IoT-enabled and interoperable automation systems drives the market. These technologies allow seamless communication between AGVs and other smart devices, enhancing operational efficiency in connected industrial environments.

Major companies operating in the automated guided vehicle industry are Swisslog Holding AG, KION GROUP AG, SSI SCHÄFER GmbH & Co KG, Daifuku Co., Ltd., Hubei Baoli Technology Co., Ltd., SEER Robotics GmbH, JBT, Seegrid, Toyota Industries Corporation, BALYO, ek robotics GmbH, Kollmorgen, E80 GROUP S.P.A., inVia Robotics, Inc., and Locus Robotics.

The market is registering robust growth, driven by the increasing demand for automation in material handling, logistics, and warehousing operations. The e-commerce, manufacturing, and food & beverage industries are increasingly adopting AGVs to enhance operational efficiency, reduce labor costs, and improve workplace safety.  

• In May 2025, Amazon unveiled Vulcan, its first robot with a sense of touch, enhancing safety and efficiency in fulfillment centers. Built on robotics and physical AI, Vulcan assists employees with complex tasks, reduces physical strain, and reflects Amazon’s ongoing commitment to smart, human-centric automation at global scale.

Advancements in navigation technologies, AI integration, and fleet management systems are further propelling the market. AGVs are becoming essential in modern industrial infrastructure, due to the growing emphasis on smart factories and Industry 4.0 initiatives.

Key Highlights:

1. The automated guided vehicle industry size was valued at USD 3.98 billion in 2024.
2. The market is projected to grow at a CAGR of 12.07% from 2025 to 2032.
3. Asia Pacific held a market share of 33.20% in 2024, with a valuation of USD 1.32 billion.
4. The automated forklift segment garnered USD 1.21 billion in revenue in 2024.
5. The laser guidance segment is expected to reach USD 3.87 billion by 2032.
6. The hardware segment held a market share of 61.20% in 2024
7. The logistics & warehousing segment is anticipated to grow at a CAGR of 14.39% during the forecast period.
8. The automotive segment is forecasted to hold a market share of 22.65% in 2032.
9. The market in North America is anticipated to grow at a CAGR of 12.01% during the forecast period.

Market Driver

IoT Integration Driving AGV Growth

The rising integration of IoT-enabled and interoperable automation systems strongly influences the growth of the automated guided vehicle market. AGVs are being adopted to streamline material handling, data sharing, and real-time monitoring as industries shift toward smarter, connected operations under Industry 4.0 and 5.0 frameworks. 

Their ability to communicate with other automated equipment, sensors, and central control systems improves process coordination and reduces downtime. This interconnected environment not only boosts productivity but also enhances safety, scalability, and decision-making capabilities across logistics and manufacturing facilities.

• In May 2023, ResGreen Group International launched BigBuddy, a powerful bidirectional AGV capable of moving loads up to 5,000 pounds. Designed for industrial environments and tight warehouse spaces, BigBuddy offers zero-point turning, enhanced torque, advanced safety features, and modular design, marking a significant step forward in automated material handling solutions.

Market Challenge

Limited Flexibility in Dynamic Environments

One of the key challenges faced by the automated guided vehicle market is limited flexibility in dynamic or unstructured environments, where frequent layout changes and unpredictable obstacles hinder smooth AGV navigation. This restricts their deployment across certain industries. 

Manufacturers are integrating advanced technologies like AI-based perception systems, real-time path planning, and adaptive learning algorithms. These upgrades enable AGVs to better interpret their surroundings, make autonomous decisions, and operate efficiently even in constantly changing or complex operational settings.

Market Trend

Adoption of Low-code and Cloud-based Automation Platforms

One of the key trends driving the automated guided vehicle market is the adoption of low-code and cloud-based automation platforms. These technologies enable businesses to accelerate development timelines, scale their AGV operations efficiently, and simplify system integration across complex warehouse and logistics networks. 

Using low-code platforms enables companies to customize AGV workflows without extensive programming expertise, while cloud-native solutions offer flexibility, real-time data access, and seamless connectivity. These are critical for supporting dynamic, connected environments and optimizing supply chain operations.

• In January 2023, Geekplus selected Boomi’s low-code integration platform to automate its smart logistics network across shippers and 3PL providers. Chosen for its speed, versatility, and ease of use, Boomi will streamline application and data integration, helping Geekplus address logistics complexity, labor shortages, and real-time supply chain challenges in Japan’s rapidly evolving e-commerce and robotics landscape.

 Automated Guided Vehicle Market Report Snapshot

Market Segmentation:

• By Product Type (Automated Forklift, Tow Vehicles/Tractor/Tugs, Unit Load Carriers, Assembly Line Vehicles, Special Purpose AGVs, and Others): The automated forklift segment earned USD 1.21 billion in 2024, due to the rising demand for autonomous material handling in warehouses and manufacturing facilities to improve operational efficiency and safety.
• By Navigation Technology (Laser Guidance, Vision Guidance, Magnetic Guidance, Inductive Guidance, Optical Tape Guidance, and Others): The laser guidance segment held 34.80% share of the market in 2024, due to its high precision, reliability, and adaptability in complex industrial environments requiring accurate path navigation.
• By Component (Hardware, Software, and Services): The hardware segment is projected to reach USD 5.42 billion by 2032, owing to continuous advancements in sensors, motors, and batteries that enhance AGV performance and load-handling capacity.
• By Application (Logistics & Warehousing, Transportation & Distribution, Assembly, Storage & Retrieval, Packaging, and Others): The logistics & warehousing segment is anticipated to register a CAGR of 14.39% during the forecast period, due to growing e-commerce and the need for efficient inventory movement & fulfillment solutions.
• By End-user Industry (Automotive, Manufacturing, Logistics & 3PL, Food & Beverage, Healthcare & Pharmaceuticals, E-commerce, Retail, and Others): The automotive segment is anticipated to hold a market share of 22.65% in 2032, due to the high adoption of AGVs for assembly line automation and just-in-time material delivery.

Automated Guided Vehicle Market Regional Analysis

Based on region, the market is classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

Asia Pacific automated guided vehicle market share stood at around 33.20% in 2024, with a valuation of USD 1.32 billion. Asia Pacific dominates the market, driven by rapid industrialization, booming e-commerce, and increasing automation in manufacturing hubs such as China, Japan, South Korea, and India. 

The region benefits from strong government support, a robust automotive sector, and rising labor costs that push companies toward automation. Additionally, the presence of leading AGV manufacturers and growing investment in smart logistics infrastructure strengthens Asia Pacific's position as the leading contributor to the market growth.

The market in North America is poised for significant growth over the forecast period at a CAGR of 12.01%. North America is emerging as the fastest-growing region in the market, fueled by the rapid adoption of advanced technologies, growing demand for warehouse automation, and increasing labor shortages.

• In 2024, according to the International Federation of Robotics, automakers in the U.S. significantly boosted automation efforts, with industrial robot installations in the automotive sector rising by 10.7% to reach 13,700 units.

The presence of key market players, rising e-commerce activities, and significant investments in smart manufacturing further accelerate the market growth. Additionally, supportive regulatory frameworks and widespread implementation of AI, IoT, and cloud-based systems in logistics and distribution networks enhance the region’s capacity for AGV deployment across diverse industrial sectors.

Regulatory Frameworks

• In the U.S., the NIST Cybersecurity Framework helps businesses of all sizes better understand, manage, and reduce their cybersecurity risk and protect their networks & data.
• With the General Data Protection Regulation (GDPR), Europe is signaling its firm stance on data privacy and security at a time when more people are entrusting their personal data with cloud services and breaches are a daily occurrence.
• The EU Cybersecurity Act introduces an EU-wide cybersecurity certification framework for ICT products, services, and processes. Companies operating in the EU will benefit from the certification of their ICT products, processes, and services and see their certificates recognized across the European Union (EU).

Competitive Landscape

Companies operating in the automated guided vehicle industry are focusing on innovation, strategic partnerships, and modular technology to enhance efficiency and meet the rising demand for flexible automation. They are increasingly investing in R&D to develop AGVs with advanced navigation, safety, and integration features. 

Moreover, manufacturers are aligning their offerings with the evolving needs of sectors such as e-commerce, logistics, and manufacturing. Emphasis is also being placed on scalability, sustainability, and ease of deployment to cater to businesses facing labor shortages and rising operational costs.

• In March 2025, Scott Technology introduced NexBot, a next-generation AGV designed for faster, more cost-effective automation deployment. Unveiled at ProMat 2025, NexBot’s modular design allows businesses to configure features based on specific needs across warehousing, logistics, and e-commerce sectors. With seamless system integration, advanced navigation, 24/7 performance, and robust safety capabilities, NexBot emerges as a scalable, future-ready solution to rising automation demands and labor shortages in the material handling industry.

List of Key Companies in Automated Guided Vehicle Market:

• Swisslog Holding AG
• KION GROUP AG
• SSI SCHÄFER GmbH & Co KG
• Daifuku Co., Ltd.
• Hubei Baoli Technology Co., Ltd.
• SEER Robotics GmbH
• JBT
• Seegrid
• Toyota Industries Corporation
• BALYO
• ek robotics GmbH
• Kollmorgen
• E80 GROUP S.P.A.
• inVia Robotics, Inc.
• Locus Robotics

Recent Developments (Deployment/Demonstration/Expansion)

• In June 2025, Amazon announced the deployment of over 750,000 robots across its operations. These advanced systems, powered by AI and AWS cloud infrastructure, enhance safety, reduce repetitive tasks, and improve productivity. These systems support employees and accelerate order fulfillment at next-generation facilities like the new robotics-driven center in Shreveport, Louisiana, U.S.
• In March 2024, Mitsubishi Logisnext completed a successful demonstration of automated truck loading using guided forklifts, now entering real-world operations in Japan. The system addresses labor shortages and reduces truck dwell time, offering an efficient solution ahead of upcoming regulatory changes impacting driver working hours in the logistics industry.
• In February 2024, Swisslog expanded its presence in France with the launch of a new office in Lyon. This strategic move reinforces the company’s commitment to the French market, enabling closer collaboration with local businesses and customers. The Lyon office will serve as a hub for delivering tailored intralogistics automation solutions and driving regional growth.