How Vital is Automated Guided Vehicle (AGV) in Manufacturing Industries?


According to Future Market Insights (FMI), the global automated guided vehicle (AGV) market is expected to advance at a CAGR of 7.9 per cent throughout 2021-2031. However, the market has seen a gradual rise in its year-on-year growth in 2021 by 5.4 per cent. 

The market is expecting to gain momentum as transportation and logistics firms deploy AGVs to increase the overall operational efficiency. Moreover, the benefits offered by AGV, such as decreased labour cost, increased productivity and reduction in risk of product damage while carrying goods or raw materials within industries, are thrusting the industry’s growth. 

Considering the pace, the market will be gaining from the increasing scope for applications in the production, logistics, food & beverage and healthcare industries. Also, there is a constant push for automated guided vehicles in the oil & gas, transportation, and construction industry, which will form the market’s sales outlook during the time of assessment. With improved safety standards, Armstrong’sautomatic guided vehicle systems assist in reducing operational costs and downtime, which eventually boosts profitability.

Benefits & Importance:

When choosing an Automated Guided Vehicle, its adaptability with the process management control system must be considered. Other considerations include an AGVs ability to support third-party ERP applications, communicate wirelessly, and integrate fully into an IT ecosystem. Armstrong’s strong expertise indicates the need to create a simulation of the AGV system and how it fits your facilities before making a choice.

The sense of AGVs operating in severe climatic circumstances presents tailwinds to the market’s maturity. Driven by the development of the e-commerce sector, the need for the automated guided vehicle is projected to develop significantly over the upcoming years. Amidst several technologies, AGVs are combined with laser direction technology, making them highly sought-after among various enterprises for transporting raw materials. The need can be connected to security, versatility and dependability, and accurate navigation determined by automated guided vehicles.

Automated material handling technology can provide manufacturers with many evident and measurable benefits, such as decreased operating costs and increased throughput of materials. However, at Armstrong, certain other benefits are also provided, such as:

  1. Safety

Process safety is changed by reducing the threat of people with handcarts. Over time they have discovered that the AGVs reduced product and facility damage.

  1. Material traceability

Material traceability is automatically synchronised and trailed electronically with ERP systems-improving productivity, predictability, and uniformity of material marketing efforts at a decreased cost.

  1. Manufacturing KPIs

Expanding AGVs combined in real-time with information systems in the plant presents instant clarity of the material and work-in-process issues and a record for specific key performance indicators (KPIs).

  1. Increased labour productivity

Manual material movement is not a high value-added exercise. By applying AGVs, making employees have the materials and work in process when required, increases productivity. Adaptability to alter the flow based on varying requirements enables employees to be repositioned to higher-value roles requiring more functional skills or handling complex tasks.

  1. Lower work-in-process time

Using AGVs, work-in-process time can be reduced. This improves manufacturing throughput and offers better delivery performance, increasing profitability and customer satisfaction.


Automated guided vehicle manufacturers are directing on new extension policies and additions and partnerships to obtain a tight space in the market. Growth possibilities are likely to remain positive in the market, managed by enhanced investment in research and development, especially in robotics and automation.

Backed by the paradigm shift of Industry 4.0 and projected demands, more analysis is conducted towards decentralising AGV-systems in academia while leading global manufacturers begin to take an active interest. That said, this implementation seems still in its origin.

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