High labour costs and the growing trend of automation and robotics in the vehicle industry have driven demand for automated guided vehicles (AGVs) across the globe. The lack of manpower in developed countries has led to a huge need for AGVs in myriad industries.
Apart from this, the Industry 4.0 revolution is predicted to create a paradigm shift in the global automated guided vehicle industry. In addition, the rise in preference for fully electric and hybrid vehicles with growing green energy trends across the globe has boosted the acceptance of AGVs in various sectors.
The growing penetration of AGVs in malls, hotels, software companies, pharmaceutical firms, biotech organisations, and hospitals will drive the global market trends. According to the report published by Allied Market Research, the global AGV market is set to accumulate earnings of nearly $13.52 billion by 2027.
Allocation of massive funds to innovative self-driven technologies, electrification,
and connectivity has benefitted manufacturers and suppliers of AGVs. The escalating need for key resources, robust infrastructure facilities, and the requirement of funding new ventures for developing new AGV tools have compelled players in the automotive sector to enter strategic partnerships with other players from the same industry or another business vertical.
Moreover, industry players are entering into collaborations and partnerships for increasing their regional base, product line, and business space. They are also trying to invest huge funds for expanding the manufacturing capacities of their production units along with the launching of new vehicles with additional features. This will help in increasing sales of their AGVs and garner huge revenues. The investment strategy will not only help industry players in finding new revenue streams, but will also help in reducing customer churn and customer acquisition.
Players in the global AGV industry are also acquiring new firms to
strengthen their product and technology portfolio. The strategy of acquisition has assisted them in manufacturing AGVs with newly embedded features.
Let us discuss the strategies adopted by market players to enlarge the scope of their business and ongoing and upcoming trends observed in the global AGV market.
New product launches have lucratively influenced the growth of the market. Toyota Motor Corporation, a Japanese automotive manufacturer, launched a new operating system referred to as Arene operating system that will effectively handle autonomous driving. The new operating system is predicted to help in monitoring safety systems in automotive as well as traffic information.
Furthermore, it can also control key car components such as brakes and steering wheels. The strategic move will help Toyota expand across the global self-driving vehicle industry as well as the global AGV business. Moreover, the initiative will also assist the firm in gaining a competitive edge over
its business rivals.
Strategic funding and investments are projected to assist in the massive growth of the global AGV market. The UK Government allocated funds worth £40 million for projects that will enable services of AGVs, including automated delivery vehicles. The move is aimed at creating nearly 38,000 new jobs for skilled professionals.
Furthermore, Annotell, a key firm developing software for assessing the performance of autonomous systems, raised nearly $24 million for technology that will test self-driven vehicles for enhancing their functioning. Syrius Robotics, a Chinese firm manufacturing autonomous robots for warehouses, meanwhile secured nearly $7.4 million in its Series B funding round. The strategic move is intended to expand across the AGV industry across the globe.
Continuing the trends of strategic funding and investments, VisionNav Robotics, a China-based manufacturer of industrial logistics robots, raised nearly $80 million in its Series C funding round. Reportedly, it is the
highest funding for a firm in the automotive guided vehicle market.
The funding round was led by China-based e-commerce tool Meituan and Chinese venture capital firm 5Y Capital. VisioNav Robotics has a product line of nearly nine series of self-driven autonomous automotive and robotic control tools that also included BrightEye, a smart AGV system. The move is aimed at expanding the AGV portfolio in China.
Strategic partnerships are projected to leverage the product portfolio as well as the revenue of the industry players. These business strategies are likely to make a long-term profound impact on the growth of the global automated guided vehicle market.
SoftBank Robotics America, a North American unit of Softbank, declared a strategic partnership with Autonomous Solutions Inc., a manufacturer of automated industrial ground vehicles. The plan is to enhance the production and installation of a slew of autonomous commercial service vehicles.
The market participants are adopting these business strategies for expanding their business and contributing significantly to their revenue pockets.