Report Overview

An increasing focus on safety, accuracy, and productivity, and surge in demand for automation and automated guided vehicles (AGVs) are projected to propel the expansion of the Australia automated guided vehicle (AGV) Market during the forecast period between 2023 and 2029.

Australia Automated Guided Vehicle (AGV) Market - Industry Trends & Forecast Report, 2029

Australia automated guided vehicle (AGV) market size was estimated at USD 177 million in 2022. During the forecast period between 2023 and 2029, the size of Australia automated guided vehicle (AGV) market is projected to grow at a CAGR of 9.65% reaching a value of USD 337.3 million by 2029. Major growth drivers for the Australia automated guided vehicle (AGV) market include an increasing pace of modernization and globalization and rising adoption of the latest technology across various sectors. Notably, the global demand for AGVs is on the rise, owing to their attributes such as flexible route mapping, easy implementation, high precision, and scalability. Also, the market is witnessing rising demand, primarily propelled by industrial automation, which is effectively reducing inventory damages and elevating material handling efficiency within production facilities. Another driving force is the continuous increase in R&D investments and the growing number of production facilities worldwide. For instance, Lactalis Australia is expanding its automated guided vehicle (AGV) fleet to enhance warehouse operations at its Lidcombe location in New South Wales. This investment in a fifth AGV enables increased automation throughout the warehouse. These AGVs can efficiently collaborate in different areas to retrieve goods, streamlining Lactalis' operations. They play a vital role in supporting the Australian dairy industry's growth, managing pallets in the warehouse, and ensuring precision and safety with sensors and laser scanners. AGVs operate at high speeds and can handle heavy loads, contributing to the company's mission to promote quality dairy production in Australia.

Australia Automated Guided Vehicle (AGV) Market – Overview

Australia automated guided vehicle (AGV) market refers to the sector within Australia's industrial automation industry that focuses on the design, manufacturing, deployment, and utilization of AGVs. AGVs are autonomous, wheeled robotic vehicles equipped with navigation and control systems, sensors, and other technologies. They are designed to perform various material handling and transportation tasks within warehouses, manufacturing facilities, and other industrial settings without human intervention. The AGV market in Australia involves the production, distribution, and implementation of these self-guided vehicles, which are used to improve operational efficiency, reduce manual labor, and enhance safety in logistics and material handling processes across different industries in the country.

Australia Automated Guided Vehicle (AGV) Market

Growth Drivers

Increasing Focus on Safety, Accuracy, and Productivity

Australia automated guided vehicle (AGV) market is experiencing significant growth driven by an increasing emphasis on safety, accuracy, and productivity across industries. AGVs, autonomous robotic vehicles, are increasingly adopted to streamline material handling, reduce human error, and enhance workplace safety. Their precision in tasks such as inventory management and the ability to operate around the clock contribute to increased productivity. As businesses across Australia recognize the benefits of AGVs, the market witnesses sustained expansion, aligning with the broader trend of automation in manufacturing, warehousing, and logistics, ultimately leading to improved operational efficiency and safety.

Restraints

High Initial Costs

Implementing AGV systems involves substantial capital expenditure, including the purchase of AGVs, necessary infrastructure modifications, and integration with existing systems. While AGVs offer long-term benefits in terms of increased efficiency and reduced labor costs, these upfront expenses can deter some businesses, particularly smaller enterprises, from adopting the technology. Overcoming this hurdle may require offering cost-effective solutions, financing options, or demonstrating the long-term return on investment to make AGVs more accessible to a broader range of industries.

Impact of COVID-19 on Australia Automated Guided Vehicle (AGV) Market

COVID-19 pandemic had a dual impact on the Australia automated guided vehicle (AGV) market. Pandemic-driven advancements in navigation technology played a vital role in the development and adoption of AGVs for various applications, including warehouse management, transportation, and manufacturing in industries like food, pharmaceuticals, and chemicals. AGV manufacturers and service providers have shown a particular interest in four navigation technologies: laser-guided, vision-guided, natural navigation, and magnetic navigation. Moreover, the rise of Industry 4.0 has increased the demand for logistics automation. This has made AGVs essential in optimizing production capabilities, particularly in the logistics sector, where the need for efficiency and safety has surged due to the pandemic.

Escalating Geopolitical Tensions in Oil-rich Regions

The raging wars between Russia-Ukraine and Israel and Hamas, a Palestine-based militant and nationalist organization, send shockwaves across various industries, particularly oil & gas, transcending geographic boundaries and affecting businesses globally. The conflict between Israel-Hamas has been a longstanding, deeply entrenched geopolitical issue. On October 07, 2023, Hamas, in a surprise and heavy attack, struck Israel with thousands of rockets and infiltrations killing more than 1,100 people. In response, the prime minister of Israel declared war against Hamas and anticipated that the war would be ‘long and difficult.’ The United States has sent its warships and aid to Israel and stated that its citizens were killed in the war. The prolonging war in West Asia and escalating the Middle East will affect industries across verticals and regions. Energy is one of the adversely affected industries by these wars. The Middle East, including Israel, is a vital hub for oil production and transportation. Any disturbance in the Middle East region instantly raises concerns about oil supply disruptions, leading to increased oil prices worldwide. For example, oil prices increased by more than 4.5% or more than USD 4 a barrel in Asia trade on October 09, 2023. Brent crude surged USD 4.18, or about 5%, to USD 88.76 a barrel, meanwhile the US West Texas Intermediate crude was up more than 5% or USD 4.23 at USD 87.02 a barrel. This spike in oil and energy costs will have a domino effect on multiple industries. Companies in the Australia automated guided market and users of AGV's face the brunt of rising fuel prices, which significantly inflate their operational expenses. Volatile and higher diesel prices could affect the cost of production and transportation, potentially affecting industries that rely on AGVs.

Australia Automated Guided Vehicle (AGV) Market

Segmental Coverage

Australia Automated Guided Vehicle (AGV) Market – By Type

Based on type, the Australia automated guided vehicle (AGV) market is divided into Tow vehicles, Unit load carriers, Pallet trucks, Assembly line vehicles, and Forklift Trucks segments.

Australia Automated Guided Vehicle (AGV) Market – By Navigation Technology

Based on navigation technology, the Australia automated guided vehicle (AGV) market is divided into Laser guidance, Magnetic guidance, Inductive guidance, Optical tape guidance, and Vision guidance segments. The magnetic guidance segment holds the highest share in the Australia automated guided vehicle (AGV) market by navigation technology due to its exceptional precision and accuracy. This prominence can be attributed to the outstanding precision and accuracy offered by magnetic guidance systems. AGVs equipped with magnetic guidance technology are capable of navigating with remarkable reliability, making them a preferred choice in settings where precise movement and alignment are crucial. Industries across Australia have recognized the value of this technology in optimizing their material handling operations, contributing to its leading market share within the AGV navigation technology landscape.

Australia Automated Guided Vehicle (AGV) Market – By Application

Based on application, the Australia automated guided vehicle (AGV) market is divided into Transportation, Distribution, Storage, Assembly, Packaging, and Waste Handling segments. The transportation segment holds the highest share in the Australia automated guided vehicle (AGV) market by application. In the country, there is a burgeoning need for efficient and automated material handling and logistics solutions to support the continuous growth in e-commerce, manufacturing, and warehouse operations. AGVs offer a cost-effective and highly reliable way to streamline transportation processes, enhance accuracy, and reduce operational risks. Additionally, AGVs are well-suited for moving goods within and between various facilities, aligning perfectly with the logistics and transportation demands of this dynamic and rapidly expanding market, thus contributing to the segment's substantial market share. Meanwhile, the assembly segment is expected to witness the fastest growth rate during the forecast period. This was primarily driven by the increasing need for economical assembly solutions across diverse industries.

Australia Automated Guided Vehicle (AGV) Market – By End User

On the basis of end user, the Australia automated guided vehicle (AGV) market is divided into Automotive, Manufacturing, Food & Beverages, Aerospace, Healthcare, Logistics, and Retail segments. The manufacturing segment holds the highest share in the Australia Automated guided vehicle (AGV) market by end use. Manufacturing facilities often require the efficient movement of raw materials, work-in-progress items, and finished products within their operations. AGVs offer a reliable and cost-effective solution for automating material handling tasks, ensuring streamlined workflows and minimal downtime. Their precise navigation, ability to work alongside human employees safely, and adaptability to a variety of manufacturing environments make AGVs highly suitable for this sector. As a result, the manufacturing industry has been a prominent adopter of AGV technology, contributing to its dominant share in the global AGV market.

Competitive Landscape

Major players operating in the Australia automated guided vehicle (AGV) market include Scott Technology Limited, Daifuku Co., Ltd., Seegrid Corporation, Jungheinrich AG, Dematic Pty Ltd, SmartTrans Holdings Limited, Actemium Pty Ltd, Robotic Automation Pty Ltd, SSI SCHAEFER, and Transbotics Corporation. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2023 - Dematic's Australian division introduced third-generation automated guided vehicles (AGVs) that are designed for use in freezer environments, including high-reach and counterbalance models. These AGVs, entirely manufactured in Australia, can operate in temperatures as low as -25°C. Dematic highlights the advantages of using AGVs in cold storage facilities, such as improved safety and efficiency compared to human workers who require regular breaks outside the freezer. These AGVs comply with Australian safety standards, offering a clear framework for ensuring the safety of both manufacturers and operators. Dematic is a part of the KION Group and is one of the few global suppliers of freezer-rated AGVs.

• In January 2023 - Scott Technology secured contracts valued at over USD 30 million in Australia, China, and the United States. These contracts are in addition to the previously announced USD 190 million in contracted forward work. In the United States, a USD 14-million partnership with Costco Wholesale was signed to supply poultry trussing machines, with plans for an official launch at the International Production and Processing Expo. Scott's Transbotics division also secured AGV contracts with Microsoft, Novelis, and Gulfstream.

Scope of the Report

By Type

• Tow Vehicles

• Unit Load Carriers

• Pallet Trucks

• Assembly Line Vehicles

• Forklift Trucks

By Navigation Technology

• Laser Guidance

• Magnetic Guidance

• Inductive Guidance

• Optical Tape Guidance

• Vision Guidance

By Application

• Transportation

• Distribution

• Storage

• Assembly

• Packaging

• Waste Handling

By End User

• Automotive

• Manufacturing

• Food & Beverages

• Aerospace

• Healthcare

• Logistics

• Retail