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Market Overview

The Europe Automated Guided Vehicle?market was valued at USD 909.47 million in 2019?and is expected to reach USD 2095.12 million by 2025, at a CAGR of 15.88% over the forecast period 2020?- 2025. Organizations across the globe are emphasizing on reducing production costs and optimizing productivity without compromising the quality of their offerings and workplace safety, which is driving the demand for AGVs in the region. The rapid growth of E-commerce leading to warehouse automation is augmenting the market growth, and growing concerns regarding labor costs are positively influencing the AGV market growth in the region.

  • Automated guided vehicles (AGVs) have emerged as one of the most dynamic solutions in the field of material handling equipment, and are mainly deployed in warehouses and distribution centers. While 20% of the time is utilized for actual processing on product manufacturing or storing, around 80% of the time is used to move the material from one place to another or waiting for processing. As a result, logistics automation aimed to realize the material flow automatically by using AGVs.
  • According to the International Federation of Robotics(IFR), warehouse robots are the most significant growth sector in the professional service robot market, and they expect around 175,000 warehouse robotics applications to be deployed by 2019. Out of all the warehouse robotics, including indoor/outdoor, automated guided vehicles (AGVs) have dominated over 80% of the warehousing robot industry.
  • Within the EU, Germany is known for its sophisticated engineering products. It has a highly valued automobile and, electronics market. It was also one of the first countries to adopt intralogistics automation. Companies such as BMW have their own range of AGVs built in-house by recycling various used car components.
  • However, as most of the German economy is export-based, the Brexit situation is expected to hit German economy harder than the rest of the Eurozone. Higher levels of uncertainty may lead to lower consumptions, thus, negatively affecting the AGV market.



Scope of the Report


Europe is the largest producer and exporter of AGV in the world. Most of the key producers of automated material handling equipment are based in Europe. As technology requires special manufacturing expertise, all the end-users are preferring to import a completely built unit. The region’s high industrial activity, especially in the automotive sector, which is a key source of demand for AGV, makes Europe a prime region for the AGV market.

Key Market Trends


The growth of Food and Beverages Industry Along with E-commerce is Expected to Drive the Demand

  • With over 286,000 food and beverage companies operating in the region, food & beverage is one of the fastest-growing end-user sectors in Europe. According to Eurostat, almost 14.6% of household expenditure is spent on food and beverages and is expected to increase further over the forecast period.
  • According to SACE (State-controlled Export Credit Agency), Italy’s food exports are expected to increase by 5% per year on average through 2019, surpassing every other sector, supported by robust expansion in countries such as China. As the domestic demand is on the downside and most of the food business owners are small families in the country, such opportunities are expected to increase production in the region and thus the scope of automation.
  • The growing E-commerce industry in the region is another driving factor. E-commerce growth directly leads to warehouse automation for optimizing the operations hence positively influencing the market. The region’s per capita spending on E-commerce is increasing as well; for instance, according to Postnord, the UK’s average annual expenditure per capita for online shopping during fiscal 2018 stood at EUR 942.
  • The growing penetration of online shopping in the region is another contributing factor. According to Centraal Bureau voor de Statistiek, the share of consumers aged 16 to 75 years old who used online shopping in the EU-28 during fiscal 2018 stood at 60% and observed an increase of 3% compared to the previous year.



Germany is Expected to Hold the Prominent Share of the Market

  • Germany is the biggest economy in the region and considered as the industrial hub of the world, along with this, the country is home to a prominent food and beverages market. For instance, Statistisches Bundesamt, the private household consumer spending on food, beverages, and tobacco in Germany during fiscal 2018, stood at EUR 226.16 billion.
  • The country is also home to a booming retail industry. According to Statistisches Bundesamt, the country observed a +1.2% year-on-year retail revenue change in 2018, whereas online and mail-order retail saw +5.5% year-on-year revenue change.
  • The German automobile industry is another significant contributing factor which is driving the demand for AGVs in the country. According to Eurostat, the German automobile industry revenue is expected to reach EUR 457.4 billion by 2022.
  • Industrial manufacturing in the country holds a significant share of the global manufacturing industry, and the manufacturing industry across the region is expected to augment the growth of AGVs. According to Statistisches Bundesamt, manufacturing industry revenue is expected to reach USD 3,318.76 by 2023 in Germany.



Competitive Landscape


The European automated guided vehicle market is consolidated and is home to various major vendors depending on the location. The major vendors in the market garner deeper product portfolio catering to different requirements of the customers, whereas other vendors operate in niche segments providing customizations and customer-specific orders. Key players include SSI SCH?FER AUTOMATION GMBH, Grenzebach Maschinenbau GmbH, Witron Logistik+Informatik GmbH, KION Group AG, Swisslog Holding AG, etc. Recent developments in the market are -

  • August 2019 - Kion Group is going to begin construction of an industrial truck factory in Northwestern Poland, which will be located in Kolbaskowo, near Szczecin. The factory is expected to produce Linde counterbalance trucks for loads up to 3.5 tonnes, including models currently manufactured in Aschaffenburg, Germany, and Xiamen, and China.



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