
Global AGV Use is Expected to Rise 13.6% by 2025. How Will This Impact Your Business?
Two years ago, we wrote about the increasing impact of Automated Guided Vehicles (AGVs) in warehouses across the country. Since then, these vehicles have become even more of a fixture in warehouse order fulfillment. AGV technology offers a variety of benefits, including 24/7 reliability, increased fulfillment accuracy, consistent processing rates, elimination of product and rack damage, drastic safety improvement, reduction in labor, and lower overall costs. The global AGV market is expected to reach $5.4 billion by 2025, rising at a market growth of 13.6%… and it’s not hard to see why.
As advantageous as they’ve been since their initial arrival in warehousing operations, AGVs continue to leverage proven lift truck technology with new optical and sensor control innovations in design, configuration, and use. Here is a snapshot of the ever-evolving AGV landscape:
Where We Left Off: Current and Emerging Types of AGVs
Since their first phase of integration into warehouse operations, multiple AGV systems have emerged to meet scalable production goals, handle hazardous tasks or dangerous environments, increase operational efficiency, and offset labor shortages. The design and scope of AGV systems vary according to need, budget, space, and logistics. Some of the more common include:
- Laser-Guided Systems
- Magnetic Systems
- Natural Navigation
- Magnetic Spot Systems
- Wire-Guidance Systems
- Optical and Vision Navigation Systems

The evolution of these various control technologies results from the environment and type of task they were designed for. The variety of AGVs offered in the marketplace is becoming broader and deeper, constantly adding new innovative features.
What’s New in AGV Technology?
Pretty much everything. Rapid and consistent innovations in navigation abilities, flexible automation, maintenance options, and software capabilities are just a few of the AGV revolution factors. It’s also worth noting that more and more warehouses are taking it upon themselves to welcome and embrace this customization by changing the way they do business. Traditional AGV systems rely on lasers, inertial guidance, and magnetic tape, which means the machines move on a predetermined course. These parameters limit the AGV’s ability to maneuver in all directions. To address these limitations, AGV manufacturers have integrated new features to allow for maximum maneuverability, including:
- Simultaneous Location and Mapping (SLAM) – The process by which a mobile robot can build a map of an environment and, at the same time, use this map to compute its location.
- Light Detection and Ranging (LIDAR) – This feature allows the robot to adapt to the warehouse rather than modify the warehouse for the robot.
- Additional Features – Lasers, cameras, advanced optics, and contour guidance.
AGV equipment can be equipped with ultrasonic sensors, audible and visual operating indicators, emergency stop buttons, and contact bumpers to ensure safety to storage racks, people, and other equipment.
A Prescription for Success: The Use of AGV Across Industry Sectors
Every industry has challenges and application opportunities where AGVs can help improve throughput, reliability, accuracy, and lower costs. Of the numerous industries that have embraced AGVs in everyday warehousing operations, e-commerce fulfillment and pharma have integrated the technology most extensively. Other significant spaces in which AGVs have been deployed include automotive, retail and warehousing, electronics and electrical, general manufacturing, food, and beverage, etc. Figuring out your opportunity includes consideration of the following factors: handling task, load size, travel distance, lifting range, warehouse configuration and environment, system interface, and scalability.
The AGV market is set to explode in the next five years, and with good reason. Across most supply chain sectors, operations are realizing the advantages of AGV integration in terms of reliability, efficiency, and a method to face the labor crisis. Let Apex Automation Solutions help you explore AGV Technology. Apex Automation Solutions is an engineering designer and integrator of advanced material handling equipment such as conveyors, AGVs, ASRS, product-to-man systems, and various software technologies (pick/put-to-light, voice, vision, WCS, and WMS). We are vendor agnostic and committed to helping your business find the “best-fit improvement solution.” Leverage our knowledge to determine if AGVs make sense for your business needs.
Contact us today to speak with our material handling experts.