AGV Software Market by Offering (In-built Vehicle Software and Integrated Software), Industry (Automotive, Manufacturing, Food & Beverages, Aerospace, Healthcare, Logistics, Retail), and Geography - Global Forecast to 2023
Updated date as on-
[113 Pages Report] The AGV software market size was valued at USD 468.5 million in 2017 and is expected to be worth USD 1,046.4 million by 2023, growing at a CAGR of 14.14% during the forecast period.
The base year considered for this report is 2017, and the forecast period for the market has been considered from 2018 to 2023. The major factors that are expected to be driving the market are rising demand for automation across different industries, globalization of supply chain networks and increasing adoption of on-cloud warehouse management system (WMS) solutions. The objective of this report is to define, describe and forecast the AGV software market based on offering, industry and region.
AGV software market , by offering, in-built vehicle software to lead market during forecast period
AGVs are controlled and navigated by advanced in-built vehicle software. The central system software is responsible for the management and intelligent assignment of transport orders to individual AGVs.
The increasing digitization with the introduction of smart technologies such as Industrial Internet of Things (IIoT) and big data analytics is expected to create a positive impact on the vehicle software market during the forecast period.
AGV software market , by industry, market for food & beverages industry to register highest CAGR during forecast period
The automotive industry has been one of the key users of AGV technology. Factors such as transportation of heavy materials, growing after-sales spare parts market, increasing levels of customization in vehicles, and the need to ensure availability of components during vehicle manufacturing/assembling are driving the implementation of AGVs in the industry. An increasing installation of AGVs has also allowed several automotive companies to offset shortages of labor and costs associated with retaining them. With the growing demand for AGVs, the related software market is also growing.
By region, Europe held the largest share of AGV software market in 2017
The leading position of the European market is due to the exceptionally high labor cost in the region which pushes companies to adopt automated industrial solutions to reduce overall operational expenditures. Flourishing manufacturing and automotive industries in the region are expected to spur the demand for AGVs and related software. These industries require highly sophisticated automation and warehousing facilities to sustain in a competitive global economy. Additional factors such as presence of companies with global warehousing and distribution operations, sustained growth of the e-commerce industry, and developed third-party logistics (3PL) networks are driving the growth of the AGV software market in Europe.
The highest growth anticipated for the market in APAC is attributed to the region's fast-growing e-commerce industry, booming manufacturing sector, and numerous planned installations of AGVs in countries such as China and India.
Market Dynamics
Driver: Increasing adoption of on-cloud warehouse management system (WMS) solutions
WMSs have become increasingly sophisticated in recent years. Now, cloud computing is transforming the warehousing and supply chain industry by enabling warehouse operators manage their distribution centers more efficiently. A cloud-based WMS provides a consolidated view of the movement of goods and allows all the elements in a warehouse’s operations to be seamlessly integrated, which allows warehouse operators to track inventory more easily and ensure that necessary stock is available to fulfill customer orders. If there is any unpredicted product demand, cloud computing makes it easier to respond by enabling quick communication with suppliers and staff to procure the required stock. Cloud-based WMS software solutions reduce the cost of ownership and setup time.
Increased competitiveness, profitability, and scalability, and ease of use are some of the key factors driving the demand for on-cloud WMS solutions, and thereby the growth of the AGV software market.
Restraint: High cost of implementing and upgrading AGV systems
The overall costs associated with implementing AGV systems is high as they have varied underlying infrastructural (both hardware and software) requirements. The high cost acts as an inhibitor for the adoption of AGV systems, which may hamper the growth of the related software market; the cost of upgrading an AGV software also acts as a barrier for the market. Many small- and mid-scale enterprises (SMEs) are not able to afford these systems and hence, opt for traditional/manual materials handling. Furthermore, steep implementation cost (incurred due to hardware and software setup, testing, employee training, technology support, etc.) of high-end on premise WMS solutions is limiting these solutions’ adoption among SMEs.
Opportunity: Industrial growth in emerging economies
Strengthening economic performance of countries such as India, China, Brazil, Mexico, and Indonesia have attracted investments into improving their industrial infrastructures, and these countries are witnessing a proliferation of manufacturing facilities (of both foreign and domestic companies). This is creating the requirement for advanced and sophisticated warehousing facilities to bolster supply chains, which in turn, has opened up new growth opportunities for the AGV software market.
Challenge: Need for regularly upgrading software
Modern-day consumers are adopting newer technologies and demanding increased convenience from product companies. The increasing dynamics of supply chains present a challenge for warehousing companies to keep up with new technological changes and evolving consumer demands. To boost productivity and efficiency of order fulfillment, companies are required to constantly upgrade and scale their existing AGVs systems.
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Scope of the Report
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In this report, the market has been classified into the following segments:
AGV Software Market, by Offering:
- In-built Vehicle Software
- Integrated Software
AGV Software Market, by Industry:
- Automotive
- Manufacturing
- Food & Beverages
- Aerospace
- Healthcare
- Logistics
- Retail
- Others (Chemicals, Printing and Paper, Textile, Plastics, and Wood)
Geographic Analysis of AGV Software Market:
- North America
- Europe
- APAC
- RoW
Key Market Players
KION Group (Germany), KUKA (Germany), Toyota Industries (Japan), JBT Corporation (US), Murata Machinery (Japan), Oceaneering International (US), Kollmorgen (US), BA Systemes (France), Transbiotics (US), and Gotting (US)
KION is one of the leading players in the European industrial trucks market; it has a presence in over 100 countries worldwide. The company is also a leading supplier of automation system. Its strong R&D capabilities enable it to develop innovative products and remain at the forefront of the business by differentiating its offerings in the highly competitive market. In 2017, the company spent around 2% of its total revenue on R&D. It also focuses on partnerships and acquisitions to expand its business. For instance, in January 2018, the company entered into a strategic partnership agreement with EP Equipment (China) to acquire a minority stake in EP Equipment. This partnership is likely to help KION in expanding warehouse equipment offerings in China and across the world. Furthermore, in November May 2015, the company acquired the Handling Automation division of Egemin Automation. The company has an extensive AGV product portfolio that is supplemented by proprietary AGV software.
Recent Developments
- In January 2018, KION entered into a strategic partnership agreement with EP Equipment (China) to acquire a minority stake in EP Equipment. This partnership is likely to help KION in expanding its warehouse equipment offerings in China and across the world.
- In March 2018, KUKA formed a joint venture with Midea (China) to strengthen its business in China. As a part of it, a robot park will be built in South China's Shunde district, which will have a manufacturing capacity of 75,000 robots and AGVs by 2024.
- In July 2018, JBT Corporation acquired FTNON, a Netherlands-based company that provides equipment and solutions for fresh produce, ready meals, and pet food industries. This acquisition will provide JBT Corporation an access to the fresh cut equipment market. The company will bring robotic technology for cutting, coring, and peeling fruits and vegetables.
- In April 2018, KOLLMORGEN announced plans to launch its newest motion solutions for robot designing for engineers and manufacturers at the 2018 AUVSI XPONENTIAL SHOW. The proposed motion solutions (including advanced servo, frameless, and stepper motors) are expected deliver high-power density, optimized packaging, and increased precision critical to building superior robots. These motors’ application areas cover robotic arms and joints, collaborative robots, medical robots, and AGVs such as mobile picking/sorting robots, carts, tuggers, and self-driving forklifts.
- In June 2018, BA Systemes received a contract from Castel Group (France) to automate its warehouse at Blanquefort, France. BA Systemes will provide completely integrated handling solutions, including AGVs.
Key Questions Answered
- What are the factors that will impact the overall market in the coming years?
- Which are the key players in the market and how intense is the competition?
To speak to our analyst for a discussion on the above findings, click Speak to Analyst
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Table of Contents
1 Introduction (Page No. - 14)
1.1 Study Objectives
1.2 Definition
1.3 Study Scope
1.3.1 Markets Covered
1.3.2 Years Considered
1.4 Currency
1.5 Limitations
1.6 Market Stakeholders
2 Research Methodology (Page No. - 17)
2.1 Research Data
2.1.1 Secondary Data
2.1.1.1 List of Major Secondary Sources
2.1.1.2 Secondary Sources
2.1.2 Primary Data
2.1.2.1 Primary Interviews With Experts
2.1.2.2 Key Data From Primary Sources
2.1.2.3 Key Industry Insights
2.1.2.4 Breakdown of Primaries
2.1.3 Secondary & Primary Research
2.2 Market Size Estimation
2.2.1 Bottom-Up Approach
2.2.1.1 Approach for Capturing Market Size By Bottom-Up Analysis (Demand Side)
2.2.2 Top-Down Approach
2.2.2.1 Approach for Capturing Market Size By Top-Down Analysis (Supply Side)
2.3 Data Triangulation
2.4 Research Assumptions
3 Executive Summary (Page No. - 26)
4 Premium Insights (Page No. - 30)
4.1 Lucrative Opportunities in Market
4.2 Market, By Offering
4.3 Market in APAC
4.4 Market, By Country/Region
5 Market Overview (Page No. - 33)
5.1 Introduction
5.2 Market Dynamics: Market
5.2.1 Drivers
5.2.1.1 Rising Demand for Automation Across Different Industries
5.2.1.2 Globalization of Supply Chain Networks
5.2.1.3 Increaasing Adoption of On-Cloud Warehouse Management System (WMS) Solutions
5.2.2 Restraints
5.2.2.1 High Cost of Implementing and Upgrading AGV Systems
5.2.3 Opportunities
5.2.3.1 Integration of Advanced Features Such as Industry 4.0, Industrial Internet of Things (IIoT), Big Data Analytics, and Cloud Computing
5.2.3.2 Industrial Growth in Emerging Economies
5.2.4 Challenges
5.2.4.1 Need for Regularly Upgrading Software
5.2.4.2 Real-Time Technical Glitches
5.3 Industry Trends
5.3.1 Value Chain Analysis
5.3.2 Strategic Benchmarking
6 AGV Software Market, By Offering (Page No. - 39)
6.1 Introduction
6.2 In-Built Vehicle Software
6.2.1 Management Software
6.2.2 Navigation Software
6.3 Integrated Software
6.3.1 On-Premise
6.3.2 On-Cloud
7 AGV Software Market, By Industry (Page No. - 46)
7.1 Introduction
7.2 Automotive
7.2.1 Automotive Industry to Hold Largest Share of AGV Software Market During Forecast Period
7.3 Manufacturing
7.3.1 AGVs Help in Reducing Production Costs and Improving Quality of Goods in the Manufacturing Industry
7.4 Food & Beverages
7.4.1 Food & Beverages Industry to Grow at Highest CAGR in Market During Forecast Period
7.5 Aerospace
7.5.1 AGVs Provide Intelligent Material Handling Solutions That Improve Production Efficiency in the Aerospace Industry
7.6 Healthcare
7.6.1 AGVs are Suitable for Handling Medical Products to Reduce Risk of Contamination
7.7 Logistics
7.7.1 AGVs Help the 3PL Providers for Handling Large Inventories in Warehouses
7.8 Retail
7.8.1 Growth of E-Commerce Drives the Market for AGV Software
7.9 Others
8 Geographic Analysis (Page No. - 60)
8.1 Introduction
8.2 North America
8.2.1 US
8.2.1.1 US is the Major Contributor for Market in North America
8.2.2 Canada
8.2.2.1 Canada is Second Largest Market for AGV Software in North America
8.2.3 Mexico
8.2.3.1 Proximity to US and Canada is Attracting Companies to Set Up Their Production and Warehousing Facilities in Mexico
8.3 Europe
8.3.1 UK
8.3.1.1 UK is Expected to Register the Largest Growth Rate for Market in Europe During the Forecast Period
8.3.2 Germany
8.3.2.1 Germany is the Largest Market for AGV Software in Europe
8.3.3 France
8.3.3.1 The Rise in Retail and E-Commerce Sector is Leading to the Growth of Market in France
8.3.4 Rest of Europe
8.4 APAC
8.4.1 China
8.4.1.1 China is Dominating the Market in APAC
8.4.2 Japan
8.4.2.1 Automotive Industry is One of the Primary Users of AGV Software in Japan
8.4.3 India
8.4.3.1 India is Witnessing Remarkable Developments in the Market in APAC Region
8.4.4 Rest of APAC
8.5 Rest of World (RoW)
9 Competitive Landscape (Page No. - 79)
9.1 Overview
9.2 Market Ranking of Players, 2017
9.3 Competitive Scenario
9.3.1 Product Launches/Product Extensions
9.3.2 Partnerships, Joint Ventures, and Contracts
9.3.3 Acquisitions
10 Company Profiles (Page No. - 83)
(Business Overview, Products and Services Offered, Recent Developments, SWOT Analysis, and MnM View)*
10.1 Key Players
10.1.1 Kion Group
10.1.2 Kuka
10.1.3 Toyota Industries
10.1.4 JBT Corporation
10.1.5 Murata Machinery
10.1.6 Oceaneering International
10.1.7 Kollmorgen
10.1.8 BA Systemes
10.1.9 Transbotics, A Scott Company
10.1.10 Götting
10.2 Other Important Players
10.2.1 Seegrid Corporation
10.2.2 Savant Automation
10.2.3 Konecranes
10.2.4 SAP
10.2.5 Oracle
10.3 Key Innovators
10.3.1 Motum N.V.
10.3.2 3PL Central
10.3.3 Microlistics
10.3.4 Synergy Logistics
10.3.5 Addverb Technologies
*Details on Business Overview, Products and Services Offered, Recent Developments, SWOT Analysis, and MnM View Might Not Be Captured in Case of Unlisted Companies.
11 Appendix (Page No. - 108)
11.1 Discussion Guide
11.2 Knowledge Store: Marketsandmarkets’ Subscription Portal
11.3 Available Customizations
11.4 Related Reports
11.5 Author Details
List of Tables (40 Tables)
Table 1 Key Players Largely Adopted Acquisition to Strengthen Their Market Positions
Table 2 AGV Software Market, By Offering, 2015–2023 (USD Million)
Table 3 Market for In-Built Vehicle Software, By Industry, 2015–2023 (USD Million)
Table 4 Market for In-Built Vehicle Software, By Region, 2015–2023 (USD Million)
Table 5 Market for Integrated Software, By Industry, 2015–2023 (USD Million)
Table 6 Market for Integrated Software, By Region, 2015–2023 (USD Million)
Table 7 Market, By Industry, 2015–2023 (USD Million)
Table 8 Market for Automotive Industry, By Offering, 2015–2023 (USD Million)
Table 9 Market for Automotive Industry, By Region, 2015–2023 (USD Million)
Table 10 Market for Manufacturing Industry, By Offering, 2015–2023 (USD Million)
Table 11 Market for Manufacturing Industry, By Region, 2015–2023 (USD Million)
Table 12 Market for Food & Beverages Industry, By Offering, 2015–2023 (USD Million)
Table 13 Market for Food & Beverages Industry, By Region, 2015–2023 (USD Million)
Table 14 Market for Aerospace Industry, By Offering, 2015–2023 (USD Million)
Table 15 Market for Aerospace Industry, By Region, 2015–2023 (USD Million)
Table 16 Market for Healthcare Industry, By Offering, 2015–2023 (USD Million)
Table 17 Market for Healthcare Industry, By Region, 2015–2023 (USD Million)
Table 18 AGV Software Market for Logistics Industry, By Offering, 2015–2023 (USD Million)
Table 19 Market for Logistics Industry, By Region, 2015–2023 (USD Million)
Table 20 Market for Retail Industry, By Offering, 2015–2023 (USD Million)
Table 21 Market for Retail Industry, By Region, 2015–2023 (USD Million)
Table 22 Market for Others, By Offering, 2015–2023 (USD Million)
Table 23 Market for Others, By Region, 2015–2023 (USD Million)
Table 24 Market, By Region, 2015–2023 (USD Million)
Table 25 Market in North America, By Country, 2015–2023 (USD Million)
Table 26 Market in North America, By Offering, 2015–2023 (USD Million)
Table 27 Market in North America, By Industry, 2015–2023 (USD Million)
Table 28 Market in Europe, By Country/Region, 2015–2023 (USD Million)
Table 29 Market in Europe, By Offering, 2015–2023 (USD Million)
Table 30 Market in Europe, By Industry, 2015–2023 (USD Million)
Table 31 Market in APAC, By Country/Region, 2015–2023 (USD Million)
Table 32 Market in APAC, By Offering, 2015–2023 (USD Million)
Table 33 Market in APAC, By Industry, 2015–2023 (USD Million)
Table 34 Market in RoW, By Region, 2015–2023 (USD Million)
Table 35 Market in RoW, By Offering, 2015–2023 (USD Million)
Table 36 Market in RoW, By Industry, 2015–2023 (USD Million)
Table 37 Market Ranking for Market, 2017
Table 38 Product Launches/Product Extensions, 2016 –2018
Table 39 Partnerships, Joint Ventures, and Contracts, 2018
Table 40 Acquisitions 2015-2018
List of Figures (41 Figures)
Figure 1 Research Design
Figure 2 Market Size Estimation Methodology: Bottom-Up Approach
Figure 3 Market Size Estimation Methodology: Top-Down Approach
Figure 4 Data Triangulation
Figure 5 Assumptions of Research Study
Figure 6 Market, 2015–2023
Figure 7 In-Built Vehicle Software to Lead AGV Software Market During Forecast Period
Figure 8 Market for Food & Beverages Industry to Register Highest CAGR During Forecast Period
Figure 9 Europe Held Largest Share of Market in 2017
Figure 10 Market in APAC to Grow at the Highest Rate During the Forecast Period
Figure 11 In-Built Vehicle Software to Lead AGV Software Market During Forecast Period
Figure 12 China Held Largest Share of Market in APAC in 2017
Figure 13 US Held Largest Share of Market in 2017
Figure 14 Market Dynamics
Figure 15 Value Chain Analysis: Major Value Added During Design and Development Phase
Figure 16 Market, By Offering
Figure 17 In-Built Vehicle Software to Dominate AGV Software Market Throughout Forecast Period
Figure 18 Europe to Hold Largest Share of Market for In-Built Vehicle Software During Forecast Period
Figure 19 North America to Hold Largest Share of Market for Integrated Software During Forecast Period
Figure 20 Market, By Industry
Figure 21 Automotive Industry to Hold Largest Share of Market During Forecast Period
Figure 22 Europe to Hold Largest Share of Market for Automotive Industry During Forecast Period
Figure 23 APAC to Register Highest CAGR in Market for Food & Beverages Industry During Forecast Period
Figure 24 Europe to Occupy Largest Share of Market for Logistics Industry in 2018
Figure 25 Market, By Region
Figure 26 Geographic Snapshot: Market
Figure 27 Market in North America
Figure 28 Snapshot of Market in North America
Figure 29 Market in Europe
Figure 30 Snapshot of in Europe
Figure 31 Market in APAC
Figure 32 Snapshot of Market in APAC
Figure 33 Market in RoW
Figure 34 Snapshot of Market in RoW
Figure 35 Growth Strategies Adopted Over Past Three Years (2015–2018)
Figure 36 Kion Group: Company Snapshot
Figure 37 Kuka: Company Snapshot
Figure 38 Toyota Industries: Company Snapshot
Figure 39 JBT Corporation: Company Snapshot
Figure 40 Murata Machinery: Company Snapshot
Figure 41 Oceaneering International: Company Snapshot
Growth opportunities and latent adjacency in AGV Software Market