AGV Software Market Forecast to Reach $2.6 Billion by 2026

AGV Software Market is forecast to reach $2.6 billion by 2026, growing at a CAGR of 14.2% from 2021 to 2026. The AGV Software Market is estimated to witness sustainable growth over the forecast period majorly because Automated Guided Vehicles (AGVs) are widely utilized for transporting materials around the warehouse or the factories which is needed to be monitored and controlled at regular intervals. To achieve these monitoring and controlling requirements, AGV Software is used.

It is primarily divided into three types, namely, Fleet Management software, Navigation software and Mapping software which are either in-built in AGVs or constitute integrated software along with warehouse management systems.

With the growing demand for automation and Industrial Internet of Things (IIoT) across various industries and rising adoption of on-cloud warehouse management system solutions, the global AGV Software Market is rising at a rapid pace over the next few years. However, high initial costs associated with software deployment integrated with big data analytics is expected to restrain the market growth of AGV Software.

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AGV Software Market Segment Analysis - By Installation

In-built Software has dominated the AGV Software Market as compared to the Integrated Software with a share of 79.5%. The central system software is responsible for the management and intelligent operation of transport orders in individual AGVs. In-built AGV Software works in accordance with single central system software which carries out all processes required in a warehouse. It offers ease in operation and maintenance with great accuracy and efficiency in transporting products from one location to other. With the increasing digitalization and with the introduction of smart technologies such as Industrial Internet of Things (IIoT) and big data analytics in warehouse management systems, In-built software is expected to create a positive impact on the Automated Guided Vehicle Software Market during the forecast period. On the other hand, AGVs with Integrated Software are costlier than In-built Software which restrain their market growth.

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AGV Software Market Segment Analysis - By End Use Industry

AGV Software is widely used in Logistics sector accounting for 33.5% share of the market in 2020. One of the major reasons for boost in market of AGV Software in Logistics sector is because of its requirement in almost every part of Logistics process starting from Assembly, Packaging, Sorting and Storage as AGV offers automated transportation feature to the Warehouse Management Systems. Products are needed to be transported in warehouse premises which are easily carried out by AGVs. Automated Guided Vehicles provides many advantages in Logistics sector such as it reduces labor costs, they eliminate damage to structures and products, they increase workplace safety and lower costs, they are less expensive than fixed automation systems, they reduce utility costs and they increase inventory efficiency and accuracy. These advantages tend to bring the pace in the market growth of AGV Software in Logistics sector.

AGV Software Market Segment Analysis - By Geography

North America accounts for the highest market among all the regions at 35.1% in 2020. The market growth in this region is predominantly rising due to leading economies such as United States, Canada and Mexico. Due to the growing demand for automation and IIoT across various industries and rising adoption of on-cloud warehouse management system solutions has brought a major pace in the AGV Software Market growth. With the increasing industrialization in Logistics and Automotive sector in North America, the demand for Automated Guided Vehicles has been exponentially rising in this region. According to World Trade Organizations (WTO), North America has shown a major growth and remains highest in the logistics sector by importing and exporting merchandise to foreign market as compared to other regions. This has brought a major pace in the uplift of AGV Software Market in this region. During the Covid-19 pandemic, North America remained at the top in balancing its economic status in global market. North America is closely followed by Europe and Asia-Pacific in the AGV Software Market.

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AGV Software Market Drivers

Rise in Technology Advancement drives market growth

With the increasing demand for automation across various industries and rising adoption of on-cloud warehouse management system solutions, there has been a rapid adoption of Automated Guided Vehicles to handle monitoring and controlling feature by Warehouse Management Systems. With the advancing technologies, the developments of AGVs by Integrated software has been a major trend in the AGV Software Market. With the introduction of AGV Navigation Software and AGV Mapping Sofware over traditional AGV Fleet Management Software has been a recent trend in AGV Software Market. Introduction of Magnetic Navigation for various light-duty AGVs which typically uses magnetic tape for the guide path has been a recent development in AGV Software Market. The recent introduction of AGV Mapping Software benefits the Warehouse Management Systems such as maps-out the application area, makes a selection of reliable contours to ensure stable navigation, creates the routes and functionalities and translates all information into Fleet Management software.

Increasing adoption of on-cloud Warehouse Management System (WMS) solutions

Warehouse Management System (WMS) has become increasingly advanced in recent years. Now, cloud computing and IIoT is transforming the warehousing operations and supply chain industry by enabling warehouse operators to manage their distribution centres more efficiently. A cloud-based WMS provides a merged view of the movement of products and allows all the elements in a warehouse’s operations to be seamlessly integrated and monitoring features. This allows warehouse operators to track inventory more easily and ensure that necessary stock is available to satisfy customer orders. If there is any bulky 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 transporting time with the help of AGVs. These features increase the adoption of On-cloud WMS Solutions which further enhances the AGV Software Market growth.

AGV Software Market Challenges

High Installation cost and Impact of Covid-19

One of the major challenges faced by AGV Software Market globally is the high installation cost of AGV Software. In many warehouse locations, the processes are still carried out by workers which increases the work time and is less efficient as compared to other warehouses where majority of processes are carried out by automated systems. Due to ongoing developments, the installation costs of AGV Software have been increasing rapidly. This bring major challenges for the small or mid-sized warehouses in attaining an efficient Warehouse Management Systems. This hinders the market growth of AGV Software. The current pandemic situation of Covid-19 also hinders the market growth globally as majority of warehouses and Logistics solutions have suspended their work. This has brought a major challenge in demand for AGV Software in majority of the end-use industries thus affecting its market growth.

AGV Software Market Landscape

Product launches, acquisitions, and R&D activities are key strategies adopted by players in the AGV Software Market. The AGV Software Market is dominated by major companies such as 3PL Central, Addverb Technologies, BA Systemes, JBT Corporation, Kion Group, Kollmorgen, Konecranes, Kuka, Microlistics, Bastian Solutions, Murata Machinery, Oceaneering International, Oracle and SAP.

Acquisitions/Technology Launches/Partnerships

In December 2020, Bastian Solutions launched a new drone for automation of various logistics processes in their supply chain. From simple technologies such as Pick to Light or AGVs or GTP systems (Products transported to People), these drones can be used in processing.

In November 2019, KOLLMORGEN, a leading automation supplier launched the second generation AKM2G servo motors, expanding its new range for applications in the low voltage range. The specialist in servo drive technology and Motion Control is responding to increased demand for AKM2G motors for AGVs, robotics, and medical technology.

Key Takeaways

The AGV Software Market is estimated to witness a sustainable growth over the forecast period because of the growing demand for automation across various industries and rising adoption of on-cloud warehouse management solutions.

AGV Software offers integration of business processes involved in supply chain management, coordinating a company’s network of suppliers, factories and trading partners. It helps in monitoring and controlling the transportation of products in wide range.

Increasing demands of productivity and reduced labor costs are the key factors that are driving the need for AGVs in various industries. The demand for AGVs is expected to grow owing to increasing automation in industries. Increasing industrialization and Industrial Internet of Things (IIoT) has led to the continuous need for customized material handling and transport solutions for fuel efficiency.

AGV software helps in monitoring and controlling minimum in-process inventory management solutions in warehouse management systems or factories in an easy way. This reliability propels the market growth of AGV Software Market.

Related Reports :

A. Automated Guided Vehicle Market
https://www.industryarc.com/Report/10609/automated-guided-vehicles-market.html

B. Automated Material Handling Market
https://www.industryarc.com/Report/15492/automated-material-handling-market.html

For more Electronics Market reports @ https://www.industryarc.com/Domain/9/electronics-market-research-report.html

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